EU nationals living in the UK should have the right to vote in the referendum on whether Britain should stay in the European Union, one candidate for Scottish Labour’s leadership will say.

Kezia Dugdale will state that she strongly believes it would be unfair to exclude EU citizens from such a fundamental decision.

She is expected to claim that last September’s referendum on Scottish independence was enhanced by the participation of around 90,000 EU nationals registered to take part in the ballot.

“Put simply, I believe EU nationals who have chosen to live their life here, and make the UK their home, should have the right to vote in a referendum on the future of the country,” Dugdale will tell an audience in Glasgow.

The Lothians MSP – the Scottish party’s deputy leader – will set out her position in a keynote speech to the Scottish Fabians on Saturday afternoon, in which she will also argue that Scottish Labour has to be seen as a party with ideas for the future rather than stuck in the past.

Her address comes days after it emerged most EU citizens living in the UK will be barred from voting in the referendum.

The franchise for referendum, expected by the end of 2017, will be based on that for a general election – meaning Irish, Maltese and Cypriots resident in the UK will get a vote, but other EU citizens will not.

Dugdale will tell the audience she will be campaigning to stay in Europe and keep the “strong ties” with the UK’s neighbours.

She will say that referendums should be conducted “as inclusively and democratically as possible” and will argue that 16- and 17-year-olds should be able to vote in the EU referendum, as they did in the Scottish independence ballot.

But she will tell the audience: “I would go further. When we had our referendum in September, just under 90,000 EU nationals registered to take part and it was the better for it.

“Put simply, I believe EU nationals who have chosen to live their life here, and make the UK their home, should have the right to vote in a referendum on the future of the country.

“EU nationals make important contributions to our communities, and to our economy. The influx of talent, creativity and a different perspective of work and culture enriches our society as a whole, resulting in a more diverse and innovative society.”

Dugdale is expected to face a challenge from Labour MSP Ken Macintosh in the bid to replace the outgoing leader, Jim Murphy, who is stepping down in the wake of Labour’s crushing general election defeat.