Growing Scotland's Economy

Combining work to boost economic growth and increase competitiveness will help tackle inequality, according to the First Minister.

She's published the Scottish Government's Economic Strategy.

Nicola Sturgeon says her ambition is to match Scotland's productivity levels with some of the strongest economies in Europe

The strategy which focuses on investment, innovation, internationalisation and inclusive growth is aimed at reinforcing the Government's long term vision for Scotland's economy which is based on a fundamental principle - by becoming a fairer society, we will also become a more productive and more prosperous economy.

It's claimed relatively small changes in Scotland's long term economic performance could have important implications for output and employment. For example increasing Scotland’s total factor productivity by just 0.1% per annum could boost GDP by 1.3% and in turn boost employment by 11,000 and tax revenue by £400 million a year after 10 years.

The First Minister, Deputy First Minister and Cabinet Secretary for Fair Work launched the strategy on a visit to a successful Scottish business, Calnex Solutions in Linlithgow.

Speaking at Calnex Solutions First Minister Nicola Sturgeon said: “Scotland’s economic recovery is now well established: our economy has grown continuously for two years, GDP is above pre-recession levels and the economic outlook is the strongest it has been for many years.

“The Scottish Government wants to create a stable and balanced economy that is outward looking, confident, innovative, based on the core strengths of our people and supported by investment.

“Today’s strategy draws on international evidence and is endorsed by independent experts. It offers a vision, not just of our economy, but also of our society, which I believe will command wide support from businesses, the trade unions, the third sector and many others. And it sets out the policies and measures which will help to achieve that vision.

"By taking action to increase exports, build on our historic reputation for innovation, invest in infrastructure from child care facilities to broadband and create more inclusive growth through fair work we can take Scotland's economic competitiveness to the next level.

"We have significantly reduced the gap in productivity between Scotland and the UK since 2007. I now want to see Scotland match the productivity levels of the strongest economies in Europe. And as our Strategy also makes clear, we believe it is vital Scotland maintains its place in the European Union, with access to the biggest free trade zone in the world and to more than half a billion potential customers for Scottish goods and services.

“All of us know that Scotland is a country of vast potential. We have a strong international reputation; great natural resources; and the most highly educated workforce in Europe. It is time to stop inequality from holding us back. Instead, we must help individuals and companies to flourish, in every part of the country."

Responding to the First Minister’s announcement of the Scottish Government’s new economic strategy, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said: "The STUC enthusiastically welcomes the strong commitment to tackling inequality which infuses the 'refreshed' Government Economic Strategy.
 
"The GES is also improved and strengthened by the introduction of fair work as a key priority. Other positive aspects include the new approach to measuring outcomes and the desperately needed Business Development Bank. It is also heartening to observe the Scottish Government quietly dropping its longstanding commitment to deep, blanket corporation tax cuts in favour of a much more nuanced approach.
 
"However, it is disappointing that many of the factors contributing to rising inequality - such as the falling numbers of workers covered by collective agreements and the scale and power of the financial sector - are largely ignored. The strategy is also somewhat light on specific polices to hasten reindustrialisation.
 
“We look forward to working with the Scottish Government and its agencies in developing and implementing the specific actions required to create the more equal and successful economy the strategy aims to achieve.”