Poor Scottish economy has been ‘ holding country back’
SCOTLAND is lagging behind the rest of the UK and its international rivals on a series of key economic measures.
The problems facing the economy were brought into sharp focus after a report revealed 11 out of 15 categories where scotland’s productivity was trailing behind.
it included poorer exports, weaker business investment, fewer workers taking part in training, and under-utilised staff. it also exposed continuing concerns about access to fast broadband and 4G mobile coverage.
The report, by the Confederation of British industry and business advisers KPMG, found scotland fell even further behind during the coronavirus crisis.
Tracy Black, CBI scotland director, said: ‘While the coronavirus crisis has undoubtedly thrown up new challenges for business, it has also shone a light on the fault lines lying beneath scotland’s economic performance.
‘We simply can’t afford to let this moment pass by without reflecting on the structural weaknesses holding scotland back from realising its full economic potential.
‘By addressing long-term productivity challenges, we can start to build a sustainable recovery from Covid-19 and also look ahead to the kind of economy we want for scotland.’
scotland lags behind the average UK or international position on four indicators related to business practices: investment, value of exports, business research and development spending, and number of firms described as innovators.
it also showed scotland was behind on the proportion of the workforce taking part in training and the number of firms with under-utilised staff.
Productivity was also dented by a higher than average number of days lost to sickness, while average internet speeds, access to full-fibre broadband and 4G mobile was weaker.
Key recommendations include investment in green infrastructure and transport by the UK and scottish governments, and ensuring everyone has access to grants or loans for training.
Mairi spowage, the deputy director of the Fraser of allander institute, said: ‘long before the pandemic hit, the scottish economy was locked in a persistent battle with fragile growth.
‘The best way to address that issue, and ultimately unlock scotland’s economic potential, is to utilise the broad range of fiscal and policy levers available to promote widespread productivity gains.’
Catherine Burnet, KPMG’s scotland regional chairman, said: ‘While the country grapples with the Covid-19 pandemic, underlying challenges and complexities can often be pushed down the agenda.
‘But the business community has shown that it is ready to start tackling head- on the issues that have slowed the success of our economy.
‘By working together, for better, and recognising that the challenges are universal, we can tackle both the short-term and long-term issues head-on.’
a scottish Government spokesman said: ‘We welcome this report and its recommendations, which are very much in line with our economic policy and consistent with the scottish Government’s approach to economic development.
‘We will continue to work with businesses to help address the huge challenges they face – we are determined to emerge from this crisis in as strong a position as possible to rebuild quickly and sustainably.’
‘Battle with fragile growth’