Industrial strategy

Can divided Parliament agree vision for business

What is business to make of the election result? Does it provide certainty on the way forward? What are the implications for Brexit? Does the Prime Minister have a longterm future?

Will there be another general election?

June’s snap election provided more questions than answers and the shortterm impact on business seems at first sight to be one of further uncertainty.

At times like these, where the governing party is short of an overall majority, it is important to focus on areas where the potential for crossparty agreement, and therefore progress, exists.

One of these areas may be around an industrial strategy for the UK.

The Conservative Party had published a Green Paper on an industrial strategy in January, while the Labour Party detailed its version of an industrial strategy in its manifesto.

The Scottish National Party and the Liberal Democrats also flagged up the importance of an industrial strategy in their manifestos, as did Northern Ireland’s Democratic Unionist Party, which has emerged as a key player in the wake of the hung parliament.

There may be as many visions of what an industrial strategy should be as there are parties advocating one, but the fact that the concept has featured so prominently across the parties’ strategies during an election campaign where, otherwise, the focus on business issues was weak, to say the least.

Over the coming weeks and months, the Scottish Chambers of Commerce network will be speaking to all of Scotland’s political parties and the concept and operation of a truly UKwide industrial strategy will be high on our agenda.

Any such strategy must take full account of the fact that the responsibility for many relevant aspects of policy are taken at a devolved level in the UK’s nations and regions.

For example, businesses will benefit from coordinated strategies to improve transport connectivity or to match the supply of skills with industry demand, but most of these powers are exercised by the Scottish Parliament here in Scotland.

A UK industrial strategy must embrace the diversity that devolution presents and ensure that every part of the UK is working to help create the best possible environment for business to flourish.

Scotland cannot afford to have a second class version of an industrial strategy – instead the UK and Scottish Governments must work together to ensure all of our representatives are using their powers fully and effectively to create a Scottish approach that delivers for our businesses and our economy.

All of the parties are talking positively about an industrial strategy.

The proof of their willingness to cooperate will be their ability to deliver one that works for Scotland.

Picture: PA. Theresa May’s government published a Green Paper on an industrial strategy back in January.