Report proposes route to long-term recovery

A new 77-page document details the steps required to address the economic challenges Scotland faces as it recovers from the Covid-19 pandemic.

Increased access to capital investment to support the economy and the creation of jobs at an “unprecedented rate” are among the measures called for the Scottish Government’s independent economic advisory group, led by Benny Higgins.

Mr Higgins said that as the pandemic comes under more control, efforts must “increasingly focus” on how the economy recovers and renews itself for the long term.

The report sets out 25 recommendations, wide-ranging in scope, but covering areas including investment, employment and skills.

What are some of the key recommendations?

infrastructure installed across rural Scotland, enabling access to superfast broadband.

● Prioritisation and delivery of green investments.

The report states that the green economic recovery is “central to the recovery overall”.

Responding to climate change needs to be a “thread through every policy action” and this should be a key task of the Scottish Government’s forthcoming Infrastructure Investment Plan and the update to Climate Change Plan.

These plans should set out investments to deliver net zero emissions and for green transport infrastructure, carbon capture and storage, energy generation and storage and hydrogen, to name but a few projects.

● Tourism and hospitality.

The sectors have been hit “particularly hard” by the crisis and will “struggle” to recover quickly, the report claims.

Specific action called for in the report includes consideration of a targeted reduction in business rates for tourism venues.

Care sector review.

The Scottish Government should speed up its work on reforming adult social care and should “urgently review” the structure, funding and regulation of the sector, including workforce issues.

Stimulate investment in housing. Investment in housebuilding has been identified in the report as having an “important part to play” in supporting Scotland’s recovery, supporting jobs and contributing to social policy an climate change goals.

● Stakes in private companies. The first minister has said she would “look positively” at taking stakes in companies, following a recommendation in the report that the Scottish Government should build its capacity to take ownership stakes in private businesses.

What next?