Economic agencies to build plan to boost output

SCDI and Fraser of Allander Institute come together to tackle challenges

The Scottish Council for Development and Industry and a leading economic thinktank are joining forces to tackle the major challenges to growth north of the border.

The joint move with the Fraser of Allander Institute (FoA) comes as official GDP figures are due which will determine whether Scotland slipped back into recession in the first quarter of the year.

The FoA said this week it would be a “close run thing” whether the country had dropped back into recession in the period.

SCDI’s new chief executive Mark Bevan said there were several key weaknesses holding Scotland back.

He said SCDI would use its “convening power” to draw together the thinking and experience needed to formulate a cogent strategic response to the challenges faced in the economy.

“However you cut the data, the Scottish economy is not growing at a strong rate,” Mr Bevan said.

“The global picture has been challenging and Scotland has grappled for years with long-term issues around deindustrialisation and productivity levels that lag behind our developed counterparts.

“We have significant strengths but the challenges faced by our economy have been numerous and unprecedented. This has created one of the most difficult environments for growth to occur.

“We must however face the reality that this is ‘the new normal’ and work together to identify what we can, and should, do to put the economy to work for everyone in Scotland.”

Professor Graeme Roy, director of the Fraser of Allander Institute, said the opportunities for growth were there.

“The last two years have been a challenging period for the Scottish economy with growth lagging behind the UK,” he said.

“But whilst the economic news has been disappointing, it is important that we do not lose sight of the significant opportunities for development and growth that are out there.

“The business and wider economic community have a crucial role to play in informing the debate on the future of Scotland’s economy.

“Not only are they the ones that will get our economy moving again, but they are also uniquely placed to offer practical ideas about how to tackle the structural challenges that have held Scotland back.

“We must take full advantage of the undoubted opportunities that will continue to emerge in the months and years ahead.”

Kat Gollock. Picture: New SCDI chief executive Mark Bevan said there were several key weaknesses holding Scotland back.