Economy needs helping hand

The latest figures on Scotland’s economy show that it was growing in the lead-up to the European Union referendum.

Despite all the pressures of uncertainty caused by the vote, the low oil price and weak global demand, our economy still showed its best performance since the start of 2015. Of course, the level of growth was modest and the Scottish Government is absolutely aware of the challenges businesses are facing.

But our economy has fundamental strengths that I will never be afraid to talk up. We continue to see success stories across a range of sectors like life sciences, energy, food and drink and despite the recent tough times, oil and gas. Our companies are engaged in some worldleading innovation and we are working together to drive up productivity.

To build on this success, we need a concerted effort from all levels of government. So it was disappointing to see UK politicians last week suggesting that the Scottish Government is not talking the Scottish economy up, or using the powers we have.

The two central points of our approach is to champion our economy, and to focus on what we can do to support it. That doesn’t mean hiding from the hard truths about the Uk-wide vote to leave the EU.

There is no doubt that being taken out of the EU and the single market would risk real damage to our economy. That is why we have made retaining membership a key priority.

But while the Scottish Government is pushing that agenda hard, we are also acting to support our economy now. We are establishing a £500 million Scottish Growth Fund, which will help companies access capital through guarantees and loans. And we are injecting £100m through a capital stimulus package to keep the economy moving and protect jobs.

These are substantial measures, demanded by exceptional circumstances. They demonstrate our willingness to act within the powers we have.

Instead of using the positive PMI figures to criticise the Scottish Government, it would surely be a more constructive approach if the UK government could follow our lead.

For example, I have consistently called for a capital investment stimulus package at a UK level to add to the additional investment we are bringing forward. I would be happy to work with my UK government counterparts on how that could work for Scotland.

We are yet to see a positive response, but I hope it will be forthcoming. With positive action like this we can manage the uncertainty caused by the EU referendum vote and protect jobs – building on the encouraging growth we saw in the build-up to vote.

I hope the UK government will recognise that and act – either in the Autumn Statement as a minimum, but preferably sooner than that. ● Keith Brown is Cabinet Secretary for Economy, Jobs and Fair Work.