MSPS call for an urgent overhaul of economic strategy
MSPS have demanded an urgent overhaul of the Scottish Government’s economic strategy.
As well as multiple long-term challenges facing the country’s businesses, Holyrood’s economy committee said ministers had to update their plans in anticipation of Brexit.
The cross-party group also said it was worried about the Government’s ability to measure the impact of its policies on growth, and recommended enterprise agencies be “much more clearly focused” on delivery, and pursue a consistent definition of inclusive growth. It said there appeared to be a particular problem with small companies scaling up in size that needed to be overcome.
The 10-year-old strategy is focused on sustainable investment in people and infrastructure; innovation and research; inclusive growth; and international profile.
The Scottish Fiscal Commission has predicted GDP growth below 1 per cent for five years, and recently revised down tax forecasts by £1.7 billion over that period.
Convener Gordon Lindhurst said: “Economic growth in Scotland over the last 10 years is significantly below Scottish Government targets and there is no doubt the Scottish economy is facing a challenging set of circumstances. We have a resilient labour market and a strong business community, but we need to encourage more entrepreneurship as well as ambition within existing businesses in order to strengthen productivity.”
Labour MSP Jackie Baillie said the SNP had failed to grow the economy properly.
She said: “Under the Nationalists, growth has been significantly lower than the rest of the UK and other small European countries, wages are stagnant and productivity is flat lining.”
Tory MSP Dean Lockhart said it was a “savage critique of the SNP’S economic record”.
He said: “This report once and for all highlights that the SNP have all the powers necessary to realise Scotland’s economic potential.”
The Scottish Government said it was investing almost £2.4bn in enterprise and skills, with a National Manufacturing Institute and Scottish National Investment Bank.
A spokesman said: “Scotland continues to have the most competitive business rates package in the UK. The Scottish Government welcomes the report into the performance of the Scottish economy and will reply to the recommendations in due course.”