Industrial strategy is turning point for Scotland’s economy
This week the Labour Government launched the ten-year Industrial Strategy, a new, whole-of-government approach to the economy which holds brilliant opportunities for Scotland.
Advanced manufacturing, clean energy, the creative industries, defence, digital and technologies, financial services, life sciences and professional and business services; Scotland excels at them all. But we can do more to help these industries thrive.
That’s exactly the aim of Labour’s new industrial strategy, which will back Scotland’s strengths and has ambitious plans for these eight high-growth sectors. As a ten-year plan, it’s a turning point for Scotland’s economy, marking a clear departure from the short-termism of previous governments north and south of the border.
A key part of the strategy is the new British Industrial Competitiveness Scheme which, from 2027, will slash industrial electricity costs for energy-intensive firms by up to 25 per cent, benefitting hundreds of businesses in Scotland and up to 7000 across the whole UK. Tackling energy costs has been the single biggest ask of us from businesses; we’ve listened, and now we’re taking action.
The new strategy also means billions in innovation funding and business finance, new initiatives to improve skills, a new taskforce to attract talent from across the world, planning reforms, a landmark commitment to £725 billion on infrastructure over ten years, and improvements to digital infrastructure, including £41 million to improve the speed and availability of Wi-Fi on mainline trains. This will ensure the industries that make Scotland great can thrive, boosting our economy and creating well-paid jobs, putting more money in people’s pockets and delivering on this government’s Plan for Change.
While the strategy will lift living standards in all parts of the country, Scotland in particular stands to derive unique advantages. Scottish clean energy industries will benefit from development funding of around £200m to advance the Acorn Carbon Capture and Storage project, capitalising on expertise in the oil and gas sector in the North East and guaranteeing the future of this vital pillar of Scotland’s economy. Meanwhile, Scotland’s universities, which are driving innovation across quantum, clean energy and life sciences, will get to take full advantage of the recently announced £750m investment in the UK’s largest supercomputer at the University of Edinburgh, which sets a marker for our ambition for further growth in digital and technologies. Scotland's advanced manufacturing also stands to benefit. The sector, which employs 195,000 people across Scotland, will receive investment of £4.3bn, including up to £2.8bn in research and development funding over the next five years, supporting this vital part of Scotland’s industrial past and guaranteeing a bright future for it.
It’s an increasingly tumultuous time for the world economy, and this new strategy delivers the long-term certainty, stability and direction Scottish businesses need to invest, innovate and create good jobs that put more money in people’s pockets. This is the way to deliver improved living standards right across the country. Scotland has a proud industrial heritage, and with this new strategy we can extend that long into the future. I launched the Industrial Strategy in Scotland this week at the old Cockenzie power station site in East Lothian. The potential there is huge. The challenge is now to grasp all these wonderful opportunities and deliver thousands of new jobs in Scotland.
Ian Murray is MP for Edinburgh South and Secretary of State for Scotland