New Edinburgh Council administration must avoid old thinking - Liz McAreavey

I have to admit that I have reached a point in life when promises become less reassuring, uncertainty less daunting and having a voice and influence over our circumstances is more important than ever. Change is a given – the issue for us is preparedness. To roughly quote Amor Towles “if we do not master our circumstances then we are bound to be mastered by them.”

After weeks of negotiating and no doubt some political horse-trading we finally know the make-up of the new council administration which will run our city during these vital next few years.

A coalition led by Labour and supported by Liberal Democrats and Conservatives has emerged. It remains to be seen how the new administration will differ from the previous years under a coalition led by the SNP and supported by Labour.

However, there is nothing uncertain about the challenges that businesses face as we continue with our still fragile recovery from the impact of the Covid 19 pandemic and the restrictions on trade and life it brought with it, further exacerbated by the illegal invasion of Ukraine.

Liz McAreavey, Chief Executive of Edinburgh Chamber of Commerce

Many of these issues are global, and even the might of the US Federal Reserve can do little in the short term to curb rising costs and inflation due to supply chain constraints and the energy crisis. The Bank of England suggest it may take to 2025 before inflation returns to the two per cet target rate, very much depending on the interventions the Bank take on interest rates over the next few quarters.

Much of the responsibility for tackling this falls squarely within the remit of national governments but what we can ask of our new city leaders is reasoned, informed and non-partisan thinking that prepares Edinburgh for its future and leadership role in an ever-changing global landscape.

Edinburgh has amazing assets and it would be fair to say we often complacently take these for granted. We need to sing more loudly and in unison about our extraordinary city.

Not only do we enjoy a city of great beauty, of globally leading universities, world famous festivals, and a breadth of talent across many key sectors but we also have a tech sector dedicated to disruptive innovation and rewriting the playbook on business models. Codebase is the largest tech incubator in the UK, developing talent and technology that can transform our small but scale-able businesses.

We have a sustainability strategy that could make Edinburgh a global leader in net zero and Just Economic Transition. The city is already collaborating with the private sector to unlock the potential opportunities brought by the transition to a green economy. We need a clear investment plan for the city that will maximise these prospects.

The Firth of Forth is a significant asset for the city and the region, and Forth Ports are investing £50m in the Net Zero Hub at Port of Leith. Ineos further up the Forth at Grangemouth, is already looking at green hydrogen production for use and export, and the potential of a Green Free Port status on the Forth could attract significant investment from green businesses creating jobs and skills for the city.

We may need more decentralisation from government as outlined in the newly published “Scottish Urban Age 2” report. Devolved taxation and migration powers to cities might feel impossible, but not beyond the wit of man. We need bold and visionary leadership and we need greater collaboration between policy-makers and business to ensure we have the ability to respond quickly to the opportunities that come from these global challenges to deliver our ambitions for a just, green and prosperous future.

We have many challenges to overcome which occupy our thoughts in the now. But as I was recently reminded by Steven Drost of Codebase, there are the ‘existing’ and the ‘new’. We can choose to focus on the existing and fall slowly into demise or we can embrace the new, harness our assets for competitive advantage, and lead the digital and green transition to ensure Edinburgh is a leading knowledge economy of the future.

Liz McAreavey, Chief Executive of Edinburgh Chamber of Commerce