Meeting of the Parliament 05 March 2025
We are discussing the future of Scotland’s economy against a backdrop of international uncertainty. Right now, it can feel that the world is walking backwards rather than striding confidently forward into better times. It is therefore more important than ever that we focus on how to improve the quality of life for the people of Scotland, make the most of the significant economic opportunities that Scotland enjoys, and contribute to the rest of the world by realising those opportunities.
I will begin by affirming and celebrating Scotland’s huge economic potential. Scotland consistently ranks as the top investment destination in the UK outside London and the south-east of England. We are world leading in the development and deployment of renewables and green technology, and we have some of the world’s best universities, a world-class food and drink sector, a highly educated population and a diverse and open economy.
Despite the challenges that have been caused by 15 years of austerity from Westminster, and the challenges of recovering from the economic impacts of Brexit and Covid, the Scottish economy is well placed to take advantage of the huge economic opportunities that come from the transition to net zero and the revolution in critical technologies.
However, realising the opportunities that lie ahead will require dynamic partnership between the Government, business and academia, and it will require government at every level to work towards common goals. We are at a moment of inflection for Scotland’s economy. If we get things right in the next few years, the prizes for the people of Scotland and their country will be huge—more well-paid jobs, greater prosperity and greater tax revenues for our public services.
We have opportunities to grab the first-mover advantage in a number of areas and to solidify our progress in others, such as renewable energy, semiconductors and advanced manufacturing. However, we are not the only country that is seeking to do that, so we need to ensure that the opportunities are not missed.
Part of our strength is our diverse economy, which is spread across all our regions. We can take many examples of that. In 2021, Glasgow city region produced approximately £48 billion of gross value added, making it the largest city region economy in Scotland and the fourth largest in the UK.
The Edinburgh and south-east Scotland city region is equally remarkable, having produced 30 per cent of Scotland’s total economic output and ranking top for investment attractiveness in the UK outwith London. The work of Aberdeen city and Aberdeenshire with Opportunity North East is a model for how the private sector can be a partner within regional structures.
However, I am not just talking about our city regions. In October, the south of Scotland region was designated as Scotland’s natural capital innovation zone, which recognises that the region is ideally positioned to address the twin crises of biodiversity loss and climate change through innovation and responsible investment.