Meeting of the Parliament 04 June 2019
I welcome the opportunity that the debate provides to outline the strength of Scotland’s economy and labour market. I also welcome the opportunity to recognise the drive and resilience of Scotland’s business community and the ambitions that I believe are shared across the chamber for future success.
A strong economy is essential to supporting jobs, incomes and quality of life. Alongside growing, competitive and innovative businesses, our economy must be environmentally sustainable and inclusive; it must provide benefit and opportunity for all our people and communities.
The value of the Scottish Government’s commitment to securing a sustainable and inclusive economy is widely recognised, both here in Scotland and beyond. Our distinctive approach is built into the national performance framework, which provides a purpose not just for Government but for the whole country. Through the NPF, we measure performance through a range of outcomes that are consistent with the United Nations sustainable development goals.
However, I recognise that there is still much to be done to ensure that our country continues to flourish, while increasing wellbeing for all and tackling the global climate emergency. The greatest challenges that we face in being able to deliver the Scotland of our ambitions are the constraints on the powers of this Parliament, which are compounded by the current uncertainty that is being created by Brexit and the UK Government.
On 30 May, in an open letter to the ever-growing list of candidates who are seeking to become the next leader of the Conservative Party and the next Prime Minister, Carolyn Fairbairn, the Director-General of the Confederation of British Industry, said of where we stand with Brexit:
“Prolonged uncertainty is damaging our economy now—driving up costs and reducing sales. Stockpiling of raw materials and goods among SMEs is at a record high. Billions of pounds in investment are being diverted from the economy, harming future jobs and prosperity.”
Those words resonate with this Government’s analysis and with what we hear from business. A no-deal Brexit remains a significant and live risk that would impact significantly on the Scottish economy through disruption to logistics, supply, trade, investment, migration, skills and market confidence. Brexit is already impacting negatively on the confidence and security of our businesses, regions and communities in Scotland.