Meeting of the Parliament 27 February 2025
I agree with the principle that the regulatory and policy environment is critical in giving investors certainty. I am in no doubt that investors have no obligation to invest in Scotland—it must be attractive for them to do so. That is why we have listened to the concerns of investors and have adjusted our position. We are currently consulting on the best way of ensuring that the system strikes the right balance between vital protection for tenants during a cost of living crisis and the need to attract investment that will deliver new and improved rented housing, the supply of which we have to increase.
In addressing the challenge that I have set out, Scotland has a wealth of strengths and advantages to build on. We have innovative and dynamic businesses, world-class research and technology capabilities, strong financial services and food, drink and tourism sectors, sustained success in attracting foreign direct investment and unrivalled potential to be a global leader in renewables.
However, we also have a Government that is committed to doing what it takes to make Scotland a more globally competitive, investor-friendly nation. Our approach has been guided by the First Minister’s external investor panel, which reported just over a year ago. It challenged us to be clearer in our strategic direction, more sure-footed in engaging with investors, and swifter and more decisive in acting to support delivery.
That is why, last summer, we published the green industrial strategy and, in our programme for government in September, committed to delivering a co-ordinated programme to attract private capital investment at scale in three priority areas—net zero, housing and infrastructure—and to align the whole of the Government and its agencies in support of that goal. The First Minister asked me to lead the work across the Government to meet that commitment. That work is well under way, and I welcome the opportunity to update members on it today.
However, before I explain the substance of the work that we have done, I extend an invitation to cross-party spokespeople to have a meeting with me and officials who can answer any questions on the programme. I know that we all have an interest in attracting investment and in making Scotland a great place to work, and we all have the opportunity to amplify the positive message about Scotland. I am happy to get in touch shortly after the debate to arrange such a meeting.
Our programme of work has three main strands. First, we are creating a single national pipeline of strategic investment opportunities. Secondly, we are improving the approach to investor relations across the public sector. Thirdly, we are examining how we can use financing models and instruments in the most effective way to de-risk projects.
Work on the internal pipeline is proceeding well, drawing on detailed, on-the-ground intelligence held by delivery bodies. When fully operational, it will give us a single source of truth on the most important opportunities, enable us to take a more targeted and proactive approach to engaging with major investors, and help us identify and tackle potential barriers and blockers to investment.
Over the coming months, we will launch a new outward-facing investor portal as a single shop window for current opportunities across the country. In parallel, we will continue to roll out our strategic investment of up to £500 million to leverage additional private investment of £1.5 billion in the infrastructure and manufacturing facilities that are critical to growth in the offshore wind sector. Activity is gaining pace, following on from last year’s landmark commitment by Sumitomo to build a £350 million cable manufacturing facility at Nigg and Haventus’s groundbreaking £400 million plan to redevelop Ardersier port. I visited the port last week, and I have to say that it took my breath away. Seeing is believing. I am sure that Haventus could accommodate visits from interested members from across the chamber, because nothing that I say today can truly convey the scale of the facility or what it can achieve for Scotland’s supply chain. I am also particularly delighted that it is located in the Highlands.
However, the opportunities are national. Last month, the Scottish National Investment Bank announced an investment of £20 million in subsea cable manufacturer XLCC, which is part of a wider transformation at Hunterston.