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Chamber

Meeting of the Parliament 05 March 2025

05 Mar 2025 · S6 · Meeting of the Parliament
Item of business
United Kingdom Economy

I did, and I have already mentioned it in my speech and welcomed it. Of course, that was after a bit of a backlash from the Labour Party’s member of the UK Parliament for Grangemouth. I hope that we will see the details of that investment sooner rather than later, because it is important.

The Prime Minister’s AI announcement, in which he did not mention Scotland—for the record, I point out that Labour members are shaking their heads—was despite the fact that seven of our universities in Scotland have AI courses, and despite the fact that Edinburgh is a major hub for data and AI jobs in the UK and is consistently ranked among Europe’s leading cities for data and AI capabilities. In fact, last year’s Nobel prize in physics went to an alumnus of the University of Edinburgh for outstanding work on machine learning. We do not need a quantum computer to see that the Prime Minister missed something quite important and should have mentioned Scotland and AI.

The Prime Minister pledged to increase the UK’s computer capacity twentyfold by 2030, including by building a new supercomputer, just months after the new UK Government pulled back on plans to build a high-tech exascale supercomputer in Edinburgh.

Members of the UK Government have ignored Scotland’s leadership on AI and data in speeches about AI policy. They have claimed that Oxford and Cambridge are the home of British innovation, said that the UK’s new silicon valley should be in the so-called golden triangle, and talked about making that area the flagship of UK economic growth. Those are all important insights into the UK Government’s mindset and priorities. We must see more high-profile promotion of Scotland’s innovation strengths from the UK Government. We do not want Scotland to continually be an afterthought. The UK Government needs to work with us to drive investment in innovation in Scotland and should not give disproportionate focus all the time to the south-east.

For instance, look at how Scotch whisky has been treated. The decision to further increase duty on Scotch whisky is a broken promise by the Prime Minister, who publicly committed to

“back Scotch producers to the hilt”.

On top of that tax rise, we heard last week that the UK Government was considering, at the time, allowing English whisky makers to use the term “single malt”, which would devalue the products that are produced in Scotland. We have now had an announcement that that will not happen, and we are pleased that the Labour Government has dropped its plans for that after a big backlash from the Scotch whisky industry and, of course, pressure from the Scottish Government and many others.

We need the UK Government generally to back, and not to undermine, our successful industries. The UK Government’s recent green paper “Invest 2035: the UK’s modern industrial strategy” stated that the “primary objective” of the UK industrial strategy is to

“drive growth, by taking advantage of the UK’s unique strengths and untapped potential, enabling the UK’s world-leading sectors to adapt and grow, and seizing opportunities to lead in new sectors, with high-quality, well-paid jobs.”

Of course, we welcome that and we have no doubt that the UK Government is serious in its intention to translate that ambition into real and sustainable economic growth. However, for that to happen, its ambition needs to be matched by a commitment to collaboration and co-operation.

The UK Government must develop its industrial strategy and determine its investments to deliver it. In doing that, it must recognise Scotland’s regional strengths and the catalytic opportunities that exist in this country. The UK Government must recognise the world-leading reputation of our universities and growth sectors, including advanced manufacturing, AI and life sciences.

Again, I see that Labour members are laughing and shaking their heads. In the past couple of days, I spoke to a senior representative of Scotland’s university sector who said that their heart sank when they heard Rachel Reeves’s speech about the new silicon valley being in the south-east of England and about the growth corridor between Oxford and Cambridge being the solution to the UK’s economic challenges. That is what is happening out there, so it would be wise for Labour members to recognise how people in the innovation, research, university and wider business communities are responding to those announcements. They are very concerned by the tone of, and the mindset that has been echoed in, all those speeches from UK politicians.

We need our unique advantage in Scotland to be recognised and promoted. The Parliament must urge its Westminster colleagues to ensure that decisions and the mechanisms of delivery respect devolution. The UK Government must work with us to leverage the power of our enterprise agencies and regional structures that are already delivering in Scotland.

I want to offer all members across the chamber who share those ambitions the opportunity to work with the Government in order to attract investment, drive growth, deliver sustainable economic success and make sure that UK Government economic policy takes into account Scotland’s massive economic opportunities.

I move,

That the Parliament recognises that Scotland’s many high-growth sectors, which are driven by world class innovation, deserve greater recognition from, and promotion by, the UK Government, which must not unfairly focus investment in the south-east of England, or the so-called golden triangle of Oxford, Cambridge and London, or treat Scotland as an afterthought, especially when announcing or developing policy.

15:05  

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-16667, in the name of Kate Forbes, on achieving a fair balance in the United Kingdom economy. I invite me...
The Minister for Business (Richard Lochhead) SNP
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 backward...
Craig Hoy (South Scotland) (Con) Con
I thank the minister for referring to the south of Scotland—particularly the south-west. Is he not aware that what businesses such as Stena Line really want...
Richard Lochhead SNP
Roads are, of course, important—all transport links are important. The Scottish Government is doing all that we can with our limited resources to push forwar...
Michael Marra (North East Scotland) (Lab) Lab
I wonder whether the minister listened to the speech that the Prime Minister made in Glasgow just last weekend, when he announced £200 million of investment ...
Richard Lochhead SNP
I did, and I have already mentioned it in my speech and welcomed it. Of course, that was after a bit of a backlash from the Labour Party’s member of the UK P...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
It is going to be a long afternoon, given what we have just heard. However, I am pleased that we are having another economy debate—the second in a week. I ho...
The Deputy First Minister and Cabinet Secretary for Economy and Gaelic (Kate Forbes) SNP
Will the member give way?
Murdo Fraser Con
Of course.
Kate Forbes SNP
I recognise that the member will want to set out what his Government did. I start by commending it for announcing the supercomputer for the University of Edi...
Murdo Fraser Con
Yes—I agree with the Deputy First Minister on that point. A range of other projects were proposed by the previous Conservative Government, not least project...
Michael Marra (North East Scotland) (Lab) Lab
It was with genuine disappointment that I read the motion that we have been asked to discuss. That said, I agreed with almost every word in the first half of...
Richard Lochhead SNP
I am pleased that the member agreed with 50 per cent of my speech—I would have been worried if he had agreed with 100 per cent of it. When he reflects on how...
Michael Marra Lab
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Craig Hoy Con
Will the member take an intervention?
Michael Marra Lab
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Craig Hoy Con
Will Michael Marra take an intervention?
Michael Marra Lab
No thank you, sir. There is a further £1.4 billion for local growth projects—at least £200 million for specific Scottish towns, including £20 million for gr...
Lorna Slater (Lothian) (Green) Green
When it comes to the motion and the debate, if London is stripped out of the economic data, the performance report for the UK looks different. Certainly, a l...
Craig Hoy Con
Can the member explain the causal link between economic growth and violent crime?
Lorna Slater Green
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Beatrice Wishart (Shetland Islands) (LD) LD
The motion makes an important point about ensuring that investment does not unfairly focus on one area. I understand the sentiment that is contained in the m...
The Deputy Presiding Officer SNP
We move to the open debate. I advise members that one of the SNP speakers has had to pull out at the last minute in the light of illness. It has been agreed ...
Kevin Stewart (Aberdeen Central) (SNP) SNP
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Craig Hoy Con
Is Mr Stewart aware that one of the engines of the London economy is the financial services sector? Will he therefore take the advice of Scottish Financial E...
Kevin Stewart SNP
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Finlay Carson (Galloway and West Dumfries) (Con) Con
As we all know, throughout the centuries, Scotland has produced an army of great inventors whose boundless imagination and inspiration have set us apart from...
Foysol Choudhury (Lothian) (Lab) Lab
I am disappointed that the Scottish Government chose to lodge the motion, which is based on a selection of recent UK Government announcements, and to play a ...
Kevin Stewart SNP
Will Mr Choudhury give way?
Foysol Choudhury Lab
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