Meeting of the Parliament 29 April 2025
Once again, on that particular issue, I could not agree more. Being clear about the root causes of the issues is vital if we want to support Scotland’s manufacturing base.
We are a nation that develops energy sources and that benefits from a surplus of energy in some regards, yet our industrial sites are expressing concern about energy prices. I have raised that reserved matter a number of times with the UK Government. I know that there are on-going discussions about reforms. We need certainty fast, and we need to break the artificial connection between gas and electricity prices.
We are working with centres such as NMIS and the National Robotarium to bring to fruition a number of plans for a deep-tech supercluster, which was one of Mark Logan’s original visions. We want Scotland to be a maker, not just a consumer, of world-leading products and innovations. By helping some of Scotland’s most cutting-edge technology businesses to grow and scale up their manufacturing operations here, that programme will surely be a welcome boost to our long-term economic resilience.
That is all the more important as we look to deliver those things in the midst of very turbulent economic times. Just last week, the International Monetary Fund highlighted the damaging economic headwinds from the tariff increases that the US has imposed. In Scotland, we are already seeing concerns in key sectors such as food and drink, machinery and life sciences.
The First Minister recently held a round-table meeting with representatives from Scotland’s business community to hear at first hand the impact of US tariffs. It is inevitable that there is concern, and some companies with stock in the US are taking decisions to pause further shipments until the position is clearer.
The First Minister spoke to the Prime Minister and made it clear that we need to see bold and decisive action from the UK Government that takes into account Scotland’s particular needs and strengths. A conclusion should not be reached without extensive engagement with the Scottish Government. I know that business wants to see that, too.
In recent weeks, the UK Government has taken action to protect the British Steel plant in Scunthorpe. Fergus Ewing outlined some of the reasons why that was required. The UK Government’s decision provides some hope that it is prepared to act when vital national interests and assets are at stake. We welcome that action. It protects the only plant in the UK that can make crude steel and will, I hope, be part of a comprehensive future strategy for steel-making across the UK.