Scottish Labor leader Anas Sarwar should have said the current policy “weakens our growth potential”; Photo: Stuart Wallace/Shutterstock
On Thursday, the Labor Party will join the Tories in warning that Humza Yousaf must take urgent action to boost Scotland's weak economy after it dwindled during his first three months as First Minister.< /p>
Anas Sarwar, leader of Scottish Labor, will launch a massive charm offensive to attract business as widespread disillusionment with the political agenda led by Mr Yousaf's SNP green government.
Speaking to a business audience in Glasgow, Mr Sarwar will argue that Holyrood's 25-year focus on social policy has been achieved at the cost of building a stronger economy.
He says the approach has “let down Scottish employers” weakening our potential for growth” and argue that the “extraordinary chaos in their own parties” means the Tories and the SNP are too “distracted” to act.
He will also present a board of business experts who will advise the Labor Party on an economic strategy focused on three key areas – green energy, finance and technology, and promoting the “brand of Scotland”.
Government SNP statistics showed that Scotland's GDP fell by 0.3% in the second quarter of 2023, covering the period from April to June. Mr Yousaf was elected First Minister on 28 March 2023.
The downturn in manufacturing is to blame
By comparison, growth of 0.2% for the UK as a whole, with two-thirds of the fall in Scotland attributed to the downturn in manufacturing.< /p>
The figures also showed that Scotland's GDP fell by 0.2%. compared to the same quarter in 2022, while it rose by 0.4 percent across the UK over the same period.
In another major blow to Mr Yousaf’s economic credibility, a major study this week found less than one in 10 companies in Scotland thought their government understood the needs of business.
Mr Sarwar's speech comes two days after Douglas Ross, leader of the Scottish Conservatives, warned that public spending would be unsustainable unless ministers began to focus on stimulating economic growth.
Mr Ross presented his party's new economic strategy, which proposed lowering taxes. at the same level as the rest of the UK. It says that during Nicola Sturgeon's tenure as First Minister, Scotland's GDP grew at hardly twice the rate of the UK's.
He also urged the Scottish National Party rebels in Holyrood, who are frustrated by the environmental policies pursued as part of their party's coalition deal with the Greens, to cooperate with them. him.
Succeeding Ms. Sturgeon, Mr. Yousaf has vowed to reset relations with business and canceled or shelved some of the friction-causing policies. He also created a liaison group, which included representatives of the largest trade organizations in the country.
However, a failed deposit return scheme severely damaged ties with the hospitality and beverage sectors, and he has since raised the prospect of further income. raising taxes.
Trying to draw a clear political dividing line with the SNP, Mr. Sarwar will argue that the Labor Party is “unashamedly a pro-business and growth party.”
“Almost a quarter of a century has passed since the transfer of power. , our Scottish parliament has overseen sweeping social change, but we have been more of a social policy parliament than an economic policy parliament,” he is expected to say.
“And that has failed Scottish employers, weakening our growth potential. Given the vast power that Holyrood has, and in a time of cost-of-living crisis – and let's not forget a cost of doing business crisis – it's vital that we discuss how to drive economic growth. This is what Scottish business deserves.”
He will argue that Scotland needs a “government that understands what business wants”, not a government focused on “constitutional ambiguity and play”.
Mr Yousaf will present his first government program next week since becoming First Minister and will lay out his administration's agenda for the coming year.
But Mr Sarwar will argue that he “no longer knows where his government is heading”, in while Rishi Sunak “is trying – and failing – to correct the economic mistakes made by his own party.”
The independent advisory board of the Labor Party includes Dr. Liz Cameron, Chief Executive of the Scottish Chamber of Commerce, and Sandy Begbie, Chief Executive of Scottish Financial Enterprise, representing the financial services industry.
It also includes Mike Sutar, Non-Executive Director and Interviewer the BBC show The Apprentice, and business magnate Lord Haughey.
But Liz Smith, the Scottish Tory shadow finance minister, said: “It is incredible arrogance on the part of Labor, who declared their support for business and economic growth, when they announced their intention to close one of Scotland's largest industries – the oil and gas sector.
'Greens take a different view'
Over and over again, Anas Sarwar's party has voted with the SNP and their anti-growth Green allies for measures that have crippled the Scottish economy. Only now, in an effort to look elected, they are standing up for credible proposals that we have been putting forward for a long time.
Ivan McKee, business secretary in Ms Sturgeon's government, acknowledged that the power-sharing deal was a strained one. connections with the business community through the “different approach” of the Greens. They oppose the use of economic growth as a criterion for success.
Mr McKee, who supported Keith Forbes in the recent SNP leadership contest, told BBC Radio Scotland: in many cases in a positive light.”
When asked if this was a problem for the Scottish National Party, he said the Greens' approach “has made it harder for government to look pro-business, harder than it could be “.
According to the latest GDP data, the Scottish economy contracted by 0.3 percent in April 2023 and then remained stagnant in May and June.
The service sector, which accounts for about three-quarters, the economy grew 0.3 percent, but manufacturing, including manufacturing, fell 1.8 percent in June 2023. This was driven by a drop in electricity and gas supplies.
Neil Grey, SNP Wellbeing's Minister for Economics, said: “The Scottish economy is not the only one facing extremely difficult circumstances.
“Cost of living crisis and higher interest rates affect the ability of households and businesses to spend, which in turn affects the economy as a whole. »
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