Scotland has ‘pivotal’ role in post-election economic growth

The Confederation of British Industry (CBI) chair will use his first speech in Scotland to identify Scotland’s “pivotal” role in setting the UK’s economic trajectory and delivering long-term sustainable growth.

Speaking in Edinburgh before an invited audience of more than 200 business and political leaders, Rupert Soames is due to state that a UK economy “with less than 1% growth is not thriving – it is merely surviving.”

In a speech later today, he will challenge all parties standing for election to prove their pro-growth credentials, with plans that can get the Scottish economy “firing on all cylinders.”

Soames will be speaking ahead of a business and economy focused hustings, with representatives from Scotland’s leading political parties, including Kate Forbes, Murdo Fraser, Daniel Johnson and Christine Jardine.

“I am convinced that this election, and how both Holyrood and Westminster work with business – and with each other – in the five years after the election, will determine whether or not our country and economy thrive for the next 20,“ Soames will comment.

“The exam question for all parties this election must be how to get that mojo back, how to create a new narrative for the UK and for Scotland, which can once again get our economy firing on all cylinders, and deliver the long-term, sustainable growth we urgently need.

“Instead of the sugar rush of short-term politics, businesses want to hear all parties speak to how they can work with business – and each other – to deliver in the long-term and in the national interest.”

Soames is due to argue that Scotland will have a pivotal role in how the UK’s economy returns to sustainable growth.

“We have heard time and again how Scotland will be decisive for this election, but business knows that its role will, if anything, be even greater afterwards.

“Scotland is an energy powerhouse, with natural resources that are the envy of the world, the best-educated workforce in the UK, the home of two green freeports to supercharge our exports.

“But we cannot unlock Scotland’s potential for growth without facing the fact that Scottish productivity underperforms the already dire performance of the rest of the UK.”

To do this, his speech suggests that from Westminster, “we need a clear-eyed conversation about where immigration is necessary to tackle the most immediate shortages“, while Holyrood “must forge an education and skills system that is agile, flexible and responsive to business“.

In line with CBI pre-election recommendations, Soames states that both governments must also look again at the Apprenticeship Levy – “and reverse the foolishness of Scottish businesses not getting back in value what they pay in”.

He also calls for both governments to work together to deliver a more competitive tax system and better regulation.

“We must also seize the immense growth opportunities from net zero, which CBI research values at up to £57bn across the UK,“ Soames will state.

“At the end of 2023 there were over 500 renewable energy projects in the Scottish planning pipeline – with a potential capacity of over 25 gigawatts.

“The trick is delivering them: a problem right across the UK because of planning systems fraught with snags, tripwires and skills shortages.

“In fact, the devolved planning system is now Scotland’s lowest funded local authority department.

“We need a simplified process – and one which works efficiently and at pace – with regular funding and urgent steps to plug the shortage of skilled planners.”

In conclusion, the CBI chair will say: “Whatever happens on the fourth of July, one thing of which I am certain is that neither Holyrood nor Westminster will be able to do this by themselves.

“Not without business – and not without each other.

“Governments cannot deliver growth, only business can, but business needs government to provide the institutional scaffolding that supports growth.

“Only government can set the rules for regulators, create balanced employment laws, manage an efficient and effective civil service, and invest in the infrastructure business needs to succeed.

“And, because of the complex interaction of reserved and devolved powers, business also relies on Holyrood and Westminster continuing to work together – in collaboration not confrontation as they have with such great success on green freeports like Inverness and Cromarty Firth.”

Soames is one of the UK’s most experienced public-company chief executives, having served 11 years as the boss of Aggreko, followed by nine years in the top job at Serco.

He stepped back from full-time executive life in December 2022, and in September 2023 took up the chair role at Smith & Nephew.

Prior to Aggreko, Soames was with Misys for five years, latterly as chief executive of its banking and securities division. He spent the first 16 years of his career at GEC.

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