Prosper CEO says Scotland is vital for UK growth

Sara Thiam tells MPs that Scotland’s voice must be heard in the drive to forge an industrial strategy that can deliver high-skilled, high-wage jobs for workers north of the border and across the UK.

Politicians sitting on Westminster’s Scottish Affairs Committee have been investigating the UK government’s Modern Industrial Strategy, which is aimed at boosting business investment, driving innovation and nurturing the industries of the future.

Sara was joined by Dave Moxham, deputy general secretary of the Scottish Trade Unions Congress (STUC), to make the case for ensuring the strategy delivers for Scotland.

As the country’s industrial council, Sara said Prosper welcomed the initiative. But she emphasised that Scottish concerns must be considered and it was crucial that both the UK and Scottish governments worked in partnership to ensure the strategy is successful.

She added: “Industrial strategies work best when they’re led by industry but co-designed with government and wider partners because it takes all of us to build a successful economy.”

MPs have been looking at how the Scottish and UK governments can work in tandem to realise opportunities in the eight-growth driving sectors identified in the strategy and how the Industrial Strategy Advisory Council (ISAC)  can take Scottish perspectives into account.

Sara has expressed concern over the lack of Scottish representation on ISAC and asked how it can reflect Scottish stakeholder views without members familiar with Scotland’s economy. She has also highlighted its limited understanding of devolved policy – citing the council’s early involvement in proposed electricity market reforms and the negative impact zonal pricing would have on Scottish investment.

Prosper has called at for least one member of the council to come from the Scottish economy and for it to ensure the interests of Scottish business, academia, trade unions, local government and third sector organisations are represented.

Sara emphasised the following:

• Scotland has global strengths in emerging sectors like energy transition, tech (AI, robotics, critical tech), and life sciences (pharma, aquaculture, animal health).
• Defence can drive growth by increasing SME and tech cluster involvement.
• Excluding Scotch whisky from the strategy is a mistake. It is Scotland’s second most productive sector and vital to international trade.
• Current oil and gas policy threatens clean energy growth while declining production is hitting SMEs and tax revenues.
• Housing is a key enabler and is integral to the promotion of circular economies, nature restoration and sustainable buildings.
• Scottish city regions risk falling behind as English counterparts gain more control over infrastructure and investment through devolution deals.
• Existing industries need a stable, pro-growth environment with supportive tax and regulatory policies to attract investment, talent, and innovation.

Asked by the committee chair, Patricia Ferguson MP, if she felt the framework was likely to be effective, Sara said it was a ‘good start’ but that that ‘there is more to be done’. She added that it was ‘incredibly important’ that the strategy looked at all of the major sectors in Scotland.

The UK industrial strategy is a 10-year plan aimed at driving innovation and growth. It’s key goals are to:

• Increase business investment by reducing costs and cutting red tape.
• Support high-growth sectors across the UK to make the UK economy more competitive and resilient.
• Create long-term stability for strategic planning and investment.

Sara said: “The UK has a chequered history with past industrial strategies so to see a more market-making and conscious focus on growth in partnership with industry is very important”.

In December last year, Prosper head of policy, Gareth Williams, said the strategy should include Scottish industries, universities and places in its priority sectors that our politicians must remove barriers to business investment.

If you are interested in the work that Prosper does on behalf of businesses and organisations across Scotland then please click here.