Scottish and UK governments must work together to deliver growth - Sandy Begbie

It’s often said that football and politics don’t mix, but with this year’s Euros and the UK general election campaign clashing so visibly, it’s difficult to avoid some of the more obvious cliches. Indeed, a bit like Scotland’s Euro 2024 performances, our politics have failed to deliver much for the public to cheer about in recent years.

One major positive is that all the major parties are now in agreement about placing economic growth at the heart of their respective agendas. That is clearly welcome. However, after a hugely volatile period we now need actions not just good intentions. Just like in football, warm words will only get you so far. Whether on housing, infrastructure, skills, or the environment, our next Prime Minister will face an in-tray that would make Steve Clarke blush.

Scotland has a fundamental role to play in delivering the economic growth that the UK so desperately requires. And that is perhaps where the football cliches end – because to achieve our shared economic ambitions, we need to call time on a political culture that prioritises competition rather than collaboration between different governments within the UK. That’s why, as part of our new manifesto for growth, Scottish Financial Enterprise has called for a new biannual Joint Ministerial Growth Forum between the UK and Scottish governments.

Scotland’s universites are facing severe financial pressures (Picture: Lisa Ferguson)

The purpose of the forum will be to ensure both of Scotland’s governments work together to remove barriers, encourage policy alignment, and empower industry to deliver growth. Whether a policy area is devolved or not, the reality is that if we are going to address the serious economic challenges we face, Holyrood and Westminster must get much better at working collaboratively.

The need for this type of approach is apparent across a wide range of crucial policy areas – not least higher education. Scotland’s universities and colleges are a key strategic driver of our economic growth, but in recent years their ongoing success and appeal has become a political football. The Scottish Government’s tuition fees policy has left our universities over-reliant on international students right as UK Government visa restrictions deal a huge blow to this vital income stream. Whatever your views on higher education funding or immigration, the material outcome of the current stand-off is that our world-renowned universities are facing serious financial pressures.

Another obvious example is net zero. With many of our neighbours quietly getting on with the gritty details of their energy transition, we risk falling behind as different governments, bodies and agencies within the UK move at different speeds, set different targets and diverge in policy. Take heat in buildings, where the Scottish Government’s proposed legislation has been met with concern over its potential to shock Scotland’s housing market, while the UK Government’s delaying of similar proposals has stalled progress.

The imperative of a clearer, more aligned, and more engaging approach to policy delivery is clear. According to both the IMF and the OECD, the UK will have almost the lowest growth in the entire G7 this year. Meanwhile, productivity remains stagnant, and our demographic challenges worsen.

Sandy Begbie is Chief Executive at Scottish Financial Enterprise

There are, of course, solutions to these challenges, but they require a collective and coordinated political will to deliver. A biannual growth forum with the UK and Scottish governments would foster collaboration and help remove barriers. But above all, it would show that our politicians are serious about unlocking the growth we need to better fund public services, raise living standards and deliver high skill, high wage jobs.

Sandy Begbie is Chief Executive at Scottish Financial Enterprise