A Wellbeing Economy? What we really need is growth - Murdo Fraser

One of the benefits of having been a member at Holyrood for more than two decades is that it gives one a sense of historical perspective on events.

In terms of strategies to grow the Scottish economy I ought to be able to say that I have ‘seen it all’. But in truth there have been few strategies to see.

Jack McConnell, as Labour First Minister in that early period of devolution was fond of repeating the mantra: “Growing the economy is our top priority”.

The Scottish Conservative leader at the time, the late David McLetchie, regularly ridiculed him, pointing out that the rhetoric was not matched by action.

Then the defining issue for Scottish business was the differential in the non-domestic rate poundage paid by in Scotland compared to south of the Border. An energetic campaign, vigorously supported by the Scottish Conservatives, sought the rates equalised.

This was, eventually, delivered, though differences remain, and in the current year the 75 per cent rates relief available to businesses in the retail, hospitality and leisure sectors in England has not been provided to businesses in Scotland.

The closest we have had to a focus on growth that I can recall was the minority government led by Alex Salmond 2007-11, which many regarded as the most pro-business government we have had in the devolved era. Perhaps that might have been because he needed Tory votes to get his budgets through.

But at least back then we had a First Minister who was prepared to talk about economic growth.

In stark contrast the current incumbent Humza Yousaf shies away from using such language, no doubt because he is in coalition with a Scottish Green Party which is actively hostile to the concept of growing the economy.

Instead, he talks of a “wellbeing economy”, although it is far from clear what that exactly means.

Even third sector organisations sympathetic to the concept have asked for greater clarity and where the policies are to deliver it.

Perhaps we should not be surprised that this is a Government that does not want to talk about growth.

Since 2014, the Scottish economy has grown on average at barely half the rate of the UK as a whole. That failure to even match UK growth rate has real-time consequences.

It means that we have fewer start-ups, fewer growing businesses than anywhere else in the UK. Fewer secure well-paid jobs, and, crucially, we generate lower tax revenues.

If Scottish growth had just matched that of the UK since 2014, we would have many billions more in tax revenues to spend on public services, demolishing any case for an income tax differential with the rest of the UK.

The Scottish economy has many key strengths, building on our tradition as a dynamic, enterprising and entrepreneurial nation.

We have world-leading businesses across a range of sectors, a highly valued university sector delivering top class research and innovation, a skilled workforce, and all the benefits of being part of the United Kingdom single market.

Yet the Scottish economy falters. It needs an unrelenting focus on growth, and that is what the Scottish Conservative leader Douglas Ross set out in a keynote speech to a business audience yesterday, with detailed proposals as to how we improve our economic performance.

Governments don’t create wealth; it is made by the efforts of hard-working individuals and businesses. The role of government is to create the right environment that allows business to flourish, removing barriers to growth and providing appropriate support.

By focusing so much on promoting independence, the SNP-Green Government at Holyrood have neglected the overriding need to create the circumstances to help deliver sustainable economic growth.

We can all see the real-time consequences of this failure, and of SNP policy choices. Visiting the island of Islay last week with the Cross-party Group on Scotch Whisky, I was impressed by the enormous investment from the whisky industry in expanding production and creating new visitor facilities.

Yet everyone we spoke to complained that the failure of the SNP Government to deliver an adequate ferry service was crippling the local economy. The lack of capacity to take goods on and off the island is presenting real headaches for the local distilleries, whilst the cancellation of ferry services has done enormous damage to the vital tourist industry.

Similarly, the Scottish Government’s refusal to think again on the introduction of regulation of short-term lets is devastating the tourist industry throughout Scotland, affecting B&Bs and guesthouses as well as traditional self-catering units.

Yet the Government is simply unprepared to listen to business and undo the damage that they are causing.

In contrast, the Scottish Conservatives have detailed proposals to deliver economic growth. Douglas Ross has outlined a range of new measures, including a joint economic board with Ministers from the UK and Scottish Governments, a National Workforce Plan to align skills in the education system with the needs of business and employers, regional clusters of excellence to back export winners, and a pledge to make Scotland competitive by reducing the tax burden which currently makes us the highest taxed part of the UK.

All this, and more, is set out in our new publication, ‘Grasping the Thistle’, which also includes plans to improve infrastructure and adopt a ‘regulation handbrake’ to stop additional burdens being imposed on Scottish business.

This is a programme to ensure that Scotland once again leads the UK with a thriving economy, rather than lagging behind it. It demonstrates that it is the Scottish Conservatives who are the ones who want to see our country prosper, instead of being stuck in the slow lane – or even stagnating - with the SNP and Greens.