The case for 'Manchesterism' in Scotland
Collaboration across different levels of government is key to driving economic prosperity
There are crucial weeks ahead in determining how devolution within Scotland might operate. The Scottish Government has unveiled its Programme for Government. The Prime Minister has announced that he wishes to bring together the leaders of the devolved nations at a meeting of the National Economic Council.
The challenge is clear from the data on productivity. With the exception of Edinburgh City Region (East Central Scotland), every Scottish Region lags behind the UK average. There has been a very significant decline in productivity levels in the North East, linked to the loss of highly skilled jobs in the energy sector.
What should be done? We have argued before that Scotland needs to make its economic strategy congruent with the UK Modern Industrial Strategy, and that this focus on the “IS-8” sectors needs to be tailored to the needs of each of Scotland’s regions. For each of our regions in Scotland to be globally competitive requires focus on innovation zones in specific IS-8 sectors and collaboration, where appropriate, between regions.
For instance, it will be crucial in the life sciences and biomedicine that the strengths of Edinburgh, Glasgow, Dundee and Aberdeen are brought into play through linkages in the research and innovation landscape which the universities can mediate. The Scottish Health and Biomedical Institute launched by the Universities of Edinburgh and Glasgow is evidence of how these collaborations should operate if Scotland is to compete internationally.
Scotland has some wider Industrial Strategy opportunities already in train. On Clydeside for Defence, around Clean Energy for Aberdeen and the North East. Deep-tech innovative companies across the central belt using the latest critical technologies, including quantum. Edinburgh and Glasgow have strongly developed their base in Financial and Professional Services and AI presents a new opportunity to supercharge this competitive advantage.
But a key ingredient is to address the issue of fragmented governance and visible leadership. “Manchesterism” is a new phrase, but the success which Greater Manchester has had was built on two decades of collaboration, both within the city region, and with a willingness to look to external linkages in the area of innovation and the industrial strategy. Leadership is not only about external visibility, but also the ability to co-ordinate city region actions. This also enables collaboration between regions. For example, the innovation collaboration between Manchester and Cambridge - the Cambridge x Manchester Partnership - is a pioneering £6 million trans-UK initiative designed to link both cities' research and technology ecosystems. Scotland can look to create similar collaboration models to go faster.
None of this necessarily involves major local authority reform, which would take time when we need to move at speed to empower devolution. Regional Economic Partnerships (REPs), which are existing collaborations in Scotland between between local authorities, the private sector, education and skills providers, could be given some statutory powers by agreement with the constituent local authorities.
This was set out as a direction of travel by the First Minister in November 2025, for implementation after the Holyrood elections. These reforms were also supported by Prosper and many other civic organisations. The Programme for Government, announced by the First Minister this week, confirmed this direction of travel and a desire for greater strategic purpose in REPs.
The cabinets for these REPs could be chaired, as appropriate by visible local leadership – depending on the specific region that could be an elected local authority leader, or a civic or business leader. In terms of democratic accountability, this person (with the appropriate title) and the REP cabinet will be accountable to the constituent local authorities. The key is that our regions are able to act at speed to pursue opportunities for growth linked to the industrial strategy.
Successful regional economic development requires multiple areas of action, from developing infrastructure to ensuring that the business environment for both established innovative businesses and fast-growing start-ups is fit for purpose. Collaboration at multiple levels of government (UK, Scottish and in our regional leadership) is essential to driving productivity growth and economic prosperity.
Professor Sir Anton Muscatelli is president of the Royal Society of EdinburghIain Anderson is chair of the John Smih Centre
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