Industrial strategy 'will drive tens of thousands of new jobs in Scotland', as business power cut promised

Prime Minister Sir Keir Starmer said the plan marks a ‘turning point for Britain’s economy’.

Sir Keir Starmer's industrial strategy will "drive tens of thousands of new jobs" in Scotland, the Scottish Secretary has claimed.

Ian Murray said the areas featured in the decade-long plan "are really a microcosm of the entire Scottish economy". The strategy includes specific funding to train people for work in defence, engineering, digital and construction roles.

Scottish Secretary Ian Murray | PA

Meanwhile, electricity costs for thousands of businesses will be cut by up to 25 per cent by scrapping green levies to help them compete with foreign rivals.

The Prime Minister said the plan marked a “turning point for Britain’s economy” by supporting key industries where there is potential for growth.

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Launching the strategy on Monday at the site of the former Cockenzie power station in East Lothian, which is being redeveloped with UK government funding, Mr Murray said: "The big positive thing from a Scottish perspective is the eight sectors that are part of that industrial strategy, developed with business and sectors, are really a microcosm of the entire Scottish economy.

What does the future hold for Cockenzie after its famous chimneys were brought down in 2016?

"So whether it be defence, professional services, financial services, life sciences, AI, all of those kinds of parts of the Scottish economy are key. Scotland will drive a lot of this industrial strategy."

Mr Murray added: "It's a really good news story for the Scottish economy and will drive tens of thousands of new jobs."

‘Stifling growth’

But Mr Murray argued policies pursued by the Scottish Government, such as its opposition to new nuclear power, risked stifling this growth. He pointed to the 10,000 jobs promised as part of the Sizewell C nuclear plant in Suffolk.

"That investment could be coming to Scotland, but it's currently not because of the de facto ban on nuclear here," Mr Murray said.

“Likewise with defence. We have a very, very big defence footprint in Scotland. In fact, the SDR [strategic defence review] and the investment in defence will disproportionately benefit Scotland in terms of jobs and that growth. 

"We have to look at that as an economic opportunity. But if that is stifled, it's not going to happen."

UK ministers target SNP over munitions

UK ministers have criticised the Scottish Government’s policy of not providing public funding for munitions.

Sir Keir said the decade-long plan would deliver “the long-term certainty and direction British businesses need to invest” during an “era of global uncertainty”.

He said: “This industrial strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.”

The strategy’s key areas

The strategy focuses on eight areas where the UK is already strong and there is potential for further growth: advanced manufacturing, clean energy, creative industries, defence, digital, financial services, life sciences, and professional and business services.

Manufacturers have warned “crippling” power costs are far higher for UK businesses than competitors overseas. From 2027, a new British Industrial Competitiveness Scheme will cut costs by up to £40 per megawatt hour for over 7,000 manufacturing firms by exempting them from levies on bills including the renewables obligation, feed-in tariffs and the capacity market.

Around 500 of the most energy-intensive firms, including the steel industry, chemicals and glassmaking, will also see their network charges cut. They already get a 60 per cent discount through the British Industry Supercharger scheme, but this will increase to 90 per cent from 2026.