Scotland needs 'national plan' to save economy says Richard Leonard

Scotland must adopt a "national plan" to save the country's beleaguered economy from the worst impact of the Covid-19 pandemic, Labour leader Richard Leonard has said.

Richard Leonard says Scotland needs a "national plan" for the economy

A national council should be established comprising ministers, industry and trade unions which would focus on action to prepare for the looming jobs calamity when the furlough scheme comes to an end next Spring.

Leonard has accused the SNP Government of a piecemeal approach to supporting critical sectors like manufacturing, renewables and hospitality and insists a more comprehensive strategy is now required.

Ministers insist over £1 billion has been invested in post-Covid economic recovery plans.

Scotland's economy shrunk by 9.5% contraction year on year, official figures last week revealed and continuing lockdown restrictions provide little hope of an upturn for large swathes of industry. It has prompted the Labour leader to call for a more focused strategy.

"I think we need a step change in our approach to the Scottish economy - I think the time has come when we need a national plan," he told the Scotsman.

"That needs to be driven by the establishment of a national council for the Scottish economy which brings together Government, trade unions and industry. We need a long-term industrial strategy."

The council would be tasked with boosting investment and employment in the economy, informed by expert advice on key opportunities.

The current sector skills councils would be broadened out under Labour's plans to have sector level planning councils which would be "action-focused."

This would bring together industry and unions to try to plan a way through the "double-crisis" created by Brexit and the Covid pandemic.

"We need to move beyond a case by case approach towards comprehensive, proactive economic plan," Leonard added.

"What I'm arguing for is a pro-active interventionist approach by the Government working closely with industry and unions."

The uncertainty hanging over Scotland's future relationship with the EU as Brexit trade negotiations remain locked in stalemate is compounding the downturn, Leonard added, with key sectors like seafood, agriculture and manufacturing facing significant tariffs of 12-16%.

"I think there has been a mistaken view that businesses and their workers can somehow be put into cold storage and then just brought again when we get to a phase when restrictions can lifted," Leonard went on.

There would be targeted intervention in areas like renewable energy after the debacle at BiFab which saw the firm miss out on a multi-billion pound deal to build windfarms off the Fife coast.

"What's happened at BiFab puts into clear relief the failure of the current Government approach," he added.

Ministers insist that business and trades union leaders shaping the Economic Recovery plans and priorities for Scotland.

“World leading business expert advice also recommended sector led economic recovery and the joint production by business, trades union and government of sector led recovery plans for manufacturing and construction have already been launched,” a Scottish Government spokeswoman said.

"The Scottish Government already engage on a weekly business with business organisation and trades unions on a structured basis and there has been no demand requested for another layer of advice from them.

“We have already invested over £1 billion in economic recovery, on top of the original £2.3 billion of business support and over £500 million of further business support more recently.”

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