King's speech a welcome focus on Scotland but urgent action needed, warns business chief

Labour’s action plan for government promises a much-needed focus on Scotland’s economic challenges and opportunities, but needs urgent delivery if it is to boost business investment.

Thousands of jobs depend on it at a time when the Scottish Chambers of Commerce’s recent research warns investment remains significantly frozen.

While we welcome the decision to locate GB Energy north of the border and accelerated investment in renewables, Labour needs to put more energy into delivering greater clarity around its just transition plan. Its pledge to govern for all the UK is meaningless if it ignores the warning from the Aberdeen and Grampian Chamber of Commerce that 100,000 jobs, £30 billion of investment and £20 billion of tax receipts in our oil and gas sector are at risk.

Dr Liz Cameron, CBE, director and chief executive of Scottish Chambers of Commerce.

It was encouraging the Prime Minister said securing economic growth will be a “fundamental mission” and that he is seeking a new partnership approach with business. The SCC has called for greater collaboration, and we stand ready to play our part in working closer with both the UK and Scottish governments.

However, we’re disappointed that our call for a Joint Economic Growth Board to be set up within the first 100 days of being in office has been ignored. We only hope the plans for an Industrial Strategy Council will be broad enough to encompass that promised partnership approach between government and business.

Together with the British Chambers of Commerce, we were also seeking an Industrial Strategy Bill that gives businesses greater certainty and places green innovation at its core as well as a Trade Bill which beefs up the Board of Trade with a fresh remit to improve EU relations and focus on the UK’s future growth sectors. Labour’s announcements may put us on a more positive track, but action not words and speed of progress will be critical for business success.

Where they have clearly listened is the promise to reform the Apprenticeship Levy. That is long overdue and was a punitive and badly targeted tax on business. Given the widespread skills shortage we hope the new Growth and Skills Levy will help invest in creating the workforce of the future.

There was also a clear challenge laid down to the Scottish government with Labour’s aim to "get Britain building” by introducing planning reforms to accelerate the delivery of high-quality infrastructure and housing. Planning is devolved in Scotland, but the shovels are stuck in the ground. Major developments are on hold, and investment has significantly frozen whilst thousands of people are desperately in need of new or refurbished homes.

We need to see Holyrood take the same pro-active approach.

Whilst there was little detail at this stage, we do welcome steps to improve connectivity across the UK by boosting air and rail links as part of the Union Connectivity review. Making travel easier and quicker helps those trading and working across our borders.

Labour’s positive starting gun on action for the whole UK has much to commend it, and whilst challenges remain, we remain hopeful the early signs are that the voice of business and Scotland’s interests will be heard loud and clear.

Dr Liz Cameron CBE is chief executive of the Scottish Chamber of Commerce