In the balance hang government priorities. The NHS and the universities in particular – both which fall under the remit of Scotland’s devolved government – are set to put up a fight. Business groups are arguing for the state to support a business-led recovery. But means by which the Scottish government, which will only get its own tax setting powers under current reform proposals led by the Calman Commission, are unclear.
Eyes look towards Scottish Enterprise (SE), which has been responsible for economic development in Scotland since 1991 and its predecessor since 1975. Unlike England, where drastic reform of the regional development agencies was instigated by the change of government, Scottish Enterprise had already undergone a period of dramatic restructuring over the last two years.
Skills development has been hived off to a new agency, small business support handed to local authorities and SE took a £75m budget cut. The idea was to create a lean, mean economic development machine focused on key sectors including energy – particularly renewables – life sciences, food and drink and tourism. The firm is also working with a select group of 2,000 high growth start-up companies which it believes have the potential to reach £5m turnover in three years.
Exports too are a key concern. A recent report noted Scotland’s “dismal” track record – Scottish exports dived 30 per cent since 2000. Scottish Enterprise’s sister agency, Scottish Development International (SDI) is responsible for both inward investment and export support. SDI, along with the Edinburgh Chamber of Commerce, has launched a new support programme aimed at developing overseas trade with the aim of targeting 8,000 Scottish companies over the next three years.
