In an era marked by political uncertainty and frequent changes in leadership, it is evident that both local and national Government have faced significant challenges in recent years. The memories of 2022 linger – a year that witnessed four Chancellors and three Prime Ministers, a revolving door of Cabinet Ministers, and even the birth of new Government Departments such as the Department for Energy Security and Net Zero. Against this backdrop, the Edinburgh Chamber of Commerce is calling for a Modern Industrial Strategy for Scotland, advocating for the Scottish Government to take the bold and innovative step of removing long-term economic strategic planning from the political cycle.

We are pushing for a Modern Industrial Strategy for Scotland that garners broad cross-party support, and addresses “short-termism and politicisation” that have often impeded genuine and meaningful progress. More importantly, the Chamber is determined to put its shoulder to the wheel in assisting the process and plans to reconvene influential city business leaders to help gather the views of diverse industries, ensuring that the proposed strategy resonates with the real-world needs and aspirations of businesses.

This initiative follows the Chamber’s successful convening of the Edinburgh Business Resilience Group, which, two years ago, produced the impactful “Prospectus for Growth” document. This document, which has fed into policy-making, was the result of the efforts of approximately 60 business leaders who, over several months, delved into an array of critical topics including economic recovery, talent and skills and key sectors in the city such as hospitality and tourism.

The Chamber maintains that our economy underpins our country’s ability to offer its people good employment, opportunities, health, education – and is too important to be subjected to short-term thinking.

Liz McAreavey, Chief Executive of Edinburgh Chamber of Commerce, said: “We need a long-term Modern Scottish Industrial Strategy, developed along cross-party lines to remove short-termism and party politics from the equation. Our ambitions around the wellbeing economy, fair work agenda and net zero targets depend upon a successful economy, and it is too important at this vital time that we make good, sustainable, thoughtful and strategic choices that will ensure the future is bright.

“Such a strategy, conceived and led in partnership with industry, and aligned with existing strategies -such as those focussed on innovation and skills – would bring everything together, creating a cohesive, overarching and long-term aim for the development of our economy and our society.

“But we do not intend to leave our interest there. As before, the Chamber will convene business leaders and key stakeholders from Scotland’s Capital to give their time and enormous expertise to help shape this Industrial Strategy.”

Since the initial Prospectus for Growth was published two years ago, Joanne Davidson, Policy Director at the Chamber, added that the challenge posed by the lack of long-term strategic thinking had become glaringly obvious.

“Inconsistency and instability are the enemies of a successful economy. In the past two years, the UK has had 3 Prime Ministers, 4 Chancellors of the Exchequer; Scotland has had 2 First Ministers and 2 Cabinet Secretaries for Finance and the Economy. We have a Conservative UK Government, an SNP-led Scottish Government, and a minority Labour-led city council.”

The first Prospectus for Growth came off the back of a two-year global pandemic and lockdown, and Brexit.” Only now are the consequences of both these seismic events – allied now to the war in Ukraine – becoming crystal clear.

“Stubbornly high inflation, which risks becoming embedded in the UK economy more than any other leading developed economy; critical skills shortages; rising costs; wages inflation; and what appears to be an ever-increasing burden of legislation and regulation are hampering efforts to bring the cost of doing business crisis under control.”

In the recent update to Prospectus for Growth, the Chamber made the following key points:

On re-setting the relationship between policy-makers and business the document says: “Some progress on this issue has been made since the publication of Prospectus for Growth. At a city level, a new Cross-Party Edinburgh Economic briefing is being held quarterly by the Chamber and partners and is well attended by politicians and influencers from government at all levels. At a national level, the New Deal Group, announced by the First Minister and Chaired by Neil Gray, Cabinet Secretary for Wellbeing Economy, Fair Work and Energy has been convened with Chamber representation. However, much more is needed.

“We would like to see earlier, more constructive meaningful engagement and consultation, and the establishment of a more formal forum at a local level where politicians can engage, hear and better understand the voice of business”

Joanne Davidson reinforced that the Chamber was determined to play a positive role in the essential need for improved discourse between government and business. She said: “Edinburgh’s economy continues to make progress despite the challenges. This leads us to think that so much more could be achieved if we had greater engagement and co-operation, greater understanding of what businesses need to create opportunities and wealth for our citizens, and the long-term thinking essential to replace the threat posed by short-term political expediencies.

“In the spirit of the Scottish Government’s recent commitments to re-set the relationship with business, which was the underlying theme of the Prospectus, and with a new administration at local government level, we feel that now is the time to re-engage on many of these still valid issues.”

The Edinburgh Chamber remains committed to engaging with business on this important topic, gathering real-world views and insights we can take to policy-makers. We will continue to advocate for a Modern Industrial Strategy that provides a cohesive, long-term strategy for our economy, supporting businesses by providing certainty which is essential for future planning and growth.