Focus on skills to boost growth, businesses urge Swinney

Scotland’s First Minister has been urged to focus on improving skills in a bid to boost economic growth ahead of announcing his Programme for Government.

John Swinney brought forward his legislative agenda – usually announced in September – to May 6 to allow for a full year before the Holyrood election.

In the lead up to the announcement, CBI Scotland has urged the First Minister to focus on ensuring workers have the right skills and knowledge for businesses as well as reviewing the impact of different tax policies between Scotland and the rest of the UK.

In a submission to the Government, the body pushed for a skills strategy laying out how the education sector, businesses and Government can boost productivity and the labour market; action along with “detailed implementation times and clear funding” to build on the green industrial strategy; for the delayed climate change plan to be published, to ringfence funding to improve critical parts of the country’s road network, and to build 25,000 new homes.

The group also stressed the importance of putting “long-term economic growth ahead of short-term revenue-raising plans”, as well as avoiding more income tax divergence with the rest of the UK and launching a review to examine how tax policy has impacted Scotland’s competitiveness.

Michelle Ferguson, the director of CBI Scotland, said: “The First Minister must seize the opportunity in this accelerated programme to outline how the Government plans to play its part in tackling the skills shortages that are holding back growth.

“We need to enable businesses to access and develop skilled workers who are ready to meet the challenges and opportunities ahead.

“Achieving a better balance between classroom and work-based training and short, sharp provision to help upskill and reskill workers for the clean energy transition would support these ambitious goals.

“The Government should also be working closely with businesses and the further and higher education sectors, which are the jewel in the crown of Scotland and its capabilities, to build opportunities to equip people with digital proficiency and the skills to match advances in technology as we build Scotland’s workforce of the future.

“Removing barriers to electricity infrastructure, publishing the climate change plan, building thousands of new homes and reviewing tax divergence between Scotland and the rest of the UK will attract more highly skilled staff to Scotland, shoring up public finances and boosting productivity and growth.”

A Scottish Government spokesperson said: “The Programme for Government will continue to focus on the First Minister’s priorities of eradicating child poverty, growing the economy, improving public services such as our NHS and tackling the climate crisis.

“A major reform of the skills system to ensure it meets Scotland’s needs is already under way and we are providing £185 million this year to deliver 25,000 new modern apprentices, 5,000 foundation apprentices, 1,200 graduate apprentices and continue to support over 38,000 apprentices in training.

“We are also investing an additional £3.5 million in colleges to create an Offshore Wind Skills Programme and College Care Skill Programme, supporting a pipeline of skilled workers in these sectors.”