Sarwar pledges new era of regional economic growth if Labour elected

The Scottish Labour leader has said his party would create a new era of regional economic growth if elected, following the publication of a new report.

Anas Sarwar’s claims came as he launched the Muscatelli Report, commissioned by his party to look into regional economic growth, and written by economist Professor Sir Anton Muscatelli.

Sir Anton’s report examines the state of the economy in Scotland, analyses its challenges and opportunities, and gives a series of recommendations to drive regional economic growth.

Scottish Labour asked the professor to create the report ahead of the 2026 Scottish elections.

Mr Sarwar has been critical of Scottish politics for being an “economics-free zone”, also taking aim at the SNP’s approach to economic policy, which he said was “Edinburgh-centric”.

Speaking to mark the launch of the report, Mr Sarwar said: “For two decades, Scottish politics has been an economics-free zone.

“We all want to see social change driven by proper policy-making, but the truth is that we cannot have the social policies we need if we do not have a thriving and growing economy.

“Under the SNP, economic growth has been ignored and the unique potential of communities across Scotland has been held back by an Edinburgh-centric view of the economy.

“If we are to meet the challenges of the future, we need a thriving and growing economy that works for every part of the country.”

He said: “That’s why Scottish Labour is determined to learn from experts like Professor Sir Anton Muscatelli to ensure we have a plan that is ready to deliver the growth and prosperity we need.

“As First Minister, I will end the economics-free zone at Holyrood and push power out and into our communities to empower entrepreneurs and kick-start growth.”

Sir Anton said: “I was commissioned by the leader of the Scottish Labour Party to examine how Scotland might unlock the full potential of its regional economies.

“In conducting this work, I have done so entirely independently, drawing on evidence, consultation and international best practice to offer recommendations that I hope will be of value to all those with an interest in Scotland’s economic well-being.

“Scotland’s long-term prosperity depends on placing economic growth and productivity at the centre of public policy. This report highlights the need for greater coherence in policy design, stronger collaboration between Scotland’s governments and a renewed call for the levers that lie in Holyrood to be used to foster the distinctive strengths and mitigate the challenges of our regional economies.

“Economic growth is not an end, but the essential means by which we can raise living standards, sustain high-quality public services, and tackle persistent inequalities.

“My hope is that the findings set out here will help stimulate the focused, long-term approach to economic development that Scotland now urgently requires.”

A Scottish Government spokesperson said: “Economic growth is a key priority of the First Minister and the Scottish Government is working with business to boost growth and attract jobs and investment across our local, regional and national economies.

“The 2025 Programme for Government commits to working with regional and local partners to identify how to formally devolve elements of decision making and delivery to regional partnerships to maximise economic opportunities.

“We are actively working on delivering this commitment with a range of partners.”