Chris Law

Obviously, increasing investment in Scotland’s economy is crucial to delivering the SNP Government’s priorities, which are improving public services, supporting a thriving economy, tackling the climate emergency and eradicating child poverty. I want to put this on the record again, just to be very clear in this House about the facts: Scotland’s economy makes it one of the best-performing parts of the UK. Its GDP has outgrown the rest of the UK by 50% since 2007, and productivity is at an average rate of 1.1%. It is vital that the spending of the Department for Business and Trade complements the Scottish Government’s efforts to increase investment and ensure economic prosperity. Increasing trade and attracting inward investment are critical for Scotland. In 2023, Scotland secured a record number of foreign direct investment projects, maintaining its position as the top performing UK area outside London for the ninth year running. According to Ernst and Young’s annual analysis, 142 FDI projects were secured in Scotland, which is double the UK’s growth rate. Scotland is clearly the best place to invest in these islands. However, this success must not be jeopardised by decisions by the UK Government. Obviously, the pressure employers are feeling on national insurance is negatively impacting on Scottish businesses, limiting their capacity to contribute to the economy. This tax on jobs undermines efforts to support businesses, entrepreneurs and investment. Labour’s political choice to remain outside the EU single market and customs union is costing the UK billions every year. Brexit—a decision Scotland never voted for— continues to hurt Scottish businesses, trade opportunities and economic prospects. A January 2025 analysis by the office of the chief economic adviser estimates that Brexit trade barriers could cost Scotland £4 billion, with exports potentially down 7.2% or £3 billion compared with EU membership. Scotland’s future therefore lies in the EU and the European single market. The Labour Government must acknowledge that standing outside the EU is driving down investment and growth. This will be crystalised by the potential trade war being initiated by President Trump as part of the “America first” trade policy. Free trade, a long-established principle, is under significant strain, bringing uncertainty for trade, with the USA and other nations imposing tariffs. I would speak about the vulnerable whisky industry, which needs to be revisited. I heard only today that the Government are withdrawing the idea of making English whisky a single malt, and I am pleased to hear that. I will finish by saying that the UK must recognise the value of Scotland’s industries and potential emerging sectors. Scotland is at the forefront of the energy transition and cutting-age technologies, presenting substantial opportunities for future growth. I look forward to hearing more about investments in Scotland, particularly in those sectors.