Tycoon calls for radical ideas to transform Scotland's economic performance
Sir Tom Hunter's Foundation is looking at why Scotland lags behind other similarly-sized countries
Last updated 7th Apr 2021
Sir Tom Hunter's calling for party leaders to announce 'radical and ambitious policy changes' to boost Scotland's economy in the run-up to the election on May 6th.
Research carried out by Oxford Economics for the Ayrshire entrepreneur's Foundation found drastic change is clearly required as Scotland’s performance lags behind other similarly-sized countries.
The ‘Raising Scotland’s Economic Growth Rate’ report was commissioned with the aim of addressing issues as low productivity, poor business birth rate and lack of success with scale-ups that help to explain why Scotland’s GDP per head is a mere 44% of Singapore’s level, 48% of Ireland’s, 68% of Norway’s and 75% of Denmark’s.
The report finds that “it is not realistic to think that the current economic policies of either the UK or Scottish governments will produce a transformation of Scotland’s economic performance”. Indeed, nor will they for the UK as a whole.
Economic transformation
Sir Tom commented: “It is for everyone in Scotland, from governments, policy makers and businesses to help solve the problem of poor economic growth that Scotland has faced for too many years.
"I fully agree with the findings of this far-reaching new report that radical economic policies are needed if Scotland’s economy is to be transformed.
"The report tells us Scotland would need to make changes equivalent in their impact to creating a business comparable in size with Google’s total global output to bring its GDP per head up the level of Norway’s.
“Moreover, we need far more focus in our economic investments not only to make significantly better gains but also to understand what’s working and what’s not.
“But that is only half the picture - we need to embed innovation in health and education and poverty reduction to free up finance to invest in growing our economy. "
Covid-19 and COP26
“I’m calling on governments, politicians of all parties, industry and interested parties to work together to pave the way for transformational measures that will give the Scottish economy the significant boost it needs.
“Let’s use Covid-19 to reinvent what our future looks like.”
The report recommends an ambitious industrial policy, possibly centred around Scotland’s renewables industry, tapping into its rich tidal, wave and wind resources.
This would capitalise on the COP26 UN Climate Change Conference scheduled for Glasgow in November and would support the Scottish government’s commitment to net zero carbon emissions.
The report says “it is not implausible to suggest that there are business opportunities that resemble those that generated Silicon Valley, several decades ago”.