Scotland's Economy

Chambers welcomes spending boost

August 10, 2016 by Liz Cameron, OBE No Comments | Category Economy

The consequences of the vote for the UK to leave the European Union have undoubtedly already had an impact on Scotland’s economy. We were already experiencing signs of a slowdown. The weakness of sterling has been one of the early features that business has had to deal with and businesses from all sectors are questioning what the medium and long term implications of the Brexit vote might be. It is far too early to answer a number of the questions being posed by the business community generally.

The Bank of England has put forward a package aimed to build confidence in the British economy in the face of lowered growth forecasts and business rightly expects the Scottish and UK Governments to act with equal clarity of intention.

In announcing its Capital Acceleration Programme, including some £100 million of additional spending this financial year, the Scottish Government has reacted quickly and positively to the needs and expectations of business. This is good news and one in which SCC has been quick off the stocks to call for.

Increasing infrastructure investment has been one of the key asks of Scotland’s business community in the wake of the Brexit vote and, just as it did during the recession of 2008-09, the Scottish Government has been first to deliver. In determining the criteria for this investment, the Scottish Government must ensure that it is targeted to maximise the short, medium and long term benefits to our economy, delivering not only a much needed shot in the arm to our construction sector but also providing capital assets that will enable future growth across the breadth of Scottish business. Investment on its own will not be enough – it needs to be expertly targeted.

The same is true for the UK Government and we have been urging them to reach a quick decision on airport expansion in London to open up new investment streams there, which Scottish businesses can benefit from and inject confidence amongst our investors.

Brexit and the current state of our economy requires a bold response from our Government, with infrastructure at the very heart of it, followed closely by the need for investment in our skills base. We in the business community will continue to focus all our efforts to ensure we remain competitive, and identify new trading opportunities.

Tags: European Union

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