Sustained economic growth is a key route to improving living standards and the prosperity of our country. We know that greater equality and opportunity for all is only achievable when backed up by a strong economy that creates growth and jobs.

Scotland has huge economic potential. From the industrial strength of the central belt, our internationally renowned universities, the renewable energy possibilities of our natural resources and long coastline, to the reputation of our national brand, Scotland has much to offer. Yet, too often, politics in Scotland has focused on what we cannot do, rather than what is possible.

Doing business in Scotland can be complicated and unpredictable. There is a maze of enterprise, innovation and investment agencies that are difficult for businesses and investors to navigate. The SNP Government has a multitude of overlapping and contradictory strategies, meaning it is a government without clear priorities. Public money is not being used as effectively as it could and the failure to grow supply chains sees jobs and investment go elsewhere.

A Scottish Labour government is determined to take a different approach that will use all the economic levers at our disposal to unlock Scotland’s huge economic potential.

Our new approach will be built on three key principles:

· To work in partnership with business

· To prioritise strategic interventions that deliver economic outcomes

· To use the convening power of government to find solutions and remove barriers

Read more in our 2024 Building a Business Case for Scotland.

To Help Scotland’s Businesses to Grow and Create Jobs, Scottish Labour will:

· Fundamentally reform our out of date non-domestic rates system so that it is fairer. We will rebalance it so it supports thriving high streets and town centres, making sure that online retailers and large distribution warehouses pay their fair share.

· Ringfence Scotland’s share of the apprenticeship levy funding for skills development and work with businesses, trade unions and education institutions to get skills planning right. Read more in our Green Paper for Skills.

· Streamline Scotland’s economic and enterprise agencies to deliver value for money and refocus them on supporting businesses to deliver economic growth.

· Embed technology across the economy and in Scottish public services to support excellence and ensure future generations are tech and business ready.

To Respect Taxpayers’ Money and Ensure the Government Delivers for the Economy, Scottish Labour will:

· Establish a Scottish Treasury that will prevent wasteful spending, set long term spending plans and apply robust value for money tests on government spending.

· Create an economic unit at the heart of the First Minister’s office so all of Government is focused on helping to create economic growth.

To Deliver the Critical Infrastructure that Scotland Needs, Scottish Labour will:

· Overhaul the planning system so that it properly takes account of economic potential, with a central planning agency that can provide expertise to local authorities to speed up decision making.

· Reform the governance of ferry services, with a guaranteed voice for local communities and a rolling procurement plan to deliver sustainable ferry services.

· Reform procurement rules in Scotland to take account of social value and ensure that we build more of Scotland’s ferries, buses and infrastructure here in Scotland.

· Remove the ideological block on nuclear energy so that Scotland can benefit from the investment and new jobs that come from small modular reactors.

To Create Prosperity in Every Part of Scotland, Scottish Labour will:

· Deliver fair funding for local government, with a multi-year funding settlement that will support the local services on which we all depend.

· Promote Brand Scotland on the world stage, working with the UK Government trade networks and Scottish diaspora to boost Scottish exports and grow Scottish tourism.

· Push power out of Holyrood, ending the centralisation the SNP and ensuring regions can build on their local strengths and assets.

Read more about regional economic development in the independent review we commissioned from Professor Anton Muscatelli.