Working with a new government to boost economic growth - Liz McAreavey

Liz McAreavey, CEO at Edinburgh Chamber of Commerce

Only one in ten voters tuned into the Rishi/Keir skirmish on ITV. I wonder do voters have any faith and trust in these exchanges or are we all a bit weary of empty words and political positions that really tell us very little we can believe in.

We all have our democratic responsibility to elect leaders who will steer us to the economy and society we can all be proud of, in spite of our political differences. Values, integrity and truth is something few would disagree with.

While many of the day-to-day issues that affect us in Scotland are now the responsibility of the Scottish Parliament, who represents us in Westminster is also of great importance and businesses will be keen to see any new government work in a more collegiate fashion to improve our stagnant economic performance.

Economic growth is required to generate the income required to fund our essential public services, provide fair and sustainable employment and to deliver our aspirations around net zero and tackling poverty.

As part of the UK network of chambers of commerce, Edinburgh Chamber supports the manifesto published by British Chambers of Commerce at the end of May. This includes a number of key asks: an industrial strategy with green innovation at its heart, better skills planning, bringing businesses and providers together, business rates reform to encourage growth and investment, improved relations with the EU to cut costs for business and a government-appointed AI champion for SMEs to spearhead uptake of new technology.

From the Scottish perspective, it must be said that while the UK election is of great importance, many of the key issues most affecting businesses north of the Border are not directly relevant given devolution (except where Barnett funding consequentials may be impacted).

But, there are some key areas which we believe are very relevant and there are actions that Edinburgh Chamber can call for. In particular, a re-setting of the relationship between different levels of government.

Recent events have brought the state of inter-government relations, including those between national, Scottish and local governments, into sharp focus. With a new First Minister in Holyrood, there is a unique opportunity for governments at all levels to work more closely together to deliver the kind of economic growth we need.

Our other asks of any incoming UK Government include lowering VAT for hospitality to boost employment, lower consumer prices and ultimately be cash-generative for the Treasury, contributing to government debt reduction.

The re-introduction of tax-free shopping that is costing the UK £1.5 billion of lost spending. Transforming the National Grid and outline plans for future energy sources to ensure there is sufficient network capacity and flexibility to deliver energy needs fit for Net Zero, charging for electric vehicle and distribution ofrenewable generation.

Towards the end of last year Edinburgh Chamber worked with the ‘Our Scottish Future’ think tank founded by former Prime Minister and Chancellor Gordon Brown, hosting a conference at which he called on the UK and Scottish Governments to put aside political differences to work together to create “a decade of delivery.”

He said that raising economic growth to 2.5 per cent is ambitious but achievable if we work together and that this would lead to the creation of 300,000 jobs in new industries in Scotland over the next decade, lifting 100,000 people out of poverty.

In this election, business will be putting that case for collaboration. We must hope that it gets through to our current and future politicians.

Chief Executive, Edinburgh Chamber of Commerce