James Darrie, director, Turner & Townsend tells Project Scotland why he believes devolution, not divergence, is crucial to driving growth for Scottish industry
WHEN it comes to industry, Scotland has long punched above its weight on the world stage. Today’s political and economic contexts present a fresh opportunity to coordinate policy and investment that makes the most of Scottish talent.
However, we need to ensure that cross-border coordination with the rest of the UK isn’t sacrificed along the path to devolution. By looking beyond individual projects at the wider picture, Scotland can lead the UK’s national growth narrative and secure a Scottish success story for the next generation.
Building confidence through coordination
Scotland has a wealth of experience in areas that have become high priority for the UK and the world. For those with ambitions in renewables and nuclear power, logistics and defence, it is an attractive place to put down roots. Our country offers good labour and land capacity, established supply chains and a competitive cost base.
Yet over the last 15 years, Scotland has faced its fair share of instability, from its own political challenges and the independence referendum to Brexit and Covid-19. Since taking office in Westminster, Labour has been eager to demonstrate the opportunity for clarity and coordination when it comes to investment.
When looking at major industrial sectors, we’ve seen positive steps. Moves such as the establishment of the Great British Energy headquarters in Aberdeen, confirmed in the recent autumn budget, are a really positive start. The budget also confirmed £3.4 billion more for the Scottish Government to spend on local transport, health and social care, and housing. But any investment will need to be backed up by more detail through the industrial strategy and wider growth plans.
The picture also becomes more complex when we look at wider development appetite, where divergence in policy can strip away Scotland’s appeal as a place to invest. The Scottish housing market is one such example – stricter caps on rent increases have led to reluctance from some in the Scottish ‘build to rent’ market, creating problems for housing development viability and worsening a lack of affordable homes.
We need to be mindful that investors in these sectors can easily move across the border. This doesn’t mean lowering our standards or unpicking devolution by putting English policy first, but it does mean more discussion and coordination to avoid unwanted policy consequences.
Looking beyond landmark schemes
The importance of staying joined-up across nations only increases when we look at the scale and complexity of many of our country’s principal growth sectors. It may often seem easier to focus capital on single, flagship projects, but to ensure long-term policy success and meaningful growth, we need to think more holistically.
A new wave of investment in major infrastructure projects must continue to be supported by funding the smaller schemes that enable them.
For example, projects like Ardersier Port and the Port of Aberdeen will realise their potential partly through the development of wider supporting sectors and the communities around them.
This includes the new homes that bring fresh talent and labour to work there, amenities to help retain that quality workforce, and the grid upgrades to power them. The ports themselves are then catalysts for other growth, such as enabling the provision of the equipment and materials to construct new offshore wind sites.
As we’ve seen in the case of new announcements from the UK Government, the expectation is for a key role for private finance to support schemes like this. The two ports are proof that up-front public sector funding can kickstart projects, and soon attract significant private investment.
The time is ripe for a surge in Scottish investment and success. But Westminster and Holyrood must continue to communicate and coordinate to ensure long-term growth.
It’s important that we, as a sector, offer our advice and support to both governments so that Scotland can maintain its reputation as an innovator in the world arena.
