Years of low levels of investment have held Scotland back, Kate Forbes says

Years of low levels of investment have held Scotland and the rest of the UK back, Kate Forbes has said.

In a speech at the Investment Association conference in Edinburgh, the Deputy First Minister said increasing private investment in Scotland is “essential” to growing the economy.

She said it would also play a “critical part of the solution” to solving the housing emergency.

Ms Forbes, who is also the Economy Secretary, said she is committed to ensuring Scotland is a good place to do business.

She told investors: “Increasing the level of private investment into our economy is not just something I think would be nice to achieve, it is essential to our objective of growing the economy, for our shift to net zero, for eradicating poverty and, vitally, for improving our public services.

“Without more investment and the growth it can catalyse, we can achieve none of those goals.

“The UK as a whole – and Scotland is no exception – needs to do far more, and needs to do far better, on attracting investment.

“For many years, low levels of investment have held back growth.”

Ms Forbes said Scotland had been limited by years of austerity and “fiscal constraints” due to devolution.

She told the conference she wanted to tackle the “challenge of low investment” and pointed to the £500 million offshore wind investment programme.

She said the scheme would announce its first investments in the coming weeks.

Above all, we have a Government determined to create an investor-friendly environment to seize our chances

The Economy Secretary said the Scottish National Investment Bank had already invested £650 million since its creation four years ago, alongside £1.4 billion from private investors.

She continued: “On housing, we recognise the scale of the challenge that we face right across the country.

“We are very clear that private investment will be a critical part of the solution.”

She said housing is one of the Scottish Government’s three key areas for investment alongside net zero and public infrastructure.

The Deputy First Minister said economic success would mean working with the UK Government, which she said showed “early signs” of “its willingness to collaborate” with the SNP.

Following news from the Chancellor about reforming how pensions can be used to invest, Ms Forbes said she would consider similar measures north of the border.

“Within government, I see my job as tackling barriers and blockers to ensure that the system as a whole works cohesively, effectively and quickly, to support investors and to deal with issues as and when they arise,” she added.

She went on: “We know what the challenge is. We need to do more, better, smarter, quicker. But we have a plan.

“Scotland has the talent, skills and resources in abundance to be a major player in the energy transition, and to secure a prosperous and sustainable future.

“As the investor panel put it, we have the ‘intimacy and devolved powers to make Scotland a globally competitive investment destination’.

“Above all, we have a Government determined to create an investor-friendly environment to seize our chances.

“I am competitive. I want to win. And, with your partnership, I believe that we can.

“So – with the help of Scotland’s businesses and the support of the investment community you represent, I am optimistic that we can rise to the challenge.”