New economic strategy is undeliverable ‘wish list’, Sir Tom Hunter suggests

Scotland’s economic strategy needs to be more business-led than the National Strategy for Economic Transformation launched by Kate Forbes, businessman Sir Tom Hunter has said.

Following the unveiling of the Scottish Government’s 10-year economic vision, the millionaire philanthropist said there should be a “more focused approach” and compared the strategy to an undeliverable “wish list”.

Announcing the National Strategy for Economic Transformation in Dundee, Ms Forbes said it would be a “radical and bold” foundation to support businesses.

Ms Forbes said the strategy would focus on growth, reducing poverty and making the country fairer, but it has received mixed responses, including business organisations welcoming the clarity to criticism from the Scottish Trades Union Congress (STUC) who claimed it was merely “paying lip service” to improving Scots’ economic wellbeing.

Responding to the launch of the plan, Sir Tom said: “What we have here is a long wish list with no magic wand to deliver it, which I do not believe is market-tested nor pragmatic.

“We need a far more focused approach to economic delivery and one single body with absolute authority and responsibility for that delivery with no-one checking their own homework.

“We also need to tackle the various elephants in the room. If we are truly focused on increased productivity we need to address that in our public sector.”

He also said the lack of productivity in the public sector was the “elephant in the room”, and contrasted the economic outputs and productivity of Scotland and Denmark, which has fewer public sector employees despite a larger population.

“Improve public sector productivity and you are well on the way to delivering growth,” Sir Tom said.

He continued: “To be clear, I admire Kate Forbes and I believe she sees the opportunities, but in politics multiple interests tend to prevail, as is apparent here.

“What we need is a business-led economic growth strategy where we turbo-charge scale-ups; the only entities that move the economic dial and greater support for early-stage, high-growth businesses.

“Combine that with a productivity drive across the economic landscape including the public sector and an education system fit for purpose and we have a chance of winning in the global race for economic prosperity.

“Let business and Government genuinely come together, agree targets, timescales, budgets and responsibilities, and get on with it.”

In her speech announcing the strategy, Ms Forbes told business leaders: “We will ensure the voice of business is heard at the heart of government, redesign services from the perspective of their users, and make greater use of private and third sector delivery organisations where it makes sense to do so.

“Government will provide clear and decisive leadership, but it can’t assume it will deliver these objectives alone.

“Business and industry must also lead, grow and develop with Government playing a supporting role as required.”