STUC statement on the National Strategy for Economic Transformation

March 1st 2022

STUC statement on the National Strategy for Economic Transformation

March 1st 2022

Roz Foyer, STUC General Secretary who sat on the advisory group said:

"Sadly, this is more a strategy for economic status quo than economic transformation. The National Strategy for Economic Transformation has a sprinkling of good ideas and we have successfully argued for some strong lines on the importance of Fair Work, decent pay and the role of trade unions, but overall, it is a missed opportunity to address the challenges before us and make real, transformational change.

"The main engine of the Scottish economy is the foundational economy. Unsurprisingly it is also the biggest employer. It encompasses transport, retail, energy generation, distribution and importantly education and public services . So, at the heart of the NSET should have been a strategy to increase pay and improve terms and conditions in these sectors. Investing in public services offers huge opportunity to support sustainable growth while tackling poverty and inequality.

"Over the coming years we face enormous challenges, none greater than the journey to net zero, a journey that must be carefully planned to ensure we create good, secure jobs that do not leave communities abandoned. Whilst the NSET talks about the potential for future development in the renewables and low carbon economy it fails to acknowledge previous failures or, more importantly, how we can learn from them and build a new industrial strategy.

"Scotland is not immune from global economic shocks, or the UK Government’s self-inflicted economic damage. Financialised capitalism embeds structural inequalities as evidenced by the escalating cost-of-living crisis. Addressing these structural inequalities is fundamental and it will certainly not be solved by prioritising becoming a ‘magnet for global private capital’ nor through the appointment of a ‘Chief Entrepreneurship Officer.’ Genuinely building new business start-ups is a good idea, flooding the economy with new start-ups, too many of which then fail, is not.

"The public sector has an enormous role to play in our economic transformation yet it is barely mentioned in the Scottish Government’s strategy. Neither is there any mention of tax – which is crucial to tackling inequality and raising revenue. Paying lip-service to community wealth building and the desire for a well-being economy will not deliver the change needed. If we are serious about economic transformation the Scottish Government must develop a green industrial strategy and invest in our public sector and the local authorities that make our vital services a reality.

“We will continue to engage with Scottish Government both on taking forward the more positive elements and aspirations of this strategy and to ensure the foundational economy is not left behind in Scotland’s economic future.” "