All economic interventions should be to support growth, says Swinney

The First Minister took up the post last week, with a renewed focus on the economy.

The First Minister will visit the Ardersier Port on Monday (Jeff J Mitchell/PA) (PA Wire)

All of the Scottish Government’s economic interventions should focus on improving economic growth, John Swinney has said, adding that ministers must “tighten up our act” to attract investment.

The newly-minted First Minister, who took over the role last week after a tumultuous period for the Government and the SNP, has put an emphasis on the economy in his time in charge.

Improving growth, he believes, will give a financial boost that can be used to support public services and eradicate child poverty – which he has pinpointed as his number one priority.

We've just got to make sure that we tighten up our act and make sure that we demonstrate to investors that Scotland is a place that wants to attract investment

John Swinney

On Monday, he is due to attend the ground-breaking of an offshore wind hub at Ardersier Port near Nairn, which has just received £50 million each from the Scottish National Investment Bank and its UK-wide counterpart.

Speaking to BBC Radio Scotland on Monday, Mr Swinney said the Scottish Government had a “strong track record” of economic growth under the SNP, adding that recent slowdowns were as a result of the pandemic and Liz Truss’ mini budget in 2022, which increased the cost of borrowing and inflation.

“What I’ve got to do, what Kate Forbes, the Economy Secretary will be doing, and Mairi McAllan, the Net Zero Secretary, will be doing is making sure that we line up all of our economic interventions to support the growth agenda,” he said.

“That means making sure that our investment in skills and infrastructure, in the decision-making processes of Government – on planning for example, energy consenting – is done in an efficient and effective way to make sure that Scotland can be a magnet for investment.”

Asked if the Scottish Government had not been “efficient” in recent years in its decision-making, the First Minister said: “We’ve just got to make sure that we tighten up our act and make sure that we demonstrate to investors that Scotland is a place that wants to attract investment and deliver investments quickly.”

The Government, he added, must ensure Scotland is “well positioned” to bring in private sector investment.

The oil and gas sector – which is believed to support thousands of jobs in Scotland – is “very significant” to Scotland, Mr Swinney added.

While the country and the industry has to “face the realities” of the impact of fossil fuels on the climate, the First Minister added: “We’ve got to deliver that transition to net zero, we’ve got to support the oil and gas sector to undertake that transition.

“So all of the steps that we take have got to be about minimising economic disruption to the communities and sectors that are dependent on oil and gas.”

Asked if he supported the presumption against new oil and gas licences backed by his predecessor Humza Yousaf, Mr Swinney refused to say, but claimed the long-awaited energy strategy would “set out our thinking” and would be published “over the next few months”.

The transition to net zero, he said, has to be done “with great care”, given the sector is “significant to the Scottish economy” and “attracts significant investment and wealth into the Scottish economy”.

Responding to comments from the First Minister about the importance of economic growth, Scottish Labour economy spokesperson Daniel Johnson said: “It is simply not credible that John Swinney has suddenly discovered the importance of economic growth after 17 years of this incompetent and economically illiterate SNP government.

“Under the SNP, Scotland’s economy is flatlining and our vast potential is being squandered. This chaotic and divided party is incapable of delivering for the people of Scotland.

“From cutting cost-of-living support during the cost-of-living crisis to slashing the housing budget during a homelessness crisis, it is clear that the SNP’s priorities are not those of the people of Scotland.”