Scottish productivity ‘lagging behind’ claims think tank

Scotland’s productivity is lagging behind other countries despite attempts to improve it, a think tank has suggested.

The David Hume institute has reported “no progress” in productivity rankings against a target set by the Scottish Government in 2007, despite a well-educated workforce.

Ministers refute the findings, pointing out Scotland’s productivity has grown faster than elsewhere in the UK.

The Wealth of the Nation report said: “Scottish productivity has all but stalled in the last fifteen years and a turnaround is required if future living standards are to improve.”

In an uncertain global economy, the think tank recommended Scotland focuses on developing skills and access to jobs.

“Scotland needs to make a choice about what it wants from its economy and then act accordingly. The level of clarity, focus and execution in these case studies is an order of magnitude different from what happens in Scotland today,” it said.

This can only be done with government, business, unions and others acting together, it adds.

Scotland’s public finance minister Kate Forbes said: "Over the last decade, productivity in Scotland has grown at more than three times the rate it has across the UK as a whole.

"Our productivity growth has been higher than any other country or region of the UK, including London, with productivity increasing by 1.7% in the first quarter of this year.

"Scotland's economy is fundamentally strong but we are determined to strengthen it further and will consider the points raised in this report."

Scottish Conservative economy spokesman Dean Lockhart said the report exposed the “root causes” of low productivity were “low business investment, lower than average exports, and declines in education standards”.

His Labour counterpart Jackie Baillie said it revealed “the SNP's mismanagement of our economy”.