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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 18 October 2025
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Displaying 990 contributions

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Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

I hope that that extends to ministers as well.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

If it is okay, convener, I will share with the committee some of the granular employability data, because a lot of that is linked with some of the other points that Michelle Thomson has made. It has an impact on employment, ultimately. It also has an impact on challenges for women. After all, if somebody goes through an employability scheme, whether they stay in work a year later is nearly always indicative of wider pressures. There might be something interesting in that.

I do not know whether Colin Cook has anything to add.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

It is a big moment.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

It is certainly one of the drivers—it is certainly up there, near the top, if not the top.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

The past five years have been extremely challenging for businesses because of higher costs, including energy costs and, more recently, the hike in national insurance contributions, although I think that the impact of that will be seen in the years to come. Many businesses struggled hugely during Covid and, unfortunately, some did not make it.

10:00  

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

In the first half of this year, we were second only to the north-east of England and, in 2025, there has been an 18 per cent increase in new business incorporations.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

I will need to come back to you with the data on that. We have a lot of small businesses but, by and large, the bulk of the workforce is employed by the bigger businesses.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

Let me go further than that. I agree that SMEs are the backbone of the Scottish economy. I also agree that productivity is critical, so let us unpack what drives productivity growth. First, technology and the adoption of digital technology; secondly, skills—in other words, people having the right skills for the right job and the ability to perform at the level that they need to—and thirdly, reinvestment of business profits, which I think that you are going to come on to. Those are three drivers of productivity. There are also other drivers, such as infrastructure.

My overall budget, if you include capital, is £1.3 billion. Immediately, you have to look more broadly than simply at my portfolio. We have to look at skills, training, wider infrastructure investment and digital adoption. I can do things such as support digitalisation and digital adoption in tech. When I refer to the tech industry, we should bear in mind that most industries are now tech industries. Yesterday, I spoke about the growth in med tech, for example. The £1.3 billion is delivering significant results, but it is much broader than that.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

I might disagree with the premise—I think that the approaches that we have taken have had an impact. Scotland’s productivity has outperformed that of all regions of the UK over a 20-year period, recording an average growth in real output per hour of 1.5 per cent per annum. Despite that, productivity is still below the national average, and that is what we need to focus on. My argument is that what we have been doing has had an impact, but we need to recognise that the challenges that businesses are facing right now require a slightly different approach. AI is a new opportunity and a challenge.

Economy and Fair Work Committee [Draft]

Scottish Government Priorities

Meeting date: 1 October 2025

Kate Forbes

I think that GDP remains a useful indicator of economic growth, but I do not think that it is the only indicator, largely because it is measured on a national basis. The whole point of community wealth building is that we want to understand the drivers of local prosperity. We want to know that, where a particular local community is thriving, that is having an obvious social impact. That is what Mr McKee was probably getting at, although I did not see the exchange. GDP remains useful but, on a community level, a number of metrics can be used. Mr McKee is driving the bill, so he will be doing the consultation, but there are a number of useful metrics for unemployment, economic inactivity and poverty, and those are massive indicators of economic prosperity. There will be statistics in and around the number of businesses, and I imagine that each of those local businesses will contribute to more local infrastructure development.

There are a lot of metrics and I assume that, as part of the community wealth building consultation process and the bill process, there will be a lot of discussions about how we measure the wealth that we want communities to build through that bill.