The Chancellor urged that economic growth is the “number one mission of this government.”

She made a number of announcements as part of the speech to highlight the government’s intentions for boosting growth. Glasgow is one of the four regions announced as being prioritised for investment through a new National Wealth Fund set up by the UK Government.

The Chancellor also highlighted that the government will be supporting a third runway at Heathrow Airport - a change which could impact Scotland’s economy significantly.

Stressing that “thriving businesses that create wealth, jobs and new opportunities for us, for our children, and grandchildren”, Ms Reeves said: “We will have succeeded in our mission when working people are better off.  I know that the cost of living crisis is still very real for many families across Britain.  

“The sky-high inflation and interest rates of the past few years have left a deep mark… with too many people still making sacrifices to pay the bills and to pay their mortgages. But we have begun to turn this around. Everything I see as I travel around the country gives me more belief in Britain. And more optimism about our future.”

However, the chancellor urged that growth will not come without a fight. She reiterated the contents of the government’s ‘Plan for Change’, stating that the strategy for economic growth is to grow the supply side of the UK economy, “recognising that first and foremost it is businesses, investors and entrepreneurs who drive economic growth.”

Reeves declared that the strategy has three essential elements: 

• First, stability in our politics, our public finances and our economy - the basic condition for secure economic growth. 
• Second, reform - reform which makes it easier for businesses to trade, to raise finance and to build.  
• And third, investment, the lifeblood of economic growth. 

The full speech can be found here. 

Commenting on the Chancellor’s speech on kickstarting economic growth, Deputy First Minister Kate Forbes said: “I welcome the Chancellor’s attempt to outline an economic plan, after the very legitimate concerns around her approach to growth which have been raised by many since the UK Budget, in particular the damaging decision to raise employers’ national insurance contributions.

“However, I am deeply disappointed in the lack of any initiatives which would directly benefit Scotland - especially given our energy expertise, strengths in new technologies like space and AI, world-leading universities and colleges, highly skilled workforce and our reputation as a world-class entrepreneurial nation.

“For instance, there is no mention of Grangemouth and I am concerned that UK Government investment is being further concentrated in prosperous areas in the South East of England and around Oxford and Cambridge. This will deepen concerns that Scotland is being treated as an afterthought by this UK Government.

“The Scottish Government is focused on delivering economic growth and jobs. For example, we are committing up to £500 million over five years to boost private investment in the offshore wind supply chain by up to £1.5 billion, while this week the First Minister signed an agreement with the City of London Corporation to bolster Scotland’s finance sector and secure further investment.”

Members of the Scottish business community have also commented on the Chancellor’s speech. Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “The additional runway at Heathrow creates a huge opportunity for Scotland’s SMEs and can deliver significantly more than 16,000 jobs and £14bn of investment. However, it needs Labour to support the previous commitment for the construction of a new supply chain hub in Scotland where materials for Heathrow’s expansion will be pre-assembled and sent to the airport in consolidated loads.

“Our businesses must have the opportunity to win contracts at Heathrow, with our 20 biggest suppliers, including Atkins and Balfour Beatty, as outlined in the previous MoU. Direct access to the airport’s biggest suppliers, allows us to provide a pipeline of expertise, and will provide Scottish business with the credibility and leverage to secure work on other projects both in the UK and internationally.

“A report commissioned when Heathrow expansion was proposed in 2017, estimated that Scotland would benefit from more than 16,000 jobs and £14bn of investment. Given the current economic position that is likely to be hugely understated.

“What will also be key is making sure we have increased domestic connectivity to Scotland and more direct flights, helping us provide the national and international connectivity vital to economic growth.

“The SCC also welcomes the drive to ease the huge burdens of regulations delaying and preventing important investment and growth. However, what we need is streamlined infrastructure which is closely linked to the new development of factories, new homes, new offices and new R&D facilities.

“Investment in infrastructure must be delivered as part of a wider strategy for the development and investment to follow. Governments need to provide the further support and intervention required to boost the investment and expansion of existing businesses and new homes to respond to existing under-provision and new demand.

“It is disappointing that the Chancellor’s speech did not mention any investment on the Glasgow Investment Zone which focuses on two areas - the joint project between AGS, owners of Glasgow Airport, and Renfrewshire Council and the areas around Strathclyde University – or any support for the areas included in unsuccessful Green Freeport bids such as Greenock and Mossend. They are vital to stimulating much needed growth and the investment in jobs Scotland badly needs.”

Matt Swannell, chief economic advisor to the EY ITEM Club, added: “Investment, innovation and a healthy labour market hold the keys to future growth and while today’s announcements are a step towards a more dynamic economy, change takes time to happen. 

“Streamlining the UK’s planning process would get more shovels in the ground and direct the people, skills and capital into areas where there is high demand for all three.  It would also reassure those investors that are putting capital into new construction and facilities that these projects can offer a viable, timely return, swiftly moving through planning and construction and onto the operational phase.”

“Pushing ahead with reforms and projects that help the Government meet its ambitious housing targets could also have the added benefit of accelerating productivity growth, which has been sluggish for the last fifteen years. If increased housing gives individuals greater scope to relocate to parts of the country where they can access more productive jobs, then overall productivity will benefit.”