Scotland's First Minister has acknowledged that London brings benefits as well as significant challenges to the country's economy.

Nicola Sturgeon said the UK capital has a "centrifugal pull" on talent, investment and business from around the world and the challenge is how to balance that in Scotland's best interests.

She announced she is strengthening the Scottish Government's Council of Economic Advisers (CEA) to help make the country more competitive.

Ms Sturgeon made the announcement in an address to business figures in Glasgow, her first speech as First Minister outside the Scottish Parliament.

She said: "A key part of this debate will always be about how we compete with London. In looking at that we need to recognise both the economic value of London and the benefits to our business and economy that come from our proximity to it, as well as the significant challenges it poses.

"London has a centrifugal pull on talent, investment and business from the rest of Europe and the world. That brings benefits to the broader UK economy. But as we know, that same centrifugal pull is felt by the rest of us across the UK, often to our detriment. The challenge for us all is how to balance this in our best interests - not be engaging in a race to the bottom, but by using our powers to create long-term comparative advantage and genuine economic value."

She said the CEA will continue to be chaired by Crawford Beveridge and take advice from Nobel Laureate Professor Joseph Stiglitz, while Sir Harry Burns, former chief medical officer to the Scottish Government, will join the council to help look at the issue of inequality.

Ms Sturgeon said she wants to work with business to address inequality, saying: "Equality and prosperity shouldn't be seen as enemies of each other, but as partners. One reinforces the other."

She said: "We believe - in common with many economists across the world - that equality and cohesion are good for growth, as well as good for individuals."

The First Minister said she wants to work with business to create a society where the benefits of economic growth are shared more equally.

She said: "What I want to do is strengthen that sense of partnership. Government will be supportive of business, so that Government and business together can support a fairer, stronger, more prosperous Scotland."

In an interview with the Financial Times (FT) ahead of her speech, Ms Sturgeon told businesses they have "nothing to fear" from her administration, insisting her radical land reform plans do not represent a form of class warfare.

She told the newspaper: "I want them to know that they have got nothing to fear from me.

"I am a social democrat, I believe in pursuing greater equality and tackling social justice, but... you can't do that unless you have got a strong economy, unless you have got a vibrant business base earning the wealth that makes that possible."

The interview came less than a week after the new SNP leader promised a "radical programme" of reform so Scotland's land can be "an asset that benefits the many, not the few".

The proposal is contained in one of 12 bills to be brought before Holyrood in the coming year.

The legislation will include the establishment of a Scottish Land Reform Commission and measures to make information on who owns land and its value more readily available, while business rates exemptions for shooting and deerstalking estates - brought in by the Conservatives in 1994 - will be ended.

The First Minister told the newspaper that land reform is "unfinished business" in Scotland, but insisted responsible landowners should be "valued and respected" for the contribution they make.

And she said the change to shooting estates' exemptions would raise funds to promote community land ownership.

"This is not some kind of class warfare," she told the FT.

Scottish Conservative enterprise spokesman Murdo Fraser MSP said: "We predicted before Nicola Sturgeon came into office that she would be Scotland's most left-wing First Minister.

"She hasn't been in the job two weeks and already she's proven us right.

"The scorecard so far is a home-buyers tax on aspiration, a proposed income tax hike, and a ridiculous land tax which she unveiled last week.

"Whatever the warm words to business, that adds up to a socialist agenda which sets a course back to the 1970s.

"Under the Conservative-led UK Government, Britain is now the fastest growing country in the G7, has record levels of employment, while unemployment in Scotland has fallen below 6%.

"We benefit from being part of the UK single market - something Nicola Sturgeon wanted to tear up."

He added: "What we're getting is a left-wing agenda which the people of Scotland didn't vote for, and yet more moaning about the powers she doesn't have."

Liz Cameron, director and chief executive of Scottish Chambers of Commerce, said: "Today, our new First Minister committed to an open, working relationship with the Scottish business community. One in which new ideas and approaches driven by what business needs would be welcomed.

"This is a positive step forward. The First Minister specifically focused her attention towards ensuring that Scottish business not only has a competitive environment to work in, but world-leading. We share that ambition.

"However, the proof of the pudding is always in the eating. We need to see policies being developed and emerging which match what business needs to enable us to continue to compete, create jobs and increase our investment.

"My plea is that business is actively engaged at the ideas stage so that we can truly influence and work in an effective partnership with Government. All too often, business is at the end of the government cycle when it is often too late to make any substantive changes in key areas. Perhaps now is the opportunity to change that culture.

"Our Chamber Network looks forward to working with the new First Minister and her team."