TRACY BLACK

Months on and coronavirus still dominates daily life in Scotland. Pubs may have reopened in a limited way and things are beginning to return to a "new normal", but a cloud of anxiety continues to hang over us. Transmission could rise again if we’re not careful. And thousands of jobs and businesses still hang in the balance.

The pandemic has also given us pause for reflection. About our economy, the way we work and business's relationship with government. Even before Covid-19 hit, the Scottish economy was misfiring. Growth was stubbornly weak, prosperity shared unevenly, and Scotland faced competitive disadvantages in attracting talent and investment. While a full re-set may be unnecessary, there is scope to revitalise the partnership.

Cooperation between government and business has maybe never been more important than it is now. With economic data pointing to a significant period of upheaval, as well as prolonged contraction in sectors vital to Scotland, there’s an urgent need for government to get fully behind the business community. And vice-versa – business needs to lend its expertise to shape economic policy and plot a speedy return to growth.

In many respects the coronavirus crisis has been a catalyst for cooperation. The immediate but lasting impact of the crisis meant that governments in Holyrood and Westminster had to respond quickly and at scale. Without doubt, those interventions have saved hundreds of thousands of Scottish jobs in the past few months – as well as businesses of all sizes.

But things didn’t go totally smoothly. Thirteen of Scotland’s leading business groups had to issue a call for greater clarity, consistency and cooperation between measures implemented in Scotland and those adopted by the rest of the UK. Differing approaches to vital business rates reliefs also came under significant scrutiny.

As we look to support the economy in the short to medium term, there’s consensus among business that measures that can be delivered immediately through existing structures should be prioritised. Expanding upskilling and retraining initiatives; accelerating energy efficiency commitments; quicker roll-out of digital infrastructure; business rates reliefs for medium-sized firms; and fast-tracking planning for green infrastructure investments would bring a significant boost to the economy.

These were outlined in the recent Advisory Group on Economic Recovery consultation, as well as by the Enterprise and Skills Strategic Board. By progressing these interventions, the Scottish Government would demonstrate that it is really listening to the private sector and responding to business needs during a period of unprecedented economic challenge.

There are further areas of common ground to be explored too, such as mooted proposals for a Scottish jobs guarantee scheme. Early appointments to lead the work, like Tesco Bank’s Sandy Begbie, have been positive and show the only way to make it truly impactful is by engaging business from the beginning. Driving change and solving complex problems are what business does best.

As necessary talk of "build back better" continues to gather pace, let’s also take into account the immediate need to support jobs and businesses still at risk. The best way to achieve that is to create a "new normal" for business-government engagement in Scotland where open consultation, transparency and cooperation always win out over preconditions or overly rigid approaches.

While the need for a major re-set may be exaggerated, a re-statement of commitment to partnership is healthy in any relationship. The priorities for the next 12 months are clear, we have powers to deliver them, and business is committed to returning the Scottish economy to sustainable and inclusive growth. As Prestwick Airport’s most famous visitor said, it’s time for “a little less conversation, a little more action, please".

Tracy Black is director of CBI Scotland