SCOTS ECONOMIC GROWTH HAUNTED BY SKILLS SHORTAGES

Scottish Chambers of Commerce�s latest Quarterly Business Survey has revealed a rising trend in optimism among firms across a range of sectors.  This good news, coupled with reports of rising demand in the manufacturing sector, rising retail sales trends and strong occupancy rates in the tourist sector, all point towards an uprating in the predictions for Scottish economic growth in 2006.  With growth north of the border having lagged behind overall UK growth in recent years � an average rate of 1.41% since 1999, compared to the UK figure of 2.27% - the figures revealed by the latest Chamber survey are very encouraging indeed.

However the survey also reinforced the fact that there are three worrying spectres which continue to haunt Scottish businesses, namely skills shortages, planning delays and inadequate transport infrastructure.  The Scottish Executive has plans to address the latter two issues through its new Planning Bill and through its forthcoming National Transport Strategy and Strategic Transport Projects Review, and time will tell as to whether these are successful.  Skills shortages, however, remain a stubborn problem despite the raft of government initiatives aimed at addressing this: Future Skills Scotland, Careers Scotland, Determined to Succeed, the Scottish Funding Council and the Fresh Talent Initiative are all currently attempting to tackle skills shortages with varying degrees of success.

Scotland has a rich potential seam of talent, but unless this can be opened up to be tapped effectively by business, our firms will find it difficult to maximise their potential.

Garry Clark
Policy & Campaigns Executive
Scottish Chambers of Commerce
What�s your view? Email Garry at [email protected]

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