Industrial transition in Scotland

Scotland’s experience of deindustrialisation over the past four decades demonstrates the profound and lasting consequences of industrial transition when communities are not properly supported. The loss of major industries has left a legacy of worklessness and health inequalities. Despite Scotland’s proud industrial heritage, the erosion of key industrial skills has meant that employers may look overseas to fill shortages, leaving former industrial communities at risk of being left behind once again. (Conclusion, Paragraph 69)

As Scotland undergoes another major transition — this time in the oil and gas sector — there is an urgent need to avoid repeating past mistakes. Future industrial transitions must be a practical, deliverable commitment that supports communities, retains skills and ensures that no community pays the price of industrial change. (Conclusion, Paragraph 70)

We have identified two transitions Scotland is currently undergoing, and have launched specific inquiries into these areas to ensure the UK Government is managing these transitions effectively: • GB Energy and the net zero transition, which examines the shift away from oil and gas to clean energy; and • Securing Scotland’s future: Defence skills and jobs, which looks at how Scotland’s economy and labour market — including the shipbuilding sector — can benefit from the UK Government’s commitment to increase defence spending. We will be monitoring these areas closely to ensure that future transitions are managed in a way that avoids repeating the mistakes of the past and delivers real benefits for Scottish communities. (Conclusion, Paragraph 71)

While the Government Industrial Strategy’s IS-8 broadly reflects Scotland’s economic strengths, the omission of key high-value Scottish sectors such as spirits suggests the strategy does not fully capture the breadth of Scotland’s economic contribution. Scotland’s whisky industry alone is globally 29 competitive, highly productive and central to the UK’s export performance. Overlooking it risks limiting growth opportunities for one of the nation’s most successful and internationally recognised sectors. We will continue to monitor how the Industrial Strategy evolves to ensure Scotland’s diverse economic strengths are fully recognised. (Conclusion, Paragraph 77)

We welcome the establishment of a permanent Industrial Strategy Council when parliamentary time allows. However, while we acknowledge that there has been engagement between the council and Scottish stakeholders, we are concerned that the absence of a dedicated Scottish representative limits the Council’s ability to understand Scotland’s distinct economic and constitutional landscape. When legislation to create a permanent Industrial Strategy Council is introduced in Parliament, we expect a requirement to include a dedicated Scotland representative on the Council will be included on the face of the bill. (Conclusion, Paragraph 84) 30