Exclusive:‘It’s not easy to do business in Scotland’ - I sat down with Scottish decision makers and message was clear

The Scotsman Leaders Forum was held simultaneously with a roundtable discussion hosted by sister title The Yorkshire Post. The thrust of discussion was the same: how can public and private sectors work together to shape policy, invest and help the respective areas thrive.

But there was a marked difference in the tone of the discussions, underlining the challenge facing Scottish decision makers and businesses.

At our Yorkshire event, held at the DoubleTree by Hilton Hotel in Leeds and chaired by Greg Wright, deputy business editor of The Yorkshire Post, the mood was generally buoyant and a positive picture of the region’s future emerged.

For instance, Simon Warburton, Executive Director for Transport at West Yorkshire Combined Authority, said joined-up infrastructure investment, particularly around transport, could transform Leeds and Bradford into success to match Salford Quays in Manchester - now a booming media sector enclave.

But the message from Scottish decision makers around the table at The Balmoral was clear - Scotland’s economic potential is hindered by bureaucracy and a lack of clear vision. What the country needs, the leaders said, was more cooperation and action.

There was broad consensus that central government targets, long-standing statutory obligations and shifting policy priorities combined to leave economic growth adrift across Scotland.

City region deal arrangements - such as those in place in Glasgow and the surrounding area, as well as Edinburgh and south-east Scotland - were praised as an uncommon example of cooperation which allowed local authorities to leverage their position to attract investment and plan infrastructure and services with a clear vision.

Housing and the housing crisis facing many councils came up repeatedly as a barrier to progress, and an example of bureaucracy at its worst. If policymakers want to unlock Scotland’s economic potential - which there was unanimous agreement existed - then leaving councils and the private sector to get on with the work of building homes would be welcomed, was the message.

And on innovation, there was broad agreement that Scotland could develop rapidly so long as public, private and academic organisations worked - and were encouraged to work - together.

James Darrie, director of real estate in Scotland for Turner & Townsend, said: “I think everywhere has layers of bureaucracy. But, picking up on some of the points around pace, we're working out the Middle East at the moment and you're seeing the Neom project getting developed. It's cities, it’s towns. Investment is phenomenal.

“The public sector gets pressured for not responding, not delivering - whether that's within the construction industry, whether it's in the care environment, whatever that might be - and it can’t compete, because it's not got the same levers to pull. Other countries are moving at a different pace.”

Brian Stevenson, Turner & Townsend’s head of cost management in real estate in Scotland, added: “Yeah, I think that's a good point because…you're competing in Europe. Some of these companies will actually think that it's perhaps easier to put these investments somewhere else because of the reception they're getting from that particular location. Maybe life is just going to be a bit easier somewhere else.

“But I think in terms of our business, certainly Scotland still has bright spots. And some of the programs, particularly defence, are major and equivalent to anything else and the UK, and I think the quality of our people is strong as well.”

Liz McAreavey, CEO of Edinburgh Chamber of Commerce, said that it is ‘just not that easy to do business in Scotland’, and pointed to the dearth of planning qualifications and courses which has a knock-on effect throughout the economy.

John Curry, Scottish Borders Council director of infrastructure and environment, described a conflict between ‘ambitions and executive checks’, both in delivering housing and more broadly with public sector work.

Curry said: “It’s great to have that great ambition. Most of our ambitions will never see the light, because that’s the nature of ambition. But I think there’s something about grounding ourselves in reality. What is deliverable, what is achievable and actually committing to doing it, taking small steps and building on it.”

Glasgow City Council chief executive, Susanne Miller, said: “What’s giving me cause for hope is the regional work. It feels like there is some real cohesion.” Miller said that, despite the diverse political makeup of Glasgow and the surrounding area, local authorities are working in harmony and she called for a more ‘collegiate’ approach in the future.

Paul Lawrence, CEO of City of Edinburgh Council, said: “There is going to be very, very little public funding around which is where our discussion started. We have to find much, much cleverer mechanisms to find ways to invest. Because if we’re waiting for checks to arrive, we’re going to be waiting a very long time. Can the private sector help? It’s finding the way of doing it.

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This is the fourth and final in a series of articles about the roundtable, which was held at The Balmoral in Edinburgh and chaired by Joshua King, Head of Business at The Scotsman