Let’s unlock full potential of Scotland’s businesses

Here in Scotland, over half of businesses (52%) believe introducing new technology such as AI, automation and digitisation is their biggest opportunity for growth. Business-owners may have mixed views about the economy, but they have a strong determination to ensure their companies can succeed. The challenge now is to ensure that they have the right conditions to turn this optimism into action.

As chair of Lloyds Banking Group’s Scottish Executive Committee, one of the most interesting and rewarding parts of my job is engaging with local business leaders to understand the opportunities for growth. From Fife-based wholesale electrical supplier, SM Electrical Supplies, to cutting-edge research at the University of Glasgow, the potential is clear. Ensuring that these strengths continue to translate into economic impact requires a joined-up approach between business, academia and government at all levels. Our recent report, Drivers of growth, explains just some of the ways universities can play their part. But we all have a role to play.

Growth matters because it means more jobs, better wages and improved public services. It creates opportunities in communities across the UK, not just in major cities. There is no doubt in my mind that the potential for regional economic expansion is significant. But achieving it requires a clear and committed strategy. That is why Bank of Scotland, and our wider Group, works closely with partners to channel investment into critical infrastructure, housing and business development. In the last five years alone, we’ve supported projects worth over £100 billion – helping to unlock growth in towns and cities nationwide.

When I speak to business owners, entrepreneurs and investors, they’re clear that local government plays a critical role in enabling regional business confidence. That is why it is so important that our local leaders continue to be empowered to create the conditions for growth by addressing planning challenges, skills gaps and infrastructure needs. This means streamlining approval processes, ensuring transport connectivity and fostering business clusters that attract investment.

And as local businesses and employers, we also need to work with regional leadership, supporting them in setting out bold, long-term growth strategies. These plans should align with local strengths – whether in life sciences, clean energy or financial technology – and be backed by the collective political support that allow businesses to plan with confidence.

We can’t stand still. Here in Scotland our Business Barometer suggests almost six in ten (59%) firms are eager to expand their workforce but face uncertainty in doing so. We cannot afford to wait for change to happen incrementally. That means ensuring businesses have the certainty they need to invest in talent, technology and expansion today.

Real-world examples show what is possible. Scotland has built one of Europe’s leading life sciences powerhouses – with the sector’s turnover having tripled since 2010. Or take the work we have done with Lomond Fine Foods, a Glasgow-based foodservice wholesaler. With some support from the Bank of Scotland, the family-run business was able to double its warehouse storage capacity and meet increased demand whilst also improving its sustainability credentials with solar panels and a rainwater tank. These success stories should inspire action across our country as we look to capitalise on our unique strengths.

Delivering growth is not just about economics – it’s about people, communities and the future of our country. When I visit the businesses in our community, I’m always reminded of the impact that a thriving local economy can have: greater employment, stronger high streets and more opportunities for the next generation. If we harness our potential and act with determination, we can all play a role in the nation’s economic success.

Jackie Leiper is Chair of Lloyds Banking Group’s Scottish Executive Committee