The key UK Government business committee with no Scottish representatives

Prosper said it is worried the UK’s Industrial Strategy Advisory Council ‘will not understand the Scottish economy and the interactions between reserved and devolved policies’

Concerns have been raised that a key UK Government business committee “will not understand the Scottish economy” because it has no Scottish representatives on it.

The Industrial Strategy Advisory Council [ISAC], set up by the Labour government earlier this year, has 13 members from business, academia and trade unions.

However, none of the members represent a business, university or trade union from north of the Border.

The UK Industrial Strategy did not include the spirits sectorplaceholder image
The UK Industrial Strategy did not include the spirits sector | Canva/Getty Images

Prosper, formerly the Scottish Council for Development and Industry, said it was worried the council would not have a full grasp of “the interactions between reserved and devolved policies”.

The body’s chief executive Sara Thiam said this was apparent when the ISAC was considering zonal pricing for energy bills.

Prosper had previously raised concerns about the spirits sector not being part of the industrial strategy, particularly given whisky is a big export for Scotland.

Ms Thiam said: "We are concerned about how the council will interact with key non-government institutions and organisations, including those which represent growth-driving sectors, in Scotland.

"We understand that it would not be possible to create a council with a representative from every UK nation and region, and from every sector. However, we are concerned that the council as currently constituted will not understand the Scottish economy and the interactions between reserved and devolved policies.

"For example, ISAC took an early interest in the Review of Electricity Market Arrangements and it was not clear to us that the council understood the potential for zonal pricing to deter investment in Scotland."

The UK government had been considering plans to make electricity cost lower in areas where there is less demand, called zonal pricing. But this proposal was dumped in July.

Scotland would have seen prices lowered under the proposals because the country generates a lot of electricity. But the UK government decided against the move because it said it would deter investment north of the Border.

Sir Keir Starmer announced the UK’s industrial strategy in June. It focuses on eight sectors; manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.

But food and drink, which is one of Scotland’s key industries, was not included. The sector is estimated to be worth £15 billion a year to the Scottish economy.

Former Scottish secretary Ian Murray had said it was “a great industrial strategy for the whole of the UK, but actually it's really disproportionate to Scotland because the eight key growth sectors that are part of that strategy are a microcosm of the whole Scottish economy”.

The Industrial Strategy Advisory Council was set up to advise the UK government on its industrial strategy and monitor its progress. The expert committee is sponsored by and will report to the Department for Business and Trade and the Treasury.

The council’s website says it “will work closely with stakeholders, including businesses, trade unions, local leaders, devolved governments and other independent experts, to develop a broad evidence base”.

Blair McDougallplaceholder image
Blair McDougall | Jane Barlow/TSPL

UK minister for economic transformation Blair McDougall, who is also the MP for East Renfrewshire, said: "Our ambitious plans to drive growth and investment across the UK will absolutely benefit Scotland.

“As a Scottish MP, I know pretty well what matters to Scottish businesses, and the council meets with them to ensure their views and expertise are fully taken into account. We want to ensure the council continues to consider different views from across the UK, and we will make further appointments to support that."

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