Press & Policy

Economics lectures rarely make headlines, but Rachel Reeves’ Mais Lecture on Tuesday this week was a significant exception. Setting out a long-term plan to accelerate digital adoption, remove trade barriers, and boost productivity, the Chancellor’s intervention gave us the clearest articulation yet of the UK Government’s approach to economic growth.

The Chancellor advocates an investment-led growth model that places technology, trade, and productivity at the centre of economic policy, with a more active role for the state in shaping economic outcomes. This marks a clear departure from a model where the state’s role was primarily to enable markets. The Government is now signalling a willingness to shape them, cooperating with entrepreneurs and the private sector to deliver on national priorities. For many businesses, however, this will feel like an all-too-familiar promise.

The backdrop to the Chancellor’s speech is an extremely fraught and challenging trading environment. Global supply chains are under pressure, geopolitical tensions continue to impact energy prices and trade routes, and the pace of technological change is accelerating rapidly. Artificial intelligence alone is projected to contribute  $19.9 trillion to the global economy by 2030. Closer to home,  recent data from Lloyds Banking Group shows that nearly half of Scottish firms are now actively using AI in some form, while  many businesses remain heavily reliant on EU supply chains.

Taken together, these trends point to a simple reality: the UK is not setting the direction of travel, but responding to it. Against that backdrop, the Chancellor’s emphasis on resilience, capability, and long-term investment is well-judged. Underlying this approach is a recognition that the UK is operating in a more uncertain global environment, where resilience, as much as growth, will shape economic outcomes, and where the usual market incentives don’t necessarily apply.

There is also a clear shift in how government sees its role. The Treasury is no longer positioning the state as a passive actor. Instead, it is signalling a more deliberate approach.

That shift is most visible in the focus on frontier technologies such as AI and quantum computing. The commitment to a £500 million Sovereign AI capability, alongside plans to procure up to £1 billion in quantum computing capacity, reflects a view that long-term competitiveness will be determined by how quickly the UK can scale advanced technologies. The ambition to upskill millions of workers in AI further underlines that this is intended to be economy-wide, not confined to specialist firms.

For Scottish businesses, that has some significant implications.

Closer alignment with European markets would reduce friction for exporters and provide greater certainty for firms operating across borders. For many businesses, particularly those integrated into EU supply chains, this is not a marginal issue – it is central to day-to-day operations and long-term planning.

The focus on technology adoption reflects a shift that is already underway. AI is no longer confined to early adopters; it is becoming embedded across sectors. The extent to which businesses can access to skills, support and capital will determine how far and how quickly those productivity gains are realised. For SMEs in particular, practical delivery, rather than headline ambition, will be the critical factor.

There is also a more strategic approach emerging in how government uses its own spending power. A stronger emphasis on public procurement as a driver of economic growth has the potential to give Scottish firms clearer pathways to commercialisation. In sectors such as defence, energy and advanced manufacturing, early public contracts can provide the credibility and revenue needed to unlock further private investment.

This will sit alongside more fiscal devolution, allowing for regional spending which is tailored to Scotland’s key industrial sectors. There is a clear alignment here with Scotland’s existing strengths. Renewable energy, life sciences, advanced manufacturing and data-driven innovation are already central to the country’s economic profile. An approach that actively supports these areas should, in principle, position Scotland well within a more investment-focused UK framework.

The central issue, then, is not the ambition that the Chancellor set out. The central issue will be delivery.

What Scotland and the UK have been missing in recent years is not strategy, but consistent execution: follow-through on commitments, clarity for businesses, and, crucially, the ability to move at pace. That reflects deeper challenges: fragmented delivery across institutions, constraints in planning and skills systems, and a tendency to prioritise short-term pressures over long-term investment.

Businesses will judge this agenda not on the scale of its ambition, but on whether it delivers the practical change that our members need, and that was set out by the Government in 2024. That means access to skills, clarity on trading relationships, reduced administrative complexity, and visible pathways to growth.

The opportunity here is very real. A more stable, investment-focussed framework can give businesses the confidence to plan, invest, and scale in a more volatile global environment. For Scotland, with its existing sectoral strengths and outward-facing economy, that opportunity is particularly clear.

SCC supports the direction set out in the Mais Lecture and stands ready to work with the UK Government to ensure it delivers tangible outcomes for businesses across Scotland.

Business organisations and trade associations now have a clear role: to support the government where we can, and to hold it to account where it falls short. In other words, by acting as a critical friend, the business community can be a vital partner in making national economic ambitions a reality.​