CBI Scotland is calling on the Scottish Government to make closing the skills gap a top priority in the upcoming Programme for Government, in the hope of boosting productivity and long-term, sustainable growth.

In a letter to the first minister, John Swinney, CBI Scotland argues for a coordinated national skills strategy and action plan with clear targets and metrics, setting out the role of businesses and education institutions, as well as the government, in future-proofing the labour market.

Setting out its Programme for Government submission, the business group also called for greater support for upskilling and rapid retraining, with a stronger focus on aligning skills funding with industry needs and striking a better balance between university education and work-based learning.

According to CBI Scotland, this could help Scotland build on its strengths, including a highly educated workforce, renewable energy expertise, world-class natural resources, and two green freeports.

Alongside addressing the skills gap, CBI Scotland’s Programme for Government submission puts forward what the organisation calls an ‘ambitious’ suite of policy proposals for kickstarting growth.

Key areas CBI Scotland wants the government to focus on include maximising the green growth opportunities available to Scotland, taking concrete steps to improve infrastructure and connectivity, and building a competitive business environment to unlock more investment.

As part of its long-term vision, CBI Scotland urged the government to publish a strategy for retrofitting existing infrastructure, commit to building 25,000 high-quality, energy-efficient homes, ringfence funding for critical road improvements, and set out plans to cut travel times between Scottish economic hubs and the rest of the UK.

The plan also raises the question of tax at a time when most Scottish businesses are feeling the effects of the Chancellor’s changes to employer National Insurance Contributions.

According to the CBI’s Programme for Government, strengthening Scotland’s business environment will involve avoiding further income tax divergence between Scotland and the rest of the UK, as well as an independent review of tax divergence to examine how this affects Scotland’s overall competitiveness.

The letter, signed by the director of CBI Scotland, Michelle Ferguson, points out that since Swinney was sworn in as first minister just shy of a year ago, Scotland has endured significant changes impacting the country’s economy, stating that: “The global economic landscape has profoundly affected businesses’ ability to operate.”

Recommended reading

• Scotland Needs to Seize AI and Energy Opportunities, Report Says
• Scotland Must ‘Rewire’ Economy for a Fairer Future, Says Report
• New Platform Reveals Key Insights Around Scottish Economic Wellbeing

“The first minister must seize the opportunity in this accelerated programme to outline how the government plans to play its part in tackling the skills shortages that are holding back growth,” said Ferguson.

“We need to enable businesses to access and develop skilled workers who are ready to meet the challenges and opportunities ahead. Achieving a better balance between classroom and work-based training and short, sharp provision to help upskill and reskill workers for the clean energy transition would support these ambitious goals. 

“The government should also be working closely with businesses and the further and higher education sectors, which are the jewel in the crown of Scotland and its capabilities, to build opportunities to equip people with digital proficiency and the skills to match advances in technology as we build Scotland’s workforce of the future.”