PARLIAMENTARY DEBATE
Inward Investment: Scotland - 31 October 2024 (Commons/Commons Chamber)

The international investment summit, about which we just heard, secured more than £63 billion, including for two significant projects in Scotland. Scottish Power, owned by Iberdrola, committed £24 billion to upgrade the UK’s energy infrastructure over the next five years. Floating offshore wind developer Green Volt has selected Aberdeen for its headquarters and plans to invest £2.5 billion. That, of course, comes on top of this Government’s establishment of GB Energy.

I thank my right hon. Friend for his answer. Yesterday saw the largest Budget settlement for the Scottish Government in devolution’s history. The Labour party’s commitment to Scotland runs through this Government. Last week, the highly respected Strathclyde University’s Fraser of Allander institute reported that only 9% of Scottish businesses agree that the Scottish Government understand the business environment in Scotland. Does my right hon. Friend agree that Government understanding of business is crucial in driving investment and growth in Scotland, and that it is critical that the Scottish Government improve their understanding of the business environment?

Frankly, businesses in Scotland have been let down by two failed Governments. We have had a decade of division and decay in Scotland, and I am glad to see that we now have political stability, with Labour having a majority in Scotland, Wales and England. At the same time, we are committed to genuine partnership and working with the Scottish Government. I know that my hon. Friend has particular expertise in energy policy, given his past professional work. Tomorrow I will be in Torness, in my constituency, to meet EDF Energy—just one example of a business that, frankly, is being held back by the policy and approach of the present Scottish Government.

I am not surprised in the slightest to hear the disparaging comments from those on the Government Benches about business in Scotland, so I will bring the House up to speed. For the ninth consecutive year, Scotland, under the SNP Scottish Government, is the UK’s top-performing area outside London for foreign direct investment, yet Brexit has reduced the attractiveness of the UK as a base for exporting to EU markets, resulting in its being overtaken by France as the leading destination for foreign direct investment in Europe. Does the Minister recognise that reversing what he seems to be married to at the moment—the Tories’ hard Brexit—is the most significant step that this Government could take to increase inward investment and boost growth in Scotland?

As I was saying, let me deal with both the failed Governments who have been letting Scotland down in the last decade. Frankly, if the hon. Gentleman wants to advance the case that there has been a decade of prosperity in Scotland, good luck to him. The reality is that it is very hard to think of a single aspect of Scottish public life that has improved over the last 10 years. Take the case of ferries. Take the case of hospitals. Take the case of our schools or, indeed, the broader business environment.

On Brexit, I recognise that there is a need for a fundamental reset with the European Union, and in recent days I have been taking forward that work. I welcome the work that the Prime Minister has been undertaking, but that is the task of a Labour Government. As so often on so many issues, the SNP talks and Labour delivers.