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Shaping Scotland’s Financial system – Inward Funding Plan: Progress Report 2022

  • ECONOMY

Part 1: Ministerial Foreword

Attracting companies to spend money on Scotland is a key driver of our long-term financial wellbeing and prosperity. Inward funding[1] makes a disproportionately constructive contribution to Scotland’s economic system. Though solely three per cent of companies in Scotland are inward traders, these companies account for over a 3rd of jobs, round half of GVAjust below two thirds of Enterprise Expenditure on Analysis and Growth (EBRD) and three quarters of worldwide exports.[2] These companies play a key function in Scotland’s economic system, giving us entry to world expertise, expertise, markets and funding. They assist the constructing in Scotland of worldwide acknowledged and main clusters and the event of native companies and provide chains.

In October 2020, we revealed Shaping Scotland’s Financial system: Inward Funding Plan.[3] The Plan outlines our ambitions for Scotland to be a number one vacation spot for inward funding aligned with our values ​​as a nation, dedicated to honest work, web zero and inclusive prosperity. The Plan highlights the vital function inward funding performs in creating high-value jobs for the economic system, takes an evidence-led method to figuring out Scotland’s strengths, aligning these with present and projected world funding flows, and units out a sequence of actions to draw additional inward funding to Scotland.

A technique with out supply provides no worth. That is why we now have revealed this replace to report progress on the actions we now have taken to ship our Plan, and the outcomes we’re seeing as a consequence.

Regardless of world headwinds, and the impacts of Brexit and Covid, over the past 18 months we now have been rigorous in our supply of those actions. On the 2022 World Discussion board for IDF,[4] in Edinburgh in Could, I introduced the annual inward funding outcomes of Scotland’s Enterprise Businesses: Scottish Enterprise (I KNOW), Highlands and Islands Enterprise (HIE) and South of Scotland Enterprises (SoSE). The Enterprise Businesses helped to draw 113 inward funding initiatives for 2021-22, with 39 new traders selecting to find in Scotland. 7,780 direct jobs have been created or safeguarded by way of inward funding, demonstrating that inward funding is driving financial progress, in addition to creating and defending jobs throughout Scotland.[5]

A number of weeks later, HEY‘s Annual Attractiveness Survey 2022 confirmed that Scotland is main the UK in attracting inward funding. Scotland has maintained its place as the highest performing IDF area or nation of the UK,exterior of London,[6] and is outperforming the remainder of the UK and Europe with the expansion within the variety of IDF initiatives attracted. Scotland’s IDF initiatives have been up by 14 per cent from 2020, in comparison with a 5.4 per cent enhance in Europe and a 1.8 per cent enhance in UK.

These are improbable outcomes for Scotland and display that our Plan is working. In addition they underline the significance of inward funding in supporting the ambitions set out in our Nationwide Technique for Financial Transformation (NSET),[7] by attracting top quality inward funding and applied sciences required in rising areas equivalent to power transition, decarbonisation of transport and house.

In my intensive engagement with inward traders, each in Scotland and abroad, it’s clear that our values-led method and readability of give attention to key sectoral strengths is more and more resonating with current and potential traders. Nonetheless, we can’t relaxation on our laurels and we should proceed to collectively have interaction with traders to place Scotland’s case ahead for attracting inward funding in an more and more aggressive worldwide surroundings.

This Inward Funding Plan: Progress Report 2022 units out what has been delivered by Workforce Scotland for the reason that Plan’s publication. It additionally units out our priorities for the subsequent part of Plan supply to drive ahead our ambitions of attracting additional values-led funding to Scotland. I take this chance to thank all in Workforce Scotland who’ve labored exhausting to ship this success.

Ivan McKee MSP Minister for Enterprise, Commerce, Tourism and Enterprise

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