THE UK economy is in the doldrums.
We are lagging behind other G7 countries, as a new poll indicates there’s a stark gap in confidence between small businesses in the UK and small businesses elsewhere.
The poll, by Be the Business, suggests that productivity in the UK trails far behind other developed countries. Economic confidence is low. Investment and improvement is lagging.
Those news headlines are just the latest in a depressing spiral of bad economic news.
On nearly all key benchmarks, like inflation or productivity, the UK economy trails other advanced, developed countries – countries with whom we should be competing.
Unfortunately, the Scottish economy is tethered to the UK economy. So the downward spiral takes us down too. If there was ever the need for bold, audacious actions and a big, inspiring vision for our economy, it is now.
During the last economic crisis, the Scottish Government identified major infrastructure investments that would fire up our economy. That thinking delivered the Queensferry Crossing, amongst other things.
We need to see that kind of thinking once again, but this time it needs to focus firmly on how we build bridges to the rest of the world, and break free from the introspective, insular thinking that dominates the UK’s economic strategy.
Scots have long prided themselves on being an internationalist nation
In fact, our greatest achievements as a nation are all found in our contributions to the rest of the world. As a small (but perfectly formed) country, we know that our greatest opportunities lie in our relationships with other nations.
The social opportunities, of sharing culture and family ties, are matched by the economic opportunities, of exporting goods and ideas. As a nation of only five million people, we don’t fear immigration, we welcome it.
As a small island, we look beyond our shores.
Yet, that internationalist instinct has been hugely constrained by Brexit. Gone are the days when young people could freely study in other European institutions or travel across neighbouring nations.
The UK Government is pulling up the drawbridge
New border controls and visa restrictions are constraining European nationals from working in Scotland, enriching our nation.
There has been significant disruption to exporting businesses following the end of the EU transition period. The Scottish Government’s export growth plan was published back in 2019, with a commitment to grow Scotland’s exports to 25% of our GDP by 2029.
It is estimated that this could create 17,500 jobs and increase tax revenue by £500 million every year.
At a time of constrained public finances, that is a huge opportunity. Think about how a further £500 million could transform our public services. It is essential that we not only meet these targets, but perhaps even exceed them.
And yet, due to Brexit, lorry loads of exports face more red tape than ever, as they queue for hours to cross the channel. There is additional paperwork, new custom duties or levies and higher transportation costs.
I will never tire of pointing out how much more successful Scotland could be if undemocratic decisions weren’t foisted on us by the UK Government. However, until we are independent, we’ve also got a duty to maximise every opportunity that is within our devolved competence to boost and simplify international connections.
We’ve got to identify the greatest constraints to international connectivity which we can resolve. And that is why I strongly believe we need to focus more on the A75 and the A77, two roads which act as international gateways to Northern Ireland, England and arguably the rest of the world.
This column comes from spending longer than I would have liked in an over-warm car last week. Like many people, we went on holiday.
Our destination was Ireland
We loaded up the car, hit the road and drove all the way from the Highlands to Cairnryan.
Cairnryan is undoubtedly one of our country’s most critical international transport hubs.
It’s the start, or the end, of the main freight corridor between Scotland and Ireland. The A75 links the port with England, and the A77 links it to all of Scotland.
You’ve got to experience the congestion to believe that, combined, these roads are estimated to carry a total of £67 million worth of goods per day. In fact, on one stretch (the Maybole Bypass) it was estimated that 10% of traffic is comprised of HGVs heading to and from the ferry terminal at Cairnryan.
Slow moving traffic is never fun when the sun is beating down and there’s a grumpy baby in the back. As we meandered slowly through countless towns, my sympathies were only with the local residents.
I can’t imagine anybody would miss the HGVs trundling past if they were to be rediverted by bypass.
The average speed cameras seemed to mock our snail-like pace.
I’m not sure when it became controversial to call for more funding for roads because of climate change. The irony of the A77 and A75 is that failing to dual the roads is increasing emissions.
One haulier reporting that its emissions data show that on average, lorries on these roads emit nearly two tonnes more CO2 every day than they would on a dual carriageway. I’m not surprised considering the time spent at a standstill in some of the bonniest towns I’ve seen.
Of course, the issues are more serious than frustrations or emissions. Research from a coalition of Stena Line, P&O Ferries and Belfast Harbour indicates that the dualling of the A77 and A75 is primarily a safety issues with a casualty every three days on the roads on average.
This coalition has unanimously agreed on a list of major improvements to the A75 and A77 on behalf of their passengers.
All of that is precisely why the Scottish Government has invested substantially in road schemes on the A77 since 2007, with the most recent completion of the Maybole bypass which opened just over a year ago.
This followed years of campaigning over many decades dating back to 1936 when the Maybole bypass was first drafted.
The Strategic Transport Projects Review was published last year, with the Scottish Government announcing 45 draft recommendations. These included improvements to the routes.
However, now is the time to think big or go home. The Tories have devoted all their time and energy over the last decade to disrupting international links. We should prioritise funding and attention to attracting goods, services and people to Scotland instead.
We don’t need to lay out the red carpet, we just need a safe and suitable tarmacadam road connecting our key gateways to the rest of the world.
It strikes me that it would be pretty audacious, bold and effective to start with the A77 and A75.
