The pandemic has wiped 22% off Scottish GDP during the first half of the year, according to the annual CBI Scotland and KPMG Scottish Productivity Index.
It said that business closures and job losses serve as a critical reminder of the need to fix the fundamentals of Scotland’s underperforming economy.
The report makes recommendations for the Scottish Government to address problems with productivity, resilience and competitiveness.
The index is informed by analysis from KPMG Scotland and insights from the Fraser of Allander Institute and Mark Diffley Consultancy and Research.
As with last year’s edition, it uses 15 underlying indicators that track Scottish performance, based around four broad areas: business practices, skills and training, health and wellbeing and infrastructure and connectivity.
In 10 out of these 15 key indicators Scotland was found to be falling behind other parts of the UK or international competitors – up from nine in the 2019 edition.
However, progress is being made in some areas. In the short-term six of the indicators showed improvements in productivity – up from five last year – while over the long-term, eight indicators reflected improvements in productivity.
The report’s recommendations to government to boost Scotland’s productivity include”
- Prioritise the mental health backlog within the health system alongside physical health, as experts warn of a ticking time bomb of mental health challenges.
- Join up plans across Scottish and UK governments on green infrastructure and transport to make sure carbon reduction targets are met in the most effective way.
- Establish Accelerate UK as a business-facing focal point to support more businesses in Scotland and across the UK to continue innovation adoption.
- Expand the Individual Training Account model with the long-term aim of ensuring everyone has access to funding, through grants or loans, for training when they need it.
CBI and KPMG also made recommendations for individual businesses, which included testing financial strategies and supply chain resilience; mapping the workforce to identify…
— to www.insider.co.uk