LABOUR’S action plan for government promises a much-needed focus on Scotland’s economic challenges but needs greater clarity and urgent action.

One of the most pressing issues is the competition for skills and talent. It’s a global problem, not simply a local one, and our economy relies on access to an internationally accessible pool.

The Prime Minister has outlined plans for Skills England, which aims to reduce the need for migration in key sectors of the economy by upskilling the domestic workforce.

Collaboration is key to meeting Scotland’s skills challenges

Before the election, it was reported that Labour would consider curbs on hiring foreign workers if firms did not sign up to its skills policy.

While Skills England does not cover Scotland, as skills are a devolved issue, firms in Scotland need urgent clarity on its implications for immigration policy.

Placing arbitrary limits on skilled immigration due to a policy that will not even support Scottish firms would be an immediate blow to the trust needed between business and the government.

The changes made to the immigration system earlier this year highlight the extent of the challenge.

This is a more pronounced challenge for Scottish businesses as the salary threshold for a Skilled Visa is UK-wide rather than weighted to the average salary in each nation. The earning threshold has increased a staggering 48% from £26,200 to £38,700 – far beyond the Scottish average wage.

Next UK Government must focus on jobs and economic growth

For many firms, this route is effectively closed given the tighter restrictions and exceptionally high salary requirements. Reviewing and adapting immigration processes and requirements are important debates to have but not to the detriment of our economy.

Now is the time for government to adopt our call for a skilled migration strategy to attract international talent, tailored for Scotland’s skills and working population needs. A failure to demonstrate that we are open for business with the world will only exacerbate labour market supply and skills shortages.

Labour’s announcements may put us on a more positive track but the speed of progress will be critical for business success, particularly at a time when the Scottish Chambers of Commerce’s research warns investment remains steadfastly frozen.

Scotland, of course, has a major role to play in helping the UK achieve its target of net zero by 2050 and while we applaud steps outlined in the King’s Speech, there is much more that needs done – and urgently.

Basing GB Energy north of the Border is certainly positive but a delayed decision on the location doesn’t inspire confidence given the move to locate it in Scotland was long trailed.

Similarly, Labour’s announcement of accelerated investment in renewables is welcome but we need greater clarity around the just transition plan. A pledge to govern for all the UK is meaningless if it ignores Aberdeen & Grampian Chamber of Commerce’s warning that 100,000 jobs, £30 billion of investment and £20bn of tax receipts in our oil and gas sector are at risk.

To achieve net zero, we must create a thriving sustainable aviation fuels (SAF) industry. A new domestic SAF market is estimated to create more than 20,000 jobs and deliver £3bn in GVA by 2035.

The Labour government’s commitment to introduce a revenue support mechanism to incentivise domestic SAF production is a helpful step and will make it easier for industry to meet the UK’s ambitious SAF mandate and strengthen our energy security.

Introducing a guaranteed strike price mechanism – backed and funded by government and consistent with its approach to industrial strategy – is exactly the kind of partnership with business that will unlock billions of pounds of private sector investment in a new UK SAF industry.

We were also encouraged that the Prime Minister said securing economic growth will be a “fundamental mission” and that he is seeking a new approach with business. The SCC and our 12,500 members have called for greater collaboration, and we stand ready to play our part in working closer with both the UK and Scottish governments – whether in Dundee, Aberdeen, Inverness, or the central belt.

Labour’s starting gun on action for all the UK has much to commend it. Challenges remain but the early signs give us hope that the voice of business and Scotland’s interests will be heard loud and clear.

Dr Liz Cameron CBE is chief executive of the Scottish Chambers of Commerce