Humza Yousaf: Forbes’ questions about economic strategy need answers

Eventually, when allowed to speak, Humza Yousaf proclaimed his support for a “well-being economy” which measures more than GDP output – and for “radical” action to tackle the climate emergency.

Further, he said he would nail his colours to the mast. He favoured redistributive taxation, ensuring that those who earn the most, pay the most.

Again, the new FM offered a sample of his thinking. A well-being calculation counts GDP but would also include such measures as productivity and international competitiveness.

READ MORE: Brian Taylor: The poverty challenge facing our new FM

In addition, it assesses factors such as equality and work/life balance.

But all for an economic purpose. For example, the aim of improving childcare is partly designed to assist individuals – and partly to improve productivity.

The Scottish Government regards our economy as being in transition to a well-being framework. It will now fall to the Cabinet newcomer Neil Gray, with his economy remit, to drive that transition.

Mr Gray is notably talented. Affable and able – a potent combination – he was tipped for promotion well before he headed Humza Yousaf’s successful campaign for the leadership.

No doubt he deployed those personal resources in seeking to reassure business organisations when he met them; his first external engagement.

Business is decidedly nervy. Frankly, they have felt neglected. They fret over their role in modern Scotland.

I believe they will have been told that their endeavours are central to Scotland’s prospects. That economic growth definitely remains the objective. But growth “for a purpose”, as Mr Yousaf explained.

For example, it will not be the case that the existing ten-year economic strategy will be dumped.

This study, drawn up by Kate Forbes when she was finance secretary, laid emphasis upon innovation and entrepreneurialism.

Humza Yousaf (Image: free)

The aim, seemingly, will be to review and reset that as the continuing foundation for the emerging “well-being” strategy. The aim will be “evolution not revolution”.

However, reform demands change and that may mean tough decisions on public spending. There may, for example, be a new concordat with local government but it might involve service delivery requirements.

Equally, Ministers will argue – as Humza Yousaf did this week – that their efforts are hampered by lacking control over issues such as migration and the labour market. Which brings us back to their core demand: independence.

In these early days, however, the aim will be reassurance. And that includes the SNP.

Kate Forbes’ thwarted supporters are apprehensive. One told me there was an obvious “lack of economic focus” in the new Ministerial team – by contrast with the Forbes emphasis on expanding Scotland’s tax base.

Partly, that may be disappointment at defeat. One insider suggested to me that Kate Forbes “would have walked it” in the leadership contest – if only she had moderated her early moral sentiments.

READ MORE: Brian Taylor:SNP leadership contenders set out the road to independence

That is, of course, purely conjecture. However, it is plainly a problem for Mr Yousaf that he won by such a narrow margin.

Despite that, I believe that he has key factors in his favour.

Firstly, Kate Forbes handled defeat with consummate dignity, pledging loyalty and support.

Secondly, she does not lead a discernible faction. There is no such thing as “Forbesism”.

Thirdly, as I have noted previously, the SNP, while frequently fractious, tends to pull together around the aim of independence.

Fourthly, Mr Yousaf has already taken steps to reach out to those in his party who are hurting, putting “an arm round their shoulders”, as one described it to me.

So I do not remotely see Kate Forbes as an internal rebel. She has, however, left another legacy.

She comprehensively trashed her rival’s Ministerial record during the contest. In effect, she questioned Mr Yousaf’s competence.

Opposition leaders quoted her gleefully as Parliament debated the nominations for First Minister.

For the Liberal Democrats, Alex Cole-Hamilton said Scotland did not have to “settle for continuity, for mediocrity”. Author? Forbes, K.

Labour’s Anas Sarwar mirrored that, saying “continuity won’t cut it”. Douglas Ross, for the Tories, argued that Kate Forbes had been right “to be scathing” about the Yousaf record in office.

Such attacks will fade as the political trail moves on to the next caravanserai. It is a declining asset, albeit one that may be revisited at election time.

However, the Forbes’ questions about economic strategy will endure – and will require evident answers.

Down the decades, the SNP has shifted ground on economic policy. It is not that long since the party advocated cutting corporation tax in an independent Scotland in order to undercut rivals and boost growth.

Now, we have a new administration – and, potentially, a new approach to the economy.

There is another factor. That is the contribution from the Greens who eagerly renewed their governing pact this week.

One might call them economic growth sceptics. Indeed, that topic was explicitly excluded from the Bute House agreement because the two parties had different ideologies.

During the SNP contest, Kate Forbes made clear that she believed the Greens exerted too much influence on policy, including on the economy.

Now that contest is over. But the anxieties remain. One observer told me that Humza Yousaf appeared to be “strangely in thrall” to the Greens.

SNP Ministers see things differently. They say the two parties share a common aim of creating new jobs through the development of green energy and industry – and that the pact generates stability.

Understandably keen, the Greens produced a shopping list for the new FM, including on fiscal policy.

However, Patrick Harvie, the co-leader of the Greens, is a decidedly astute and capable politician.

He is clearly of the Left. He is a mischievous iconoclast who advised the departing FM and her deputy to “continue to find ways to infuriate all the right people.”

However, he is also a pragmatist who knows when to stop pushing. At one point, indeed, he reminded his party of the “impotence of opposition”.

As ever, Ministers – Cabinet or junior, SNP or Green – will be judged by delivery.

Intriguing. Truly intriguing.