Here’s an opening line for some detractors who accuse me and the wider trade union movement as being cheerleaders for the Labour UK Government: the First Minister was right.

Last week, First Minister John Swinney set out a compelling case for economic renewal in Scotland, one that puts public investment and fairness at its core. Naturally, of course, political speeches that lean on such universal themes are deliberately hard to argue against.

His call for robust public investment to be a priority in the upcoming UK Labour Government budget is, however, unanswerable. It’s also timely and necessary. Scotland has endured years of economic stagnation caused by 14 years of Tory imposed austerity and exacerbated by Brexit-related uncertainty and the aftermath of the COVID pandemic.

It’s an argument the STUC has long made: cutting public services, squeezing wages and neglecting infrastructure are recipes for long-term economic decline. Growth will not be achieved by forcing workers to bear the brunt of yet another round of austerity. Instead, we should be empowering them with decent wages, strong public services and a fair economic system that ensures the wealthiest in society contribute their fair share.

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The First Minister’s emphasis on public investment is critical and it’s one the Chancellor must heed. As the Chancellor herself said earlier this month ‘if growth is the challenge, then investment is the solution’. We need investment in our infrastructure, schools, hospitals, and green energy projects, but also in the people who provide these services. This means fair pay for public sector workers who have long been underpaid and undervalued, particularly after enduring immense pressure throughout the COVID-19 pandemic.

Whilst we agree, therefore, with the First Minister– that the path forward must be one of investment, not cuts – we do hold his government to account too. Their refusal to meaningfully use their powers of taxation and short-sighted, regressive measures such as another council tax freeze has led, directly, to a fall in public investment, and cut the axe of austerity even deeper into our communities.

What’s more some of the Scottish Government’s own policies run counter to the First Minister’s talk about the importance of public investment. Take the recently published Green Industrial Strategy which does little more than prioritise investment from multinational corporations, who aren’t exactly short of a bob or two, and allow them first dibs on extracting yet more profit from Scotland’s industry.

Given that multinational companies have higher borrowing costs than Government, not to mention a vested interest in sweating assets for a profit, the costs of this approach will be borne by us as consumers.

Similarly, the Scottish Government’s proposed National Care Service Bill panders to private care providers already making a killing in profit on the backs of their care home users.

For too long, public sector workers—nurses, teachers, social workers, and countless others—have been treated as a drain to the economy rather than the driving force. These workers keep our communities running, they ensure our children are educated, our elderly cared for and our public services functioning. We cannot talk seriously about economic recovery while public sector pay remains stagnant and workers are being asked to do more with less.

Roz FoyerRoz Foyer (Image: free)It’s a message we hope the First Minister is hearing directly in Perth and Kinross as school support staff from UNISON – who undertake a hugely important but undervalued role – strike for fair pay on behalf of local government workers.

Public sector pay increases are not just a matter of fairness; they are a powerful economic tool. When workers have more disposable income, they spend it in local businesses, boosting demand and supporting jobs. That’s not all, when public sector workers are fairly paid, recruitment and retention improve, reducing the strain on vital services.

The evidence is clear: well-funded public services contribute to a stronger economy. Every pound invested in the public sector circulates through the economy, driving demand, supporting further jobs, and creating a more equitable society. Swinney’s focus on public investment acknowledges this simple truth and the Labour UK Government must cannot afford to put their head in the sand.

We need a wholesale change in approach; an economic model that values the net worth of the public sector rather than analysis focused on the debt accrued by the public sector.

Of course, investment requires revenue. That revenue can come from those with the most. The case for increasing taxes on wealth across the UK is now undeniable.

The STUC has long advocated for progressive taxation—taxing wealth, land and high incomes at higher rates to ensure those who can afford to pay more do so. This is not only a moral imperative but an economic one. We’ve seen what happens when the wealthy hoard and hide what they’ve got: slower growth, fewer jobs and greater instability. By contrast, when we invest in public services and raise wages, we stimulate demand, create jobs, and lay the foundation for long-term growth.

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But it's not enough for these taxes to be levied in London and then distributed piecemeal across the UK. Scotland needs control over more tax and borrowing powers to build a fairer, more resilient economy. The Chancellor must recognise this and commit to devolving further powers to Holyrood.

John Swinney’s speech laid out an economic vision for the future that shouldn’t be dismissed lightly. Yes, he continues to make misplaced comparisons with Scotland and Ireland and, despite the good soundings, we always have it in the back of our minds that this was the Scottish Government who’s greatest hits also include the Growth Commission and the National Strategy for Economic Transformation.

But we will take him at his word when he wants to see the Chancellor deliver for Scotland and invest in our public services. We stand ready to work with the Scottish Government, trade unions and the people of Scotland to make this vision a reality. We invite the Chancellor to join us when she steps up to the despatch box this Wednesday.