SPOA (Scottish Plant Owners Association) president David Jarvie considers the first few weeks of Andy Burnham’s premiership and explores what impact his plans might have for Scotland’s plant industry
Fiscal devolution
Burnham is shifting substantial economic power away from Westminster to revive regional growth. The establishment of Number 10 North in Manchester is more than a mere symbol of the new prime minister’s intent to empower local authorities. Normally, due to the devolved powers already long established in Scotland, I tend to consider ‘regional’ announcements made south of the border as largely irrelevant to me and our industry, however, it seems that the new prime minister may well have plans to bypass Holyrood. In fact, Andy Burnham’s ‘power up’ devolution strategy will see Number 10 North in Manchester distribute resources directly to our towns and cities in Scotland.
It is still early days but if we are about to see greater localised public control over services like employment support, transport and housing, then we should also see more opportunities for SPOA member businesses, many of whom have strong roots and a clear understanding of what is needed in their towns and cities. I hope that our members will benefit from this localised drive which could see much needed local infrastructure projects such as new housing.
Housebuilding
Housebuilding is key to the growth of our industry, and the new prime minister is promising the biggest council housebuilding programme since the post-war period. This would deliver a much-needed boost in the rates of construction compared to recent years and would be welcomed by all in the construction industry. If Burnham’s vision on housing can be delivered, alongside his ‘power up’ devolution strategy, then we can be cautiously optimistic in Scotland’s plant industry.
Apprenticeships
Andy Burnham has launched a sweeping overhaul of technical education and apprenticeships to tackle youth unemployment and support over one million young people not in education, employment or training (NEET). Whilst education is devolved in Scotland, I really hope that his bold pledge to ‘value the hard hat every bit as much as the graduation cap’, which is backed up with plans to begin technical training for 14-year-olds by 2028, will inspire the Scottish Government to place a greater value on apprenticeships.
Under the plans announced, schools in England will be integrated with local businesses to provide guest teaching, guidance and curriculum advice, and Ofsted will hold schools accountable for the quality of technical paths they offer. The SPOA has done more in recent years to engage with schools and colleges in Scotland and promote the plant industry so this focus on apprenticeships is something we all welcome.
Getting the economy moving
When I meet with SPOA members and the conversation moves to the economy and the challenges of running a business, we all agree that there was little cause for optimism in recent years. The measures introduced under the previous chancellor of the exchequer hit us hard, especially the changes to Business Property Relief (BPR) and Agricultural Property Relief (APR). We all agree that there needs to be significant economic growth if we are to lessen the impact of the cost-of-living crisis which is felt by many. So, do we have cause for optimism under the new prime minister?
So far, we have seen some targeted support aimed at households with the removal of the 5% VAT rate on domestic electricity bills and we have also seen support aimed at boosting the high street with a 20% cut in business rates for local pubs and music venues and an increased tax on major out-of-town e-commerce warehouses. Whilst not directly beneficial to the plant industry, it is nevertheless an encouraging signal from Andy Burnham to act swiftly with some quick wins in his first weeks in office. Long term significant change cannot be achieved overnight.
At the SPOA, we will continue to advocate for the plant industry and engage with the new administration under Andy Burnham. I would encourage SPOA members to look for opportunities in this new era of ‘power up’ devolution. It seems to me that there is a willingness to do things differently and if Andy Burnham wants to introduce the biggest changes in the last 40 years, let’s be central to that and not sit on the sidelines.
