New annual index set to tackle Scotland's productivity puzzle

This analysis, which will be informed by insights from the Fraser of Allander Institute and Mark Diffley Consultancy and Research Ltd, will be completed on an annual basis to determine the impact and effectiveness of productivity enhancing measures, with a view to understanding ‘what works’ in addressing the weak levels of productivity growth that have dogged the Scottish economy for decades. The first findings will be published in early September 2019.

Insights from KPMG Scotland will supplement the analysis, with further guidance from a business advisory group comprised of leading figures from across the whole Scottish business community. The group will hold regular roundtables to discuss findings and provide strategic advice.

The CBI/KPMG Scottish Productivity Index represents the next phase in CBI Scotland’s ongoing campaign to boost productivity across all parts of Scotland and follows the publication of 2017’s landmark Pursuing Prosperity report.

Tracy Black, CBI Scotland Director, said:

“We all know that Scotland faces a productivity challenge, with recent weakness highlighting the need to find new solutions that can deliver a real step-change. The findings from the new Scottish Productivity Index should give not only help to focus minds on the scale of the challenge ahead but give us the data and rigorous analysis we need to accelerate new solutions.

“Brexit aside, boosting productivity has been the number one priority for CBI Scotland over the past couple of years. For us, this isn’t just some academic exercise, we’re absolutely determined to find real world solutions to a stubborn problem that can deliver more jobs, higher wages and future prosperity across the whole country. It’s an indication of just how seriously we take the issue that we’ve established this partnership with KPMG and engaged some of Scotland’s most respected economic analysts.”

Jenny Stewart, Chair of the Business Advisory Group, KPMG Partner and Head of Infrastructure, Government and Healthcare in Scotland, said:

“The annual CBI/KPMG Scotland Productivity Index will play a key role in tackling the productivity challenge. The insights and analysis from the work will get to the heart of the key drivers of productivity and provide practical advice on how the private sector can respond.

“The work will provide increased understanding of the causes of poor productivity; how to remove some of the barriers; but also help share great practice across the business community. The work will also be useful for Scottish and UK Governments, who are both keen to improve productivity across the economy.

“That’s why the CBI/KPMG Scotland Productivity Index is so important. In partnership with CBI Scotland, we will chart a course for Scottish business to improve productivity - one of the key building blocks for international competitiveness and future economic growth.

“I am extremely grateful to the members of the Business Advisory Group who have agreed to give their time to such an important economic issue – and very much looking forward to our discussions.”

About the business advisory group:

The business advisory group will comprise of the following:

• John Anderson, Strathclyde Business School
• Jo Armstrong, Wheatley Group
• Nicola Barclay, Homes for Scotland
• Karen Betts, Scotch Whisky Association
• Bonnie Dean, University of Glasgow
• Stuart Gallacher, BAE Systems
• Barry King, Oil & Gas UK
• Robin MacGeachy, Peak Scientific
• Willie Macleod, UK Hospitality
• Pamela Scott, Diageo
• Kenneth Shand, Dentons LLP
• Colin Walls, Bank of Scotland