4. To ask the First Minister what the Scottish Government’s position is on the UK Government’s new industrial strategy. (S5F-00801)

Our ambitions for a sustainable and inclusive economy are underpinned by our economic strategy, our manufacturing action plan and, of course, our willingness to intervene in key strategic sectors, as evidenced by our action to save the steel plants and the Lochaber aluminium plant.

There has been widespread recognition that the United Kingdom has lacked a strategic approach to industrial policy for many years, so the publication of the industrial strategy this week is welcome.

That said, there was a disappointing lack of engagement from the UK Government with the Scottish Government during the development of the consultation paper, which covers many devolved policy areas. We have written to the Secretary of State for Business, Energy and Industrial Strategy to confirm that we remain ready to work with the UK Government on the matter for the benefit of Scottish businesses and our economy, as well as the wider UK economy.

Does the First Minister agree that it is vital that any industrial strategy that aims to reduce regional disparity must be compatible with key economic development projects, such as the Ayrshire growth deal? Will she advise members of whether an industrial strategy that the Prime Minister claims will reach every corner of the UK, despite the Tories’ abysmal record on regional development, will be more likely to succeed in attracting investment and new talent while increasing innovation, research, development, employment and productivity with Scotland in or out of the single market?

The First Minister:

I certainly agree with Kenny Gibson on the Ayrshire growth deal. Any industrial strategy has to be built on recognising and supporting regional economic strengths.

As I said in my initial answer, we have been disappointed by the limited consultation on the industrial strategy so far. In fact, the first time that the Secretary of State for Business, Energy and Industrial Strategy got in touch was on Monday morning, just hours before the document was published. Keith Brown has written to him to request much stronger engagement for the future. That is in the interests of the Scottish Government and the UK Government.

On Kenny Gibson’s final point, there is a danger that the UK Government’s proposed hard Brexit will jeopardise the Scottish economy, our businesses and the jobs that they provide. That is why we continue to call on the UK Government to deliver membership of the single market, with its market of 500 million people, ideally for the UK as a whole, but certainly for Scotland.