The Role of Business Services in Regional Development: The Case of the Scottish Highlands

This research is concerned primarily with the provision of private and public sector business services in the Highlands of Scotland. This is a sparsely populated area with a variety of economic problems, including remoteness from main centres providing business services. The research involved a survey of over fifty manufacturing and fish farming enterprises in the region, and fourteen accountancy firms. Semi-structured interviews identified which services firms use and provided information on the quality of services

Economic Impact of the Proposed Neart Na Gaoithe Offshore Windfarm

We were asked by Mainstream Renewable Power Limited (MRP Ltd) to evaluate the economic impact on the Scottish economy of the proposed Neart Na Gaoithe offshore windfarm project. Specifically, we will focus on the GDP and employment effects of the anticipated size and profile of expenditure for this project. There are different methodologies that can be employed to arrive at such estimates, and this note sets out one such approach and the key results that follow. As with all such analysis, these figures are estimates and should be viewed as such. In particular, we would note that the development is not currently in place and tendering for the different components has not yet been completed. Therefore, this analysis is based on detailed information on the anticipated supply chain for this project provided to us by MRP Ltd. These data identify anticipated spend in Scotland and in the rest of the UK and were compiled for the Neart Na Gaoithe supply chain plan which was submitted to the UK Government

Fraser of Allander Institute : Economic Commentary [March 2018]

As the financial year draws to a close, it is a good time to reflect on Scotland's economic performance over the past twelve months and perhaps more so, to consider the significant challenges that lie ahead. Little has changed since December's Fraser Economic Commentary on Scotland's economic performance; there is growth, but the pace is slow with little expectation it will accelerate at any significant rate over the coming three years. As has been well established, increasing productivity has been, and remains, one of Scotland's key economic challenges

Fraser of Allander Institute : Economic Commentary [June 2018]

As the financial year draws to a close, it is a good time to reflect on Scotland's economic performance over the past twelve months and perhaps more so, to consider the significant challenges that lie ahead. Little has changed since December's Fraser Economic Commentary on Scotland’s economic performance; there is growth, but the pace is slow with little expectation it will accelerate at any significant rate over the coming three years. As has been well established, increasing productivity has been, and remains, one of Scotland’s key economic challenges

Fraser of Allander Institute : Economic Commentary [March 2020] - Coronavirus Special Edition

The world is in the middle of a global health crisis and in addition to the human impact of COVID-19, financial markets have tumbled. Companies across every sector and industry are anticipating significant operational disruption. It’s clear that the situation will cause a severe hit to economic activity in both the UK and at a global level. The hope is this disruption to activity is relatively temporary and the economy rebounds in the second half of the year. During the latest of Deloitte’s weekly ‘Responding to COVID-19’ webinars1 on 19 March, which was joined by c.4,000 people from businesses and other organisations, almost three-quarters of participants expected activity to come back in the second half of this year

Fraser of Allander Institute : Economic Commentary [June 2020] - Coronavirus Special Edition

Three months ago when we wrote the foreword for the last economic commentary, the world was just beginning to be gripped by a global health pandemic. In Scotland, we entered lockdown alongside the rest of the UK on 23 March. The deliberate closure of non-essential parts of our economy, synchronised across the globe, makes this economic crisis different to those that we have experienced previously. At the end of May, after over two months in lockdown, the country took its first tentative steps to restarting the economy. However, as we move into ‘Phase two’ of easing lockdown, there remains a great deal of uncertainty over how quickly businesses, and even industries, will be able to recover. There is also the very real threat of a second wave of the virus and the impact to the economy if restrictions were put in place once again. It is safe to say that no one knows exactly what will happen, and it will take several years to understand the full impact COVID-19 has had on society and businesses. However, we are starting to understand how this virus has fundamentally altered the way we live our lives and can begin to draw out key themes that will shape the ‘new normal’

Fraser of Allander Institute : Economic Commentary [September 2020]

COVID-19 has been one of the most disruptive events that society and businesses have experienced since World War II. The last six months have led to a dramatic contraction in economic activity across the world, in large part due to the shutdown of the global economy as countries managed the threat posed by the pandemic. In Scotland, this has resulted in the economy shrinking by nearly a fifth between April and June with unemployment on the rise and further redundancies expected across the country in the coming weeks

Fraser of Allander Institute : Economic Commentary [April 2019]

Against a backdrop of heightened uncertainty, Scotland’s economy has continued to grow, albeit below trend. This, combined with near all-time high employment, is to be welcomed and provides some positives in these extra-ordinarily testing times. However, Scotland continues to face a productivity challenge with the consequent impact on real earnings growth. As the Commentary evidences, the economic growth we have seen has been matched by an increase in hours worked rather than an increase in productivity. If we want to see a rise in real earnings and living standards, we need to see productivity grow

Fraser of Allander Institute : Economic Commentary [December 2017]

This week's Scottish Budget (14.12.17) comes at a crucial time for Scotland's economy. With Brexit uncertainty continuing to cast a shadow, plus a gloomier outlook for UK productivity, the Budget provides an important opportunity for the Scottish Government to set out their plans to support the Scottish economy. The Budget will also mark the first time that we will have forecasts from the new Scottish Fiscal Commission (SFC). The SFC will provide an independent assessment of the outlook for the economy, devolved taxes and social security. They will do so against a backdrop of ongoing economic fragility. Growth in Scotland slowed to just 0.1% over the 3-months to June. Over the year, growth has been around 1/3 that of the UK. In contrast, employment continues to be close to a record high – at least since the Labour Force Survey started in 1992. The downside has been further falls in productivity. The latest leading indicators suggest that the economy is continuing to grow, albeit at a relatively slow pace. The Scottish FAI/RBS Scottish Business Monitor for Q3 2017 showed both a rise in business and new orders. Our latest survey of activity in the oil and gas sector shows a further pick-up in optimism, although conditions remain challenging