The raft of new measures, announced on 24 October 2018, will reportedly include substantial modifications to Scotland’s taxes, ‘including significantly reduced or abolished business rates for 100,000 premises as part of the most competitive package of reliefs in the UK’. The Scottish government intends to maintain a ‘competitive tax and regulatory regime’ in order to generate investment.

Investment is of particular concern to the Scottish government as the UK prepares to leave the EU. To that end, it also intends to deliver £20m in investment in companies that are seeking to increase their exports over the next three years, as well as creating a new enterprise agency in the south of Scotland, backed with £10m of investment, and providing an additional £45m of support for research and development (R&D).

R&D is set to be a key priority over the next decade, particularly in pharmaceuticals and manufacturing. Business expenditure on development exceeded £1bn in 2016, having risen by 69% since 2007. The Scottish government has pledged to invest £56m in a ‘medicines manufacturing innovation centre’ and establish the National Manufacturing Institute for Scotland, which will issue an £18m ‘advanced manufacturing challenge fund’.

As part of its commitment to growing the rural economy, Holyrood will provide £119m of ‘enterprise support’ to nearly 1,500 rural enterprises. A key focus of this work is generating innovation in environmentally-sound technology, with £25m available to improve tidal energy production and £60m in funding for ‘low carbon innovation’.

Economy and finance secretary Derek Mackay said: 'Scotland has huge economic potential and we are well placed to take advantage of the economic opportunities that come from our established strengths in innovation and technological change. That will stimulate our economy even further, and lead to a more prosperous and fairer society.

'The Scottish government’s economic strategy sets out our vision for sustainable and inclusive growth. Growth that boosts competitiveness while tackling inequalities and delivers for our communities, for the environment, and for workers and business.

'The Economic Action Plan reinforces our unwavering commitment to this vision and sets out actions that are all designed to support businesses and accelerate growth and prosperity for all.

'This plan is in response to direct engagement and feedback the Scottish government and Scottish ministers have had with trade unions and businesses across Scotland. We will continue to work in partnership to ensure we are responding to the meet the needs of our economy.'

Report by James Bunney