Scotland lags behind other UK countries

SCOTLAND is lagging behind its competitors and action is needed from business and government to help steer recovery, competitiveness and sustainable growth, a new data report shows.

The third edition of the annual CBI/KPMG Scottish Productivity Index shows Scottish businesses facing unparalleled pressures of Covid-19, staff shortages, supply chain disruption and rising costs.

The index, conducted with KPMG, the Fraser of Allander Institute and the Diffley Partnership, tracks Scotland’s productivity performance across 15 key indicators, in four categories including business practices, skills and training, health and wellbeing, and infrastructure and connectivity.


It found Scotland lags other parts of the UK or international competitors in nine of the 13 productivity indicators for which comparable data was available.

In short term productivity gains, four out of the 15 indicators show short-term improvements.

Eight indicators show progress is being made over the long-term, out of 13 for which relevant data was available.

Recommendations for governments include creating smart taxation that rewards investment, and for businesses include upping training investment. Tracy Black, CBI Scotland director, said: “The pandemic has re-emphasised the importance of fixing economic fundamentals, building resilience and ensuring the proceeds of growth reach every part of the country.”

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