26 Jun Interview with Hon. John Swinney, First Minister of Scotland
Could you provide an overview of the main trends shaping Scotland’s economy today? What unique strengths position Scotland as a leader among UK regions for sustained growth?
Scotland has a diverse and resilient economy, underpinned by world-class higher education and research. Our universities have long driven innovation, particularly in financial services, life sciences and medicine. These intellectual foundations continue to shape global thinking. Today, our economic strengths span renewable energy, tourism, food and drink, financial services and life sciences. This breadth allows us to withstand external pressures and maintain a strong outward-looking focus.
Scotland has faced economic challenges in recent years, particularly in the aftermath of Covid-19. However, our economy rebounded strongly, with growth outpacing the rest of the UK last year. While recent volatility has posed difficulties, we are seeing renewed strength and I am confident in our path forward. At its core, Scotland’s economy is resilient and the government remains focused on nurturing that strength.
What are the major changes and key initiatives in the 2025/26 budget? How will policy reforms in 2025 and beyond help turn challenges into opportunities for communities and businesses?
The recent Scottish budget, the first under my leadership, focused heavily on driving investment. We allocated $269 million to the Scottish National Investment Bank, tripled funding for offshore renewables and expanded innovation support through initiatives like the Techscaler program. These efforts build on Scotland’s strong track record in attracting investment and reinforce our ambition to remain a leading destination for growth and innovation.
The government remains fully committed to building a green industrial future and reaching net zero by 2045. Could you share the key initiatives and policies currently driving this transition?
Scotland’s transition to a net zero economy has long focused on renewable energy. Since 2007, we have prioritized its development, successfully decarbonizing our electricity generation through onshore wind and hydro power. Today, we are expanding into offshore renewables, including challenging North Sea sites, boosting clean energy production and export potential. We are also investing in grid infrastructure and exploring future opportunities like hydrogen, positioning Scotland as a leader in the green energy economy.
Can you describe Scotland’s current R&D ecosystem and government support for innovation? What are the key initiatives in place?
Scotland has built a strong innovation ecosystem, supporting businesses at every stage, from startup to scale-up. We help early-stage companies attract funding, scale through initiatives like the Techscaler program and access patient capital via the Scottish National Investment Bank. Our enterprise agencies work alongside universities to turn research into commercial success, ensuring innovation leads to real economic growth.
In 2023, Scotland secured a record 142 inward investment projects, making it the leading UK region outside London for foreign direct investment. How is Scotland building on this momentum and what initiatives are underway to attract more international investors, especially from the US?
We actively engage with international markets through a global network, including representatives in the US who work directly with companies. During Tartan Week in New York recently, I met with investors interested in Scotland. We also host events at home, like the recent Offshore Renewables Investment Conference, to connect global investors with local opportunities. These efforts showcase Scotland’s appeal and help drive inward investment.
During my recent visit to the US, just after President Trump’s tariff announcement, I was struck by the continued appetite for bilateral investment despite broader uncertainty. My message to the Scottish government is clear: we must present strong, compelling investment opportunities, regardless of global volatility.
The US has been a key investment partner for Scotland for over 60 years, and we have long enjoyed strong export ties. Despite global challenges, I am committed to maintaining and strengthening these relationships, keeping open dialogue with US businesses and investors and showcasing Scotland’s continued contribution to the global economy.
What are some defining moments of your leadership so far and what continues to inspire you as you guide Scotland forward?
Becoming First Minister of Scotland is a tremendous privilege, allowing me to focus on issues I deeply care about — chief among them, eradicating child poverty. Achieving that goal requires a strong, growing economy and Scotland’s transition to net zero offers real opportunity. Passing a budget without a parliamentary majority was a key milestone, laying the foundation to deliver meaningful change for the people of Scotland.
Scotland is a highly attractive investment destination, with a stunning natural environment, world-class universities and a forward-looking economy. We offer a supportive business culture, a strong desire to attract investment and a welcoming attitude that will continue to be a key strength in the future.