‘Lost decade’ of SNP-Tory division has cost Scottish economy £10bn – Murray

Scotland has lost out on economic growth worth almost £10 billion as a result of governments at Holyrood and Westminster being “more interested in fighting each other than fighting for Scotland”, a leading Labour MP will say.

Scottish Secretary Ian Murray will declare that while growth should be the “single most important” goal for both administrations, this had been impacted by “division” between SNP ministers in Edinburgh and the Conservatives in London.

He will insist the Labour UK Government has since sought to “reset” the relationship and make up for the previous “lost decade”.

A decade of lost growth has cost Scotland billions. We can’t have another lost decade. We need a decade of national renewal

While UK GDP grew by 13.4% between the third quarter of 2014 and the third quarter of 2024, economic growth in Scotland failed to keep pace.

Scotland’s GDP grew by 7.4% over the period – with Labour saying if economic growth had matched that of the UK as whole, the economy would have been 5.6% larger by the third quarter of 2024.

This, the party has calculated, is the equivalent to it being £9.7 billion larger.

Mr Murray will use a speech next week to stress “partnership” is needed between the two governments, with the Scottish Secretary expected to say: “The single most important outcome that Scotland’s two governments should be seeking is economic growth. Growth with a purpose.

“Economic growth to raise living standards, improve public services and tackle the unacceptable levels of poverty that scar our communities.

“But I’m afraid delivering economic growth for Scotland is not something either of Scotland’s governments can do alone. It requires partnership and co-operation.”

He will go on to say that having two governments “not working together just costs Scotland in the long run”.

He will add: “The past decade has been one of division between Scotland’s two governments. They were more interested in fighting each other than fighting for Scotland.

“The result? Scottish growth lagged behind UK growth. If Scottish growth had simply matched UK growth in the last decade, our economy would be nearly £10 billion larger.

“A decade of lost growth has cost Scotland billions. We can’t have another lost decade. We need a decade of national renewal.”

But Scottish Conservative finance spokesman Craig Hoy hit back, saying: “Labour lecturing anyone else on economic growth is rich given their disastrous tax-raising Budget.

“Their decision to break their pre-election promise and hike national insurance will have a devastating impact on businesses and stifle economic growth across Scotland.

“Ian Murray should apologise on behalf of his party for compounding the economic misery being felt by taxpayers in Scotland who have suffered 18 years of gross financial incompetence from the SNP.”

SNP MSP Keith Brown said: “Ian Murray is right to say that the failures of the previous Tory government have cost Scotland dearly – but unfortunately the UK Labour Government looks like it will repeat many of their mistakes.

“Just like the Tories, Keir Starmer’s Government treats Scotland like an afterthought and focuses economic investment in London and the South East to Scotland’s detriment.

“Labour came to office promising change – and just like their promises to pensioners and their promises on fuel bills, their promises on the economy were clearly never to be trusted.

“In contrast, since the SNP came to office in 2007, GDP per person in Scotland has grown by 10.3% – compared to just 6% in the UK.

“That is what can be achieved by a government who will always put Scotland’s interests first – and if Labour keep treating us like an afterthought, people in Scotland will quickly come to the conclusion that all economic powers should be in Scotland’s hands.”