Scottish Affairs Committee to examine the Government’s industrial strategy

The Scottish Affairs Committee today launches an inquiry investigating industrial transition in Scotland, and the Government's industrial strategy.  

Economic activity in Scotland today centres on service sectors like digital and technology, creative industries and financial services. Key industries are also transitioning, with sectors such as clean energy likely to grow rapidly in Scotland in the coming years, as the UK transitions away from fossil fuels.  

In October 2024, the UK Government announced it was consulting on a UK-wide 10-year industrial strategy, Invest 2035, that is due to be published in spring 2025. This will target eight ‘growth-driving' sectors such as clean energy, defence, creative industries, digital and technologies, life sciences and advanced manufacturing.  

The Government has stated that its industrial strategy, in partnership with the Scottish Government, will support Scotland's “considerable sectoral strengths”, with the aim of achieving economic growth.  

This inquiry will examine whether the industrial strategy is tailored to the needs of Scotland's businesses and industries, and whether it will enable the Government to maximise Scotland's role in growing the UK economy.  

The UK Government's industrial strategy is particularly pertinent given Scotland's centrality to its mission to become a ‘clean energy superpower' by 2030. Whilst this will form part of the committee's analysis, this inquiry intends to take a wider approach to focus on and compare its impact on a plethora of Scotland's growth sectors including, but not limited to, clean energy, carbon capture, space, data technology and gaming.  

MPs will also take a retrospective look at previous industrial transitions in Scotland, drawing on examples of the decline in industries like coal, steel, heavy engineering and textiles. They will examine the legacy of deindustrialisation on these communities and whether the UK Government was successful in managing these transitions 

Chair of the Scottish Affairs Committee, Patricia Ferguson MP, said:  

“As the government prepares to publish its new industrial strategy, due in Spring, we'll look at the UK government's current work and the opportunities and challenges it presents for Scotland. We need to make sure that the UK Government's plans work for Scottish jobs and communities and provide the right support for industries in transition, to ensure no one is left behind.”  

“This inquiry will also be exploring ongoing and future industrial change across the country – looking both at industries that are likely to decline, and how to successfully manage this, and industries which are likely to grow, such as gaming, space and data tech.  

“By looking backwards to past industrial transition, we want to learn lessons from previous UK Governments' management of industrial transitions and industrial strategies, and how these can be applied to Scotland today.” 

Terms of Reference 

The committee welcomes written evidence submissions on some or all of the following points by 23:59 on 27 March. You can submit evidence or find our more here. 

1. Which industries in Scotland have previously experienced industrial transition, and to what extent were these transitions effectively managed? In what ways did these historic transitions in Scotland differ in their causes, impacts and results? Relevant examples could include (but may not be limited to) coal, steel, heavy engineering, textiles, and shipbuilding.

• How were Scotland's industrial transitions different in nature to those experienced in other parts of the UK? 

• What have been the socio-economic impacts of these transitions, and in what ways do Scottish communities continue to be impacted by the legacy of them today?  

• How effectively have UK Government policies and interventions, both existing and historic, mitigated the negative impacts of these industrial transitions? 

2. Which industries in Scotland today are likely to experience industrial transition or decline in the near future? The Committee is interested to hear from a wide range of industries including, but not limited to, oil and gas and manufacturing, as well as growth-sectors in Scotland such as space and data technology.

• Which communities in Scotland could experience the effects of this industrial transition or decline in the near future?  

• What lessons can be drawn from a) previous governments' industrial strategies and management of industrial transition b) other countries' management of industrial transition? 

• How can these lessons be applied to transitions affecting industries in Scotland today? 

3. To what extent is the UK Government's forthcoming industrial strategy, Invest 2035, geared towards the challenges and opportunities facing Scotland today?

• What are the barriers to and enablers of industrial growth in Scotland, both now and in the future? 

• To what extent does the Industrial Strategy Advisory Council reflect the make-up and priorities of Scottish industries? How can the Council ensure the needs and interests of Scottish industries are represented within the UK Government's policy-making processes? 

• How can the UK Government achieve its objective of an industrial strategy with a ‘place-based approach'? What should such an approach look like, and how could it deliver for Scottish industries? 

• How will the UK Government's approach cohere with the Scottish Government's economic plans, including its Green Industrial Strategy and National Strategy for Economic Transformation? 

/ENDS 

Notes to Editors:  

• The committee is currently running a separate inquiry into GB Energy and Scotland's transition to net zero. For details click here 

• The committee's predecessor held an inquiry into Scotland's space sector, which can be viewed here. The current committee ran a follow up session on this in February 2025 – details can be found here.