The UK Government is investing significant public money in Industrial Strategy Zones, encompassing Freeports, Investment and Enterprise Zones, and, more recently, AI Zones. The Scottish Government signed an agreement with the UK Government in February 2022 to ‘tailor the UK’s freeports programme to the Scottish policy context.’ In this paper, we examine the plans for Area-Based Incentives, with a focus on Scotland.
The Industrial Strategy Zones being implemented in Scotland and the UK are not the industrial wild west areas being implemented in some parts of the world. However, there is considerable scepticism that they will deliver significant improvements in economic growth or represent value for money.
However, as these zones are likely to remain, we must at least ensure that as little damage as possible is done. We therefore recommend that all these zones adopt measures, including strengthening transparency and local democracy; implementing Fair Work and local employment conditionalities; strengthening skills development; and minimising displacement and tax dodging.
Jimmy Reid Foundation Director, Dave Watson said,
‘The evidence worldwide is that these zones have major policy flaws, including the displacement of jobs from elsewhere in the country. At best, they represent poor value for money, at worst, a systematic transfer of collective sovereignty from communities to corporations, wrapped in the language of progress and economic growth. What Scotland and the UK needs is a comprehensive and credible industry strategy rather than tinkering around the edges.’