My Column

Economy needs its mojo back

  • Date: Monday 2nd April 2018
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Simplicity is the ultimate sophistication, but us Scots have a habit of making life complicated for ourselves – particularly when it comes to the national coffers.

Reports last week painted a gloomy picture of flatlining growth for Scotland’s business sector, and over-complication may be at the heart of our woes.

Leading economists at Strathclyde University believe that our economy is facing ‘subdued’ growth of 1.2 per cent this year and 1.4 per cent during each of the next two years.

While the Fraser of Allander Institute (FAI) did have some positive news to report, with many sectors described as ‘resilient’ amid strong indications that the oil and gas sector is stabilising, the Scottish Government was largely blamed for the country’s continued slow growth.

The FAI concluded that Holyrood’s various advisory boards largely contributed to the slow performance, rather than helping to bolster it, by failing to outline a clear plan for the future.

Looking at the extensive and mind-boggling list of strategies which the government has put forward, I think they may have a point – certainly, a cursory glance tells you that there are strategies for strategies.

It’s no wonder the FAI warned that they could collectively lead to confusion and duplication.

In business, simplicity is key. It’s those companies that have taken a simple idea and implemented it well that have achieved global success.

McDonald’s, for example, was the brainchild of two brothers who opened a drive-in restaurant in California serving BBQ food. When they realised that burgers made up the biggest percentage of sales, they created a speedy service system – lowering prices and cutting down the menu.

The rest, as they say, is history.

While McDonald’s has a formula for every aspect of the business, from what approved franchisees can use, to how customers are greeted, it all relates back to its golden overarching goal – of generating further growth for the golden arches.

Relating this back to Scottish Government strategies, I think they are lacking that simplistic approach – of defining one key objective that helps to shape strategies across every sector.

It’s no wonder that the confidence levels of Scottish small businesses are lagging behind the UK.

Last week, the Federation of Small Businesses (FSB) found that although they had risen slightly in the first three months of 2018, this increase has only brought the figure to -17.8 points, meaning that more businesses have negative views regarding the future of Scotland’s economy than positive.

The FSB cited the main cause for concern among Scottish companies as the performance of the economy.

In such a faltering business environment, a clear, uniform economic strategy could help to rebuild confidence and illustrate the vision for Scotland’s future. In other words, the country needs to get its mojo back, and simplicity must be at the heart of that.

The FAI suggested that in the midst of the Brexit negotiations, this could be the perfect opportunity for the Scottish Government to review economic policy.

As we continue to work through a period of uncertainty regarding exactly what life after Brexit will look like, the Government needs to lead the country with a straightforward strategy to help Scotland steer a steady course through the storm.

 

SIDE

Despite the heavy rain and ice cold winds, the clocks have gone forward and it’s officially spring, so what better way to spring clean than to do your bit for charity?

Buchanan Galleries has launched the spring #FrockDrop clothing amnesty campaign with Marie Curie for the second year running after a hugely successful inaugural year in 2017.

Last year, generous customers donated 430 bags filled with clothing, shoes and accessories, providing a £10,000 funding boost for the charity which provides care and support for patients with terminal illnesses.

Scottish celebrities Tallia Storm, Amy MacDonald, Jennifer Reoch, and First Minister Nicola Sturgeon are getting behind the campaign by donating their pre-loved items.

In 2017, Marie Curie supported over 8,000 people affected by terminal illness in Scotland. Through the clothing amnesty, donators will help raise much-needed funds to make a difference to the work that Marie Curie carries out on a daily basis in communities across the country.

The clothing donations will be distributed and sold across Marie Curie’s Scottish stores, with the money raised helping to make a real difference in enabling the charity to reach even more people in need.

With Marie Curie’s Great Daffodil Appeal coming to an end this month, the initiative is reaching out to the people of Glasgow to help raise additional funds over Easter.

So if you’re spring cleaning over the Easter break, then do your bit for the charity and make sure you drop off your donations before Sunday 15 April to Buchanan Galleries.

 

LAUGH

I’m sure loads of you will have seen the viral video of the amazing tiny Big Mac being created, but now a food fanatic has launched The Tiny Cookery School where bite-sized meals are cooked in saucepans the size of a 50p piece.

Cooking fanatics who sign up to the course expect to make miniature meatballs, fajitas, and fish finger sandwiches.

The tiny meals are cooked in pots and pans from dolls’ houses and heated on a dinky stove, then served on plates the size of a £1 coin and eaten with 1cm-long knives and fork.

I’m all for a bit of creativity, but let’s hope our independent street vendors don’t start selling these tiny bites – I prefer my food a bit bigger.

 

WEEP

I was devastated to hear about the huge Glasgow blaze that destroyed an entire block including Victoria’s Nightclub.

With the Sauchiehall Street building now deemed unsafe, it will have to be pulled down, affecting such businesses as Specsavers, Greggs, Savers, and Holland & Barrett.

The street and the roads around the site are expected to be sealed off for around two months, causing further disruption for public transport and motorists.

While the neighbouring Pavilion Theatre survived, theatre bosses have been told they will not be allowed access while demolition work gets underway, and have appealed for help.

According to general manager Iain Gordon, the theatre could be facing major losses if its shows are unable to be staged elsewhere. The show must go on.

 

 

 

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