Economic growth is the focus of the election campaign

Changes are coming to the economy, regardless of the outcome of the July 4 general election.

While there is a battle for votes and seats in Westminster, the ground is also being prepared for the next Scottish Parliament elections in less than two years.

The parties want to change their approach, and the key issue is economic growth.

Labor leader Sir Keir Starmer has taken his message about the state-owned energy company to Scotland, where it will be based. Aberdeen believes it is a prime candidate for this location.

There were already SNP plans for an energy supplier using the state’s purchasing power to challenge dominant private sector gas and energy suppliers.

Labor’s proposals don’t go there. They seem to be located further upstream where power is generated. GB Energy will take shares in renewable energy projects.

Anas Sarwar, leader of the Scottish Labor Party, told the Prosper economic forum in Edinburgh on Thursday that the party would reassure private investors that the government could be a reliable partner because it “has skin in the game”.

In recent years, the energy industry has not seen the Tories, Labor or the SNP as reliable partners due to inconsistent approaches to taxing offshore energy, permitting further drilling and approvals needed to develop renewable energy sources.

Labor is a major concern for the oil and gas industry today. During the event, Prosper Sarwar sent clear signals that Labor “will not turn off the taps”.

“Oil and gas will play a role in the energy mix for decades to come,” he said.

However, industry representatives in the north-east of Scotland are waiting to hear from Sir Keir Starmer and environment spokesman Ed Miliband on how the party’s position in Westminster can be reconciled with that of Anas Sarwar.

Labor’s strategy at Westminster is to deny offshore operators new drilling licenses, honoring those granted before this election. Conservative ministers have been accelerating this process in recent months.

Labour’s position has been met with criticism from within the industry and in the north-east of Scotland, where there are many sector-dependent jobs.

However, Westminster’s leadership has chosen a hard line against further drilling to show its commitment to action on climate change, strengthen its green credentials in the face of a challenge from Green Party candidates and highlight the economic opportunities of renewable energy.

Sarwar’s speech to the Prosper forum, which was made up of private, public and third sector organizations, also outlined some big changes to Labor’s position at the 2026 Holyrood elections.

Nowadays profit is good. Labor is “unashamedly pro-growth and pro-business”.

This includes rethinking rent control plans to ensure they do not discourage investment in housing.

Sarwar said increased income tax on higher earners in Scotland puts the country at a “competitive disadvantage”.

He supported the reform of business rates, which was particularly sought by the retail sector.

He also addressed problems with the planning system, which lacks staff to cope with the heavy workload, including the looming cascade of renewable energy applications.

During the forum’s discussion of the enormous opportunities that renewable energy brings, issues related to slow and inconsistent planning continually arose. This did not only apply to industrial facilities, but also to housing for all people who were promised new jobs.

Labor is now planning to set up a national organization to deal with planning applications, with centers of excellence for different types of applications bringing together 32 different local government offices.

This may look like centralization, but it looks like local councilors would still retain a major role in planning decisions once officials do the necessary work.

Incidentally, planners are less concerned about solar panel applications on industrial buildings, offices and home roofs. The rules in Scotland have been significantly relaxed since last week.

Also speaking at the Prosper event was the SNP’s Kate Forbes, who has taken up the role of deputy first minister and economy secretary in the Scottish Government three weeks ago.

It was a reminder that governance is a devolved administration and that the John Swinney/Kate Forbes leadership team is intent on changing its mind, even during the election campaign.

Some changes may be included in the election manifesto and other changes in direction will be deferred until after the Westminster vote due to civil service rules on campaign impartiality.

Ms. Forbes also wanted to emphasize her credentials as a friend of the business, dropping clear signs of coming changes in the coming weeks.

It seeks to review housing regulation plans, recognizing the damage done to private sector investment by current rent control plans.

On the differences in income tax in Westminster, an SNP minister said a further statement would be released soon to reduce uncertainty around tax rates, while reiterating her view that income tax cannot continue to rise.

The Highland MP also said ministers had been “too glib” on what they called a “fair transition” from oil and gas to renewable energy when there was a risk that depleting fossil fuels too quickly would “cut (the industry) off.” on his lap.”

The Scottish Government’s draft energy plan under the previous SNP leadership stated that it should be assumed that no further drilling licenses would be granted, but there is pressure within the SNP to change this and support the sector more.

However, the power to issue licenses rests with the Westminster Government. The SNP’s position is not decisive, but the signal has political significance.

This set of measures not only aims to change perceptions of the SNP, but requires the party itself to adapt to new leadership priorities.

In recent years, the Conservatives have moved from Boris Johnson’s enthusiasm for renewable energy and winding down oil and gas extraction to Rishi Sunak’s enthusiasm for increasing drilling and production.

The Tories agree with the industry’s argument that demand and demand for oil and gas will not disappear as quickly as some would like, and that the UK would be wise to produce its own fossil fuels rather than relying on imports.