Why are there concerns for Scotland over Labour's Invest 2035

The Herald Scotland

16-07-2025

The warning arrives as uncertainty grows around the future of Ferguson Marine, the last remaining commercial shipyard on the River Clyde. The nationalised firm has struggled with delays and cost overruns surrounding the MV Glen Rosa—a ferry years behind schedule and massively over budget. Until recently, it had just that single contract left, placing its long-term survival in jeopardy.
What is Invest 2035?
The strategy was formally launched on 23 June 2025, following a public consultation that began in October 2024 with the release of a Green Paper.
It was introduced to reverse years of low productivity and weak investment across the UK, provide long-term stability and end the 'policy merry-go-round' that businesses have faced and create a credible 10-year plan to boost growth, tackle regional inequality, and support high-potential sectors.
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It is also seen as a response to the global challenges like the net zero transition, AI and automation, and changing trade dynamics.
What are its main targets?
It aims to drive sustainable, inclusive, and resilient growth across the UK, increase business investment and attract international capital.
It also hopes to support high-quality, well-paid jobs in key sectors.
It has a focus is on eight growth-driving sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences and professional and business services.
There is a hope of doubling business investment in advanced manufacturing and clean energy by 2035.
There is a plan to train one million young people in tech skills by 2030 and boost AI research twentyfold while expanding clean energy investment and growing business investment in creative industries to £31bn
It also plans to support regional growth through city-region clusters and strategic hubs and establish a statutory Industrial Strategy Council for oversight and long-term stability as well as accelerating international investment.
What are the further concerns of the SMI?
The SMI has warned UK ministers that shipbuilding and marine engineering on the Clyde and at Rosyth remain 'vulnerable to international competition,' dominated by state-backed foreign shipyards with easier access to funding and demand. They say this threat will persist unless supported by 'strategic sovereign procurement' — a policy that prioritises buying from domestic firms to boost local jobs and industry.
(Image: Andy Buchanan/PA) It said that North Sea oil and gas sector is in 'structural decline' due to decarbonisation, ageing fields, and falling fossil fuel investment, with major impacts expected in Aberdeen and nearby areas.
And they say a managed shift to renewables is vital to protect jobs and industrial capacity. And it elt that Aberdeen must win UK wind farm contracts to preserve sovereign energy capability.
And the key risk, they warn, is not the transition itself, but failing to equip Scottish communities with the skills, investment, and support needed to adapt.
What does the UK Government say about the plan?
When the business secretary Jonathan Reynolds introduced the new industrial strategy Green Paper, he described it as 'the UK's modern industrial strategy' aimed at channelling long‑term investment into 'growth-driving sectors' to 'spur growth, spread wealth and drive up employment across all four nations of the UK'
He emphasised the importance of the workforce, stating the approach will 'invest in British people to power industrial strategy,' with a £275 million package supporting skills training in areas like engineering, programming and manufacturing to plug growing skills shortages.
Keir Starmer (Image: Jonathan Brady) Prime Minister Keir Starmer said the strategy represented a 'targeted, long‑term plan,' marking a break from short‑term policymaking and "sticking plasters of the past".
He said: "In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people's pockets as part of the Plan for Change
"This is how we power Britain's future - by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear - Britain is back and open for business."