Deputy First Minister Kate Forbes has expressed concern that the Chancellor’s attempts to drive economic growth are focused around the southeast of England.

Ms Forbes echoed issues raised by Daily Business after Rachel Reeves unveiled a series of investment initiatives around the Oxford-Cambridge corridor and plans for a third runway at Heathrow.

The Deputy First Minister said: “I am deeply disappointed in the lack of any initiatives which would directly benefit Scotland – especially given our energy expertise, strengths in new technologies like space and AI, world-leading universities and colleges, highly skilled workforce and our reputation as a world-class entrepreneurial nation.

“For instance, there is no mention of Grangemouth and I am concerned that UK Government investment is being further concentrated in prosperous areas in the South East of England and around Oxford and Cambridge.

“This will deepen concerns that Scotland is being treated as an afterthought by this UK Government.”

Business leaders were divided on the Heathrow plan between those who it helping to stimulate jobs and expand the wider UK economy, and those who feel it is too long term to create any immediate benefits. There will be no spades in the ground for at least two years and it will take between 10 and 20 years to be completed.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “The additional runway at Heathrow creates a huge opportunity for Scotland’s SMEs.”

However, she also noted the absence of big ticket plans for Scotland from the Chancellor.

“It is disappointing that the Chancellor’s speech did not mention any investment on the Glasgow Investment Zone which focuses on two areas – the joint project between AGS, owner of Glasgow Airport, and Renfrewshire Council and the areas around Strathclyde University – or any support for the areas included in unsuccessful Green Freeport bids such as Greenock and Mossend,” she said.

“They are vital to stimulating much needed growth and the investment in jobs Scotland badly needs.”

GDP slides

Reaction to the Chancellor’s speech came after new figures revealed a setback for the Scottish economy, with output beginning to falter.

Scotland’s onshore GDP contracted by 0.5% in November, according to statistics announced by the chief statistician. This follows a deeper contraction of 0.4% in October, revised from a fall of 0.2%.

In the three months to November, GDP is estimated to have contracted by 0.3% compared to the previous three month period.

In November, the largest contribution to headline GDP was made by the professional, scientific and technical services sector which contracted by 3.5%, accounting for -0.3 percentage points to the overall contraction.

The largest positive contribution was made by the information & communications sector which grew by 1.1%, contributing 0.1 percentage points towards GDP.

Ms Forbes said: “While these statistics are disappointing, I am encouraged by the fact that Scotland’s economy has grown over the past year and is forecast to strengthen further this year.

“The Scottish Government is focused on driving growth and investment.

“However, many factors are outside the Scottish government’s control and we are deeply concerned by the potential impact of the UK Government Budget, with higher National Insurance employer contributions likely to have real and damaging consequences for businesses.”

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