Deputy First Minister Kate Forbes has today accused Labour of focusing investment in the southeast of England and treating Scotland as an afterthought.

Ms Forbes says the UK government needs to rebalance the UK economy and recognise innovation in Scotland.

Her comments come after the Chancellor Rachel Reeves set out her plan to create “Europe’s Silicon Valley” in the south east of England

Ahead of a debate in the Scottish Parliament this week, Ms Forbes will say that investment in innovation is focused on the “golden triangle” of Oxford, Cambridge and London, while industrial interventions in sustainable aviation fuel or carbon capture utilisation and storage have centred on Teesside.

Her comments echo observations by Daily Business following Ms Reeves’ Oxford address in January when she also unveiled plans for a major expansion of airport capacity in the south.

There has been concern that the UK government has been less interested in supporting Scotland’s needs, such as the future of Grangemouth and that the £200m recently pledged will depend on private investment emerging for the sort of projects that are getting more direct support in the south.

Ms Forbes said: “Scotland is a hotbed of innovation, full of businesses with great potential for growth.  We have indisputable strengths in manufacturing. The life sciences sector is growing. Which is why it’s all the more confusing that Labour’s economic interventions have largely focused on other parts of the UK.

“Economic analysis reveals how unequal the UK economy is, to a much greater extent than other OECD countries. The distorted shape of the UK economy is the result of decades of successive UK Governments focusing economic policy and investment on London and the South East.

“Scotland has the potential to lead in high growth sectors, like life sciences, innovation and AI. The Scottish Government’s investments in technology, entrepreneurship and innovation positions us well to compete globally. 

“However, recent UK Government decisions have unfairly focused on growth opportunities elsewhere in the UK. 

“We do not understand why the Labour government has deprioritised the £800m supercomputer project at Edinburgh University, whilst investing in Oxford and Cambridge.

“We do not understand why Labour have not reversed the Conservatives decision to overlook the Acorn Project in awarding support for carbon capture utilisation and storage, despite the strength of the proposition.

“We do not understand why the Chancellor focused on English industrial sites for sustainable aviation fuel, when it is one of the best opportunities for Grangemouth’s future.”

She added: “I am immensely proud of the successes and potential of Scottish innovation, underpinned by world class research at our universities. Private investors commend the talent of our people. When the UK is competing on a global stage, there can be no better investment than Scottish innovation.

“The UK Labour Government came to office making big economic promises to Scotland but have repeated the same mistakes as their Tory predecessors.

“We need a fundamental rebalancing of the UK economy to allow Scotland’s extraordinary potential to be met. Economic policy made in the London bubble has to look beyond itself and back the brilliance of Scotland’s brightest brains.”

Meanwhile, Ian Murray, the Scottish Secretary in the Labour government, has claimed that Scotland has suffered from a “lost decade’” of division between the SNP and Tory governments.

In a speech on economic growth later this week, Mr Murray wil say that if Scottish growth had matched UK growth for the last decade, the Scottish economy would be £10 billion larger.

He will say the new UK Labour government has reset the relationship with the Scottish government, including bringing the Commonwealth Games to Glasgow and a range of areas where the Scottish Government has been happy for the UK Government to legislate on its behalf, including on tobacco and vapes, renters rights and public railways.

He will criticise the previous Tory government and current SNP government for fighting each other rather than working together to deliver better results for Scots.

“I’m afraid delivering economic growth for Scotland is not something either of Scotland’s governments can do alone. It requires partnership and co-operation,” he says.

“Because not working together just costs Scotland in the long run. The past decade has been one of division between Scotland’s two governments. They were more interested in fighting each other than fighting for Scotland.

“The result? Scottish growth lagged behind UK growth. If Scottish growth had simply matched UK growth in the last decade our economy would be nearly £10 billion larger.

“A decade of lost growth has cost Scotland billions. We can’t have another lost decade. We need a decade of national renewal.”