Policy Profile: Drew Hendry, Scottish National Party

With a General Election called for 4 July, Insider is rounding up economic spokespeople from all the major political parties to quiz them on the policies that will potentially impact Scottish businesses.

To keep things objective, we've asked everyone the same set of questions.

For this edition, it's Drew Hendry, the Scottish National Party MP for Inverness, Nairn, Badenoch and Strathspey.

• What is your position, party experience and business background?

I began my career in hospitality and advanced through roles in retail and manufacturing, eventually becoming a UK director for Electrolux, before founding a digital marketing company in Inverness.

I entered politics as a Highland councillor in 2007, rising to leader of the council, while also serving as SNP leader on COSLA.

Since being elected MP for Inverness, Nairn, Badenoch and Strathspey in 2015, I have been re-elected twice and served as the SNP spokesperson for various portfolios, including transport, energy, international trade, business, foreign affairs, and, latterly, Treasury at Westminster opposite Jeremy Hunt.

• What's your assessment of the current Scottish business landscape?

The Scottish business landscape is grappling with several challenges due to Westminster's damaging policies, including the effects of austerity, Brexit and the cost-of-living crisis.

Austerity has led to significant underinvestment in public services and infrastructure, positioning the UK with the lowest investment levels in the G7 and contributing to stagnant productivity and growth.

Brexit has undermined international business confidence, causing investment to be roughly 10% lower than if the UK had remained in the EU, with sectors like Scottish salmon facing severe export losses, estimated at around £100m per year, due to new regulations. 97% of SMEs say they, too, continue to face difficulties.

Additionally, the cost-of-living crisis has diminished consumer spending power and inflated business energy costs.

Despite these hurdles, the SNP-led Scottish Government has made strides in strengthening the business sector since 2007, achieving higher GDP per capita and productivity growth rates than the UK overall, and Scotland is the l eading destination for foreign direct investment in the UK; second only to London and the south east.

• What does your party - if elected - plan to do to support Scottish businesses?

The SNP aims to support Scottish businesses by fostering economic growth, tackling the climate emergency, and improving public services. Eradicating child poverty is also seen as a means to boost economic health through increased spending power and a healthier workforce.

The SNP plans to capitalise on Scotland's potential in clean energy, notably through initiatives such as the ScotWind leasing round, which aims to attract £25bn in investment for the supply chain.

The party also seeks an end to austerity and for Scotland to rejoin the EU, advocating for increased capital investment in growth sectors like renewables and ensuring a fair transition for the oil and gas workforce.

The SNP criticises Westminster's lack of action, especially on climate commitments, and positions itself as a proactive force for green growth and economic development in Scotland.

• Within this, are there any key priorities to tackle first?

Key priorities for the SNP to grow the economy first include regulation and funding for specific sectors, alongside reversing Brexit-related consequences. The party opposes Labour’s plans to increase the windfall tax for funding nuclear projects in England, analysis shows that it threatens 100,000 jobs and £30bn of investment in the North Sea.

The SNP emphasises a just transition to net zero, ensuring that workers are supported and not left behind, similar to past economic shifts.

For the hospitality and tourism sectors, the SNP is calling for reduced VAT rates and to continue to support these industries with beneficial tax reliefs, despite fiscal limitations imposed by Westminster.

• And how will any major changes be paid for or legislated for?

The changes would be financed by realigning political choices, reallocating funds from existing budgets, particularly by cutting expenditures on nuclear projects like Trident and nuclear energy, which are costly and inefficient.

The UK Government has overseen large scale financial mismanagement, that is self-evident, including large investments such as the billions spent on Trident submarines and its annual maintenance.

These funds could be better used to support businesses and invest in renewable energy sources. If Scotland had full powers as an independent country, it would prioritise investing in green energy, aiming to generate affordable, renewable energy domestically instead of funding overbudget and delayed nuclear projects.

• What is your party's approach to North Sea oil and gas, and its transition to renewable energy?

The SNP is focused on supporting jobs in the north east and ensuring a just transition to net zero. The party advocates granting new oil and gas licenses on a case-by-case basis, contingent upon a climate compatibility test.

The Tories have failed to acknowledge the need for a transition that meets climate goals and Labour are proposing an abrupt cessation of the oil and gas sector, which experts warn would jeopardise 100,000 jobs and deter £30bn in investment.

The SNP underscores the importance of a planned transition that includes workers and attracts inward investment. The SNP-led Scottish Government will unveil a draft Energy Strategy and Just Transition strategy this summer, which will outline Scotland's investment in green energy. This points to the need for increased funding to develop renewable energy projects, such as fixed and floating offshore wind, to ensure these can deliver clean, affordable energy.

We are also calling for a comprehensive industrial strategy that matches the Scottish Government’s Just Transition Fund and amplifies investment into the green transition to keep pace with global incentives like the US Inflation Reduction Act and the EU Green Deal.

• And are there any plans to encourage entrepreneurship, inward investment or scale-up growth?

The SNP plans to enhance investment and foster entrepreneurship in Scotland, particularly given the challenges posed by Brexit, which has led to the UK experiencing the lowest investment levels in the G7.

To address this, the Scottish Government has introduced a £5m package specifically designed to provide comprehensive support for Scotland's start-up ecosystem. This initiative aims to boost innovation by enhancing talent, skills and infrastructure to position Scotland as one of Europe's leading start-up economies.

Additionally, the SNP is committed to economic growth and climate action, with strategies focused on key growth sectors, nurturing a start-up culture and leveraging Scotland's natural resources to stimulate green growth.

Under the SNP, Scotland's GDP per capita growth has already outpaced that of the UK, and the party plans to continue this trend through strategic and targeted investments.

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