Supporting Economic Recovery Through Collaborati n - 2021 Scottish Election Manifesto
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2021 Scottish Election Manifesto Supporting Economic Recovery Through Collaborati n
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
The roll out of the biggest vaccination programme in the history of the UK offers light at the end
of the tunnel as the focus of public discourse turns toward the unprecedented economic challenges
presented by the Covid-19 pandemic.
Addressing these challenges is, rightly, the focus of both the Every single day, people and businesses will have some form
Scottish and UK Governments. Discussion is now firmly of interaction with our industry whether that’s using their
focussed on how we rebuild our economy and address debit card, their pension pot being invested on their behalf
the pressing climate emergency. Whether we call this green or having the funds to invest and grow their business. This
economic recovery or build back better, it is about jobs for hasn’t stopped during the pandemic; in fact, we have offered
the future, decarbonising our key industries and creating additional support to help customers and clients through
opportunities for our people and communities. these difficult times.
At a time when public finances are stretched and the The Scottish Parliament election on 6 May come at a crucial
economy is in sharp focus, the public and private sectors moment in this crisis and SFE is firmly committed to working
must collaborate to ensure we deal with the challenges ahead with the newly elected government and playing a key role in
and rebuild our economy. The financial services industry is the economic recovery. Our manifesto ‘Supporting Economic
in a unique position to play a vital role in this because our Recovery Through Collaboration’ highlights the key priorities
businesses support all aspects of the economy. for SFE’s membership as we work toward a fair, inclusive, and
green recovery.
We’re calling for collaboration on four key policy areas:
ECONOMIC RECOVERY SKILLS & INCLUSION
Convene a dedicated quarterly cross-sector Ensure the improvement of digital inclusion,
forum of key industry groups, co-chaired by the preparing young people for the workforce of the
Cabinet Secretary for Finance and/or Economy and the future and reskilling current employees. We also call for a
SFE Chairperson, focussed on developing clear public policy commitment to review Scotland’s apprenticeship system to
actions to accelerate Scotland’s economic recovery. assess whether it is properly supporting a growing financial
services sector, in which many firms have the capacity to
CLIMATE CHANGE create more apprenticeships.
Place financial services at the forefront of Scotland
being recognised as a global centre for green SECURING SCOTLAND’S
finance and to work collaboratively with both the energy and GLOBAL POSITION
financial services sectors to achieve this. Work with the UK Government to ensure Scotland
remains an attractive location for business to
cement our position as a leading financial centre.
Significant contributor to Scotland’s economy
£75.6bn in tax revenue
in 2019/20
£13bn or 9.4% of GVA1 Accounting for
10.1% of the UK’s total
tax receipts 3
Financial services
exports account for 40% Scotland is home to
of Scotland’s services more than 5,700
exports totalling £9.2bn financial and
professional services
bn
40% = £9.2 ...of which businesses employing
37% 160,000 people 4
...of which exports to the EU
The 2nd largest financial services
63% cluster in the UK after London
exports to the rest of the world 2
1
Enabling growth across the UK 2019, TheCityUK 3
Key facts about UK-based financial and related professional services 2021, TheCityUK
2
Exporting from across Britain Financial and related professional services 2020, TheCityUK 4
Financial services and fintech, Scottish Development International
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
SFE - A Growing Organisation
with a Renewed Purpose
Scotland is a leading financial centre;
second only to London in the UK, and
one that is built on 350 years of world- 90+ members
leading expertise.
Largest industry body for financial
From global organisations headquartered and operating in
Scotland to small locally based support companies and an services in Scotland
established fintech cluster, Scotland’s diverse financial eco-
system has a proven track record of collaboration.
Financial services are integral to everyday lives and Financial & Professional Services employ
planning for the future: facilitating the government-backed
coronavirus loans that supported businesses at a time of
such uncertainty; providing mortgages that allow people
to buy their own home; managing the funds that invest in
the economy and helping people save for retirement and
160,000
protecting and insuring what is important to them. people in Scotland
A strong financial services sector is critical to Scotland’s
economic and societal wellbeing. This has never been
more important.
of national
6% employment
Banking Insurance
EXPERTISE IN
Life & pensions Legal
Asset Accountancy
management
Wealth
Sandy Begbie CBE was appointed Chief
Executive of SFE in October last year and Fintech management
brought with him a successful track record
in financial services globally from a human
resources and transformation perspective.
Sandy also has a range of experience from third sector
Edinburgh 21st Glasgow 81st
roles and working with government, including developing in the Global Financial Centres Index5
the Young Person’s Guarantee in 2020.
With the support of members, Sandy has refreshed
Scotland’s Financial Services Strategy. Having a positive Home to
societal impact is at the heart of the soon-to-be-published
more than
150
strategy, which will serve as the context for our industry’s
collective focus on issues such as climate change, the
workforce of the future, innovation, inclusion and ensuring
Scotland remains an attractive location for investment.
fintech companies 6
5
Global Financial Centres Index, March 2021
6
Kalifa Review of UK Fintech 2020
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
SFE & THE NEXT SCOTTISH GOVERNMENT:
COLLABORATION IS KEY
SFE has a proud track record of working CLIMATE CHANGE
constructively with a range of stakeholders In November this year Glasgow has the privilege of
in the interests of our members and wider hosting COP26, a gathering of global leaders who will discuss
climate change and how countries are planning to tackle it.
society. We continue to collaborate closely The summit provides a valuable opportunity for Scotland’s
with both the UK and Scottish Governments financial services industry to highlight its ESG credentials to
and political parties in tackling a range of the world.
legislative and public policy issues.
SFE members will play a key role by leading by example and
Following extensive consultation with our members, we have facilitating the move to net zero for their customers as they
identified four areas of public policy that we view as priorities decarbonise in the short and long term:
for the next Scottish Government that will, if adopted,
contribute to sustainable economic growth during the next We will work with the energy industry to finance
parliamentary term and beyond. decarbonisation efforts and be a leader in transition
finance.
Work to join up the available capital with ‘green’ projects.
ECONOMIC RECOVERY Promote the expansion of green specific finance
Given our significant and diverse Scottish and products: borrowing and investing opportunities.
global footprint, SFE is ideally positioned to offer a balanced
S etting the standards for transparent disclosure on
and overarching view of Scotland’s economy. While the full
climate, cultural and societal metrics (pay gap, gender and
impact of the pandemic isn’t yet clear, what we do know
ethnicity dynamics).
for certain is that public and private sectors will have to
collaborate in order to deal with the economic challenges. Act as a bridge between wider industry and Scotland’s
national resources to finance carbon offsetting
The Scottish Government’s Advisory Group on Economic opportunities.
Recovery (AGER) made a series of recommendations in E ncourage self-reflection and identification of ways for
a report published last summer. These recommendations the financial services industry itself to become carbon
focussed on ensuring a transition towards a greener, net- neutral.
zero and wellbeing economy, and a range of measures to
address different challenges the economy will face as Scotland Government has provided strong support for these aims
recovers from the coronavirus pandemic. in recent times. The Scottish Government established the
Scottish National Investment Bank in 2020 and the Chancellor
SFE will continue to work with the sector to develop a plan, announced the creation of the UK Infrastructure Bank as part
influenced by the AGER work and the more recent Financing of his Budget plans in March this year. Both institutions have
Scotland’s Recovery analysis, that explains what collective the stated intention of helping tackle climate change and will
action the industry will unite behind. help meet Scotland’s net zero emissions target by 2045.
We call on the next Scottish Government to These are welcome developments and can help SFE
members promote the expansion of green specific finance
convene a dedicated quarterly cross-sector forum
products, borrowing and investing opportunities. However,
of key business groups, co-chaired by the Cabinet it is imperative we understand how these banks will work in
Secretary for Finance and/or Economy and the practice and in conjunction with one another to the benefit of
SFE Chairperson, focussed on developing clear the Scottish economy. Like financial services, the energy sector
public policy actions, themes that are identified in in Scotland is of huge economic importance and both have
the critical mass and expertise to support Scotland’s transition
this manifesto and other measures, to accelerate
to net zero.
Scotland’s economic recovery.
Scotland is responsible for We urge the Scottish Government to place
financial services at the forefront of Scotland
of the UK’s responsible being recognised as a global centre for green
investing market finance and to work collaboratively with both
outpacing its 7% share of the the energy and financial services sectors to
conventional market.7 achieve this.
7
Investment Management Survey 2019-20, The IA
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
SKILLS & INCLUSION SECURING SCOTLAND’S POSITION
We live in a digital world. It’s changing the way within a new global trading context
we work, do business, entertain, shop and keep in Scotland is home to global financial and professional
touch with our family and friends. SFE is acutely aware of services firms and has a proud track record of being the most
the need for financial services to continually evolve to take popular location outside London for inward investment.
account of technological developments that are creating new
opportunities within the industry. For example, there are now We are a leading centre with native and global financial
more than 150 financial technology (FinTech) firms based in brands such as Aviva, Baillie Gifford, Barclays, BlackRock, HSBC,
Scotland, compared to just 25 when FinTech Scotland was J.P. Morgan, Lloyds Banking Group, Morgan Stanley, NatWest
launched in 2018. Group, Phoenix Group, Standard Life Aberdeen, to name a
few. All of which have invested significantly in Scotland.
To maximise the long-term potential of our industry, financial
and professional services firms must continue to recruit, The key to a fair, sustainable, and green recovery will be
develop and retain top talent within the industry in this ever- attracting the investment required to drive innovation, fuel
changing context. growth, and create well-paid jobs – thereby widening the tax
base that ensures the proper funding of our public services.
We must also prioritise diversity and inclusion in all its forms
to enable people from all backgrounds to join our industry We have the critical mass and a strong heritage across
and ensure our workplaces reflect the customers and banking, investment management, insurance and pensions.
communities we serve. This is something we have been very We also have an established fintech cluster that is going
keen to develop with SFE Young Professionals, which aims from strength-to-strength. Other key advantages include our
to connect, inspire and support people in the early stages of depth of talent, lower cost of doing business when compared
their careers. with other financial services centres, a high quality of life and
vibrant cultural scene. We must build on our success and
We support the Scottish Government’s create an attractive environment where businesses want
recently published Digital Strategy and strongly to expand or relocate to Scotland for all the reasons listed
above.
encourage the new administration to ensure
the improvement of digital inclusion, preparing It is vital the Scottish Government through
young people for the workforce of the future and Scottish Development International (SDI) and
reskilling current employees. We must seize the UK Government (DIT) work together to ensure
opportunities presented from the accelerated Scotland remains an attractive location in a post
digital world and new ways of working. Brexit and new international trading context.
We urge the next administration to implement
We also call for a commitment to review the Investing with Purpose and Inward Investment
Scotland’s apprenticeship system to assess plans at pace and work with the private sector to
whether it is properly supporting a growing realise the ambition.
financial services sector, in which many firms have
the capacity to create more apprenticeships. We
believe more flexibility could help with reskilling Scotland was the
people looking to change careers as well as second most attractive
creating innovative pathways for young people
from all backgrounds.
location for financial
services foreign direct
Fast Track into Financial Services investment in 2019 for the
is a funded six-week work readiness qualification
that helps people transition into financial services.
seventh consecutive year.
It’s a partnership between the financial industry,
learning providers and Skills Development Scotland
Its share of all financial services
FDI into the UK increased from
Digital financial services is 6.3% in 2018 to 8.1% in 2019 8
ONE OF NINE key opportunity
areas for Scotland’s inward
investment ambitions
8
EY UK Attractiveness Report for Financial Services 2020
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
SFE’s Covid Response:
Support for Customers, Colleagues & Communities
in a challenging context
There is no doubt the pandemic will dominate CUSTOMERS
public policy and discourse for years to come. SFE members recognise the significant
As we emerge from the health emergency, anxiety being experienced by people over
their personal finances, and firms have taken
cross-sector and cross-party collaboration will a range of measures to support their customers. We must
be required to tackle the economic recovery. continue to keep a focus on financial inclusion and recognise
the difficulties people are facing. SFE and our member firms
Despite the unprecedented period of upheaval, essential are also not immune to the economic challenges, however
financial services have been maintained for millions of we will continue to prioritise our customers, colleagues and
customers and clients in Scotland, the UK and around the communities.
world. We’re grateful to our frontline financial services
colleagues who have gone into work throughout the The Banking sector has delivered support for business banking
pandemic to help customers with their financial needs and customers that goes beyond the government lending schemes,
ensure crucial services remain accessible. including repayment holidays on existing loans, free banking
for SMEs, the removal of overdraft fees and free resilience
Our members represent a diverse range of disciplines within planning to help Scottish businesses navigate Covid and Brexit.
financial and professional services and, like most businesses,
are not immune to the economic challenges posed by the While bank branches have remained open for essential
pandemic. We must also be conscious of the debt burden services, steps have been taken to help customers do
many businesses in the most impacted sectors face and tailor more online. A range of services beyond financial help
support for customers who are under financial pressure as were introduced, including helping customers access the
unemployment rates rise. internet and learn new skills for online shopping, virtual GP
appointments and staying connected with family and friends.
Despite this and whilst recognising more work can always
be done, there is a unified focus on continuing to support Life & Pensions firms have worked hard to maintain payment
customers, colleagues and communities throughout the systems and other services to ensure customers continue
recovery. to receive their pensions and other incomes from savings
products. They have sensitively supported customers and
90,000 Scottish businesses have provided empathy for grieving families as they go through the
received more than £3.4bn from the UK claims process.
Government- backed coronavirus loans
facilitated by banks 9 Insurers’ main priority has been to make sure customers
can continue to have valid claims paid in this challenging
environment and expect to pay out more than £3bn in
Covid-related claims across a range of policies.
4.7million As long-term investors in the economy, Asset Managers are
committed to supporting the corporate sector and the wider
payment deferrals granted economy. They have offered rent deferrals on commercial
across mortgages, credit cards properties and made clear their support for company boards
focused on leading their business through the crisis – looking
and personal loans in the UK 10 after their employees, suppliers and customers.
Dedicated phone and
online services for NHS and
vulnerable customers.
9
UK government helps more than 90000 businesses in Scotland, UK Government
10
Lenders continue to provide financial support for customers impacted by Covid-19, UK Finance
2021 Scottish Election Manifesto
Supporting Economic Recovery Through Collaboration
COLLEAGUES
With the vast majority of financial and professional
services colleagues continuing to work from home,
the wellbeing of employees continues to be a top
priority. Mental health is an increasing concern and additional
steps are being taken to support colleagues at home and in
the workplace.
Comprehensive social distancing, physical protection and
hygiene measures have been implemented along with financial,
wellbeing, medical, and child support for staff undertaking
essential roles in branches, contact centres, and head office
locations.
In addition, some firms have introduced paid emergency
leave for staff who are shielding and those with caring
responsibilities, an allowance for employees working from
home and financial support to help with home schooling
technology requirements.
COMMUNITIES
SFE members know that the vulnerable in
society are most at risk from coronavirus and
its economic impact. Our members have seen
first-hand the enormous pressure people are under and
have given additional funds to charities and community
groups, who are best placed to provide the practical and
emotional support required by those in need.
Strategic partnerships with the third sector aim to create
an immediate and long-term impact on communities. Our
members have partnered with hundreds of grassroots
and national charities to help tackle a range of issues,
from loneliness and isolation to financial problems and
food poverty. Examples include repurposing offices for a
food bank distribution hub, creating rest and relaxation
areas for frontline NHS staff in hospitals and topping
up grants to help charities who have experienced huge
demand in services.
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