Richard Lochhead
Scottish National Party · Scotland
“Artificial intelligence and all the other developments will change how we raise and spend taxes, how we buy things and what we buy. Everything will be impacted by the changes that are taking place before our eyes. Automation will displace labour and it will do other things as well.”
“Across the parties, we all know what needs to be done. I hope that, in the future, we can build a consensus to make sure that that happens—with respect, grace, and good, robust arguments. If we do that better, perhaps we can set an example to other Parliaments in countries around the world.”
“I thank the current and three previous First Ministers, who entrusted me with the responsibility of being in Government; the Parliament staff and the civil service for their advice and support; and my private office staff. I thank my friends and colleagues—past and present—in my party group and on all sides of the chamber.”
“I thank Clare Haughey for bringing the debate before Parliament. The closure of high street branches and all the changes that that means for people in our communities have been a feature of the past few years. Clare Haughey is an outstanding constituency MSP who always looks out for the vulnerable.”
“The FCA has committed to undertaking a post-implementation review of its access-to-cash regime, and we will ensure that many of the issues that have been addressed in tonight’s debate are part of that review.”
“I am sure that my colleagues have similar thoughts about what we have witnessed over so many years. My heartfelt thanks must go first to my family: my wife, Fiona; my son, Angus, who is in Brisbane and is probably watching this speech at some ungodly hour; and my younger son, Fraser, who is about to turn 18 and is in the chamber’s gallery…”
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“Our export strategy, “A Trading Nation—a plan for growing Scotland’s exports”, guides our efforts to strengthen international links and support our economic ambitions. For example, we have added 15 new trade specialists in key markets, doubled the GlobalScot network to 1,200 people in 60 markets and grown the trade and investment envoy network. In addition, through Scottish Development International, we provide exporting programmes including trade missions, trade shows, exhibitions and ministerial visits. Through the international trade partnership with Scottish Chambers of Commerce, we also fund trade missions for new exporters. Direct and resilient transport links are key to effective international connectivity, and we are working continuously with partners to understand how best to service them.”
“Scottish Enterprise plays a big role. It has invested £921 million over the past 21 years, leveraging £2.45 billion of private sector investment to help companies to scale up. Those figures go up to the 2023-24 financial year. We also have other initiatives including the Scottish National Investment Bank, which helps businesses to scale up when their commercial cases are not attracting investment from elsewhere. The SNIB takes those decisions on an on-going basis. A number of initiatives are under way, but we are always happy to consider new assessments.”
“Alexander Stewart: Facilitating new business activity is crucial to economic growth, and it is as much about enabling new business as it is about enabling existing businesses to expand and reach wider markets. A great deal of valuable expertise exists in our small and medium-sized enterprises, which we should be harnessing. Will the Government consider making a proper assessment of how it can smooth and ease small businesses’ transitions through those thresholds as they seek to grow? Richard Lochhead: Those are the types of considerations that we always have in mind, because we want to support small businesses in Scotland to expand and grow, and to ensure that venture capital and private equity are there to help them to expand. There has been a long-running debate in Scotland about how to ensure that that gap is closed.”
“The Scottish Government is incentivising businesses to scale up through targeted support, including our £15 million enterprise package and Scotland’s first dedicated series A fund with Par Equity and the Scottish National Investment Bank. Through the Techscaler grant, we have provided over £720,000 for feasibility studies and implementation projects. Beyond funding, our £42 million Techscaler programme offers specialised infrastructure, expert mentoring and international opportunities through initiatives such as our silicon valley and Singapore pop-ups, which connect Scottish founders with global investors and markets to accelerate their growth potential.”
“This is a time to remember those who have sadly lost their lives as a result of Russian aggression and, as the First Minister said earlier this week, a time to reaffirm that Scotland stands as part of a united front that supports Ukraine’s independence and seeks to secure peace and deter any future Russian aggression.”
“Given the backdrop to this important debate, it is important that we recognise that much that will be discussed today unites us all. The debate provides an appropriate opportunity for the Parliament to reiterate its unwavering support for the ceasefire in Gaza and to call for every effort to be made for it to be extended. The Parliament should be proud of the humanitarian assistance that the Scottish Government has provided to the people of Gaza—Lorna Slater referred to that— and it should join us in calling once again for the recognition of a Palestinian state and two-state solution. Our debate comes in the week when we mark the third anniversary of Russia’s invasion of Ukraine.”
“Could we build on that and benefit from an additional internationally prestigious, postgraduate-only establishment, similar to INSEAD in France or the London Business School, to help further develop Scotland’s remarkable economic potential in the 21st century? Would the Scottish Government be open to further engagement on that proposal? Richard Lochhead: It is important that we are ambitious, and although we have no current plans to set up such a school, I would be happy to have further engagement on the idea with Ben Macpherson and the university sector, as appropriate.”
“Scotland is already home to world- class institutions. As outlined in our national innovation strategy, we are committed to maximising the economic impact of university research through commercialisation and the creation and scaling up of start-ups, spin-out companies and so on. There are no current plans to establish a stand-alone postgraduate business school, but we are focused on working with our universities to make Scotland a world-leading entrepreneurial nation. Ben Macpherson: I agree with everything that the minister said. In recent engagements with entrepreneurs, we have discussed how innovative Scotland is and how good existing business schools in universities such as the University of Edinburgh are.”
“We need the UK’s AI strategy to support Scotland, and we need UK secretaries of state to stop talking up the golden triangle of London, Oxford and Cambridge and calling that the home of innovation, which they are doing at the moment. I am pursuing those priorities.”
“The Prime Minister recently announced AI growth zones to accelerate growth and innovation in the sector, and said that Scotland has a great potential to be designated as one of those zones. Will the minister welcome a Scottish AI growth zone and discuss it with the United Kingdom Government? Richard Lochhead: I raised that issue with the Secretary of State for Science, Innovation and Technology, Peter Kyle, during a phone call prior to the Prime Minister’s announcement. His announcement was a bit disappointing, given that he spoke about AI strengths throughout the UK, but stopped at the border and did not mention any of the strengths in Scotland. That was a great pity, because Scotland leads the world in some aspects of AI, according to many commentators.”
“The Scottish Government is working with our enterprise agencies to promote investment and growth in our tech and AI ecosystems, which help AI companies at all stages of growth and facilitate collaboration between AI companies, academic institutions and other partners to support knowledge exchange and innovation. We are working closely with partners across the private and public sectors, including the Data Lab and the National Robotarium, to maximise the impact of our programmes and help the AI sector to flourish. We support economic opportunities for AI through the AI Alliance, which is our delivery body for our AI strategy. Foysol Choudhury: The release of Chinese AI DeepSeek shows how quickly the artificial intelligence sector is moving and how important it is that we support investment in Scotland.”
“However, although more than 600 bank branches have closed since 2015, there are only 21 banking hubs in Scotland. How is the Scottish Government working to identify areas that are most in need of banking hubs, and what representations are being made to speed up their roll-out? Richard Lochhead: The job of identifying such areas falls to LINK under the new access-to-cash rules that have been adopted by the regulator, the FCA. I recommend that any member who has concerns that those issues have not been adequately addressed since the bank announced its decision to close those branches should urgently contact LINK to ensure that there is a reassessment of the needs locally.”
“The FCA, which is the regulator, introduced access to cash rules recently in response to concerns that were expressed by communities the length and breadth of the UK, particularly in rural Scotland and some Scottish communities. That is why it is important that Lloyds Banking Group engages with LINK and the regulator with regard to its announcement, and I understand that it has done that. Of course, alternative arrangements will be put in place for a number of the announced closures, although that will not address all the concerns that will be expressed by communities. That is why financial exclusion continues to be a concern for us all. Foysol Choudhury: I have previously been contacted by constituents regarding bank closures in Bathgate, where a banking hub is now planned to open.”
“That provided a common understanding of Scotland-specific challenges and a basis for consistent engagement as the new regulatory regime embeds. Foysol Choudhury: With the closures, communities across Scotland, including Wester Hailes in Edinburgh, will lose access to vital financial services. That will particularly affect older and vulnerable people who cannot access online services. Does the minister agree that in-person banking is an important public service, not just a business decision? What recent discussion has the Scottish Government had with the Financial Conduct Authority on the issue? Richard Lochhead: The member is quite correct to raise those concerns, which are shared by the Scottish Government and by all parties in the chamber. Financial regulation is reserved to the United Kingdom Government.”
“Ministers were concerned to hear Lloyds Banking Group’s decision to close 14 Bank of Scotland branches across Scotland. Any reduction in branches raises concerns not only for the affected employees but for access to services, particularly for rural communities, vulnerable individuals and digitally excluded customers. The Scottish Government regularly engages with the banking sector, including the regulator, through ministerial meetings and the financial services growth and development board. We will raise the issue with Lloyds Banking Group at the next meeting. In October 2024, I convened a cross-party round-table event on access to cash and banking services in Scotland. Lloyds Banking Group attended alongside other banks and sector representatives including the Financial Conduct Authority, LINK, Cash Access UK and the Post Office.”
“The Scottish Government has made representations to the UK Government about the matter, and we will continue to do so. Indeed, a letter went off again just in the past few days reiterating our concerns. In the meantime, we urge Parliament to pass the draft budget because, as I illustrated in my initial answer, there are a number of measures in it that we believe will support Scottish business to get through this. The Deputy Presiding Officer: We have a couple of brief supplementaries.”
“Along with other measures in the UK budget, it has led to real concerns in the business community and the markets. Has the Scottish Government relayed its concerns to the UK Government about the latter’s misguided tax on jobs? What can the minister and the Scottish Government do within the limited powers of devolution to instil confidence and create stability for businesses in Scotland? Richard Lochhead: Kevin Stewart raises an important issue. Clearly, the national insurance contributions increase has gone down like a bucket of sick with the Scottish business community, and there is a lot of concern. From some of the illustrations that I have heard, some of the increases for individual businesses are pretty eye-watering and will be very difficult for them to cope with.”
“We recognise that conditions for businesses remain challenging, and it is regrettable that the Chancellor of the Exchequer’s policy changes will disadvantage and place additional pressures on Scottish businesses. The majority of taxation powers, including over national insurance contributions, remain reserved to the UK Government. Through the Scottish budget, we are supporting those businesses that sustain our communities and will help to create the wider economic conditions that will allow Scotland’s businesses to grow. The budget provides £321 million for our enterprise agencies, £200 million for the Scottish National Investment Bank to invest in Scotland and £15 million to help start-ups to grow, to give some examples. Kevin Stewart: The increase in employer national insurance contributions is a tax on jobs.”