John Swinney: What does SNP leader's keynote speech tell us about his priorities? Economy, Greens, immigration, Labour

Speaking on Friday in his first major speech since become First Minister, the SNP leader attempted to re-set the Scottish Government’s relationship with business, making clear his key ambitions, including eradicating child poverty and reliant on a steady and growing economy.

Addressing business leaders at Barclay’s Glasgow campus on the banks of the Clyde, Mr Swinney stressed his ministers would focus on “more concrete actions and fewer strategy documents” as he moved to distance himself from the Scottish Greens’ time in government.

The First Minister said that boosting economic growth and eradicating the “curse” of child poverty go “hand in hand”, insisting that a “strong, successful, innovative and dynamic economy” was needed to succeed.

He said: “There is no conflict in my mind or in the priorities of my government between eradicating child poverty and boosting economic growth. For me, and for my government, eradicating child poverty and boosting economic growth go hand in hand.”

Economy crucial to tackling poverty

Mr Swinney has made no secret of his aim to eradicate child poverty, but his predecessor did the same. Mr Swinney, however, has made clear that ambitions cannot succeed without a stable and growing economy to back it up.

In a similar fashion to the economic benefits of net zero being made clear in recent years, the Scottish Government is adamant that business and investment is needed to tackle social policy aims. Mr Swinney has been blunt about the state of public finances he has inherited, warning they were “not going to be sufficient to meet all of our ambitions and aspirations”.

In a bid to make clear the importance of the private sector, the First Minister said “the attraction of private capital is a very real and material necessity”. Mr Swinney’s pitch to business is that if his Government helps them grow the economy, it will result in better achieving political priorities.

No Greens in sight

Mr Swinney had his hands all over the Bute House Agreement – he was one of the key architects of Nicola Sturgeon’s co-operation deal with the Greens. But those days are firmly behind him.

Without specifically pointing the finger at his predecessor and the Greens, Mr Swinney stressed he was “facing the future” with a “focus on economic growth”.

Some businesses have been spooked by policies the Greens shouted about during their time in government – rent controls, now-scrapped plans for highly protected marine areas and the doomed deposit return scheme, even though it was a key SNP policy.

So without heaping blame on the Greens and Humza Yousaf, the First Minister has attempted to place himself and his deputy first minister as more sensible economic politicians.

A key admission by Mr Swinney was that despite backing higher taxation on higher earners, he bluntly told business leaders that “you can’t continually increase tax”, warning that is not possible.

Immigration rules could unlock jobs markets

The First Minister warned that a lot rested on the UK government changing its stance on immigration, particularly for workers and students. He stressed Tory ministers were “celebrating making it harder for overseas masters students to study in the United Kingdom and for overseas care staff to work in the UK”.

He said: “I find that astonishing as a First Minister wrestling with a social care crisis in our communities and the necessity to encourage and fuel the dynamism of our universities.”

Mr Swinney told business leaders “it is in Scotland’s interests to have a more generous system, not a tighter one” and called for students to be allow to stay and work for five years after graduating to encourage the “best and brightest” to remain.

The SNP has made no secret of its opposition to Brexit. But Mr Swinney called for a “return to the approach of European freedom of movement”, something he thinks is more likely through an independent Scotland.

The FM told business chiefs that “we’ve got a problem, we’ve got a real problem about population and that’s because of Brexit, its calamitous implications for us and this uber-hostile towards migration”.

Acknowledging that Scotland’s working age population is in decline and key sectors are facing recruitment crises are statements that have chimed with business leaders. But with many of the potential solutions reliant on Westminster, there is little certainty about fixing that issue that can be given by the First Minister.

An open door to a Labour UK government?

Fresh from blasting Tory Scottish Secretary Alister Jack’s “menacing behaviour” over nuclear power plans, Mr Swinney left the door open to a more sensible relationship between his administration and an incoming Labour government at Westminster.

Crucially, the default, in Mr Swinney’s mind at least, appears to be the Scottish and UK governments under Sir Keir Starmer’s leadership could work much more productively.

He told The Scotsman that he wanted to have “good, constructive, sensible engagement with the United Kingdom government” and looked back to the Conservative-LibDems coalition between 2010 and 2015, which he said had “a good, constructive, respectful relationship” with SNP ministers.

But Mr Swinney warned that Holyood and devolution had been “treated with disrespect by the UK government since 2019”.

He said: “I hope that an incoming Labour government will be willing to engage constructively with us and I don’t see any reason why not.”

Working hand-in-hand is likely to be crucial if Scotland is to boost the economy, given that Sir Keir has pledged to make the country the epicentre of his green energy plans. But with tough fiscal conservative rules being adhered to by Labour, the level of investment and public expenditure may not be enough to make an immediate difference.