Labour makes major Edinburgh financial services hub election pledge as Rachel Reeves vows to ‘unleash Scotland’s economic firepower’

Rachel Reeves will vow to “unleash Scotland's economic firepower” and boost Edinburgh’s financial sector as she makes her first trip north of the border as part of the general election campaign.

Speaking in Edinburgh today, the Labour shadow chancellor will pledge to create jobs, unlock investment and drive economic growth. The financial and business services sector already employs around 235,000 people in Scotland and is worth more than £14 billion to the Scottish economy.

Labour launched a review of financial services last year, drawing on a panel of expert advisers including Sir Douglas Flint, chair of Abrdn, and Sir Ron Kalifa, senior independent director of the Bank of England.

Rachel Reeves. Picture: Victoria Jones/PA Wire

The party’s plans include bolstering the growth of financial services hubs in London and Edinburgh, as well as unlocking the potential of AI and promoting green finance. It has also promised to increase financial security for consumers.

Ms Reeves, a former Bank of England economist, said: “Scotland’s financial services industry is one of the UK’s greatest assets, supporting thousands of jobs and billions of pounds investment to our shores. That is why I was proud to launch our review of financial services in Edinburgh last year and why I can announce that we will deliver on it.

“The SNP in Holyrood and the Conservatives in Westminster have let Scotland’s economy down, so it falls to Labour to help pick it up back up and deliver the change we need. I will unleash Scotland's economic firepower to deliver jobs and growth because when Scotland succeeds, we all succeed. That’s the change we offer and it is the change we can deliver together if we are elected on July 4.”

Ms Reeves previously promised a future Labour government would “unashamedly champion the UK’s financial services sector”. The party had a poor relationship with the City under Jeremy Corbyn, and has since engaged in a charm offensive.

Scottish Labour leader Anas Sarwar said: “Scotland is brimming with talent, but 14 years of Tory chaos has hollowed out our economy and left us all poorer. A strong economy is the foundation of Labour’s plans to deliver the change that Scotland needs, and these recommendations will help us deliver that.

“Labour will unlock the full potential of Scotland’s financial services industry in order to drive growth and create jobs. At this election, we can call time on Tory economic turmoil and decline by electing a Labour government relentlessly focused on delivering growth, jobs and prosperity.”

Scottish Conservative finance spokeswoman Liz Smith said: “Labour’s plan to block all new oil and gas projects in the North Sea, which the SNP support, would wreak economic havoc across the North East and destroy tens of thousands of jobs. Labour’s pitch would have more credibility if they hadn’t voted for SNP tax rises which have made Scotland the highest taxed part of the UK and stunted growth.”

SNP economy spokesperson and candidate for Inverness, Skye & West Ross-Shire Drew Hendry said: “These empty words from the Labour Party will ring hollow in the ears of Scotland’s financial services, which know all too well the consequences of Westminster rule.

“Such astonishing levels of hypocrisy from a party that is fully signed up to Brexit and Tory economic orthodoxy – the things damaging Scotland’s economy the most – cannot be trusted, and Scots know it.

“The only party being honest about this is the SNP, fighting against the Westminster system that inflicted a cost of living crisis and Liz Truss’ disastrous mini budget on Scotland.

“Only the SNP is putting the interests of Scotland’s economy first, and by voting SNP on 4th July can we build towards a future made in Scotland, for Scotland.”