Scotland needs a new government department, similar to the Treasury, along with a more powerful investment bank.

This is according to John McLaren, who, in a paper for Gordon Brown’s Our Scottish Future think tank, said a long-term plan was needed to address the lower rates of economic growth in Scotland.

The political economist, who has worked in the UK Treasury and the Scottish Office, said the Scottish Government’s recent plan for economic transformation was “ill focussed”.

His paper said that since 2014 and pre-pandemic, Scottish GDP growth per capita has been growing at half the rate of the UK as a whole.

He highlighted recent findings by the Scottish Fiscal Commission, saying there could be a budget funding shortfall of £1bn next year due to lower tax receipts.

The report noted that economic development spending is higher in Scotland than the UK average, but argued that this is not translating into higher productivity or growth.

Want to see more SNP fails? – Education Matters