Edinburgh businesses call for devolution of economic powers to the Capital

In a manifesto setting out its "asks" from politicians ahead of the Scottish Parliament elections, Edinburgh Chamber of Commerce argues a stronger Edinburgh region benefits Scotland as a whole.

And it says: "The creation and evolution of Mayoral Combined Authority areas such as Greater Manchester and Liverpool City in England, we believe, shows the power of what can be achieved when regional economic autonomy is enhanced."

The manifesto argues: "Greater local decision-making would enable targeted investment in infrastructure, housing, skills, innovation and priority industry sectors that drive productivity and inclusive growth.

“As Scotland’s capital and a major economic engine, empowering the region to act quickly and strategically will benefit both the regional and national economy."

Jo Davidson, director of policy and insights at the Chamber, said they were not necessarily advocating a City Mayor for Edinburgh and pointed to the structure created for the Edinburgh and South East Scotland City Region Deal.

"We've got a great example of how the local authorities work in collaboration in Edinburgh through the City Region Deal. What we've not been able to do in our City Region is to take that structure and enable it to deliver other elements of economic policy."

Last year, First Minister John Swinney said he planned to introduce "enabling legislation" to give regional partnerships formal legal status and allow them to take on new responsibilities. Edinburgh council leader Jane Meagher described the move as "extremely welcome".

The Chamber of Commerce manifesto also backs the idea of a "next generation" City Region Deal to build on the achievements of the existing deal.

Ms Davidson said: "We believe lots of good work has been started and we want to make sure we've got the opportunity to have a next generation City Region Deal that picks up on that work and expands it, potentially into areas the current deal doesn't stray into."

The manifesto notes that Scottish Government funding for Edinburgh in 2024/25 was around £1,878 per person compared with a Scottish average of around £2,300.

And it says: "A funding system that inadvertently penalises economic success risks constraining Scotland’s most productive regions. A fairer approach would recognise both the capital’s national economic contribution and the infrastructure pressures associated with a growing city."

The Chamber also wants to see "devolved, tailored routes that reflect Edinburgh and South East Scotland’s skills shortages".

The manifesto says: "Edinburgh’s universities are global talent magnets, yet we lose high-quality graduates due to salary thresholds and visa limitations. At the same time, persistent labour shortages exist across technology, hospitality, construction, health and social care and other high growth sectors.

"A more flexible regional approach to migration would help retain global talent trained in Scotland and address sector-specific workforce gaps."