Edinburgh leads the way, but more needs to be done

THE City of Edinburgh region is the central driver of the Scottish economy, and recent studies indicate this inspiring area is one of Europe’s top business and tourism destinations.

Yet we face increasing competition from other cities and regions who want to knock us out of the game. So the challenge to the council and its partners, including the Scottish Government, is to ensure that Edinburgh maximises its potential.

The government’s ambitions for Scotland – a wealthier, healthier, stronger, smarter, greener, fairer and more successful nation – mirror our own vision of becoming Northern Europe’s most successful and sustainable city area by 2020.

With our growing, skilled population and reputation for leading the field in a number of key industry sectors, we are clearly succeeding in attracting talent, trade and tourism as well as major events and festivals.

Edinburgh has a strong financial services sector, with two of Europe’s top banks based here. We are also a leading player in the higher education field with four universities calling the region home. Our life sciences sector has a growing international reputation, with key assets including the Science Triangle and Bioquarter.

We are the UK’s second tourist destination after London, attracting around five million visitors a year and generating more than £2billion per annum for Scotland’s economy. Our region has never been busier, and now, more than ever, we are investing in our transport and infrastructure to improve connectivity and efficiency. Key projects include trams which will be running by 2011, Edinburgh to Glasgow rail electrification, the Airdrie to Bathgate and Borders rail links, a second Forth crossing and the upgrading of the M8.

But there are important challenges facing us that need to be addressed. There is a 20 per cent productivity gap between Edinburgh and Europe’s top performing cities that we need to close. While our economic growth, at 2.6 per cent, is ahead of the Scottish average of 2.1 per cent, it remains behind the recent UK rate of 2.8 per cent. And while we have high levels of economic participation, with more than 77 per cent of people of working age involved in economic activity, there is scope for growth.

Economic performance varies significantly across the region. We need to spread the benefits of growth and prosperity more widely by addressing the regional disparities between wages and combating the gender pay gap.

Edinburgh has a diverse economy, but while the city has been the traditional centre of commerce and Government, surrounding areas have faced a more difficult transition following the decline of mining, manufacturing and textiles. In their place tourism, leisure and small businesses have become increasingly important.

There is a shortage of available housing across the region, particularly in the city. This needs to be addressed at local as well as national level in terms of planning and policy.

Despite these problems, the prognosis for Edinburgh is favourable. The council’s Single Outcome Agreement should improve our relationship with the Scottish Government and make the delivery of our shared objectives more effective and efficient.

There are other steps that need to be taken. We need a more entrepreneurial culture and business environment and we need to build partnerships that can deliver investment in key locations. A competitive infrastructure is needed to underpin the growth of priority industries. We must strive to develop excellence in education and deliver an integrated transport network. We also need to work together to build on our positive reputation and identity, and ensure Edinburgh remains the location of choice in which to live, work, visit, invest and study.

Addressing the issues and opportunities facing us will call for strong civic leadership. The prize ahead is one worth pursuing – the creation of a successful city region with innovative, knowledgebased businesses providing a high quality of life for its citizens.

Dave Anderson is the director of city development at the City of Edinburgh Council.