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Nicola Sturgeon 'not intent on class war' Nicola Sturgeon wants Scotland to be more competitive
(about 1 hour later)
Scottish First Minister Nicola Sturgeon is to insist she is not intent on class war, despite backing land reform and higher taxes on the rich. First Minister Nicola Sturgeon has set her team of economic advisers the task of making Scotland more competitive.
Addressing company executives, she is expected to say she wants Scotland to be "an attractive, rewarding and value-creating place" to do business. But she also wants them to find ways of ending inequality.
Ms Sturgeon will ask her audience in Glasgow for ideas to help "grow the economy faster and more sustainably". Ms Sturgeon's aims were outlined in a speech she made at the Glasgow offices of Scottish and Southern Energy, one of Scotland's biggest firms.
It will be her first speech outside Holyrood since taking office. She told the audience: "Equality and prosperity should not been see as enemies of each other, but as partners. One reinforces the other."
The first minister will set out her economic philosophy for government, arguing that tackling inequality is not just compatible with growth but is in fact important for a healthy economy. Ms Sturgeon confirmed the Council of Economic Advisers (CEA), which was set up by former first minister Alex Salmond, would continue to be chaired by Crawford Beveridge.
Ahead of her address, Ms Sturgeon told BBC Radio Scotland's Good Morning Scotland programme: "We need a strong growing economy if we are to have a fairer society that I think we all want. She added that as well as retaining the advice of economist Prof Joseph Stiglitz, Scotland's former chief medical officer Sir Harry Burns would be a new adviser looking at the issue of inequality.
"If we have a fairer society that is also good for the economy. So I am calling on the business community to work in partnership with the government to help us build that better county." Ms Sturgeon said she wanted the council to focus on how to "enhance competitiveness".
The speech, to be delivered on Monday morning at the Glasgow offices of Scottish and Southern Energy, one of Scotland's biggest firms, is designed to convince businesspeople that Ms Sturgeon's lack of experience in the boardroom is irrelevant. She explained: "A key part of this debate will always be about how we compete with London, and we need to consider both its economic value and the benefits of its proximity as well as the significant challenges it poses.
'Charm offensive' "London has a centrifugal pull on talent, investment and business from the rest of Europe and the world.
The Scottish National Party leader was a solicitor at the Drumchapel Law Centre in Glasgow before being elected as a member of the Scottish Parliament in 1999. Her predecessor Alex Salmond, in contrast, worked as an economist for the Royal Bank of Scotland. "That brings benefits to the broader UK economy. But as we know, that same centrifugal pull is felt by the rest of us across the UK, often to our detriment. The challenge for us all is how to balance this in our best interests."
As part of her charm offensive, Ms Sturgeon has given an interview to the Financial Times in which she insisted she would be a "very strong ally" for Scotland's companies. However, Ms Sturgeon said Scotland faced a "second big challenge" on how to "better align" the objective of economic growth with the "need to tackle inequality".
She added: "The council's focus on competitiveness and equality reflects the fact that these are crucial areas if Scotland is to build on the relative success of recent years and face up to the challenges that lie ahead."
Ahead of her Glasgow speech, Ms Sturgeon gave an interview to the Financial Times in which she insisted she would be a "very strong ally" for Scotland's companies.
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In the piece she said: "I want them to know that they have got nothing to fear from me," she told the newspaper, insisting that her social democratic plans for "greater equality" depended on a strong economy and a "vibrant business base earning the wealth that makes that possible."In the piece she said: "I want them to know that they have got nothing to fear from me," she told the newspaper, insisting that her social democratic plans for "greater equality" depended on a strong economy and a "vibrant business base earning the wealth that makes that possible."
The FT reported that the first minister would use her speech to announce that the Nobel Prize-winning economist Joseph Stiglitz will continue to serve on the Scottish Government's Council of Economic Advisors.
The body, which was set up in 2007, has reportedly been tasked with examining the link between inequality and economic growth.
It is another indication of a left-leaning agenda being pursued by Ms Sturgeon as she tries to broaden the SNP's appeal beyond its traditional rural heartlands, with the aim of challenging the Labour Party at the general election in May.
Last week she told the Scottish Parliament that, were she making the decision now, she would raise the top rate of income tax, which applies to people earning more than £150,000 a year, from 45% to 50%.Last week she told the Scottish Parliament that, were she making the decision now, she would raise the top rate of income tax, which applies to people earning more than £150,000 a year, from 45% to 50%.
The headline measure in her first annual programme for government - reform of land ownership - also raised corporate eyebrows with plans to force shooting estates to pay business rates and a warning that landowners who posed a barrier to sustainable development could expect unspecified government intervention.The headline measure in her first annual programme for government - reform of land ownership - also raised corporate eyebrows with plans to force shooting estates to pay business rates and a warning that landowners who posed a barrier to sustainable development could expect unspecified government intervention.
In her FT interview Ms Sturgeon seeks to ease landowners' concerns, insisting that the state would only intervene in "very particular" cases.In her FT interview Ms Sturgeon seeks to ease landowners' concerns, insisting that the state would only intervene in "very particular" cases.
"This is not some kind of class warfare," she said."This is not some kind of class warfare," she said.