In constant (2016) prices this is an increase of around 8%. The thread manufacturers Coats plc had its origin in that trade. Spending by tourists is around 5% of GDP and the sector accounts for more than 7% of employment in Scotland. [33] Principal whisky producing areas include Speyside and the Isle of Islay, where there are eight distilleries providing a major source of employment. [62] This will allow health and environmental impact tests to be carried out as well as a full public consultation to allow every interested organisation and any member of the public to input their views. 45,000 people are employed by electronics and electronics-related firms, accounting for 12% of manufacturing output. Tourism, as a whole, is an important industry for the Scottish economy, contributing around £6 billion, which is equal to 5% of Scotland’s Gross Domestic Product (GDP). Prescribed drugs were made free at the point of use in 2011, leaving England as the only UK-nation with prescription charges in place (a flat fee of £9.15 per item[102]). With the growth of oil exploration during that time, as well as the ancillary industries needed to support it, the city of Aberdeen became the UK's centre of the North Sea Oil Industry, with the port and harbour serving many oil fields off shore. Shipbuilding, although significantly diminished from its heights in the early 20th century, is still a large part of the Glasgow economy. VisitScotland also works closely with businesses, local authorities and other tourism stakeholders to maximise the economic benefits of tourism to Scotland. Investment, insurance and asset servicing, Relationship with the rest of the United Kingdom, Scotland's debts were taken over by England, "These are exports of goods and services by Scottish companies to customers in the rest of the UK. The motorway and trunk road network is principally centred on the cities of Edinburgh and Glasgow and connecting them to other major concentrations of population, and is vitally important to the economy of Scotland. [84], Since the Devolution Referendum of 1997, in which the Scottish electorate voted for devolution, a Scottish Parliament was reconvened under the Scotland Act 1998 and is considered to be a devolved national, unicameral legislature of Scotland. [17] Scotland is a constituent country of the UK, which is a member of the Commonwealth of Nations, the G7, the G8, the G20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organization, Asian Infrastructure Investment Bank and the United Nations. In 2014, for example, UK visitors made 12.5 million visits to Scotland, staying 41.6 million nights and spending £2.9 billion. This flourished until the American Civil War in 1861 cut off the supplies of raw cotton; the industry never recovered. Almost all of these enterprises (98.2%) were small (0 to 49 employees); 3,920 (1.1%) were medium-sized (50 to 249 employees) and 2,365(0.7%) were large (250 or more employees). Shipbuilding reached a peak in the early 20th century, especially during the Great War, but quickly went into a long downward slide when the war ended. With millions of visitors each year, the economic contribution they bring and the way they spend their time here – there’s a lot about Scotland’s ever-evolving tourism industry that deserves to be examined and understood. [43], Scotland builds around 21,000 to 22,000 new homes per year, about 0.1% of its existing dwelling stock. Tourism Secretary Fiona Hyslop has outlined a multi-million pound package of measures to help support Scotland’s world-class tourism industry. In constant (2016) prices this is an increase of around 8%. In 2003, as a result, the Scottish Parliament passed a Land Reform Act that empowered tenant farmers and communities to purchase land even if the landlord did not want to sell.[26]. [24] The disadvantage of concentration on heavy industry became apparent: other countries were themselves industrialising and were no longer markets for Scottish products. [89], Scotland had some of the worst overcrowding in the postwar period and many areas of cities were comprehensively redeveloped with new modernist housing built either in tower blocks on the site of former slum housing, greenfield sites on the periphery of the cities, or in entirely new towns, such as Cumbernauld, Livingstone, Glenrothes or East Kilbride. [108] Equally, there are 21 areas in the rest of the UK where the GDP per person is under €20,000: 4.5 million (8.5% of English) live in these deprived English districts. Domestic tourists (those from the United Kingdom) make up the bulk of visitors to Scotland. The economy has thus become more diversified and therefore stabler. National Insurance rates and bands are reserved as is the National Insurance Fund. [82] As of March 2016, there were an estimated 350,410 private sector enterprises operating in Scotland. [32] It is also one of the UK's overall top five manufacturing export earners and it supports around 35,000 jobs. Some of these have been sold on again and are now leased as private rental housing inside what was once a wholly council-owned housing scheme. Currently renewable energy sources provide Scotland with 35% of its electricity production,[74] with onshore wind generation making the largest contribution, and supporting several thousand jobs. The Scottish Government does not control macroeconomic policy, however it does use public procurement to influence private sector behaviour on reserved matters such as requiring the Real Living Wage[86] to be paid to all its contractors and sub-contractors. The Scottish Legal system draws from the civil law tradition, and has more in common with civil law traditions such as in France, than the Common-Law of England and Wales. Water and sewerage utilities were never privatised in Scotland and were previously run by local water boards which were gradually amalgamated until in 2002 one national body was created; Scottish Water. HMRC are also responsible for calculating and paying Child Benefit and Working Tax Credit in addition to collecting Scottish income taxes. The latest annual data for Scotland are shown below. However, the decline in heavy industry in Scotland has been supplanted with the rise in the manufacture of lighter, less labour-intensive products such as optoelectronics, software, chemical products and derivatives as well as life sciences. The Cabinet Secretary for Justice is responsible for policy matters affecting these systems such as legal aid, prison governance, drugs rehabilitation, reoffending, victims and witnesses, sentencing guidelines, and anti-social behaviour, but has a legal duty to uphold the independence of the courts and the legal profession. [40], Cotton began to replace linen in economic importance during the 1770s, with the first mill opening in Penicuik in 1778. Sullom Voe in Shetland is the site of a major oil terminal, where oil is piped in and transferred to tankers. The software sector in Scotland developed rapidly and in 2016 there were an estimated 40,226[64] people working in the digital economy across Edinburgh, Glasgow and Dundee. [19][citation needed] (For the purpose of balance to this perspective, see Darien scheme.) Tourism is now one of Scotland’s most vibrant sectors, the money it generates plays a vital part in Scotland’s economic growth. This has, however, been combined with a rise in the service sector of the economy, which has grown to be the largest sector in Scotland. This trade was firstly organised around religious centres such as Melrose Abbey. The last coal power station in Scotland closed earlier than anticipated following the reform of electricity connection charges. You can now find the latest statistics on gov.scot. • Possible constraints: visitors’ motivations are not taken into account e.g. In January 2015 the Scottish Government placed a moratorium on granting consents for unconventional oil and gas extraction. This website is no longer being updated. In terms of mineral resources, Scotland produces coal, zinc, iron and oil shale. Overseas and Domestic Tourism Visits to Scotland. [39] Production remained in cottage industry units but the trading conditions were locked into the modern economy and gave rise to institutions such as the British Linen Bank. Scotland’s increase in GDP per capita since 2014, $3,800, is well below the average of $6,300. Excluding trade with the rest of the United Kingdom. It is generally argued that this has been in response to increasing globalisation and competition from low cost producers across the world, which has eroded Scotland's comparative advantage in such industries over the later half of the 20th century. [92] The water industry is regulated by the Water Industry Commission for Scotland. Scotland also has networks of private schools which are separate from the public schooling system. [49], Banking in Scotland has a long history, beginning with the creation of the Bank of Scotland in Edinburgh in 1695, and expanding greatly to support the trading developments of the 18th and 19th centuries. Parts of the east of Scotland (areas such as Aberdeenshire, Fife and Angus) are major centres of cereal production and general cropping. A very small proportion of Scotland’s total land mass is classified as arable – circa 10% based on Scottish Government figures[25] Only about one quarter[Figures are inconsistent] of the land is under cultivation – mainly in cereals. [23] Agriculture gained after the union, and standards remained high. [54] The full range of Scottish bank notes commonly accepted are £5, £10, £20, £50 and £100. Scottish-based companies have strengths in information systems, defence, electronics, instrumentation and semiconductors. Aberdeen is the centre of North Sea offshore oil and gas production, with giants such as Shell and BP housing their European exploration and production HQs in the city. Since 1979, management of the UK economy (including Scotland) has followed a broadly laissez-faire approach. Following its creation from the merger of eight regional fire & rescue services, the Cabinet Secretary for Justice is also responsible for the Scottish Fire and Rescue Service. Similarly asset servicing on behalf of fund managers has become an increasingly important component of the financial services industry in Scotland, with Scottish-based companies providing expertise in securities servicing, investment accounting, performance measurement, trustee and depositary services and treasury services. Through cruises, museums, and other tourist attractions, the Loch Ness Monster adds roughly £41 million to Scotland's economy in a typical year. The 1980s saw an economic boom in the Silicon Glen corridor between Glasgow and Edinburgh, with many large technology firms relocating to Scotland. Scotland's hotels, restaurants and pubs have been given new guidance as they prepare to reopen. [28], Scotland's heavy industry began to develop in the second half of the 18th century. Skills Development Scotland was also established to focus on workforce training, apprenticeships and industrial skills. RAF Lossiemouth, RAF Kirknewton, RAF West Freugh, Kinloss Barracks, Redford Barracks, Dreghorn Barracks, Glencourse Barracks, Cameron Barracks, Forthside Barracks, Gordon Barracks, Walcheren Barracks. The tourism economy and tourism related industries in Scotland support c. 196,000 in 2014 mainly in the service sector accounting for around 7.7% of employment in Scotland. [46] Big financial institutions such as The Royal Bank of Scotland, the Bank of Scotland, Scottish Widows and Standard Life all have a presence in the city. In 2019 there were 21,805 new homes built according to the 'Housing Statistcs for Scotland Quarterly Update', published on 10th March 2020. [56], Starting in 1873 with Robert Fleming's Scottish American Investment Trust,[57] a relatively broad stratum of Scots invested in international investment trust ventures. [citation needed] To rebuild stocks the EU's Common Fisheries Policy places restrictions on the total tonnage of catch that can be landed, on the days at sea allowed and on fishing gear that can be deployed. "In October 2017 the Scottish Government announced a ban on fracking after a 6 year struggle that saw massive opposition to the industry across the country. There has been a large scale decrease in employment in the fishing industry within Scotland, due initially to the sacrifice of national fishing rights to the EEC on the UK's accession to the Common Market in the 1970s, and latterly to the historically low abundances of commercially valuable fish in the North Sea and parts of the North Atlantic. The tourism economy and tourism related industries in Scotland support c. 196,000 in 2014 mainly in the service sector accounting for around 7.7% of employment in Scotland. [48], By 2020, Edinburgh was ranked 17th in the world for its financial services sector, and 6th in Western Europe, according to the Global Financial Services Centres Index. Prestwick Airport also has large air freight operations and cargo handling facilities. Solicitors in Scotland are regulated by the Law Society of Scotland, rather than through the Solicitors Regulation Authority. [55] Standard Life, based in Edinburgh, demutualised and has remained independent. Dental[103] and optometry[104] examinations are also free at the point of use, however charges for procedures and appliances apply for adults over 18, except in certain circumstances. [41] The trade brought urbanisation of the population, including large numbers of migrants from the Highlands and from Ireland. The lowlandsare known for their fertile farmland and thick woodlands, the Highlands for their towering mountains, sweeping moorland and dee… When Scotland ratified the 1707 Act of Union, despite Scotland's national debt, taxes were low due to war avoidance and trade thrived from the Baltic to the Caribbean. The principal companies operating in the sector include; BAE Systems, Rolls-Royce, Raytheon, Alexander Dennis, Thales, SELEX Galileo and Babcock. Tourism is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6 billion to the city economy. There is no healthcare purchaser-provider split in Scotland, and the abolition of internal market in NHS Scotland was completed in 2004. Gross domestic product in the first quarter of 2020 amounted to around 41.73 billion British pounds in Scotland, a slight drop on the previous quarter when GDP … [108] 1.1 million (20% of Scots) live in these five deprived [GDP per person is under €20,000] Scottish districts: Clackmannshire & Fife, East & Mid Lothian, West Dumbartonshire, East & North Ayrshire, Caithness Sutherland & Ross.[108]. Farms tend to cover larger areas than their European counterparts. Scottish participation in the British Empire also allowed Scotland to export its output throughout much of the world. The sector is an important part of the Scottish economy, employing more than 200,000 workers and hosting millions of visitors every year from all over the world. Most universities are linked with a research and development sector; the University of Dundee is at the heart of a biotechnology and medical research cluster;[94] the University of Edinburgh is a centre of excellence in the field of Artificial Intelligence and the University of Aberdeen is a world-leader in the study of offshore technology in the oil and gas industry.[95]. Agriculture, especially cropping in Scotland, is highly mechanised and generally efficient. There’s no getting away from the importance of tourism… The economy revived with munitions production during World War II. [21], Growth was rapid after 1700, as Scottish ports, especially those on the Clyde, began to import tobacco from the American colonies. The country can be roughly divided into three areas – lowlands, Highlands and islands. Scottish industries, especially linen manufacturing, were developed. This lush beautiful country is bursting with green spaces, lush forests, towering mountains and vast lochs (the Scottish word for lakes!). The currency of Scotland is the Pound sterling, which is also the world's fourth-largest reserve currency after the US dollar, the euro and Japanese yen. NHS Scotland is a major employer with just under 140,000 whole-time equivalent (WTE) staff. The Scottish Government has full control over how Scotland's annual block grant is spent, such as healthcare, education and on state-owned enterprises, e.g. Once here, the country's road, rail and ferry network provides good access to all regions and to our many great visitor destinations. Sheep-raising is important in the less arable mountainous regions, such as the northwest of Scotland, which are used for rough grazing, due to its geographical isolation, poor climate and acidic soils. 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