Scots economy: Set to decline?

The future of the Scottish economy could be undermined by growing health inequalities and a predicted decline in the country's workforce, it has been claimed.

The warning comes as the Federation of Small Businesses (FSB) in Scotland released its "Index of Success" report which delivers a mixed verdict.

The FSB calls on the devolved government to take urgent action to remedy Scotland's "poor diet and unhealthy lifestyle".

"We believe efforts to boost wealth creation in Scotland must continue but as this study shows they must also be matched by efforts to improve the health of the current and future workforce," says the FSB.

The blueprint also warns that Scotland's future economic development could be seriously undermined by its dwindling population.

"The first minister has stated that 'Scotland is the best small country in the world'. But the report clearly contradicts this claim, with Scotland in last place in a comparison of OECD nations with less than nine million people."

The business group also warns ministers that they must think again on how it considers the measure of success.

"The Scottish executive should put itself in the vanguard of those countries that are beginning to look beyond simple economic output as the measure of progress and work to collect the data that allows it to gain a more balanced view of Scotland's general prosperity and place in the world," concludes the FSB

The SNP seized on the report to warn of the pessimistic outlook for Scotland's medium term prospects.

Nationalist MSP Jim Mather called for urgent and united action to turn round Scotland’s economic prospects and performance.

“There is an iceberg coming for Scotland. It is called 2043, for by that time we will have lost 550,000 working people," he said.

"This report is the credible tip of that iceberg and proves that action is needed now to turn things round so we can fulfil Scotland’s huge potential for prosperity.”

"The FSB have been courageous and public spirited in commissioning this report, which is a wake-up call to everyone who cares about Scotland."