View source for Economy of Scotland

{{Short description|None}}<!-- This short description is INTENTIONALLY "none" - please see WP:SDNONE before you consider changing it! -->
{{Use dmy dates|date=September 2015}}
{{Use British English|date=December 2023}}
{{Infobox economy
| country    = Scotland
| image      = Evening view across Carlton Hill towards the Castle (13164472813).jpg
| image_size = 280px
| caption    = [[Edinburgh]], the [[financial centre]] of Scotland
| currency   = [[Pound sterling]] (£)
| fixed exchange =
| year       = [[Fiscal year#United Kingdom|1 April to 31 March]]{{efn|6 April – 5 April for personal tax}}
| group      = 
| population = 5,436,600 (2022)<ref name="census2022">{{cite web|url=https://www.scotlandscensus.gov.uk/2022-results/scotland-s-census-2022-rounded-population-estimates/|title=Scotland's Census 2022 - Rounded population estimates|date=14 September 2023|access-date=14 September 2023}}</ref>
| gdp        = £209.5 billion (onshore only, 2024)<br/>
£223.4 billion (incl. oil and gas extraction, 2024)<ref name="Scot Gov GDP">{{cite web |title=GDP in nominal terms |url=https://www.gov.scot/publications/gdp-quarterly-national-accounts-2024-q4/pages/gdp-in-nominal-terms/ |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref>
| gdp rank   = 
| growth     = 
| per capita = £37,834 (onshore only, 2024)<br/>
£40,339 (incl. oil and gas extraction, 2024)<ref name="Scot Gov GDP"/>
| per capita rank =
| sectors    = 
| components = 
| inflation  =
| bankrate   = 
| poverty    = 
| risk of poverty =
| gini       = 33 (2020&ndash;2023)<ref name="Scot Gov GINI">{{cite web |url=https://data.gov.scot/poverty/index.html |title=Poverty and Income Inequality in Scotland 2020-23 |author=<!--Not stated--> |date=21 March 2024 |website=Scottish Government |publisher= |access-date=14 May 2024 }}</ref>
| hdi        =
| cpi        =
| labor      = 2,613,000 / 73.1% in employment (Jan–Mar 2024){{efn|name=labourforce|In employment and aged 16 or over (quantity) or aged 16–64 (percent)}}<ref name="Nomis labour market profile">{{cite web |url=https://www.nomisweb.co.uk/reports/lmp/gor/2013265931/report.aspx |title=Labour Market Profile - Scotland |author=<!--Not stated--> |website=Nomis |publisher=Office for National Statistics |access-date=22 May 2024}}</ref>
| occupations =
 {{Collapsible list
 | 27.0% Professional
 | 16.5% Associate professional
 | 9.7% Elementary occupations
 | 9.4% Skilled trades
 | 9.2% Administrative and secretarial
 | 8.5% Caring, leisure and other service
 | 7.7% Managers, directors and senior officials
 | 6.8% Sales and customer service
 | 4.8% Process plant and machine operatives
 | (Jan–Dec 2023){{efn|name=occupations|Percent is a proportion of all persons in employment aged 16 and over}}<ref name="Nomis labour market profile"/>
 }}
| unemployment = 120,000 / 4.4% (Jan–Mar 2024){{efn|name=unemployment|Unemployed aged 16 and over. Percent is a proportion of economically active.}}<ref name="Nomis labour market profile"/>
| average gross salary = £739.70 per week (2024){{efn|name=averagesalary|Median gross weekly pay for full time employees resident in Scotland}}<ref>{{cite web |title=Employee Earnings |url=https://www.gov.scot/publications/annual-survey-of-hours-and-earnings-2024/pages/employee-earnings/ |website=www.gov.scot |access-date=22 June 2025 |language=en |date=29 January 2025}}</ref>
| average net salary = £2,485 (2024)<ref>{{cite web |title=People in work |url=https://www.gov.scot/publications/scotlands-labour-market-insights-february-2025/pages/people-in-work/ |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref>
| consumption = 
| gfcf       = 
| savings    = 
| yield curve = 
| pmi        =  
| industries = [[Agriculture in Scotland|Agrictulrure]] (£2.7 billion)<ref>{{cite web |title=2.3 Just Transition for Agriculture |url=https://www.gov.scot/publications/agriculture-rural-communities-scotland-bill-supporting-evidence-analysis/pages/6/ |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref> <br/> [[Forestry in Scotland|forestry]] (£1.1 billion)<ref>{{cite web |title=Economic impact of forestry |url=https://www.gov.scot/news/economic-impact-of-forestry/#:~:text=Scotland's%20forestry%20contributes%20£1.1,a%20new%20report%20has%20found. |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref> <br/> [[Fishing industry in Scotland|fisheries]] (£655 million)<ref>{{cite web |last1=McBride |first1=Oliver |title=Scottish Fishing Industry Experiences Mixed Results in 2023 |url=https://thefishingdaily.com/featured-news/scottish-fishing-industry-experiences-mixed-results-in-2023/ |website=The Fishing Daily - Irish, UK and European Fishing Industry News |access-date=22 June 2025 |date=22 May 2024}}</ref> <br/> [[Oil industry in Scotland|Oil and gas extraction]] (£25.2 billion)<ref>{{cite web |title=Oil and gas |url=https://www.gov.scot/policies/oil-and-gas/#:~:text=In%202022%2C%20the%20extraction%20of,of%20UK%20Extra%20Region%20activity). |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref> <br/> Manufacturing (£35.1 billion)<ref>{{cite web |title=EXECUTIVE SUMMARY |url=https://www.scottish-enterprise.com/media/cw3p3p3i/executive-summary.pdf |website=Ryden |publisher=Scottish Enterprise |access-date=22 June 2025}}</ref> <br/> Creative industries (£5.7 billion) <br/> Financial services (£14.3 billion) <br/> [[Transport in Scotland|Transportation and storage]] (£8.3 billion)<ref>{{cite web |title=1. Introduction |url=https://www.gov.scot/publications/transition-draft-transition-plan-transport-scotland/pages/2/# |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref> <br/> [[Tourism in Scotland|Tourism]] (£4.9 billion) <br/> [[Cuisine of Scotland|Food and drink]] (£5.4 billion)<ref name="Key Sectors">{{cite web |title=Key Sectors {{!}} Scotland.org |url=https://www.scotland.org/business/key-sectors |website=Scotland |access-date=22 June 2025 |language=en}}</ref> 
| edbr       = 
| exports    = £50.1 billion (2021){{efn|name=tradegoodsandservices|Goods and services}}<ref name="ONS international trade">{{Cite web |last=Tuck |first=Helen |date=28 June 2023 |title=International trade in UK nations, regions and cities: 2021 |url=https://www.ons.gov.uk/businessindustryandtrade/internationaltrade/bulletins/internationaltradeinuknationsregionsandcities/2021 |access-date=24 December 2023 |website=Office for National Statistics}}</ref>
| export-goods =
 {{Collapsible list
 | £9.3bn Mineral fuels
 | £6.1bn Machinery and transport
 | £4.2bn Beverages and tobacco
 | £3.0bn Chemicals
 | £2.4bn Manufactured goods
 | £1.7bn Miscellaneous manufactures
 | £1.7bn Food and live animals
 | £0.6bn Crude materials
 | £0.0bn Animal and vegetable oils
 | £0.0bn Other commodities
 | '''£28.9bn Total'''
 | {{small|(2021)}}{{efn|name=tradeexcludingservices|Excluding services}}<ref name="HMRC goods trade">{{Cite web |date=14 December 2023 |title=UK Regional Trade in Goods Statistics |url=https://www.uktradeinfo.com/media/uainztpl/rts-q3-2023.xlsx |access-date=24 December 2023 |website=UK Trade Info |publisher=[[HM Revenue and Customs]]}}</ref>
 }}
| export-partners =
 {{Collapsible list
 | £16.4bn European Union
 | £4.4bn Asia & Oceania
 | £3.8bn North America
 | £1.4bn Western Europe (excl. EU)
 | £1.2bn Middle East and North Africa (excl. EU)
 | £0.7bn Latin America and Caribbean
 | £0.6bn Sub-Saharan Africa
 | £0.5bn Eastern Europe (excl. EU)
 | £0.0bn Undefined country group
 | '''£28.9bn Total'''
 | {{small|(2021)}}{{efn|name=tradeexcludingservices}}<ref name="HMRC goods trade"/>
 }}
| imports    = £29.2 billion (2021){{efn|name=tradegoodsandservices}}<ref name="ONS international trade"/>
| import-goods =
 {{Collapsible list
 | £7.8bn Machinery and transport
 | £6.3bn Mineral fuels
 | £2.8bn Manufactured goods
 | £2.5bn Miscellaneous manufactures
 | £2.4bn Chemicals
 | £1.7bn Food and live animals
 | £0.8bn Crude materials
 | £0.6bn Beverages and tobacco
 | £0.1bn Animal and vegetable oils
 | £0.0bn Other commodities
 | '''£24.9bn Total'''
 | {{small|(2021)}}{{efn|name=tradeexcludingservices}}<ref name="HMRC goods trade"/>
 }}
| import-partners =
 {{Collapsible list
 | £7.8bn European Union
 | £6.7bn Western Europe (excl. EU)
 | £5.7bn Asia & Oceania
 | £3.1bn North America
 | £0.5bn Eastern Europe (excl. EU)
 | £0.4bn Middle East and North Africa (excl. EU)
 | £0.4bn Latin America and Caribbean
 | £0.3bn Sub-Saharan Africa
 | — Undefined country group
 | '''£24.9bn Total'''
 | {{small|(2021)}}{{efn|name=tradeexcludingservices}}<ref name="HMRC goods trade"/>
 }}
| FDI        = 
| current account = 
| gross external debt = 
| NIIP       = 
| debt       = 
| balance    = 
| revenue    = 
| expenses   = 
| aid        = 
| credit     = 
| reserves   = 
| cianame    = 
| spelling   = 
| usebelowbox = no
| presentUS$asdefault = no
}}
[[Scotland]] has an economy which is an [[Open economy|open]] [[mixed economy]], mainly services based, which had an estimated nominal [[gross domestic product]] (GDP) of £223.4 billion in 2024, including oil and gas extraction in the [[United Kingdom Continental Shelf|country's continental shelf region]].<ref name="Scot Gov GDP" /> The countries primary industries are [[Agriculture in Scotland|agriculture]], [[Forestry in Scotland|forestry]], [[Fishing industry in Scotland|fishery]], manufacturing, [[Oil industry in Scotland|oil and gas extraction]], science, technology and energy, [[Scottish cuisine|food and drink]] and [[Tourism in Scotland|tourism]].<ref name="Key Sectors"/> Major developing industries in Scotland include the [[Space industry of Scotland|space industry]], [[Energy in Scotland|renewable energy]] and the [[Financial technology|financial technologies]] sectors.<ref name="Key Sectors"/> The country is one of Europe's leading [[Financial centre|financial centres]], <ref>{{cite web |title=Research recognises Scotland as one of Europe’s leading financial centres |url=https://www.sfe.org.uk/news-database/research-recognises-scotland-as-one-of-europes-leading-financial-centresnbsp |website=Scottish Financial Enterprise (SFE) |access-date=22 June 2025}}</ref> and is the largest financial hub in the United Kingdom outside of [[London]].<ref>{{cite web |title=Scotland retains status as the UK's second largest international financial hub - Scottish Business News |url=https://scottishbusinessnews.net/scotland-retains-status-as-the-uks-second-largest-international-financial-hub/ |website=Scottish Business News |access-date=22 June 2025 |date=5 September 2023}}</ref> Scotland's largest overseas export market is the [[European Union]] (EU), followed by the [[United States]], the [[Netherlands]], [[France]] and [[Germany]].<ref>{{cite web |title=SCOTLAND’S TRADE POSITION AND PERFORMANCE: |url=https://www.scottish-enterprise.com/media/o0nbozgp/scotland-s-trade-position-and-performance.pdf |website=Scottish Enterprise |access-date=22 June 2025}}</ref>

Scotland was one of the industrial powerhouses of Europe from the time of the [[Industrial Revolution]] onwards, being a world leader in manufacturing.<ref>{{cite news |title=Scotland profile |author=BBC |url=http://news.bbc.co.uk/1/hi/world/europe/country_profiles/7219799.stm |access-date=31 October 2013 |work=BBC News |date=17 October 2012}}</ref> The country had one of the largest and most successful [[Shipbuilding|shipbuilding industries]] in the world,<ref>{{cite web |title=Ships and shipbuilding {{!}} Scotland's People |url=https://www.scotlandspeople.gov.uk/help-and-support/guides/ships-and-shipbuilding |website=www.scotlandspeople.gov.uk |access-date=22 June 2025}}</ref> and although significantly reduced in size, shipbuilding remains a significant sector of the economy, generating £403 million in [[Gross Value Added|GVA]] towards Scotland's economy in 2022.<ref>{{cite web |title=Shipbuilding |url=https://www.gov.scot/publications/scotlands-marine-economic-statistics-2022/pages/shipbuilding/ |website=www.gov.scot |access-date=22 June 2025 |language=en}}</ref> Scotland's economy has been closely aligned with the economy of the rest of the [[United Kingdom]] since the [[Acts of Union 1707]] which united the [[Kingdom of Scotland]] with the [[Kingdom of England]] to create the [[Kingdom of Great Britain]]. Since 1979, management of the economy has followed a broadly laissez-faire approach.<ref>{{cite web|url=http://www.dspace.cam.ac.uk/bitstream/1810/413/1/wp9901.pdf |title=A survey of the liberalisation of public enterprises in the UK since 1979|access-date=8 February 2014}}</ref><ref>{{cite web|url=http://www.oecd.org/gov/regulatorypolicy/44955878.pdf |title=Acknowledgements |access-date=8 February 2014}}</ref><ref name="adamsmith">{{cite web|url=http://www.adamsmith.org/sites/default/files/resources/privatization-revisited(3).pdf |date=1 November 2010 |title=Privatization Revisited |author=Nigel Hawkins |access-date=25 September 2014 |url-status=dead |archive-url=https://web.archive.org/web/20130601233812/http://www.adamsmith.org/sites/default/files/resources/privatization-revisited%283%29.pdf |archive-date=1 June 2013 }}</ref><ref name="ftms">{{cite web|url=http://www.ftms.edu.my/pdf/Download/UndergraduateStudent/BusinessEconomics/BC215001S%20-%20BE%20Key%20Text%20-%20Applied%20Economics.pdf |date=16 July 2011 |title=Applied Economics |author=Alan Griffiths & Stuart Wall |access-date=25 September 2014 |url-status=dead |archive-url=https://web.archive.org/web/20130620120524/http://www.ftms.edu.my/pdf/Download/UndergraduateStudent/BusinessEconomics/BC215001S%20-%20BE%20Key%20Text%20-%20Applied%20Economics.pdf |archive-date=20 June 2013 }}</ref><ref name="adamsmith2">{{cite web|url=http://www.adamsmith.org/sites/default/files/images/pdf/privatization_reviving_the_momentum.pdf |date=4 April 2008 |title=Privatization – Reviving the Momentum |author=Nigel Hawkins |publisher=Adam Smith Institute, London |access-date=25 September 2014 |url-status=dead |archive-url=https://web.archive.org/web/20130601233926/http://www.adamsmith.org/sites/default/files/images/pdf/privatization_reviving_the_momentum.pdf |archive-date=1 June 2013 }}</ref><ref name="auckland">{{cite web|url=http://docs.business.auckland.ac.nz/Doc/NZ-Auckland-paper-fnl-hodge.pdf|date=28 October 2011|title=Revisiting State and Market through Regulatory Governance: Observations of Privatisation, Partnerships, Politics and Performance|author=Graeme Hodge|access-date=25 September 2014|archive-date=21 September 2013|archive-url=https://web.archive.org/web/20130921053822/http://docs.business.auckland.ac.nz/Doc/NZ-Auckland-paper-fnl-hodge.pdf|url-status=dead}}</ref>

There are three Scottish commercial banks – the [[Bank of Scotland]], [[Royal Bank of Scotland]] and [[Clydesdale Bank]], and although the [[Bank of England]] is Scotland's [[central bank]] and its [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee]] is responsible for setting [[official bank rate|interest rates]], the three banks of Scotland have retained the rights to print their own banknotes.<ref>{{cite web |title=Banknotes: Why do Scotland and Northern Ireland have their own money? |url=https://www.bbc.co.uk/newsround/51783470 |website=BBC Newsround |access-date=22 June 2025 |date=8 March 2020}}</ref> The Bank of Scotland was the first bank in [[Europe]] to successfully print its own [[banknotes]] in 1696.<ref>{{cite web |title=BOS - Internet Banking - Unavailable |url=https://www.bankofscotland.co.uk/about-us/our-heritage.html |website=www.bankofscotland.co.uk |access-date=22 June 2025}}</ref> The currency of Scotland, as part of the United Kingdom, is the [[Pound sterling]], which is also the world's fourth-largest [[reserve currency]] after the US dollar, the euro and Japanese yen.<ref name="chavez2007">{{cite news| last=Chavez-Dreyfuss| first=Gertrude| url=http://in.reuters.com/article/asiaCompanyAndMarkets/idINN3141616420080331?sp=true| publisher=Reuters| title=Global reserves, dollar share up at end of 2007-IMF| date=1 April 2008| access-date=21 December 2009| archive-date=9 January 2009| archive-url=https://web.archive.org/web/20090109210433/http://in.reuters.com/article/asiaCompanyAndMarkets/idINN3141616420080331?sp=true| url-status=dead}}</ref>

The economy of Scotland is the second largest economy amongst the [[Countries of the United Kingdom|countries of the United Kingdom]]. In 2024, [[Gross Domestic Product|GDP]] growth in Scotland (1.1%) was stronger than that of the [[Economy of the United Kingdom|economy of the overall United Kingdom]] (0.9%).<ref>{{cite web |title=Scotland outperforms UK significantly, data reveal |url=https://www.heraldscotland.com/news/25039012.scottish-economy-outperforms-uk-significantly-data-reveal/ |website=The Herald |access-date=22 June 2025 |language=en |date=26 March 2025}}</ref><ref>{{cite web |title=Scotland economy outperforming UK as whole, new figures show |url=https://www.thenational.scot/news/25039195.kate-forbes-speaks-scotland-economy-outperforms-uk-whole/ |website=The National |access-date=22 June 2025 |language=en |date=26 March 2025}}</ref> As one of the countries of the United Kingdom, Scotland is a member of the [[Commonwealth of Nations]], the [[G7]], the [[G-20 major economies|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]].

==Overview==
[[File:Map of GDP per capita in the UK in 2007 (NUTS 3).svg|thumb|right| A map of the UK divided by the average GDP per capita in 2007 (in euros) showing the distribution of economic activity]]
After the [[Industrial Revolution in Scotland]], the Scottish economy concentrated on [[heavy industry]], dominated by the [[shipbuilding]], coal mining and steel industries. Scottish participation in the [[British Empire]] also allowed Scotland to export its output throughout much of the world. However heavy industry declined in the late 20th century, leading to a shift in the economy of Scotland towards technology and the service sector. The 1980s saw an economic boom in the [[Silicon Glen]] corridor between [[Edinburgh]] and [[Glasgow]], with many large technology firms relocating to Scotland.

Data released by the Scottish Government in 2023 found that there were a total of 149,992 establishments (a single site of an organisation), which employed a total of 2.46 million people in Scotland between each organisation.<ref name="auto">{{cite web |title=UK Employer Skills Survey 2022 – Scotland Report |url=https://www.gov.scot/publications/uk-employer-skills-survey-2022-scotland-report/pages/4/ |website=The Scottish Government |publisher=Scottish Government |access-date=4 December 2023}}</ref> The largest employment industries in Scotland by March 2022 were the primary sector and utilities (5% of employment), manufacturing (7% of employment), construction (6% of employment), wholesale and retail (14% of employment), hotels and restaurants (8% of employment), transport and storage (4% of employment), information and communication (3% of employment), financial services (3% of employment), business services (16% of employment), public administration (6% of employment), the education sector (8% of employment) and health and social work (16% of employment).<ref name="auto"/> 

Scottish-based companies have strengths in information systems, defence, electronics, instrumentation and semiconductors. There is also a dynamic and fast growing electronics design and development industry, based around links between the [[Education in Scotland|universities]] and indigenous companies. There was a significant presence of global players like [[National Semiconductor]] and [[Motorola]]. Other major industries include banking and [[financial services]], construction,<ref name="Homes">{{Cite book|url=http://www.homesforscotland.co.uk/docs/ECONOMIC%20VALUE%20OF%20HOUSE%20BUILDING%20INDUSTRY%20NOV%202007.pdf|title=The Economic Value of the House Building Industry in Scotland: a report for Homes For Scotland|last=Mackay Consultants|date=November 2007|archive-url=https://web.archive.org/web/20080529144940/http://www.homesforscotland.co.uk/docs/ECONOMIC%20VALUE%20OF%20HOUSE%20BUILDING%20INDUSTRY%20NOV%202007.pdf|archive-date=29 May 2008}}</ref> education, entertainment, [[biotechnology]], transport equipment, oil and gas, [[whisky]], and tourism. The Gross Domestic Product (GDP) of [[Scotland]] in 2013 was $248.5&nbsp;billion including revenue generated from North Sea oil and gas. Edinburgh is the financial services centre of Scotland, with many large financial firms based there. Glasgow is the fourth-largest manufacturing centre in the UK, accounting for well over 60% of Scotland's manufactured exports. Shipbuilding, although significantly diminished from its heights in the early 20th century, is still a large part of the Glasgow economy. 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. Other important industries include textile production, chemicals, distilling, agriculture, brewing and fishing.

Total public expenditure in Scotland in 1999/2000 was £36.4 billion, of which identifiable spending which can be proven to benefit Scotland was £27.4 billion. This increased to a total public expenditure of £100.4 billion in 2020/21 of which £81.1 billion was identifiable spending that can be proven to benefit Scotland.<ref>{{Cite web |title=Country and regional public sector finances expenditure tables - Office for National Statistics |url=https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/datasets/countryandregionalpublicsectorfinancesexpendituretables |access-date=2023-03-11 |website=www.ons.gov.uk}}</ref><ref>{{Cite web |title=Statistics on Government Expenditure and Revenue Scotland |url=https://osr.statisticsauthority.gov.uk/wp-content/uploads/2015/11/images-assessmentreport274statisticsongovernmentexpenditureandrevenuescotlan_tcm97-43613.pdf |page=5}}</ref>

==History==
{{main|Economic history of Scotland}}
{{see|Darien scheme|Company of Scotland}}
[[File:Museum on the mound, Edinburgh (41404375864).jpg|thumb|right|The [[Bank of Scotland]] is one of the [[List of oldest banks in continuous operation|oldest banks in continuous operation]], and the first bank in Europe to successfully print its own banknotes]] 

===Act of Union 1707===

When Scotland ratified the Act of Union with the Kingdom of England in 1707, Scotland's national debt was at zero, whereas England had totalled £20,000,000 in debt, taxes were low due to war avoidance, and trade thrived from industries such as [[tobacco]], [[sugar]], [[cotton]] and [[rice]] which enhanced Scotland's industrialisation through the 18th and 19th centuries.<ref>{{cite web |title=Scotland and the Caribbean |url=https://www.nms.ac.uk/media/1165510/scotland_and_the_caribbean-resource-sheet_02_feb.pdf |publisher=National Museums Scotland |access-date=4 December 2023}}</ref> Article 15 of the Treaty of Union Act 1707  stipulated that the [[Kingdom of England]] would pay the [[Kingdom of Scotland]] a lump sum of £398,085 10s, known as [[The Equivalent]], which served as a means of compensation for Scotland taking on a share of England's debt.<ref>{{cite web |title=Equivalent Company |url=https://www.natwestgroup.com/heritage/companies/equivalent-company.html#:~:text=Background%20history,share%20in%20England%27s%20national%20debt. |publisher=NatWest Group |access-date=4 December 2023}}</ref> As a consequence of the Act of Union, Scotland's well-established trade links with [[France]] and the Low Countries were cut off abruptly. The economic benefits of Union which had been promised by proponents of the Act were slow to materialise, causing widespread discontent amongst the population. 

Despite their new status as citizens of the United Kingdom, it took many decades for Scottish traders to gain a noticeable foothold in the colonial markets which had long been dominated by English merchants and concerns. The economic effects of the Union on Scotland were negative until about 1715,<ref name="impact">{{cite web |title=The impact of union to 1715 Negative economic impact |url=https://www.bbc.co.uk/bitesize/guides/zgxfr82/revision/4# |publisher=BBC Bitesize |access-date=4 December 2023}}</ref> mainly due to an increase in unpopular forms of taxation (such as the Malt Tax of 1712) which increased the price of Scottish products, benefitting manufacturers based in England,<ref name="impact" /> as well as the introduction of duties on imports, which the Scottish exchequer had previously been neglectful in enforcing on most trade goods.<ref>David Ross, ''A History of Scotland'' (2009) p 121/122</ref> Eventually, the Union gave Scotland access to England's global marketplace, triggering an economic and cultural boom .<ref>{{cite web |title=The impact of union to 1715 Positive economic impact |url=https://www.bbc.co.uk/bitesize/guides/zgxfr82/revision/3 |publisher=BBC Bitesize |access-date=4 December 2023}}</ref> German sociologist [[Max Weber]] credited the Calvinist "[[Protestant Ethic]]", involving hard work and a sense of divine predestination and duty, for the entrepreneurial spirit of the Scots.<ref>David McCrone, ''Understanding Scotland: the sociology of a nation'' (2001) p 56</ref>

===Industrial Revolution===
{{main|Industrial Revolution in Scotland}}

[[File:ETH-BIB Com LC0090-001-003 RMS Queen Elizabeth 2 1967.jpg|thumb|left|Construction of the ''[[Queen Elizabeth 2]]'' at [[John Brown & Company]], [[Clydebank]], 1967]] 

Growth was rapid after 1700, as Scottish ports, especially those on the Clyde, began to import tobacco from the American colonies. Scottish industries, especially linen manufacturing, were developed. Scotland embraced the [[Industrial Revolution]], becoming a small commercial and industrial powerhouse of the [[British Empire]]. Many young men built careers as imperial administrators. Many Scots became soldiers, returning home after 20 years with their pension and skills.<ref>[[Arthur L. Herman]], ''[[How the Scots Invented the Modern World: The True Story of How Western Europe's Poorest Nation Created Our World & Everything in It]]''(2001)</ref>

From 1790 the chief industry in the west of Scotland became textiles, especially the spinning and weaving of cotton. This flourished until the [[American Civil War]] in 1861 cut off the supplies of raw cotton; the industry never recovered. However, by that time Scotland had developed heavy industries based on its coal and iron resources. The invention of the hot blast for smelting iron (1828) had revolutionised the iron industry, and Scotland became a centre for engineering, shipbuilding, and locomotive construction. Toward the end of the 19th century steel production largely replaced iron production. Emigrant [[Andrew Carnegie]] (1835–1919) built the American steel industry, and spent much of his time and philanthropy in Scotland.<ref>Bruce Lenman, ''An Economic History of Modern Scotland, 1660–1976'' (1977)</ref> Agriculture gained after the union, and standards remained high. However the adoption of free trade in mid-19th century brought cheap American corn which undersold local farmers. The industrial developments, while they brought work and wealth, were so rapid that housing, town planning, and provision for public health did not keep pace with them, and for a time living conditions in some of the towns were notoriously bad.

===Covid-19 pandemic===
{{main|COVID-19 pandemic in Scotland}}
[[File:First Minister statement on Covid-19.jpg|thumb|left|[[First Minister of Scotland|First Minister]] [[Nicola Sturgeon]] addresses the nation regarding COVID-19 restrictions in Scotland, January 2021.]] 

Like other international economies, the economy of Scotland had suffered loses in revenue as a result of temporary business closures resulted by the national lockdown implemented by the Scottish Government in March 2020. The Scottish Government announced that, based on economic predictions in 2020, that Scottish unemployment figures were expected to increase to 8.2% by the end of 2020. Many areas of the Scottish economy, such as production markets, began to operate at reduced capacity in an attempt to slow the spread of the virus, meaning that productions rates were slower than normal levels prior to the outbreak. The Scottish Government cautioned that Scotland's economic output could fall 9.8% in 2020, with global economic uncertainty remaining elevated.<ref>{{Cite web|url=https://www.gov.scot/news/scotlands-economy-recovering-but-fragile/#:~:text=Scotland's%20economy%20has%20recovered%20half,2023%2C%20a%20report%20has%20found.|title = Scotland's economy recovering but fragile|website=Gov.scot}}</ref>

The tourism and hospitality sector has particularly suffered. In October 2020, the Scottish Tourism Alliance made this comment: "The devastating impact of this pandemic will make recovery incredibly challenging, if not questionable, without the assurance of continued targeted support from both the Scottish and UK Governments".<ref name="Tourism Recovery Recommendations">{{cite web|url=https://scottishtourismalliance.co.uk/tourism-recovery/ |title=Tourism Recovery Recommendations|date=23 October 2020 |access-date=8 April 2021|quote=discussions led by Malcolm Roughead, CEO, VisitScotland, Marc Crothall, CEO, Scottish Tourism Alliance and Malcolm Buchanan, Chair of Scotland Board, RBS|website=Scottishtourismallaince.co.uk}}</ref> In a March 2021 speech, First Minister [[Nicola Sturgeon]] acknowledged the "acute challenges our tourism and hospitality sectors have faced".<ref>{{cite web|url=https://www.gov.scot/news/gbp-25-million-for-tourism-recovery/ |title=£25 million for tourism recovery|access-date=8 April 2021|quote=We've provided an unprecedented amount of funding for the sector, including over £129 million in business support|website=Gov.scot}}</ref>

There have been suggestions that the economic impact as a result of the COVID-19 outbreak could permanently affect the economy of Scotland, similar to the way deindustrialization of Scotland's shipyards and coal production had a major, long-lasting effect on the economy during the 1980s.<ref>{{Cite web|url=https://www.insider.co.uk/news/coronavirus-could-hit-scottish-economy-22987717|title = Coronavirus 'could hit Scottish economy as hard as the loss of heavy industry'|website=Insider.co.uk|date = 10 November 2020}}</ref>

Exports of many food and drink products from the UK declined significantly,<ref>{{cite web |url=https://www.theguardian.com/business/2021/mar/22/data-shows-collapse-of-uk-food-and-drink-exports-post-brexit#:~:text=Chocolate%20exports%20went%20from%20%C2%A3,other%20hospitality%20outlets%20remain%20closed. |title=Data shows collapse of UK food and drink exports post-Brexit |website=[[TheGuardian.com]] |date=22 March 2021 |access-date=23 March 2021}}</ref> including Scotch whisky. Distillers were required to close for some time and the hospitality industry worldwide experienced a major slump.<ref>{{cite web|url=https://www.cnn.com/travel/article/scotland-whisky-islands-covid/index.html
|title=Scotland's whisky islands are dealing with a major Covid hangover|website=[[CNN]]|date=10 October 2020 |access-date=23 March 2021}}</ref> According to news reports in February 2021, the Scotch whisky sector had experienced £1.1 billion in lost sales. Exports to the US were also affected by the 25% tariff that had been imposed. Scotch whisky exports to the US during 2020 "fell by 32%" from the previous year. Worldwide exports declined by 70%.<ref>{{cite web|url=https://www.scottishfield.co.uk/food-and-drink-2/whisky/covid-costs-scotch-whisky-exports-1-1-billion-in-lost-sales/|title=COVID COSTS SCOTCH WHISKY EXPORTS £1.1 BILLION IN LOST SALES|website=Scottishfield.co.uk|date=12 February 2021|access-date=23 March 2021}}</ref>  A [[BBC News]] headline on 12 February 2021 summarized the situation: "Scotch whisky exports slump to 'lowest in a decade'".<ref>{{cite news|url=https://www.bbc.com/news/uk-scotland-scotland-business-56040014
|title=Scotch whisky exports slump to 'lowest in a decade'|work=BBC News|date=12 February 2021|access-date=23 March 2021}}</ref>

==Primary industry==
===Agriculture and forestry===
{{see also|Agriculture in Scotland|Forestry in Scotland}}
[[File:Harvest home, Brickhall.jpg|thumb|right|[[Harvest]] combining in [[Bridge of Earn]]]]
A very small proportion of Scotland's total land mass is classified as [[Arable land|arable]] – circa 10% based on Scottish Government figures.<ref>{{Cite web|url=https://www.struttandparker.com/knowledge-and-research/explaining-the-rise-in-price-of-scottish-arable-land|title=Explaining the rise in price of Scottish arable land &#124; Strutt & Parker|website=Struttandparker.com}}</ref>  [[Barley]], wheat and [[potatoes]] are grown in eastern parts of Scotland such as Aberdeenshire, Moray, Highland, Fife and the [[Scottish Borders]].<ref name="Crop Production in the East of Scotland">{{cite web |title=Crop Production in the East of Scotland |url=https://www.sasa.gov.uk/sites/default/files/Crop%20Production%20in%20East%20of%20Scotland.pdf |website=Scottish Agricultural Science Agency |access-date=24 June 2025}}</ref> The Tayside and [[Angus, Scotland|Angus]] area is a centre of production of soft fruits such as [[Strawberry|strawberries]], [[Raspberry|raspberries]] and [[Loganberry|loganberries]], owing to the climate.<ref name="Crop Production in the East of Scotland"/> 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. Parts of the east of Scotland (areas such as [[Aberdeenshire]], Fife and [[Angus, Scotland|Angus]]) are major centres of cereal production and general cropping.<ref name="Crop Production in the East of Scotland"/> In such areas, the land is generally flatter, coastal, and the climate less harsh, and more suited to [[Tillage|cultivation]].<ref name="Crop Production in the East of Scotland"/> 

The south-west of Scotland – principally [[Ayrshire]] and [[Isle of Arran |Arran]], and [[Dumfries and Galloway]] – is a centre of [[dairying]].<ref>{{cite web |title=Ayrshire & Arran {{!}} Scotland.org |url=https://www.scotland.org/live-in-scotland/where-to-live-in-scotland/ayrshire-arran#:~:text=Agriculture%20is%20one%20of%20the,known%20for%20its%20pork%20products. |website=Scotland |access-date=24 June 2025 |language=en}}</ref><ref>{{cite web |title=Dairy |url=https://www.futuremuseum.co.uk/collections/life-work/key-industries/agriculture/dairy#:~:text=The%20cheese%20grew%20popular%20at,of%20liquid%20milk%20and%20cream. |website=Future Museum |access-date=24 June 2025}}</ref> Agriculture, especially [[Cropping system|cropping]] in Scotland, is highly mechanised and generally efficient. Farms tend to cover larger areas than their European counterparts. [[Hill farming]] is also prominent in the [[Southern Uplands]] in the south of Scotland, resulting in the production of wool, [[lamb and mutton]]. Cattle rearing, particularly in the east and south of Scotland, results in the production of large amounts of beef. Farming in Scotland was affected by [[Bovine spongiform encephalopathy|BSE]] and the European ban on the importation of British beef from 1996. Dairy and cattle farmers in south-west Scotland were affected by the [[2001 UK foot and mouth crisis|2001 UK Foot and Mouth outbreak]], which resulted in the destruction of much of their livestock as part of the [[biosecurity]] effort to control the spread of the disease.

Because of the persistence of feudalism and the land enclosures of the 19th century the ownership of most land is concentrated in relatively few hands (some 350 people own about half the land). 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.<ref>{{cite web|url=http://www.opsi.gov.uk/legislation/scotland/acts2003/asp_20030002_en_4#pt2 |title=Land Reform (Scotland) Act 2003 |publisher=Office of Public Sector Information |year=2003 |access-date=10 July 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080709044031/http://www.opsi.gov.uk/legislation/scotland/acts2003/asp_20030002_en_4 |archive-date=9 July 2008 |df=dmy}}</ref>

As of 2019, a century since the founding of the [[Forestry Commission]], about 18.5% of Scotland is forested.<ref>{{Cite web|url=https://www.gov.scot/publications/scotlands-forestry-strategy-20192029/pages/4/|title = Scotland's Forestry Strategy 2019–2029|website=Gov.scot}}</ref> The majority of forests are in public ownership, with forestry policy being controlled by [[Scottish Forestry]]. The biggest plantations and timber resources are to be found in [[Dumfries and Galloway]], [[Tayside]], [[Argyll]] and the [[Scottish Highlands]]. The economic activities generated by forestry in Scotland include planting and harvesting as well as sawmilling, the production of pulp and paper and the manufacture of higher value goods. Forests, especially those surrounding populated areas in Central Scotland, also provide a recreation resource.

===Fishing===
{{main|Fishing industry in Scotland}}
[[File:FPVJura.jpg|thumb|right|[[Marine Scotland]] patrol vessel]] 

The waters surrounding Scotland are some of the richest in Europe.<ref>{{cite web |title=SCOTLAND’S FUTURE AND SCOTTISH FISHERIES |url=https://www.gov.scot/binaries/content/documents/govscot/publications/corporate-report/2014/08/scotlands-future-scottish-fisheries/documents/00458445-pdf/00458445-pdf/govscot%3Adocument/00458445.pdf |website=Scottish Government |access-date=23 June 2025}}</ref> Fishing is an economic mainstay in parts of the North East of Scotland and along the west coast, with important fish markets in places such as [[Aberdeen]] and [[Mallaig]]. Fish and shellfish such as [[herring]], crab, [[lobster]], [[haddock]] and [[cod]] are landed at ports such as [[Peterhead]], the biggest white fish port in Europe, [[Fraserburgh]], the biggest shellfish port in Europe, [[Stornoway]], [[Lerwick]] and [[Oban]]. The seafood processing sector in Scotland supported over 3,790 jobs in 2022, 9% of the overall marine economic employment in the country.<ref name="Scotland's fisheries management strategy 2020 to 2030: delivery plan update 2025">{{cite web |title=Scotland's fisheries management strategy 2020 to 2030: delivery plan update 2025 |url=https://www.gov.scot/publications/scotlands-fisheries-management-strategy-2020-2030-delivery-plan-update-2025/ |website=www.gov.scot |access-date=23 June 2025 |language=en}}</ref> In 2023, the fishing industry generated £335 million in Gross Value Added (GVA) towards Scotland's economy, with £652 million worth of sea fish and shellfish being landed by Scottish vessels in the same year.<ref name="Scotland's fisheries management strategy 2020 to 2030: delivery plan update 2025"/>

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.<ref>{{cite web |last1=McVeigh |first1=Karen |title=Britain’s fish populations are in a ‘deeply troubling state’ – report |url=https://www.theguardian.com/environment/2023/sep/13/britains-fish-populations-are-in-a-deeply-troubling-state-report |website=The Guardian |access-date=23 June 2025 |date=13 September 2023}}</ref> 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. The Scottish fisheries sector raised concerns on agreements reached with the European Union (EU) in the aftermath of [[Brexit]] in regards to extending existing access for EU boats in exchange for "reduced checks and restrictions" on food exports.<ref>{{cite web |title=Scottish Fishermen's Federation says EU deal is 'disastrous' |url=https://www.bbc.co.uk/news/articles/c057n0745qjo |website=BBC News |access-date=23 June 2025 |date=19 May 2025}}</ref>

In tandem with the decline of sea-fishing, commercial fish farms, especially in salmon, have increased in prominence in the rivers and [[lochs]] of the north and west of Scotland. Inland waters are rich in fresh water fish such as [[salmon]] and [[trout]] although here too there has been an inexorable and so far unexplained decline in abundance over the past decades.<ref>{{Cite web |title=Fisheries Research Services The Changing Abundance of Spring Salmon |url=http://www.riverdee.org.uk/FileLibrary/Content/Publications/CS2.pdf |url-status=dead |archive-url=https://web.archive.org/web/20120303030717/http://www.riverdee.org.uk/FileLibrary/Content/Publications/CS2.pdf |archive-date=3 March 2012}}</ref>

===Mineral resources===
Scotland has a large abundance of natural resources from fertile land suitable for agriculture, to oil and gas. In terms of mineral resources, Scotland produces coal, [[zinc]], iron and [[oil shale]]. The coal seams beneath central Scotland, in particular in [[Ayrshire]] and [[Fife]] contributed significantly to the industrialisation of Scotland during the 19th and 20th centuries. The mining of coal – once a major employer in Scotland has declined in importance since the later half of the 20th century, due to cheaper foreign coal and the exhaustion of many seams. The last deep-coal mine was at [[Longannet coal mine|Longannet]] on the [[Firth of Forth]] which closed in 2016.<ref>{{Cite news|date=2016-03-24 |title=Longannet power station closes ending coal power use in Scotland |url=http://www.theguardian.com/environment/2016/mar/24/longannet-power-station-closes-coal-power-scotland |access-date=2022-04-02 |newspaper=[[The Guardian]] |language=en}}</ref> A modest amount of opencast coal mining continues.

====Fracking====
In October 2017, the Scottish Government announced a ban on fracking after a six year struggle that saw "massive opposition to the industry across the country".<ref>{{Cite web|url=https://foe.scot/campaign/fracking/|title=Fracking|website=Foe.scot|date=18 February 2021 |access-date=26 June 2022}}</ref> The Scottish Government states that it is taking a cautious, considered and evidenced-based approach to [[Hydraulic fracturing|fracking]]. In January 2015 the Scottish Government placed a moratorium on granting consents for [[unconventional oil]] and gas extraction.<ref>{{Cite news|url=http://www.theguardian.com/environment/2015/jan/28/scotland-announces-moratorium-on-fracking-for-shale-gas|title=Scotland announces moratorium on fracking for shale gas|date=28 January 2015|newspaper=[[The Guardian]]}}</ref> 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. The Scottish Government has stated that no fracking can or will take place in Scotland while the moratorium remains in place.

====Oil and gas====
{{main|North Sea oil|Oil industry in Scotland}}
[[File:North Sea oil rig.jpg|thumb|left|An [[Oil platform|oil rig]] in the [[North Sea]]. Oil production is centred in the waters off the Scottish northeast coast.]]
[[Scottish waters]] consisting of a large sector of the North Atlantic and the North Sea, containing the largest [[Petroleum|oil]] [[Oil resources|resources]] in [[Western Europe]] –
The UK is one of Europe's largest petroleum producers, with the discovery of [[North Sea oil]] transforming the Scottish economy. Oil was discovered in the North Sea in 1966, with the first year of full production taking place in 1976.<ref>{{Cite book|last=Shepherd|first=Mike|title=Oil Strike North Sea: A first-hand history of North Sea oil.|publisher=Luath Press|year=2015}}</ref> 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. [[Sullom Voe]] in Shetland is the site of a major oil terminal, where oil is piped in and transferred to tankers. Similarly the [[Flotta oil terminal|Flotta Oil Terminal]] in [[Orkney]] is linked by a 230&nbsp;km long pipeline to the Piper and Occidental oil fields in the [[North Sea]].<ref>{{cite web|url=http://www.scotland.gov.uk/Publications/2008/12/08085633/0 |publisher=[[The Scottish Government]] |page=28 |title=Scottish Marine Bill Strategic Environmental Assessment (SEA): Environmental Report (ER) |url-status=dead |access-date=26 February 2013 |archive-url=https://web.archive.org/web/20130202040405/http://scotland.gov.uk/Publications/2008/12/08085633/0 |archive-date=2 February 2013}}</ref> [[Grangemouth]] is at the centre of Scotland's [[petrochemical]]s industry. The oil related industries are a major source of employment and income in these regions. It is estimated that the industry employs around 100,000 workers (or 6% of the working population) of Scotland.<ref name="2. The Importance of Oil and Gas Sector for a Just Transition in Scotland">{{cite web |title=2. The Importance of Oil and Gas Sector for a Just Transition in Scotland |url=https://www.gov.scot/publications/scottish-government-policy-trade-promotion-support-fossil-fuel-energy-sector-overseas/pages/5/ |website=www.gov.scot |access-date=23 June 2025 |language=en}}</ref>

Although North Sea oil production has been declining since 1999, an estimated 920 million tonnes of recoverable crude oil remained in 2009. Over two and a half billion tonnes were recovered from UK offshore oil fields between the first North Sea crude coming ashore in 1975 and 2002,<ref>{{cite web|url=http://www.scottish-enterprise.com/sedotcom_home/your-sector/sector-energy/energy-background/energy-oil-gas.htm|archive-url=https://web.archive.org/web/20090303101917/http://www.scottish-enterprise.com/sedotcom_home/your-sector/sector-energy/energy-background/energy-oil-gas.htm |archive-date=3 March 2009|url-status=dead|title= Oil and gas research and information|website=Scottish Enterprise}}</ref> with most oil fields being expected to remain economically viable until at least 2020. High oil prices have resulted in a resurgence of oil exploration, specifically in the North East Atlantic basin to the west of [[Shetland]] and the [[Outer Hebrides]], in areas that were previously considered marginal and unprofitable.<ref>[https://archive.today/20110629100038/http://www.timesonline.co.uk/article/0,,2090-1938389,00.html Hopes of Western Isles bonanza as Shell starts searching for oil] The Times December 2005</ref> The North Sea oil and gas industry contributed £35&nbsp;billion to the UK economy (a little under 1% of GDP) in 2014 and is expected to decline in the coming years.<ref>{{cite news |url=https://www.bbc.co.uk/news/uk-scotland-scotland-business-27129660 |work=BBC News |title=Oil and gas industry 'worth £35bn annually' to UK economy | date=23 April 2014}}</ref> The Scottish Government has pursued a transition period away from oil and gas extraction towards a more "green and renewable future" in an attempt to meet reductions in greenhouse gas emissions, but has recognised the strength and importance of the oil and gas sector towards the economy, pledging to "work closely with the oil and gas sector to enable a safe, effective and just energy transition".<ref name="2. The Importance of Oil and Gas Sector for a Just Transition in Scotland"/>

==Secondary sector==
===Shipbuilding===
[[File:Royal Navy Type 45 destroyer HMS Daring MOD 45154175.jpg|thumb|[[HMS Daring (D32)|HMS ''Daring'']]. Although diminished from its early 20th-century heights, Glasgow remains the hub of the UK's [[shipbuilding]] industry.]]
Scotland's heavy industry began to develop in the second half of the 18th century. The [[Carron Company]] established its ironworks at Falkirk in 1759, initially using imported ore but later using locally sourced [[Ironstone]]. The iron industry expanded tenfold between 1830 and 1844.<ref>{{cite book| last=Lynch| first=Michael| title=Scotland: A New History| publisher=Pimlico| year=1992| isbn=0-7126-9893-0| page=[https://archive.org/details/scotlandnewhisto0000lync/page/408 408]| url=https://archive.org/details/scotlandnewhisto0000lync/page/408}}</ref> The [[shipbuilding]] industry on the River Clyde increased greatly from the 1840s and by 1870 the Clyde was producing more than half of Britain's tonnage of shipping.<ref>{{cite web|url=http://www.theglasgowstory.com/storyd.php|title=Second City of The Empire: 1830s to 1914|publisher=The Glasgow Story|year=2004|access-date=9 July 2008|first=W. Hamish|last=Fraser}}</ref> The heavy industries based around shipbuilding and locomotives went into severe decline after the Second World War.<ref>{{cite web|url=http://www.glasgow.gov.uk/en/AboutGlasgow/History/Industrial+Decline.htm |title=Industrial decline – the 20th Century |publisher=Glasgow City Council |date=28 March 2008 |access-date=2 February 2009 |url-status=dead |archive-url=https://web.archive.org/web/20080703181337/http://www.glasgow.gov.uk/en/AboutGlasgow/History/Industrial%2BDecline.htm |archive-date=3 July 2008}}</ref>

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.<ref>Catriona M. M. MacDonald, and E. W. McFarland, ''Scotland and the Great War'' (1999)</ref> The disadvantage of concentration on heavy industry became apparent: other countries were themselves industrialising and were no longer markets for Scottish products. Within Britain itself there was also more centralisation, and industry tended to drift to the south, leaving Scotland as a neglected fringe. The entire period between the world wars was one of economic depression, of which the worldwide Great Depression of 1929–1939 was the most acute phase. The economy revived with munitions production during the Second World War. After 1945, however, the older heavy industries continued to decline and the government provided financial encouragement to many new industries, ranging from atomic power and petrochemical production to light engineering. The economy has thus become more diversified and therefore more stable.

===Manufacturing===
[[File:Scottish Aviation HP-137 Jetstream T1, UK - Air Force AN1878249.jpg|thumb|right|The [[Handley Page Jetstream]], built by [[Scottish Aviation]] (1967–1975)]] 
Manufacturing in Scotland has shifted its focus, with heavy industries such as shipbuilding and iron and steel declining in their importance and contribution to the economy. 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. 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 engineering and [[Defense contractor|defence]] sectors employ around 30,000 people in Scotland. The principal companies operating in the sector include; [[BAE Systems]], [[Rolls-Royce plc|Rolls-Royce]], [[Raytheon]], [[Alexander Dennis]], [[Thales Group|Thales]], [[SELEX Galileo]], [[Weir Group]] and [[Babcock International Group|Babcock]]. The decline of heavy industry resulted in a sectoral shift of labour. This led to smaller firms strengthening links with the academic community and substantial, industry-specific retraining programmes for the workforce.

[[Scottish Aviation]] produced a number of internationally successful aircraft, mostly notably the [[Scottish Aviation Pioneer]], [[Scottish Aviation Twin Pioneer]], the [[Handley Page Jetstream]] and the [[Scottish Aviation Bulldog]]. The Bulldog aircraft was a major success for Scottish Aviation, having sold large numbers to the [[Swedish Air Force]].<ref>{{cite book |last1=Jarvie |first1=Frances and Gordon |title=Flight in Scotland |date=2009 |publisher=NMS Enterprises Limited - Publishing |location=Edinburgh |isbn=978-1-905267-24-8 |pages=26–27 |edition=1st}}</ref> Scottish Aviation is now part of BAE System, and continues to be based and operates from [[Prestwick]] in [[South Ayrshire]].<ref>{{cite book |last1=Jarvie |first1=Frances and Gordon |title=Flight in Scotland |date=2009 |publisher=NMS Enterprises Limited - Publishing |location=Edinburgh |isbn=978-1-905267-24-8 |pages=26–27 |edition=1st}}</ref> [[William Beardmore and Company]] were granted a licence to build German aeroplanes, and were the only Scottish company to build [[airships]] – the [[R33-class airship]] and the engines for the [[R101]]. By the end of [[World War II]], Scotland's aviation industry employed an excess of 30,000 people, producing aircraft and aero-engines. The aviation industry in Scotland had over 150 operational companies in 2009, with Scotland's west coat aviation sector primarily operating within manufacture, repair and overhaul, whilst the east coast of the country is mostly associated with avionic, including radar, laser systems and cockpit displays manufacturing.<ref>{{cite book |last1=Jarvie |first1=Frances and Gordon |title=Flight in Scotland |date=2009 |publisher=NMS Enterprises Limited - Publishing |location=Edinburgh |isbn=978-1-905267-24-8 |pages=26–27 |edition=1st}}</ref>

===Whisky===
{{main|Scotch whisky}}
[[File:Glenfiddich Distillery stills.jpg|right|thumb|250px|[[Glenfiddich distillery|Glenfiddich whisky distillery]] in [[Moray]]]]
Whisky is probably the best known of Scotland's manufactured products. Exports have increased by 87% from 2003 to 2013 and it contributes over £4.25 billion to the UK economy, making up a quarter of all its food and drink revenues.<ref>{{cite web|title=Scotch Whisky Exports Hit Record Level |author=Scotch Whisky Association |url=http://www.scotch-whisky.org.uk/documents/scotch-whisky-exports-hit-record-level/ |access-date=12 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130523183816/http://www.scotch-whisky.org.uk/documents/scotch-whisky-exports-hit-record-level/ |archive-date=23 May 2013}}</ref> It is also one of the UK's overall top five manufacturing export earners and it supports around 35,000 jobs.<ref>{{cite web|title=Scotch Whisky Briefing 2013 |author=Scotch Whisky Association |url=http://www.scotch-whisky.org.uk/news-media/media-press/publications/publication/2039/scotch-whisky-briefing-2013/ |access-date=12 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130507123559/http://www.scotch-whisky.org.uk/news-media/media-press/publications/publication/2039/scotch-whisky-briefing-2013/ |archive-date=7 May 2013 }}</ref> Principal whisky producing areas include [[Strathspey, Scotland|Speyside]] and the [[Islay|Isle of Islay]], where there are nine distilleries providing a major source of employment. In many places, the industry is closely linked to tourism, with many distilleries also functioning as attractions worth £30&nbsp;million [[Gross value added|GVA]] each year.<ref>{{cite web|title=Scotch Whisky Exports & Visitor Numbers Soar |author=The Whisky Barrel |url=http://www.thewhiskybarrel.com/blog/post/scotch-whisky-exports-soar |access-date=12 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131019085548/http://www.thewhiskybarrel.com/blog/post/scotch-whisky-exports-soar |archive-date=19 October 2013 |date=11 September 2011 }}</ref>

===Car manufacturing===

Prior to World War I, Scotland's car production industry was amongst the leading carmakers in the United Kingdom, with roughly fifty car manufacturing companies operating in Scotland before 1914.<ref name="BBC - Education Scotland 14+ History - Social Change: Employment">{{cite web |title=BBC - Education Scotland 14+ History - Social Change: Employment |url=https://www.bbc.co.uk/scotland/education/hist/employment/cars/section_b/index.shtml |website=www.bbc.co.uk |access-date=20 June 2025}}</ref> The largest of Scotland's car manufacturers were [[Argyll (car)|Argyll]], [[Arrol Johnston]], and [[Albion Motors]].<ref name="BBC - Education Scotland 14+ History - Social Change: Employment"/> Arrol-Johnston was the first automotive company to manufacture a vehicle in the United Kingdom at a factory in Camlachie, in the east end of Glasgow.<ref name="The Scottish cars that didn't always hit top gear">{{cite web |last1=Smith |first1=Kenny |title=The Scottish cars that didn't always hit top gear |url=https://www.scottishfield.co.uk/scotland-travel/the-scottish-cars-that-didnt-always-hit-top-gear/ |website=Scottish Field |access-date=20 June 2025 |date=24 January 2020}}</ref> Albion Motors was subsumed by [[Leyland Motors]] in 1951 and continued to the manufactured as Albion until 1972 when the Albion marque was phased out in favour of the [[British Leyland]] marque.<ref>{{cite web |title=Those were the days -Albion Motors, Scotstoun: 1960 and 1966 |url=https://www.heraldscotland.com/opinion/18313496.days--albion-motors-scotstoun-1960-1966/ |website=The Herald |access-date=20 June 2025 |language=en |date=18 March 2020}}</ref>

[[File:AC 3000ME (2) (Scotland Version, 1984-1985, open targa roof, front right) (cropped).jpg|thumb|left|The [[AC 3000ME]] is considered to be the last production vehicle manufactured in Scotland]]

With the advancement of car production in the 1930s, the majority of Scotland's car manufacturers struggled to adapt to changes within the market as well as production methods, ultimately leading to their closures as a result of international competition and small scale production methods.<ref name="BBC - Education Scotland 14+ History - Social Change: Employment"/> Following World War II, the government failed in attempts to persuade a "large scale company" to build vehicles at a factory facility in Scotland which had previously served as a manufacturing plant for tanks during the war effort. Consequently, a new car production facility in Scotland would not open until the 1960s.<ref name="BBC - Education Scotland 14+ History - Social Change: Employment"/> 

Car manufacturing and production in Scotland was largely supported by the [[Rootes Group]]. The Rootes Group opened a car manufacturing plant in [[Linwood, Renfrewshire]] in 1963 at a cost of £23.5M,<ref>{{cite book |last1=Devine |first1=T M |title=The Scottish Nation 1700-2000 |date=1999 |publisher=Penguin |isbn=0140230041 |page=573}}</ref> supported by regional development incentives,<ref name="KRIS">{{cite book |last1=Roy |first1=Kenneth |title=The Invisible Spirit: A life of post-war Scotland 1945-75 |date=2013 |publisher=ICS Books |isbn=9780954652784 |pages=488-491 }}</ref> and in the space of eighteen years, the facility produced 440,000 vehicles for the company. The plant underwent various ownership changes since opening, first to American car company [[Chrysler]] before beginning a decline in production during the late 1970s and early 1980s under the ownership of [[Peugeot]]–[[Talbot]].  The [[Hillman Imp]] was the first car to be built in Scotland in 35 years,<ref name="KRIS"/> and the plant later also began production of the [[Hillman Avenger]]. The plant ceased production in February 1981.<ref>{{cite web |last1=McLean |first1=David |title=In pictures: The story of Linwood, Scotland's legendary car plant |url=https://www.scotsman.com/heritage-and-retro/heritage/in-pictures-the-story-of-linwood-scotlands-legendary-car-plant-3136385 |website=Scotsman |access-date=11 August 2024}}</ref> The [[AC 3000ME]] is considered to be the last production vehicle to have been manufactured in the country.<ref name="The Scottish cars that didn't always hit top gear"/>

===Textiles===
[[File:Pringles of Scotland - Storefront - Grove Mall - Windhoek, Namibia.jpg|thumb|right|220px|[[Pringle of Scotland]], a luxury fashion brand based in Edinburgh]] 

Historically Scotland's export trade was based around animal hides and wool. This trade was firstly organised around religious centres such as [[Melrose Abbey]].<ref>{{cite book| last=Lynch| first=Michael| title=Scotland: A New History| publisher=Pimlico| year=1992| isbn=0-7126-9893-0| pages=[https://archive.org/details/scotlandnewhisto0000lync/page/62 62–63]| url=https://archive.org/details/scotlandnewhisto0000lync/page/62}}</ref> The trade expanded towards long-established maritime bases for Scottish trade at [[Bruges]] and then [[Veere]]<ref>{{cite web|title=The Scottish Staple at Veere |url=http://www.fdca.org.uk/FDCAVeereStaple.html |access-date=1 February 2009 |url-status=dead |archive-url=https://web.archive.org/web/20101204022628/http://www.fdca.org.uk/FDCAVeereStaple.html |archive-date=4 December 2010 }}</ref><ref>{{cite web|title=Museum De Schotse Huizen |url=http://www.schotsehuizen.nl/schotsehuizen/english.html |access-date=1 February 2009 |url-status=dead |archive-url=https://web.archive.org/web/20081210043521/http://www.schotsehuizen.nl/schotsehuizen/english.html |archive-date=10 December 2008 }}</ref> in the Low Countries and at [[Elbląg]] and [[Gdańsk]] in the Baltic.<ref>{{cite web|title=Letter of five Scots to Gdansk City Council with request for citizenship, dated 1594 |url=http://www.poland.pl/archives/modernera/article,,id,271205.htm |access-date=1 February 2009 |url-status=dead |archive-url=https://web.archive.org/web/20080611165717/http://www.poland.pl/archives/modernera/article%2C%2Cid%2C271205.htm |archive-date=11 June 2008 }}</ref>

During the 18th century, the trade in [[linen]] overtook that in wool, peaking at over 12 million yards produced in 1775.<ref>Lynch, p381.</ref> 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]]. By 1770, [[Glasgow]] was the largest linen manufacturer in Britain.<ref>Michael Meighan, ''Glasgow: A History'' (Amberley Publishing, 2013), p. 47.</ref>

Cotton began to replace linen in economic importance during the 1770s, with the first mill opening in [[Penicuik]] in 1778.<ref>Lynch, p382-3</ref> The trade brought urbanisation of the population, including large numbers of migrants from the Highlands and from Ireland. The thread manufacturers [[Coats plc]] had its origin in that trade. In 1782, George Houston built what was then one of the largest cotton mills in the country in [[Johnstone]].<ref>Anthony Cooke, ''The Rise and Fall of the Scottish Cotton Industry, 1778-1914'' (Manchester University Press, 2010), p. 30.</ref>

In modern times, [[knitwear]] and [[tweed (cloth)|tweed]] are seen as traditional cottage industries but names like [[Pringle of Scotland|Pringle]] and [[Lyle & Scott]] have given Scottish knitwear and apparel a presence on the international market. Despite increasing competition from low-cost textile producers in SE Asia and the [[Indian subcontinent]], textiles in Scotland is still a major employer with a workforce of around 22,000. Furthermore, the textiles industry is the seventh-largest exporter in Scotland accounting for over 3% of all Scottish manufactured products.<ref>{{Cite web |title=Scottish Enterprise – Textile Industry, Facts and Figures |url=http://www.scottish-enterprise.com/sedotcom_home/sig/textiles/4_15_2_key_facts_and_figures.htm?siblingtoggle=1 |url-status=dead |archive-url=https://web.archive.org/web/20060322211705/http://www.scottish-enterprise.com/sedotcom_home/sig/textiles/4_15_2_key_facts_and_figures.htm?siblingtoggle=1 |archive-date=22 March 2006}}</ref>

===Electronics===
{{main|Silicon Glen}}
[[File:20231022 Rockstar North.jpg|thumb|right|Global HQ of [[Rockstar North]], creator of the ''[[Grand Theft Auto]]'' franchise, in Edinburgh]] 
[[Silicon Glen]] is the phrase that was used to describe the growth and development of Scotland's [[hi-tech]] and electronics industries in the [[Central Lowlands|Central Belt]] through the 1980s and 1990s, analogous to the larger concentration of hi-tech industries in [[Silicon Valley]], California. Companies such as [[IBM]] and [[Hewlett-Packard]] have been in Scotland since the 1950s being joined in the 1980s by others such as [[Sun Microsystems]] (now owned by [[Oracle Corporation|Oracle]]). The IBM factory campus in Greenock was demolished in 2019/2020. IBM no longer manufacture any electronics in Scotland but instead provide consultancy services. 45,000 people are employed by electronics and electronics-related firms, accounting for 12% of manufacturing output. In 2006, Scotland produced 28% of Europe's PCs; more than seven per cent of the world's [[Personal computer|PC]]s; and 29% of Europe's notebooks.<ref>{{Cite web |title=Key Facts and Figures on the Electronics Industry from Scottish Enterprise |url=http://www.scottish-enterprise.com/sedotcom_home/sig/electronics/electronics_key_facts_and_figures.htm?siblingtoggle=1 |url-status=dead |archive-url=https://web.archive.org/web/20060322180721/http://www.scottish-enterprise.com/sedotcom_home/sig/electronics/electronics_key_facts_and_figures.htm?siblingtoggle=1 |archive-date=22 March 2006}}</ref>

Two major game developers are based in Scotland; [[Rockstar North]] (previously DMA Design, famed for the ''[[Lemmings]]'' trilogy), who are best known as the creators of the ''[[Grand Theft Auto]]'' franchise, and [[Rockstar Dundee]], best known for developing ''[[Crackdown 2]]''.

===Construction===
Scotland builds around 21,000 to 22,000 new homes per year, about 1% of its existing dwelling stock. According to Property Wire, the number of new homes built in Scotland during 2018 reached over 20,000 for the first time in a decade, a rise of 15% in the previous year, official data indicates that the number of new homes built in Scotland were up 15% year-on-year.<ref>{{Cite web|url=https://www.propertywire.com/news/uk/number-of-new-homes-built-in-scotland-up-15-year-in-year/|title=Number of new homes built in Scotland up 15% year on year|website=Propertywire.com|date=12 June 2019}}</ref> In 2019 there were 21,805 new homes built according to the 'Housing Statistics for Scotland Quarterly Update', published on 10 March 2020.  

The Scottish construction industry contributes £8.5 billion in revenue for the economy and supports in excess of 175,000 jobs across the sector as reported in 2021.<ref>{{cite web |title=Building Scotland’s Construction Industry |url=https://www.fmb.org.uk/resource/building-scotland-s-construction-industry.html |website=www.fmb.org.uk |access-date=24 June 2025 |language=en}}</ref> The net value of new building and repairs, maintenance and improvements combined is just under £11.6&nbsp;billion, which is about 4.5% of Scottish GDP.<ref name="Homes"/>

==Tertiary and service industries==
[[File:City og Edinburg - Aman Gujar.jpg|thumb|right|[[Edinburgh]], ranked the 13th largest financial centre internationally and the 4th largest in Europe in 2020<ref>{{cite web| url = https://scottishfinancialreview.com/2020/09/25/edinburgh-4th-in-europe-in-new-financial-centres-index/| title = Edinburgh 4th in Europe in new Financial Centres index – Scottish Financial Review}}</ref>]]

===Financial services===
[[Edinburgh]] was ranked 15th in the [[Global Financial Centres Index|list of world financial centres]] in 2007, but fell to 37th in 2012, following damage to its reputation,<ref>Askeland, Erikka (20 March 2012) [http://www.scotsman.com/business/scots-cities-slide-down-chart-of-the-world-s-top-financial-centres-1-2182954 "Scots Cities Slide down Chart of the World's Top Financial Centres"]. ''The Scotsman''.</ref> and in 2015 was ranked 71st out of 84.<ref>[http://www.longfinance.net/images/GFCI18_23Sep2015.pdf "The Global Financial Centres Index 18"] {{Webarchive|url=https://web.archive.org/web/20170227131528/http://www.longfinance.net/images/GFCI18_23Sep2015.pdf |date=27 February 2017 }}. (September 2015) p. 5. Long Finance.</ref> 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.

Centred primarily on the cities of Edinburgh and [[Glasgow]], the financial services industry in Scotland grew by over 35% between 2000 and 2005.<ref>{{Cite web|url=http://www.sfe.org.uk/info/overview_scottish_financial_industry|archive-url=https://web.archive.org/web/20051222200403/http://www.sfe.org.uk/info/overview_scottish_financial_industry|url-status=dead|title=Scottish Financial Enterprise Industry Overview|archive-date=22 December 2005}}</ref> The financial services sector employs around 95,000 people and generates £7bn or 7% of Scotland's GDP.<ref>{{cite web|url=http://www.scottish-enterprise.com/your-sector/financial-services.aspx |title=Financial services |publisher=Scottish Enterprise |access-date=8 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130603161820/http://www.scottish-enterprise.com/your-sector/financial-services.aspx |archive-date=3 June 2013 }}</ref>

By 2020, Edinburgh was ranked the 13th largest financial centre internationally and the 4th largest in Europe in 2020.<ref>{{cite web| url = https://scottishfinancialreview.com/2020/09/25/edinburgh-4th-in-europe-in-new-financial-centres-index/| title = Edinburgh 4th in Europe in new Financial Centres index – Scottish Financial Review}}</ref>

===Banking===
{{main|List of banks in Scotland}}
[[File:Head Office Standard Life Plc.JPG|left|thumb|The global headquarters of [[Standard Life]] is based in Edinburgh.]]

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. Retail banking services to individuals followed in the 19th century, on the [[trustee savings bank]] model pioneered by [[Henry Duncan (1774–1846)|Rev. Henry Duncan]] .<ref>{{cite web|publisher=Lloyds TSB |url=http://www.lloydstsb.com/about_ltsb/tsb.asp |title=TSB |access-date=15 March 2009 |url-status=dead |archive-url=https://web.archive.org/web/20121011084801/http://www.lloydstsb.com/about_ltsb/tsb.asp |archive-date=11 October 2012 }}</ref> The Bank of Scotland was the first band in Europe to successfully print and issue its own banknotes.<ref>{{cite web |title=BOS - Internet Banking - Unavailable |url=https://www.bankofscotland.co.uk/helpcentre/our-heritage.html |website=www.bankofscotland.co.uk |access-date=9 July 2024}}</ref> It is the ninth oldest bank in the world in continuous operation, and the only institution created by the [[Parliament of Scotland]] of the sovereign [[Kingdom of Scotland]] to remain in operation.<ref>{{cite web |title=10 oldest operational banks in the world |url=https://www.tbsnews.net/world/oldest-operational-banks-world-165169 |website=The Business Standard |access-date=9 July 2024 |language=en |date=30 November 2020}}</ref>

Scotland has four clearing banks: the Bank of Scotland, [[The Royal Bank of Scotland]], the [[Clydesdale Bank]] and [[TSB Bank (United Kingdom)|TSB Bank]]. The Royal Bank of Scotland expanded internationally to be the second-largest bank in Europe, the fifth largest in the world by [[market capitalisation]] in 2002,<ref>{{cite web |title=Royal Bank of Scotland Group |url=https://www.sfe.org.uk/members-database/royal-bank-of-scotland-group |website=Scottish Financial Enterprise (SFE) |access-date=9 July 2024}}</ref> but collapsed in the 2008 financial crisis and had to be bailed out by the UK Government at a cost of £76 billion;<ref>{{cite news| url=https://www.theguardian.com/business/2011/dec/12/rbs-collapse-timeline | location=London |newspaper=[[The Guardian]] | title=RBS collapse: timeline | date=12 December 2011}}</ref> its new global headquarters in Edinburgh augmented the city's position as a major financial centre. Prior to the 2008 financial crisis Scotland ranked second only to London in the European league of headquarters locations of the 30 largest banks in Europe as measured by market value.<ref>{{Cite web|url=http://www.sfe.org.uk/info/overview_scottish_financial_industry|archive-url=https://web.archive.org/web/20060506155001/http://www.sfe.org.uk/info/overview_scottish_financial_industry|url-status=dead|title=Scottish Financial Enterprise – Financial Industry Overview|archive-date=6 May 2006}}</ref><ref name=lloyds>{{Cite web|url=https://www.lloydsbank.com/about_ltsb/tsb.asp|archive-url=https://web.archive.org/web/20121011084801/http://www.lloydstsb.com/about_ltsb/tsb.asp|url-status=dead|title=Lloyds Bank - About Lloyds Banking Group - TSB|archive-date=11 October 2012|website=Lloydsbank.com}}</ref>

Although the [[Bank of England]] remains the central bank for the UK Government, three Scottish clearing banks still issue their own banknotes: the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank. These notes are legal currency but have no status as [[legal tender]], which does not exist in Scots' Law (neither have Bank of England banknotes in Scotland); but in practice they are accepted throughout Scotland and by some retailers in the rest of the UK.<ref>{{Cite web|url=http://www.scottish.parliament.uk/business/research/briefings-03/sb03-51.pdf|archive-url=https://web.archive.org/web/20090226171022/http://www.scottish.parliament.uk/business/research/briefings-03/sb03-51.pdf|url-status=dead|title=Parliamentary Business : Scottish Parliament<!-- Bot generated title -->|archive-date=26 February 2009}}</ref> The full range of Scottish bank notes commonly accepted are £5, £10, £20, £50 and £100. (See [[British banknotes]] for further discussion).

===Investment, insurance and asset servicing===
[[File:NS5864 - Buchanan Wharf, Glasgow.jpg|thumb|right|250px|[[Buchanan Wharf]], located within the [[International Financial Services District]] in Glasgow]]
The first half of the 19th century brought the creation of many life assurance companies in Scotland, predominantly on the mutual model. By the 1980s there were nine members of the Association of Scottish Life Offices (the counterpart of the Life Offices Association) but these have demutualised and most were taken over.<ref>{{cite web |publisher=The Scotsman |url=http://business.scotsman.com/scotlandassured/A-history-of-life-as.2304321.jp |title=A history of life as we know it
 |date=21 February 2002|access-date=15 March 2009}}</ref> Standard Life, based in Edinburgh, demutualised and has remained independent.<ref>{{cite news |work=The Independent |url=https://www.independent.co.uk/news/business/analysis-and-features/standard-life-last-of-the-scottish-mutuals-presides-over-edinburghs-changing-scene-559035.html |archive-url=https://web.archive.org/web/20090607054404/http://www.independent.co.uk/news/business/analysis-and-features/standard-life-last-of-the-scottish-mutuals-presides-over-edinburghs-changing-scene-559035.html |url-status=dead |archive-date=7 June 2009 |title=Standard Life, last of the Scottish mutuals, presides over Edinburgh's changing scene
 |date=6 April 2004|access-date=15 March 2009 | location=London | first=Rachel | last=Stevenson}}</ref>

Starting in 1873, with [[Robert Fleming (financier)|Robert Fleming]]'s Scottish American Investment Trust,<ref>{{cite book | last=Fry|first=Michael | title=The Scottish Empire | publisher=Tuckwell Press | year=2001|isbn=1-84158-259-X |page=270}}</ref> a relatively broad stratum of Scots invested in international investment trust ventures. Around 80,000 Scots held foreign investment assets in the early 20th century.<ref>Fry, p. 269</ref>

Nowadays Scotland is one of the world's biggest fund management centres with over £300bn worth of assets directly serviced or managed in the country.<ref>{{Cite web|url=http://www.sfe.org.uk/info/overview_scottish_financial_industry|archive-url=https://web.archive.org/web/20060506155001/http://www.sfe.org.uk/info/overview_scottish_financial_industry|url-status=dead|title=Overview of the Scottish Financial Industry|archive-date=6 May 2006}}</ref> Scottish fund management centres have a major presence in areas such as pensions, property funds and investment trusts, as well as in retail and private client markets. 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.

===Software===
The software sector in Scotland developed rapidly and in 2016 there were an estimated 40,226<ref>{{Cite web|url=http://www.techcityuk.com/technation/|title=Tech Nation 2016 from Tech City UK|language=en-US|access-date=2016-09-20|archive-url=https://web.archive.org/web/20150501015658/http://www.techcityuk.com/technation/|archive-date=1 May 2015|url-status=dead|df=dmy-all}}</ref> people working in the digital economy across Edinburgh, Glasgow and Dundee. Scotland's history in manufacturing is being transferred into the software sector and this is attracting companies from around the world. 
Software companies developing in Scotland include [[Skyscanner]], FanDuel, [[Amazon (company)|Amazon]] and a thriving fintech community.

Several universities are playing an important role by producing research in Computing Science, including the University of Edinburgh's School of Informatics. According to the REF 2014<ref>{{Cite web|url=http://www.inf.ed.ac.uk/research/about/REF/results.html|title=REF 2014 results|website=Inf.ed.ac.uk|access-date=2016-09-20}}</ref> assessment for computer science and informatics the School of Informatics has produced more world-leading and internationally excellent research (4* and 3*) than any other university in the UK.

===Tourism===
{{main|Tourism in Scotland}}

{{multiple image
| perrow            = 2
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| align             = right
| image1            = Gleneagles Hotel and grounds.jpg
| height1           = 369
| image4            = The Kelpies on a wet October (cropped).jpg
| height4           = 2700
| image3            = Edinburgh Castle Rock.jpg
| height3           = 1200
| image2            = Loch Lomond - geograph.org.uk - 3414206.jpg
| height2           = 369
| footer            = 
| caption1          = [[Gleneagles Hotel]]
| caption2          = [[Loch Lomond]]
| caption3          = [[Edinburgh Castle]]
| caption4          = [[The Kelpies]]
}}

Tourism in Scotland generated £10.8 billion in revenue for the Scottish economy in 2023 and the country is a well-developed tourist destination with attractions ranging from unspoilt countryside, [[Mountains and hills of Scotland|mountains]] and abundant [[History of Scotland|history]].<ref>{{cite web |title=Scotland's Visitor Economy I VisitScotland.org |url=https://www.visitscotland.org/research-insights/latest-research/visitor-economy |website=www.visitscotland.org |access-date=22 June 2025 |language=en}}</ref> The tourism economy and tourism related industries in Scotland supported roughly 196,000 jobs in 2014, mainly in the service sector, accounting for around 7.7% of employment in Scotland.<ref name="visitscotland.org">{{Cite web |title=Scottish Tourism Statistics & Research {{!}} VisitScotland.org |url=http://www.visitscotland.org/research-insights |access-date=2022-04-02 |website=Visitscotland.org |language=en}}</ref> In the first quarter of 2025, 56 million leisure day visits were recorded in Scotland by those visiting and resident elsewhere in the United Kingdom, with an estimated £2 billion being spent during these visits.<ref>{{cite web |title=Domestic Day Visits {{!}} VisitScotland.org |url=https://www.visitscotland.org/research-insights/about-our-visitors/uk/day-visits-survey#:~:text=During%20the%20first%20quarter%20of,billion%20spent%20during%20these%20visits. |website=www.visitscotland.org |access-date=22 June 2025 |language=en}}</ref> In 2023, international visitors to Scotland amounted to four million visits to the country, spending an estimated £3.6 million during their visits.<ref>{{cite web |title=Tourism Performance {{!}} VisitScotland.org |url=https://www.visitscotland.org/research-insights/latest-research/tourism-performance |website=www.visitscotland.org |access-date=22 June 2025 |language=en}}</ref> In terms of overseas visitors, those from the United States made up 15% of visits to Scotland, with the United States being the largest source of overseas visitors, and Germany (13%), France (7%), Australia (6%) and Canada (5%) following behind.<ref name="visitscotland.org"/>

Tourism was particularly affected as a result for the [[Covid-19 pandemic in Scotland|Covid-19 pandemic]].<ref name="Tourism Recovery Recommendations"/> A report published in March 2021 by the [[Fraser of Allander Institute]] at the [[University of Strathclyde]] indicated that in Scotland, there was "no sign of a trend reversal with more than 70% of businesses in the sector reporting lower turnover than usual".<ref>{{cite web|url=https://fraserofallander.org/covid-19-impact-on-the-tourism-and-hospitality-sector-an-insight-from-the-latest-economic-commentary/|title=Covid-19 impact on the Tourism and Hospitality Sector, an insight from the latest Economic Commentary |date=18 March 2021 |access-date=8 April 2021|quote= ... health and economic crisis ... In particular, tourism and hospitality suffered notable losses from the pandemic.}}</ref>

The Scottish Tourism Alliance Task Force published its recommendations in October 2020, with "Immediate Actions" for both the Scottish government and the UK government, including financial grants, the funding of marketing for the sector, and a "temporary removal of Air Passenger Duty to boost route competitiveness".<ref>{{cite web|url=https://scottishtourismalliance.co.uk/tourism-recovery/ |title=Tourism Recovery Recommendations|date=23 October 2020 |access-date=8 April 2021|quote=It is imperative they work together with the industry to take action now in supporting and implementing the recommendations ... to rebuild our diverse businesses, to restore our thriving places and reimagine our memorable experiences.}}</ref> On 24 March 2021, the First Minister announced a £25 million tourism recovery programme "to support the industry for the next 6 months to two years".<ref>{{cite web|url=https://scottishtourismalliance.co.uk/first-minister-announced-25-million-for-tourism-recovery-at-sta-conference/ |title=First Minister announces £25 million for tourism recovery at STA conference|date=24 March 2021 |access-date=8 April 2021|quote=The programme, which has been developed by the Scottish Tourism Emergency Response Group (STERG) in partnership with businesses, will support the Scottish Tourism Recovery Taskforce objectives.}}</ref> Sturgeon also reminded the hospitality/tourism industry that the government had provided "over £129 million" in support "for this sector".<ref>{{cite web|url=https://www.gov.scot/news/gbp-25-million-for-tourism-recovery/ |title=£25 million for tourism recovery|access-date=8 April 2021|quote=}}</ref>

==Trade==
===Regional trade===
[[File:Export Statistics Scotland FY2015.png|thumb|right|Export statistics for Scotland's economy FY 2015]]
Excluding intra UK trade, the [[European Union]] and the United States constitute the largest markets for Scotland's exports. In the 21st century, with the high rates of growth in many emerging economies of southeast Asia such as China, [[Thailand]] and Singapore, there was a drive towards marketing Scottish products and manufactured goods in these countries.<ref>{{cite web|title=Survey of Scottish Manufactured Exports 2004/05 |author=Scottish Council for Development and Industry |url=http://www.scdi.org.uk/sr/Docs/2255.pdf |access-date=17 October 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131018005500/http://www.scdi.org.uk/sr/Docs/2255.pdf |archive-date=18 October 2013 }}</ref>

'''Note:''' Revenues from [[North Sea oil|North Sea oil and gas]] are not included in these figures.

===International trade===
{{See also|International relations of Scotland}}
{| class="wikitable"
|+ Top export destinations (excluding oil and gas)
|-
! Destination
! 2014 value<ref name="SG14">{{cite web|title=Export Statistics Scotland 2014|author=Scottish Government|url=http://www.gov.scot/Topics/Statistics/Browse/Economy/Exports/ESSPublication|access-date=14 December 2014}}</ref>
! 2016 value<ref name="SG16">{{cite web|title=Export Statistics Scotland 2016|author=Scottish Government|url=https://www2.gov.scot/Resource/0053/00530678.pdf|access-date=15 November 2018}}</ref>
! 2019 value<ref name="SG19">{{cite web|title=Export Statistics Scotland 2019|author=Scottish Government|date=December 2021 |url=https://www.gov.scot/publications/export-statistics-scotland-2019/|access-date=29 March 2023}}</ref>
|-
!colspan=4 style="background:#FFFFDD;"|By country
|-
| {{flag|United Kingdom|name=Rest of United Kingdom}}{{refn|group=lower-alpha|Includes trade with {{flag|England}}, [[Northern Ireland]] and {{flag|Wales}}, but excludes trade with [[British Overseas Territories]] or [[Crown Dependencies]].}}{{refn|group=lower-alpha|"These are exports of goods and services by Scottish companies to customers in the rest of the UK. The majority of these exports will be consumed or remain within the rest of the UK, for example electricity or service exports such as financial services. However some of these Scottish exports to the rest of the UK will feed into supply chains elsewhere in the rest of the UK and in turn, underpin the export of subsequent goods and services internationally."<ref name="SG16"/>}}
|£47,785 million
|£45,785 million
|£52,040 million
|-
| {{flag|United States}}
|£3,985 million
|£4,775 million
|£6,025 million
|-
| {{flag|France}}
|£1,860 million
|£1,960 million
|£2,920 million
|-
| {{flag|Netherlands}}
|£1,880 million
|£2,115 million
|£2,720 million
|-
| {{flag|Germany}}
|£1,845 million
|£1,910 million
|£2,370 million
|-
| {{flag|Republic of Ireland|name=Ireland}}
|£1,125 million
|£1,025 million
|£1,445 million
|-
| {{flag|Belgium}}
|£605 million
|£760 million
|£1,270 million
|-
| {{flag|Norway}}
|£1,200 million
|£1,365 million
|£1,100 million
|-
| {{flag|Spain}}
|£815 million
|£855 million
|£1,035 million
|-
| {{flag|Italy}}
|£565 million
|£715 million
|£850 million
|-
| {{flag|Australia}}
|£445 million
|£650 million
|£740 million
|-
| {{flag|Singapore}}
|£455 million
|£525 million
|£730 million
|-
| {{flag|United Arab Emirates}}
|£670 million
|£705 million
|£705 million
|-
| {{flag|Sweden}}
|£405 million
|£565 million
|£700 million
|-
| {{flag|Denmark}}
|£720 million
|£995 million
|£695 million
|-
| {{flag|China}}
|£530 million
|£555 million
|£685 million
|-
| {{flag|Brazil}}
|£875 million
|£770 million
|£640 million
|-
| {{flag|Canada}}
|£445 million
|£610 million
|£640 million
|-
| {{flag|Japan}}
|£370 million
|£460 million
|£620 million
|-
| {{flag|Switzerland}}
|£395 million
|£795 million
|£595 million
|-
| {{flag|Luxembourg}}
|''No Data''
|''No Data''
|£445 million
|-
!colspan=4 style="background:#FFFFDD;"|By world region
|-
| {{flag|European Union}}{{refn|group=lower-alpha|Excluding trade with the rest of the United Kingdom.}}
|£12,035 million
|£12,675 million
|£16,395 million
|-
| {{noflag|[[Northern America|North America]]}}
|£4,915 million
|£5,385 million
|£6,665 million
|-
| {{noflag|[[Asia]]}}
|£3,135 million
|£3,175 million
|£3,860 million
|-
| {{noflag|[[Europe|Rest of Europe]]}}
|£2,870 million
|£2,845 million
|£2,505 million
|-
| {{noflag|[[Middle East]]}}
|£1,720 million
|£1,660 million
|£1,845 million
|-
| {{noflag|[[Africa]]}}
|£1,590 million
|£1,640 million
|£1,430 million
|-
| {{noflag|[[Latin America|Central and South America]]}}
|£1,390 million
|£1,575 million
|£1,490 million
|-
| {{noflag|[[Australasia]]}}
|£605 million
|£810 million
|£865 million
|-
|''Unallocable''
|''£865 million''
|''No Data''
|''No Data''
|-
|'''Total'''
|'''£28,235 million'''
|'''£29,790 million'''
|'''£35,055 million'''
|}

The total value of international exports from Scotland in 2014 (excluding oil and gas) was estimated at £27.5 billion. The top five exporting industries in 2014 were food and drink (£4.8 billion), legal, accounting, management, architecture, engineering, technical testing and analysis activities (£2.3 billion), manufacture of refined petroleum and chemical products (£2.1 billion), mining and quarrying (£1.9 billion) and wholesale and retail trade (£1.8 billion). The total value of exports from Scotland to the rest of the UK in 2014 (excluding oil and gas) was estimated at £48.5 billion.<ref name="SG14"/>

Including all items Scotland, as the rest of the UK, runs a substantial trade deficit. In 2020 Scottish exports of goods and service including oil and gas totalled £78.4 billion in value while imports were worth £90.6 billion leaving Scotland with a trade deficit of £12.2 billion.<ref>{{Cite web |title=Scotland net trade 2020 |url=https://www.statista.com/statistics/348541/scotland-net-trade/ |access-date=2022-06-13 |website=Statista |language=en}}</ref>

==Infrastructure==
===Transport===
{{See also|Transport in Scotland}}

====Ports====
[[File:Flughafen Koeln-Bonn (38560545386).jpg|thumb|right|[[Edinburgh Airport]] is the busiest in Scotland in terms of passenger numbers.]] 
[[File:Cruise ship Queen Victoria at Greenock - geograph.org.uk - 5776898.jpg|thumb|right|''[[MS Queen Victoria]]'' docked at Greenock]] 
The primary airports in Scotland are [[Edinburgh Airport]], [[Glasgow Airport]], [[Glasgow Prestwick Airport]], [[Aberdeen Airport]], [[Inverness Airport]] and [[Dundee Airport]]. Most airports in Scotland were privatised in the 1980s, with the exception of those owned and operated by [[HIAL]] which operate airports in many islands which provide flights to mainland Scotland.<ref>{{cite web |last1=Ison |first1=Stephen |last2=Francis |first2=Graham |last3=Humphreys |first3=Ian |last4=Page |first4=Richard |title=UK regional airport commercialisation and privatisation |url=https://www.sciencedirect.com/science/article/abs/pii/S0966692311000986 |website=Journal of Transport Geography |access-date=24 June 2025 |pages=1341–1349 |doi=10.1016/j.jtrangeo.2011.06.005 |date=1 November 2011}}</ref>

In 2004, 22.6&nbsp;million passengers used Scotland's airports, with there being 514,000 aircraft movements<ref>{{Cite web |title=Scottish Transport Statistics |url=http://www.scotland.gov.uk/Publications/2005/08/25100154/03520 |url-status=dead |archive-url=https://web.archive.org/web/20110607115854/http://www.scotland.gov.uk/Publications/2005/08/25100154/03520 |archive-date=7 June 2011}}</ref> with Scottish airports being amongst the fastest growing in the United Kingdom in terms of passenger numbers. Plans have been published by the major airport operator [[BAA plc]] to facilitate the expansion of capacity at the major international airports of [[Aberdeen International Airport|Aberdeen]], [[Edinburgh International Airport|Edinburgh]] and [[Glasgow International Airport|Glasgow]], including new terminals and runways to cope with a large forecast rise in passenger use. [[Prestwick International Airport|Prestwick Airport]] also has large air freight operations and cargo handling facilities. Scotland is well-served by many airlines and has an expanding international route network, with long-haul services to [[Dubai]], New York, [[Atlanta]] and Canada.

Additionally, Scotland has a number of seaports, including, [[Greenock#Shipping|Clydeport]], [[Hunterston Ore Terminal]], [[Grangemouth]], Port of Dundee, [[Port of Aberdeen]], and [[Port of Inverness]] however there are significant ports at [[Scapa Flow]], [[Sullom Voe]] and [[Flotta oil terminal|Flotta]]. Grangemouth is the only port with a railway connection with W12 gauge clearance; allowing for intermodal containers to be transported by rail. The [[Greenock and Ayrshire Railway|Greenock and Ayrshire railway]] railway tunnel underneath [[Greenock]] connecting Clydeport to the rail network is disused and its tunnels are too small for intermodal containers to be transported by rail. The Port of Aberdeen has a rail connection, but is unable to transport all types of intermodal containers.

Many island communities on Scotland's north and western seaboard are served by lifeline ferry services commissioned by the Scottish Government.<ref>{{cite web| url = https://www.transport.gov.scot/public-transport/ferries/| title = Transport Scotland's Ferries|website=Transport.gov.scot}}</ref> These ferry services are vital to island communities' economy by bringing in goods and tourists and in exporting textiles, whisky and other produce. These services usually and interface with the trunk road network on the Scottish mainland.

====Trunk roads====
[[File:Queensferry Bridge 2 (36766036234).jpg|thumb|left|The [[Queensferry Crossing]] carries the [[M90 motorway|M90]] motorway across the [[Firth of Forth]].]]
The trunk road network is a network of high-priority roads covering mainland Scotland, ensuring that all the major ports, population centres, and islands remain connected. These roads are maintained to a specified standard with traffic alerts published through [[Traffic Scotland]] in order to assist hauliers and are available on the [https://www.transport.gov.scot/publication/scottish-trunk-road-network-map/ Transport Scotland website].  Trunk roads can be single-carriageway, dual carriageway or motorways and are not correlated to traffic volumes, but are determined on how significant the roads' closure would affect the local economy and supplies.  With the exception to the [[M90 motorway|M90]] between Perth and western Edinburgh - a dual-carriageway road upgraded to motorway standard - all motorways in Scotland radiate outwards from Strathclyde.

Infrastructure in Scotland is varied in its provision and its quality. The densest network of roads and railways is concentrated in the [[Central Belt|Central Lowlands]] of the country where around 70% of the population live. 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. Key routes include the [[M8 motorway (Scotland)|M8 motorway]], which is one of the busiest and most important major routes in Scotland, with other primary routes such as the [[A9 road (Great Britain)|A9]] connecting the [[Highlands of Scotland|Highlands]] to the Central Belt, and the [[A90 road (Great Britain)|A90]]/[[M90 motorway|M90]] connecting Edinburgh and Aberdeen in the east. The [[M74 motorway|M74]] and [[A1 road (Great Britain)|A1]], in the west and east of the country, respectively, provide the main road corridors from Scotland to England. Many roads in the Highlands are single track, with passing places.{{cn|date=January 2024}}

====Railways====
{{main|ScotRail}}
[[File:Stirling - Abellio 383031 and the Wallace Memorial.JPG|thumb|right|A ''[[ScotRail]]'' Class 385031 makes its way out of [[Stirling]] towards [[Alloa]].]]
The Scottish railway networks were built in the Victorian era by private investors, primarily for the movement of goods, such as coal. In 1963, the UK Transport Minister [[Ernest Marples]] commissioned a [[Beeching cuts|review of the railway network]] which recommended closures in many places, which were adopted.  A reprieve was earned by Liberal MPs in the Highlands who successfully argued that the skeletal railway network in the highlands was the only system which still functioned during periods of heavy snow when roads were blocked. These railways were kept open, however many uneconomic local railway services were closed as they had lost passenger traffic to the bus and the car, and goods traffic to road hauliers. Most railway services today are local passenger services in and around Glasgow, and intercity or regional passenger rail services as part of the [[ScotRail (brand)|ScotRail franchise]], currently operated by [[Abellio (transport company)|Abellio]]. The Scottish Government also commissions the [[Caledonian Sleeper]] franchise, providing overnight sleeper services to London. Both cross-border mainline services are commissioned by the UK government on the [[West Coast Main Line]] and the [[East Coast Main Line]]. Most railways in Scotland are not electrified north of Central Belt rail, however there are plans to electrify the majority of railway lines.<ref>{{Cite book |url=https://www.transport.gov.scot/media/47906/rail-services-decarbonisation-action-plan.pdf |title=Rail Services Decarbonisation Action Plan : Transport Scotland. |date=2020 |others=Transport Scotland |isbn=978-1-911582-92-2 |location=Glasgow |oclc=1238497205}}</ref>

====Local transport====
The majority of transport infrastructure are local roads, maintained by [[Local government in Scotland|Councils]]. Quality of local roads varies according to that Council's funding priorities. Bus services are private businesses operating commercially or under contract by the local Council.  [[Strathclyde Partnership for Transport|SPT]] operates the [[Glasgow Subway]] - a circular narrow-gauge railway disconnected from the rest of the railway network.  The City of Edinburgh operates the [[Edinburgh Trams]] - the only light railway in Scotland. In many of the seven crofting counties, many roads are single-track with passing places. Drivers negotiate these passing places by pulling into the left - if the pulling place is to the driver's left, the on-coming vehicle has priority.{{cn|date=January 2024}}

===Communications===
{{See also|Media in Scotland}}
[[File:STV HQ & studios, Pacific Quay, Glasgow (geograph 3573858).jpg|thumb|right|HQ and production studios of [[STV Group|STV]] in Glasgow]] 
Scotland is considered to have an advanced communications infrastructure, similar to other Western nations, and has an extensive framework of developed radio, television, landline and mobile phone, as well as broadband internet networks. As Scotland's landmass is immense, and the population sparse, the most populated areas have been focused on for 4G connection; mainly the [[Central Belt]] regions, [[Aberdeen]], [[Dundee]] and [[Inverness]].

Scotland's primary public broadcaster is [[BBC Scotland]] and operates a substantial number of television channels, including satellite channels, and numerous radio stations. Privately owned commercial TV and radio broadcasters operate a multitude national, regional and local channels.

===Energy===
{{Main|Energy in Scotland|Nuclear power in Scotland|List of power stations in Scotland}}

Energy policy in Scotland is the responsibility of the UK government, however the Scottish Parliament and Scottish Government have used their devolved powers to influence energy policy in Scotland by controlling or preventing construction of new thermal power stations or encouraging construction of wind turbines.  While matters such as preventing blackouts and regulated energy costs are UK government matters.  Some matters are negotiated between the UK and Scottish Government such as the [[Energy policy of Scotland#Beauly-Denny power line|Beauly-Denny power line]] and other projects.<ref>{{cite web |title=BEAULY - DENNY POWER LINE |url=https://edm.parliament.uk/early-day-motion/40130/beauly-denny-power-line |website=www.edm.parliament.uk |publisher=UK Parliament |access-date=10 February 2024}}</ref>

====Electricity====
{{See also|Renewable energy in Scotland}}
[[File:Whitelee Wind Farm turbines.jpg|thumb|left|A renewable energy on-shore wind farm in Scotland]]
The Energy Market is reserved by the UK government, with only the planning policy within the competency of the Scottish Parliament. Electricity Transmission infrastructure is split between two privately owned [[Distribution network operator]]s; [[ScottishPower]], and [[Scottish and Southern Energy]] and is regulated by [[Office of Gas and Electricity Markets|OfGEM]]. In addition to the regulated utilities, [[private wire]]s are also available. A very large proportion of energy is generated by wind, hydroelectric and nuclear sources. [[National Grid plc]] is the [[transmission system operator]] for the whole of the UK. [[Longannet power station]] - the last coal power station in Scotland - closed in 2016 earlier than anticipated following the reform of electricity connection charges.<ref>{{cite news| url = https://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-29477629| title = Longannet plant: Scottish Power issues warning over future - BBC News| work = BBC News| date = 3 October 2014}}</ref> Scotland has been identified as having significant potential for the development of wind power.

Scotland is endowed with some of the best renewable energy resources in Europe.<ref name=Pow>{{cite report |url=http://www.foe-scotland.org.uk/sites/www.foe-scotland.org.uk/files/power_of_scotland_0.pdf |publisher=RSPB Scotland, WWF Scotland and FOE Scotland |date=February 2006 |title=The Power of Scotland: Cutting Carbon with Scotland's Renewable Energy |access-date=13 November 2016}}</ref> The Carbon intensity of the Scottish grid is among the lowest in Europe, at 44gCO<sub>2</sub>e/kWh<ref>{{cite web| url = https://carbonintensity.org.uk/| title = Carbon Intensity|website=Carbonintensity.org.uk}}</ref><ref>{{cite web| url = https://www.electricitymap.org/map| title = electricityMap {{!}} Live CO<sub>2</sub> emissions of electricity consumption|website=Electricitymap.org}}</ref>

In 2012 the Scottish Government set a target of 40% of Scotland's electricity generation be derived from renewable sources by 2020.<ref>{{Cite web | url=http://www.scotland.gov.uk/News/Releases/2012/03/geenenergytargets29032012 | archive-url=https://archive.today/20120806000801/http://www.scotland.gov.uk/News/Releases/2012/03/geenenergytargets29032012 | url-status=dead | archive-date=2012-08-06 |title = Scotland beats 2011 green energy target}}</ref> In Q1 2020, 90.1% of electricity was generated from renewable sources.<ref>{{Cite web |date=2020-06-25 |title=Energy Statistics for Scotland - Q1 2020 Figures |url=https://www.gov.scot/binaries/content/documents/govscot/publications/statistics/2018/10/quarterly-energy-statistics-bulletins/documents/energy-statistics-summary-june-2020/energy-statistics-summary-june-2020/govscot%3Adocument/Scotland%2BEnergy%2BStats%2BQ1%2B2020.pdf |website=Scottish Government}}</ref> with onshore wind generation making the largest contribution, and supporting several thousand jobs. There are many windfarms along the coast and hills, with plans to create one of the world's largest onshore windfarms at Barvas Moor on the Hebridean [[Isle of Lewis]].<ref>{{cite news |url=http://news.nationalgeographic.com/news/2005/10/1031_051031_wind_farm.html |archive-url=https://web.archive.org/web/20051103033058/http://news.nationalgeographic.com/news/2005/10/1031_051031_wind_farm.html |url-status=dead |archive-date=3 November 2005 |title=Plan for World's Largest Windfarm Generates Controversy |first=James |last=Owen |work=National Geographic |date=31 October 2005 |access-date=13 November 2016}}</ref>

In 2022 Scotland exported a net 18.7 terawatt-hours (TWh) of electricity, 53% of the 35.2 TWh of renewable energy generated in 2022, worth £4 billion.<ref>{{cite web |title=Energy Statistics for Scotland - Q4 2022 |url=https://www.gov.scot/publications/energy-statistics-for-scotland-q4-2022/pages/electricity-exports/#:~:text=Scotland%27s%20net%20exports%20of%20electricity,a%2063%25%20increase%20on%202021. |date=30 March 2023}}</ref><ref>{{cite web |title=Energy Statistics for Scotland - Q4 2022 |url=https://www.gov.scot/publications/energy-statistics-for-scotland-q4-2022/pages/renewable-electricity-generation/ |date=30 March 2023}}</ref>

====Gas====
{{see also|Energy in the United Kingdom}}
Gas infrastructure in Scotland is owned and operated by [[SGN (company)|SGN]] and regulated by [[Office of Gas and Electricity Markets|OfGEM]]. The UK is no longer self-sufficient with natural gas from the North Sea as the UK moved away from coal powered electricity stations.  Gas is used across much of the UK for cooking and domestic heating - which also transitioned away from coal over the second half of the 20th century.<ref>{{cite web |title=A history of natural gas in the UK |url=https://obr.uk/box/a-history-of-natural-gas-in-the-uk/#:~:text=By%201993%20gas%20made%20up,UK%20total%20inland%20energy%20consumption. |website=www.obr.uk |publisher=Office for Budget Responsibility |access-date=10 February 2024}}</ref>

The Scottish Government plans to decarbonise the gas supply by 2030 by substituting natural gas with [[hydrogen]].<ref>{{Cite web|url=https://www.gov.scot/publications/vision-scotlands-electricity-gas-networks-2030/pages/6/|title= Scotland's electricity and gas networks: vision to 2030. Chapter 2: Developing the network Infrastructure |website=Gov.scot}}</ref> As elemental hydrogen does not exist in nature on earth, Scottish energy policy intends that hydrogen be sourced from [[electrolysis]] powered by renewable energy and from [[steam reforming|steam-reformed methane]] with [[carbon capture and storage]].<ref>{{Cite web|url=http://www.gov.scot/publications/scottish-government-hydrogen-policy-statement/|title=Scottish Government Hydrogen Policy Statement|website=Gov.scot}}</ref>

==Revenue from taxation==
{{main|Taxation in Scotland}}
{{See also|Revenue Scotland|Government Expenditure and Revenue Scotland}}
[[File:Council of Economic Advisers (6896341447).jpg|thumb|right|A meeting of the [[Scottish Government]] Council of Economic Advisers, chaired by the [[First Minister of Scotland|First Minister]]]]

The majority of public sector revenue payable by Scottish residents and enterprises is collected at the UK level. Generally it is not possible to identify separately the proportion of revenue receivable from Scotland. GERS therefore uses a number of different methodologies to apportion revenue to Scotland. Following the implementation of the Scotland Act 2012 and Scotland Act 2016, an increasing amount of revenue is set to be devolved to the Scottish Parliament, whereby direct Scottish measures of these revenues will be available. The first revenues which have been devolved are landfill tax and property transaction taxes, with Scottish revenue collected for these taxes from 2015‑16 onwards after it replaced the UK–wide Stamp Duty Land Tax in 2015 following the passing of the [[Scotland Act 2012]] and the Land and Buildings Transaction Tax (Scotland) Act 2013.<ref>{{cite web |title=Land and Buildings Transaction Tax |url=https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/ |website=www.gov.scot |access-date=24 May 2024 |language=en}}</ref>

With a nominal gross domestic product (GDP) of up to £152 billion in 2015, total public sector non-North Sea current revenue in Scotland was estimated to be £53.7 billion in 2015‑16 approx. 36.5%
of GDP.<ref name="gov.scot">{{Cite web|url=http://www.gov.scot/Resource/0050/00504649.pdf|title = Government Expenditure & Revenue Scotland 2015-16}}</ref> Current non-North Sea revenue in Scotland is estimated to have grown by 13.4% between 2011–12 and 2015–16 in nominal terms.<ref name="gov.scot"/> Total public sector expenditure for Scotland has been declining, as a share of GDP, since 2011–12, and in 2015-16 is estimated to be £68.6 billion which is around 46.6% FY2015-16.<ref name="gov.scot"/>

==Labour market==
As of March 2016, there were 348,045 Small and Medium-sized Enterprises (SMEs) operating in Scotland, providing an estimated 1.2 million jobs. SMEs accounted for 99.3% of all private sector enterprises and for 54.6% of private sector employment and 40.5% of private sector turnover.<ref name="ReferenceA">{{Cite web |url=http://www.gov.scot/Resource/0050/00509984.pdf |title=Archived copy |access-date=19 March 2017 |archive-date=4 April 2017 |archive-url=https://web.archive.org/web/20170404003958/http://www.gov.scot/Resource/0050/00509984.pdf |url-status=dead}}</ref> As of March 2016, there were an estimated 350,410 private sector enterprises operating in Scotland. 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).<ref name="ReferenceA" />

==Public sector==
[[File:Public Sector Spending in Scotland (Devolved & Reserved).gif|thumb|right|Total public sector spending in Scotland, incl. devolved and reserved spending 2011-12]]

The public sector, in Scotland, has a significant impact upon the economy and comprises central government departments, local government, and public corporations. As of 2016, there were approximately 545,000 people employed in the public sector, which accounts for 20.9% of employment in Scotland – this includes all medical professionals employed within the [[NHS Scotland|National Health Service in Scotland]], those employed in the [[Police Scotland|emergency service]]s and those employed in the state education and higher education sector.<ref>[https://wayback.archive-it.org/all/20120125132329/http://scotland.gov.uk/News/Releases/2006/01/13100219 Public Sector Employment in Scotland 2005] Scottish Executive</ref> This is in addition to employees of the government in the civil service and in local government as well as [[public bodies]] and corporations. Public sector spending in Scotland was reported in 2017 to be more than £1,400 per head more than the UK average.<ref>Carrell, Severin (25 October 2017) [https://www.theguardian.com/politics/2017/oct/25/scottish-labour-leader-contender-anas-sarwar-targets-high-earners-tax-plan "Scottish Labour leader contender targets high earners with tax plan"]. ''[[The Guardian]]''.</ref>

Since the [[1997 Scottish devolution referendum|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. The Act delineates the legislative competence of the Parliament – the areas in which it can make laws – by explicitly specifying powers that are "reserved" to the Parliament of the United Kingdom. The Scottish Parliament has the power to legislate in all areas that are not explicitly reserved to Westminster. There is a clear separation of responsibility of the powers of both the UK government and the devolved Scottish Government in relation to the formulation and execution of national economic policy as it affects Scotland – this is set out under Section 5 of the [[Scotland Act 1998]].{{citation needed|date=March 2016}}

===UK Government===
{{main|Government of the United Kingdom}}
{{See also|United Kingdom budget|United Kingdom national debt}}
[[File:Government Offices Great George Street.jpg|thumb|The headquarters of [[HM Revenue & Customs]] in [[London]]]]

The [[UK Government]] provides revenue to Scotland in the form of a [[block grant]], with both the UK Government and Scottish Government sharing a fiscal framework agreement.<ref name="Fiscal framework: agreement between the Scottish and UK Governments">{{cite web |title=Fiscal framework: agreement between the Scottish and UK Governments |url=https://www.gov.scot/publications/fiscal-framework-agreement-between-scottish-uk-governments/ |website=www.gov.scot |access-date=14 June 2025 |language=en}}</ref> Both governments are responsible for financial responsibility and democratic accountability in the country.<ref name="Fiscal framework: agreement between the Scottish and UK Governments"/> Following the [[Smith Commission]] in the aftermath of the [[2014 Scottish independence referendum|referendum on independence]] in 2014, the Scottish Government has since received greater independence and autonomy from the UK Government to increase economic growth specifically for Scotland, whilst ensuring the Scottish economy contributes to the overall [[Economy of the United Kingdom|economy of the United Kingdom]].<ref name="Fiscal framework: agreement between the Scottish and UK Governments"/>

The UK Governments retains limited control over minimal aspects of Scotland's economy, mainly [[currency]], industrial relations and financial services.<ref>{{cite web |title=Devolved and Reserved Powers |url=https://www.parliament.scot/about/how-parliament-works/devolved-and-reserved-powers |website=www.parliament.scot |access-date=14 June 2025 |language=en}}</ref>

====Defence====
There are several military bases within Scotland, as well as The Royal Scots' Battalion based in [[Bourlon Barracks]], Yorkshire. Scottish military bases currently included [[RAF Lossiemouth]], [[RAF Kirknewton]], [[RAF West Freugh]], [[Kinloss Barracks]], [[Redford Barracks]], [[Dreghorn Barracks]], [[Glencorse Barracks|Glencourse Barracks]], [[Cameron Barracks]], [[Forthside Barracks]], [[Gordon Barracks]], [[Walcheren Barracks]], [[HMNB Clyde]] and [[RNAD Coulport]].

====Social security====
{{main|Pensions in the United Kingdom}}
[[HM Treasury]] retains responsibility for the Welfare State. [[National Insurance]] rates and bands are reserved as is the [[National Insurance Fund]]. The State pension age is also reserved, as is the rate and eligibility of the UK State pensions system. [[HMRC]] are also responsible for calculating and paying [[Child Benefit]] and [[Working Tax Credit]] in addition to collecting Scottish income taxes.

The [[Department for Work and Pensions]] are responsible for determining eligibility criteria, processing and paying benefits and the development of [[Universal Credit]]. The Scottish Government has introduced the Scottish Welfare Fund<ref>{{Cite web|url=https://www.mygov.scot/scottish-welfare-fund/|title = Help with living costs - Scottish Welfare Fund|website=Mygov.scot}}</ref> to lessen the impact of cuts to social security benefits.

===Scottish Government===
{{main|Scottish Government|Responsibilities of the Scottish Government|Scottish budget}}
[[File:Scottish Parliament, Edinburgh.jpg|thumb|right|The [[Scottish Parliament]] building in [[Edinburgh]] with [[Calton Hill]] in the background]]

The [[Scottish Government]] has complete control over Scottish taxes collected by [[Revenue Scotland]] and has complete power to set tax rates and bands (but not the personal allowance) for income tax in Scotland which is collected by [[HMRC]]. It also provides the majority of [[Subdivisions of Scotland|local authority]] funding and can exert control over Council Tax - such as capping rates. 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. [[Scottish Water]] and [[Caledonian MacBrayne]]. 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<ref>{{Cite web|url=https://www.gov.scot/policies/public-sector-procurement/fair-work-in-procurement/|title = Public sector procurement: Fair work and procurement |website=Gov.scot}}</ref> to be paid to all its contractors and sub-contractors. In 2016, the budget of the [[Scottish Government]] was around £37bn, which the Scottish Government can spend on the areas not reserved under the [[Scotland Act 1998]].

The Scottish Government is directly responsible for attracting economic and inward investment into the country, and is directly responsible for tourism and various forms of taxation, including Land and Buildings Transaction Tax, Income Tax and [[Air Departure Tax]].<ref>{{cite web |title=Devolved and Reserved Powers |url=https://www.parliament.scot/about/how-parliament-works/devolved-and-reserved-powers |website=www.parliament.scot |access-date=14 June 2025 |language=en}}</ref>

====Taxation====
{{main|Income tax in Scotland|Taxation in Scotland}} 
[[File:Scottish Government Draft Budget 2016-17.jpg|thumb|left|The [[Scottish Government]] draft budget 2016-17]]
Taxes on [[Hydrocarbon Oil Duty|fuel]], [[Vehicle Excise Duty|motor vehicles]], and [[Insurance Premium Tax (United Kingdom)|Insurance]], [[United Kingdom corporation tax|Corporation Tax]], and [[Value-added tax in the United Kingdom|VAT]], are reserved to Westminster. The Scottish Government has the power to set [[Income tax in Scotland|tax rates and bands]] on income earned in Scotland.  Income taxes are collected by [[HM Revenue & Customs]] on behalf of Scottish ministers and all revenues are paid into the [[Scottish Consolidated Fund]].<ref>{{cite web |title=Scottish Consolidated Fund Accounts: year ended 31 March 2023 |url=https://www.gov.scot/publications/scottish-consolidated-fund-accounts-year-ended-31-march-2023/#:~:text=The%20main%20receipts%20paid%20into,and%20any%20amendments%20to%20it. |website=www.gov.scot |publisher=Scottish Government |access-date=18 February 2024 |language=en}}</ref>

The Scottish Parliament has full autonomy over [[Scottish Landfill Tax|Landfill Tax]] and [[Land and Buildings Transaction Tax]] the Scottish equivalent of [[Stamp duty in the United Kingdom|Stamp Duty]] and is collected by [[Revenue Scotland]].  LBTT is a progressive tax, with different rates of tax paid on different bands of value.  This differs to UK Stamp Duty, where only one rate of tax applies to the whole value of the property on a 'slab system' which distorted prices near thresholds between bands.<ref>{{cite web |title=Land and Buildings Transaction Tax {{!}} Revenue Scotland |url=https://revenue.scot/taxes/land-buildings-transaction-tax |website=revenue.scot |publisher=Revenue Scotland |access-date=18 February 2024}}</ref>

There are many aspects of Income Tax in Scotland which are reserved to Westminster, such as the setting of exemptions and allowances, most notably the [[personal allowance]].  The Scottish Parliament first diverged from UK tax policy in FY 2017-18 which increased the threshold for the higher rate of income tax(£43,000 as opposed to £45,000) following the Scotland Act 2016, which allowed rates and bands to be set with no reference to UK tax policy. The following financial year, two new bands were created; the Starter Rate, and the Intermediate Rate. The Additional Rate was renamed the Top Rate. Scottish taxpayers have an 'S' prefix to their [[PAYE]] code.<ref>{{cite web |title=Scottish taxpayers {{!}} Low Incomes Tax Reform Group |url=https://www.litrg.org.uk/tax-nic/income-tax/scottish-income-tax/scottish-taxpayers#:~:text=If%20HMRC%20think%20you%20are,income%20tax%20rates%20and%20bands. |website=www.litrg.org.uk |publisher=Low Incomes Tax Reforms Group |access-date=18 February 2024}}</ref>

Divergence in income tax rates and bands mean that, for the 2023–2024 tax year, a person earning less than £27,850 in Scotland will pay less in income tax than a person with the same earnings in the rest of the UK, and a person earning more than £27,850 in Scotland will pay more in income tax than a person with the same earnings in the rest of the UK.<ref>{{Cite news|url=https://www.bbc.co.uk/news/uk-scotland-63991541 |title=Scottish income tax 2023-24: What might you be paying? |work=BBC News |date=15 December 2022}}</ref><ref>{{cite web |date=16 December 2022 |title=Income tax divergence entrenched after today's Scottish Budget |url=https://www.politics.co.uk/opinion-former/press-release/2022/12/16/income-tax-divergence-entrenched-after-todays-scottish-budget/ |website=politics.co.uk |access-date=}}</ref>
The higher and top rates are increased by 1% as of April 2023.

{|class="wikitable"
|+2023-24
! rowspan="2" | Rate
! rowspan="2" | Income tax rate
! colspan="4" | Gross income
|-
! 2023–2024
|-
| Starter rate
| 19%
| £12,570{{efn|name=pa|Assumes individuals are in receipt of the standard UK personal allowance.}} – £14,732
|-
| Basic rate
| 20%
| £14,733 – £25,688
|-
| Intermediate rate
| 21%
| £25,689 – £43,632
|-
| Higher rate
| 42%
| colspan="3" | £43,633 – £125,140{{efn|name=reduced|Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.}}
|-
| Top rate
| 47%
| colspan="4" | Above £125,140{{efn|name=reduced}}
|}

====Economic development====
The Scottish Government has several economic development agencies, with [[Highlands and Islands Enterprise|Highlands and Islands' Enterprise]], [[Scottish Enterprise]], and [[Scottish Development International]]. The Scottish Government recently established the [[Scottish National Investment Bank]] whose aim is to provide finance to small and medium-sized enterprises to grow and develop. [[Skills Development Scotland]] was also established to focus on workforce training, apprenticeships and industrial skills.

====Local Government====
{{main|Local government in Scotland}}
Local government in Scotland currently consists of [[Subdivisions of Scotland|32 Councils]], which govern many aspects of daily life in Scotland, including:  
* Bus stops (but '''not''' bus services)
* [[elderly care|Care of vulnerable adults]] 
* Children's social services
* Commissioning socially necessary bus services
* [[Paratransit#Outside North America|Community Transport]] (some)
* Council leisure centres and swimming baths - [[Arm's_length_principle|Arm's Length]] 
* [[Council Tax in Scotland|Council Tax]]
* [[Waste collection#household waste|Domestic refuse collection and disposal]] 
* Food Hygiene inspections
* Licensing of hours of sale for alcohol
* Licensing of [[Orange walk|cultural music parades]] 
* Licensing of taxis and private hire vehicles
* Licensing of window cleaners, market traders, scrap metal merchants, and street hawkers
* Licensing of sexual entertainment venues<ref>{{cite web| url = https://www.legislation.gov.uk/ukpga/1982/45/part/III| title = Civic Government (Scotland) Act 1982}}</ref>
* Maintenance of all roads and pavements (except trunk roads which are the responsibility of [[Transport Scotland]])
* [[business rates in Scotland|Non-domestic rates]] †
* Nurseries 
* Parking policy
* [[Education in Scotland|Primary and secondary schooling]]
* Public parks
* Regulation of landlords<ref>{{Cite web|url=https://www.mygov.scot/renting-your-property-out/your-responsibilities|title=Your responsibilities|website=Mygov.scot}}</ref>
* Scottish Welfare Fund - administers
* [[Town and Country Planning]]

† Non-domestic rates in Scotland were previously collected by councils, pooled and redistributed to councils according to a set formula without any passing through central government funds with nationally set exemptions, rebates and other measures. This was abolished in 2020 and non-domestic rates are now entirely controlled by councils.<ref>{{Cite web|url=https://www.gov.scot/policies/local-government/non-domestic-rates/|title = Local government: Non-domestic rates (Business rates)|website=Gov.scot}}</ref>

====Social housing====
Scotland had some of the worst overcrowding in the postwar period and many areas of cities were comprehensively redeveloped with new [[Architecture in Scotland|modernist housing]] built either in tower blocks on the site of former slum housing, greenfield sites on the [[easterhouse|periphery]] of the cities, or in entirely new towns, such as [[Cumbernauld]], Livingstone, Glenrothes or [[East Kilbride]]. Many former council houses are now run by [[Housing association|Housing Associations]] while others were sold to the tenant under the [[right-to-buy]] at a heavy discount. 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. The right to buy council housing was abolished in Scotland in 2017.<ref>{{Cite web|url=http://www.gov.scot/news/right-to-buy-ends-in-scotland/|title=Right to buy ends in Scotland|website=Gov.scot}}</ref><ref>{{Cite news|url=https://www.bbc.co.uk/news/uk-scotland-23155904|title='Right to buy' to be scrapped in Scotland|work=BBC News|date=3 July 2013}}</ref>

====Water and drainage====
{{main|Water supply and sanitation in Scotland}}
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]]. Competition for retailing water to business customers was introduced in 2008.  Unlike in England, water infrastructure remains property of Scottish Water, however metering and billing of business customers is now undertaken by water supply companies.<ref>{{cite web| url = https://www.scotlandontap.gov.uk/| title = Scotland on Tap|website=Scotlandontap.gov.uk}}</ref> The [[water industry]] is regulated by the [[Water Industry Commission for Scotland]].  Scottish Water's retail company [[Business Stream|Business stream]] competes in the water retail market.

Council tax bills in Scotland still include water rates if the property has a water mains connection - it is important to note that some properties in rural areas are not connected to the mains network and have their own private water supply. Water for residential properties is [[water meter|not metered]] in Scotland.

====Education====
{{main|Education in Scotland}}
[[File:University of the West of Scotland - geograph.org.uk - 5754863.jpg|thumb|right|[[Ayr]] campus of the [[University of the West of Scotland]]]] 
Scotland's public education system mostly follows comprehensive education principles, with two major types of public school; non-denominational schools, and denominational schools. Most denominational schools in Scotland are [[Catholic school#Scotland|Roman Catholic]]. Public education in Scotland is more standardised than in England - Scotland has no equivalents of publicly funded [[Grammar school#England|grammar schools]], [[Free school (England)|free schools]], nor [[Academy (English school)|academies]] except for [[Jordanhill School]] which is maintained by the Scottish Government through direct Grant-in-Aid.  Scotland also has networks of private schools which are separate from the public schooling system. Confusion over the terminology can occur between Scotland and England as [[Public school (United Kingdom)|'public schools']] in England charge fees for educating pupils, whereas public schools in Scotland refer to local authority run schools. 'Public' schools in England offered their services openly (to the public) rather than running under the patronage of the Church. Council-run schools in Scotland were traditionally referred to as 'public schools' and many Victorian-era schoolhouses to this day have 'public' inscribed on their exterior. Terminology common to both systems are 'state schools' for publicly funded education and 'independent schools'.

Education in Scotland is 100% devolved and all of the universities in Scotland are public universities, as are the colleges which provide Further Education. 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;<ref>{{Cite web|url=http://www.lifesci.dundee.ac.uk|archive-url=https://web.archive.org/web/20060225212828/http://www.dundee.ac.uk/biocentre/|url-status=dead|title=School of Life Sciences|archive-date=25 February 2006|website=School of Life Sciences, University of Dundee}}</ref> 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.<ref>{{Cite web|url=http://www.scottish-enterprise.com/sedotcom_home/services-to-the-community/property/aberdeenscienceandenergypark/aotp-areainfo.htm#universities|archive-url=https://web.archive.org/web/20060827071332/http://www.scottish-enterprise.com/sedotcom_home/services-to-the-community/property/aberdeenscienceandenergypark/aotp-areainfo.htm#universities|url-status=dead|title=Scottish Enterprise North East Scotland Area Information|archive-date=27 August 2006}}</ref>

====Health====
{{main|NHS Scotland}}
[[File:Crosshouse Hospital c 2004 - geograph.org.uk - 2748202.jpg|thumb|right|[[University Hospital Crosshouse]] is the largest general hospital within [[NHS Ayrshire and Arran]].]] 
Another major component of public expenditure in Scotland is on medical and social care services delivered by the devolved [[NHS Scotland|National Health Service]] (NHS), which delivers the majority of medical services in Scotland, and [[Local government in Scotland|Local Authorities]] responsible for social care services. NHS Scotland is a major employer with just under 140,000 whole-time equivalent (WTE) staff.<ref>{{Cite web |date=2018-06-05 |title=NHS Scotland Workforce - Latest statistics at 31 March 2018 |url=https://www.isdscotland.org/Health-Topics/Workforce/Publications/2018-06-05/2018-06-05-Workforce-Report.pdf |website=ISD Scotland}}</ref> A further 150,000 WTE staff work in social care and services.<ref>{{Cite web |date=2018-08-29 |title=Scottish Social Service Sector: Report on 2017 Workforce Data |url=http://data.sssc.uk.com/images/WDR/WDR2017.pdf |website=Scottish Social Services Council}}</ref> The NHS in Scotland began in 1948 under a separate [[National Health Service (Scotland) Act 1947|Act]] from [[National Health Service Act 1946|England and Wales]] and was the responsibility of the [[Secretary of State for Scotland]] rather than the [[Secretary of State for Health and Social Care|Health Secretary]] before devolution. There is no healthcare purchaser-provider split in Scotland, and the abolition of internal market in NHS Scotland was completed in 2004.<ref>{{Cite web |url=http://www.parliament.scot/ResearchBriefingsAndFactsheets/S5/SB_16-100_The_National_Health_Service_in_Scotland.pdf |title=Archived copy |access-date=2 May 2020 |archive-date=28 September 2020 |archive-url=https://web.archive.org/web/20200928231404/http://www.parliament.scot/ResearchBriefingsAndFactsheets/S5/SB_16-100_The_National_Health_Service_in_Scotland.pdf |url-status=dead}}</ref> The [[Cabinet Secretary for Health and Sport]] is now responsible for the NHS in Scotland.

The NHS and social care services are funded from Scottish taxation and the UK block grant and is an almost entirely devolved matter - with procurement of prescription medicines done on a UK-wide basis. Medical care is provided ''free at the point of use'' to patients registered with a [[General medical services|GP Practice]] in Scotland. Scotland has a more generous social care system than England, with free personal nursing care for adults over 65<ref>{{Cite web|url=https://www.gov.scot/publications/free-personal-nursing-care-qa/|title = Free personal and nursing care: Questions and answers|website=Gov.scot}}</ref> and those under 60 with certain medical conditions.<ref>{{Cite web|url=https://www.gov.scot/news/expansion-of-free-personal-care/|title = Expansion of free personal care|website=Gov.scot}}</ref> Scotland's more generous social care provision results in Scotland's per capita spending being 43% higher per capita than England.<ref>{{Cite news|url=https://www.bbc.co.uk/news/health-48438132|title = English 'short-changed on care funding'|work = BBC News |date=29 May 2019}}</ref>
	 
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 £9.35 per item<ref>{{Cite web|url=https://www.nhs.uk/common-health-questions/nhs-services-and-treatments/how-much-nhs-prescription-charge/|title=NHS prescription charges|website=Nhs.uk|date=9 November 2020}}</ref>). [[dentistry|Dental]]<ref>{{Cite web|url=https://www.nhsinform.scot/care-support-and-rights/nhs-services/dental/receiving-nhs-dental-treatment-in-scotland#dental-treatment-costs|title = Your dental treatment and cost|website=Nhsinform.scot}}</ref> and [[optometry]]<ref>{{Cite web|url=https://www.nhsinform.scot/care-support-and-rights/nhs-services/ophthalmics/your-entitlements-to-nhs-ophthalmic-services|title = Your entitlement to NHS ophthalmic services|website=Nhsinform.scot}}</ref> examinations are also free at the point of use, however charges for procedures and appliances apply for adults over 18, except in certain circumstances.
	 
Per capital spending on medical and social care is the highest in Great Britain due to a more dispersed population and worse health inequalities with higher rates of alcohol dependency, alienation, drug addiction, suicide, and violence, which was dubbed 'the Glasgow effect' by the media.<ref>{{Cite web|url=https://www.gcph.co.uk/publications/635_history_politics_and_vulnerability_explaining_excess_mortality|title = History, politics and vulnerability: Explaining excess mortality {{pipe}} Glasgow Centre for Population Health|website=Gcph.co.uk}}</ref> Medical and social care spending is forecast to increase as the population is aging faster than in England.

====Justice====
{{main|Scots Law}} 
[[File:Parliament Square, Edinburgh facing east.jpg|thumb|right|The [[Supreme Courts of Scotland]], based at [[Parliament House, Edinburgh]]]]

The Scottish Legal system draws from the [[Civil law (legal system)|civil law]] tradition, and has more in common with civil law traditions such as in France, than the Common-Law of [[England and Wales]]. The [[Judiciary of Scotland]] run the Civil and Criminal courts and set court procedure through [[Acts of Sederunt]], or Acts of Ajournal, respectively. Solicitors in Scotland are regulated by the [[Law Society of Scotland]], rather than through the [[Solicitors Regulation Authority]]. Advocates are regulated by the [[Faculty of Advocates]] whereas in England and Wales; barristers are regulated by their [[Inns of Court|Inn]].

The criminal justice system is entirely devolved to the [[Scottish Parliament]]; including the [[Procurator Fiscal]] (the Scottish public prosecutor), the [[Police Scotland|police force]] employing about 17,000 [[full-time equivalent]] (FTE) staff in 2019,<ref>{{Cite web|url=http://www.gov.scot/publications/police-officer-quarterly-strength-statistics-scotland-31-december-2019/|title=Police officer quarterly strength statistics Scotland: 31 December 2019|website=Gov.scot}}</ref> and [[Scottish Prisons Service|HM prisons in Scotland]] which collectively imprison 8,500 people.<ref>{{cite web|url=http://www.sps.gov.uk/default.aspx?documentid=7811a7f1-6c61-4667-a12c-f102bbf5b808 |title=Prisoner Population |website=Sps.gov.uk |access-date=8 July 2009}}</ref> The most distinct differences in the Scottish criminal justice system is that only a simple majority of 15 is required to convict, the requirement for [[Corroboration in Scots law|corroboration of evidence]], and the existence of a [[Scottish verdict|third verdict]]. 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. 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|Scottish Fire and Rescue Service]].

The civil justice system also has many differences from England and Wales with many differences in Contract Law, Property Law, and Family Law. Scots law has 'Delict' rather than 'tort' law, and no legal concept of [[Equity (law)|equity]]. 'Heritable title' is equivalent to a [[Freehold (law)|freehold]] in England and Wales, however there is no equivalent of a [[leasehold]] in Scots' law.

==Regional economic performance==
[[File:Scotland Labour Market Update January 2016.jpg|thumb|right|Scotland Labour Market Statistics January 2016]]
In Scotland, GDP per capita varies from €16,200 in North & East Ayrshire to €50,400 in Edinburgh city.<ref name="appsso.eurostat.ec.europa.eu">{{cite web|url=http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do |title=Eurostat - Data Explorer |access-date=2011-10-19 |url-status=dead |archive-url=https://web.archive.org/web/20141006122431/http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do |archive-date=6 October 2014 |df=dmy }}</ref> 1.1 million (20% of Scots) live in these five deprived [GDP per person is under €20,000] Scottish districts: Clackmannanshire & Fife, East & Mid Lothian, West Dumbartonshire, East & North Ayrshire, Caithness Sutherland & Ross.<ref name="appsso.eurostat.ec.europa.eu"/>

[[File:Relative Poverty in Scotland 2013-14.jpeg|thumb|right|Relative poverty in Scotland 2013-14]]
According to Eurostat figures (2013) there are huge regional disparities in the UK with GDP per capita ranging from €15,000 in West Wales to €179,800 in Inner-London West.<ref name="appsso.eurostat.ec.europa.eu"/> The average GDP per capita in the [[South East England]] region (excludes London) is €34,200 with no local government area [[South East England#South-East Regional GDP|showing a GDP per capita]] of less than €20,000.<ref name="appsso.eurostat.ec.europa.eu"/> 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.

The figures below, noting the economic position of Scottish regions in terms of GDP and GDP per capita, come from Eurostat (2013) and are denoted in Euros. It should also be noted that the Scottish figures exclude offshore oil revenue. There are 26 areas in the UK where the GDP per person is under €20,000.

{| class="wikitable sortable"
|+GDP by area (2013){{cn|date=January 2024}}
|-
! Area !! Total<br />€ !! Per capita<br />€
|-
| '''Tayside''' || '''€13 bn''' || '''€25,950''' 
|-
| Angus & Dundee || €6.5 bn || €24,500 
|-
| Perth & Kinross & Stirling || €6.5 bn || €27,400
|-
|  '''Dumfries & Galloway''' || '''€3 bn''' || '''€20,500''' 
|-
| '''Scottish Borders''' || '''€2.3 bn''' || '''€20,300''' 
|-
| '''Clackmann. & Fife'''|| '''€8.3 bn''' || '''€19,900'''
|-
| '''Falkirk''' || '''€3.4 bn''' || '''€21,800'''
|-
| '''Edinburgh & Lothian''' || '''€32.7 bn''' || '''€31,766'''
|- 
| Edinburgh || €24.6 bn || €50,400
|- 
| West Lothian || €4.6 bn || €26,200 
|-
| East & Mid Lothian || €3.5 bn || €18,700
|-
| '''Glasgow & Strathclyde''' || '''€57.6 bn''' || '''€23,671'''
|-
| Glasgow City || €25.5 bn || €42,700
|-
| Inverclyde & East Renfrew & Renfrew || €7.3 bn || €21,000 
|-
| North Lanarkshire || €7.1 bn || €21,200
|-
| South Ayrshire || €2.9 bn || €25,200
|-
| South Lanarkshire || €6.7 bn || €21,500
|-
| East & West Dumbarton || €4 bn || €17,900
|-
| East & North Ayrshire || €4.1 bn || €16,200
|-
| '''Grampian''' || '''€23.2 bn''' || '''€47,900'''
|-
| Aberdeen & Aberdeensire || €23.2 bn || €47,900
|-
| '''Highlands & Islands''' || '''€11.2 bn''' || '''€24,000'''
|-
| Caithness & Sutherland & Ross & Cromarty || €1.7 bn || €18,400
|-
| Inverness || €5.3 bn || €26,900
|-
| Lochaber & Skye || €2.3 bn || €23,300
|-
| Eilean Siar || €0.5 bn || €20,200
|-
| Orkney || €0.5 bn || €23,600
|-
| Shetland || €1.1 bn || €45,800

|-
| '''Total'''
| '''€154.9 bn'''
| '''€29,100'''<br />(excl. oil revenue)
|}

==See also==
{{cmn|
*[[Barnett formula]]
*[[Council of Economic Advisers (Scotland)]]
*[[Economy of the United Kingdom]]
*[[Economy of England]]
*[[Economy of the European Union]]
*[[Full fiscal autonomy for Scotland]]
*[[Geography of Scotland]]
*[[Politics of Scotland]]
*[[Scottish Council for Development and Industry]]
*[[Scottish Enterprise]]
*[[2014 Scottish independence referendum]]
*[[Starter for 6]]
*[[Sustainable Growth Commission]]
}}

==Notes==
{{Notelist}}

==References==
{{Reflist}}

==External links==
*[https://www.gov.scot/economy/ Scottish Government - Economy]
*[http://www.gov.uk/ UK Government]
*[http://www.hm-treasury.gov.uk/ HM Treasury]
* [https://www.britishchambers.org.uk/insights-unit/quarterly-economic-survey/ British Chambers of Commerce Quarterly Economic Survey]

{{Economy of Scotland}}{{Scotland topics}}
{{Twentieth-century Scotland}}

{{DEFAULTSORT:Economy Of Scotland}}
[[Category:Economy of Scotland| ]]
[[Category:OECD member economies|Scotland]]
[[Category:World Trade Organization member economies|Scotland]]