Scottish Affairs Committee in 2024-25 and Industrial Transition

Elaine Stewart Excerpts

Thursday 5th February 2026 Westminster Hall

[Paula Barker (in the Chair)]

We begin with the Select Committee statement. Elaine Stewart will speak on the publication of the fifth report of the Scottish Affairs Committee, “The work of the Committee in 2024-25, and Industrial transition in Scotland”, for up to 10 minutes, during which no interventions may be taken. At the conclusion of her statement, I will call Members to put questions on the subject of the statement and then call Elaine Stewart to respond to those in turn. Questions should be brief and Members may ask only one question each.

[Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)]

It is a privilege to serve under your chairship, Mrs Barker, and a pleasure to speak on behalf of the Scottish Affairs Committee. I am grateful to the Backbench Business Committee for granting time for this statement on our fifth report of the Session.

Over the past year, the Committee has undertaken a wide-ranging and ambitious programme of scrutiny. We have examined topics including Scotland’s energy future, the financing of the Scottish Government and the UK’s first safer drug consumption facility in Glasgow. Since our establishment in autumn 2024, we have held more than 54 hours of oral evidence, heard from more than 122 witnesses, made 51 conclusions and 35 recommendations to Government, and travelled 2,130 miles to conduct our work.

Alongside our Westminster programme, we have travelled extensively across Scotland to hear directly from the people most affected by the issues we examine. That has included visits to Shetland, Skye, Western Isles, the highlands, Edinburgh, Glasgow and my constituency in Ayrshire. We have also carried out two international visits to Norway and Lisbon to learn about best practice overseas.

I could easily speak for more than 10 minutes about the Committee’s broad range of work over the past year, but I will focus on the conclusions from our inquiry into the industrial transition in Scotland. Scotland has seen a dramatic change in its industrial landscape over the past four decades. It was once renowned for its heavy manufacturing industries, but deindustrialisation has seen parts of Scotland experience major job losses and closures among those sectors. My constituency of Ayr, Carrick and Cumnock experienced not one but two profound waves of deindustrialisation. The first came with the collapse of the coal mines and the decline of textile industries, which had a sustained detrimental impact on entire communities. The second economic shock came when Scottish Coal went into liquidation and closed its Ayrshire sites in 2013.

The Committee launched its inquiry because it wanted to examine Scotland’s past industrial transitions to understand the consequences of poorly managed change and to consider what lessons could be learned for future transitions. The evidence we received about the UK’s management of past industrial transitions was stark. The loss of industry not only caused higher unemployment rates at the time, but had a profound and long-lasting effect across many generations.

The Coalfields Regeneration Trust, a community wealth-building charity, which I proudly worked for before I became a Member of Parliament, described some of these issues in its “State of the Coalfields” report. There are fewer job opportunities in former coalfield communities than in other parts of the country. Fewer jobs are available closer to home, which means many people have no choice but to travel and work elsewhere. We also know about the steady flow of young and working-age people leaving these areas to look for education or job opportunities elsewhere. There are poorer health outcomes and higher rates of benefit claims.

Although unemployment rates on paper look similar to the national average, the headline figure masks a more challenging reality. Employment rates are consistently lower in former coalfield areas. Those communities also have higher levels of economic inactivity, meaning more people are out of the labour market all together. For example, in south Ayrshire, where part of my constituency lies, the employment rate is almost 10% below the Scottish average. The economic inactivity rate is more than 30%, meaning that almost a third of working-age people are currently not in the labour market.

Our report makes clear that all those issues have had a devastating impact on communities. As part of the inquiry, the Committee travelled to Ochiltree, in my constituency, where we heard directly from residents about the consequences of poor managed transition. They described how towns such as New Cumnock, Dalmellington and Bellsbank live with high levels of deprivation, lower employment, reduced incomes and a shorter life expectancy than the national average.

Depopulation is also a major concern. In places such as Muirkirk, the population has been falling by as much as 10% each decade. That decline brings further challenges. Public transport has been reduced, which makes it harder for people to travel to work or education. There has also been a slow loss of infrastructure, which means many communities that were held together with clubs, gyms, swimming pools and shared spaces have lost that sense of belonging.

Our engagement in Ochiltree also highlighted the perils of losing key industrial skills that are now in demand. Participants told us how skilled, stable industry jobs that once anchored those communities have been replaced by low-paid work, often on poorer terms and conditions. They spoke about the painful irony that the many skills lost during deindustrialisation are now urgently needed once again. That can be seen in defence shipbuilding, where skills shortages have become acute. Many employers need to recruit overseas to fill shortages because there are simply not enough qualified applicants in the UK. Our report found that shortages exist, despite industry leaders being very clear about the importance of maintaining a strong domestic skills base. When Sir Simon Lister of BAE Systems gave evidence as part of our inquiry, he described how Scotland’s long heritage of shipbuilding has created

“an innate understanding of what it takes to build a ship.”

He stressed the importance of keeping those skills clustered, retaining local experience, and ensuring those communities remain in places where specialist industry knowledge is passed on, rather than lost.

Our report concludes that the evidence of deindustrialisation over the past four decades demonstrates how profound and long lasting the consequences can be when industrial change is not managed. The impact of deindustrialisation did not end when the last pit or factory closed; its effects are still being felt by people in their working lives, their health and the opportunities available to them and their children. In our work this year, the Committee has identified two transitions that will shape Scotland’s economic future. First is a shift away from oil and gas towards clean energy, which we examined through our inquiry on GB Energy and net zero transition. The second is the future of Scotland’s defence skills and jobs, and how Scotland can benefit from the UK’s commitment to increase defence spending.

As Scotland undergoes a major industrial transition, the need to avoid repeating past mistakes could not be more urgent. Our report emphasises the importance of future transitions being grounded in practical, deliverable commitments to support workers, retain skills and ensure that no community is asked to shoulder the burden of industrial change. The Committee will continue to monitor both transitions closely. Our aim is to ensure that the Government manage the changes in a way that genuinely learns from the past, protects Scotland’s skills base and delivers lasting benefits for the communities that we represent.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

I thank the Committee for its work on this issue. The hon. Member rightly raised the point about skills. Will she tell us about the impact of the energy profits levy on some of the businesses that upskill, not least in the area that I represent in the north-east of Scotland?

[Elaine Stewart]

In all our inquiries, skills have been high on the agenda—in fact, the loss of skills is really high on the agenda. In my area of Ayr, Carrick and Cumnock, 800 young people did not get into college—for engineering and IT skills—due to a lack of funding. Our young people are being left behind because we are not putting enough money into education and skills. We need to look at that as a Government, and as a Scottish Government. We need to make sure that our young people are equipped for the future.

[Patricia Ferguson (Glasgow West) (Lab)]

My hon. Friend has given a good explanation of some of the Committee’s work. Does she agree that one of the most impressive things that we have seen this year has been the commitment of the apprentices at BAE Systems and elsewhere, such as at Babock International? They are young people with a clear idea of what they want in their lives and how they are going to achieve it, recognising that the jobs that they are being equipped to take in the shipbuilding and submarine-building industry are going to give them a lasting career. Seeing that was particularly inspiring. It was also good to see the skills that they were achieving at BAE Systems through the skills academy created by the company.

[Elaine Stewart]

Yes, it was absolutely fantastic to see the young people at Babcock and BAE Systems. It was great to see their enthusiasm and how they are looking forward in their lives. I asked questions such as, “What have you done since you became an apprentice?” They said, “I’ve bought a new car and I’ve been able to go on holiday. I’m going to buy a house.” Those are the things that we want our young people to aspire to, so it is great to see companies making sure that apprenticeships are in place for them.

[Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mrs Barker. As a Committee member, I thank my hon. Friend the Member for Ayr, Carrick and Cumnock (Elaine Stewart) for this statement. My constituency of Bathgate and Linlithgow has a proud industrial tradition, from mining and manufacturing to electronics. However, when companies closed and industries shut down, that had an absolutely devastating impact on local communities. Will my hon. Friend talk a bit more about the legacy of deindustrialisation for our young people—particularly in Scotland, where one in six young people are not in education, employment or training?

[Elaine Stewart]

My constituency has problems similar to those in my hon. Friend’s. When mines, textile factories and companies close, it leaves a terrible legacy for our young people. We are now into a fourth generation of unemployed young people who have no skills, no jobs and no opportunities. That rips the heart out of not just communities but opportunities. When those things happen, people migrate to other areas. The young people are not living in the area, buying houses and spending in the local economy, so that has a terrible long-lasting effect. Some of our communities still feel that at this moment in time.