Date lodged: 22 June 2018
To ask the Scottish Government what its position is on the view that the savings ratio in Scotland cannot continue to decrease anymore and that consumption will need to be boosted by other means.
Answered by: Derek Mackay 16 July 2018
The Scottish Fiscal Commission have noted that consumption growth over the recent past has been supported by factors such as households reducing their savings and increasing their borrowing. This has decreased the savings ratio, which the Scottish Fiscal Commission have forecast to decrease at a lower rate in future years.
The Scottish Government position is that over the longer term, both consumption and household savings should be supported by increased productivity and balanced wage growth.
Increasing productivity is central to achieving the ambitions set out in Scotland’s Economic Strategy, and therefore it is a key aim of much of Scotland’s Economic Policies. Furthermore, the Scottish Government is taking forward numerous measures to ensure the benefits of increasing productivity can be shared fairly, such as encouraging employers to pay the real living wage and supporting access to flexible working.