Scotland is bracing for thunderstorms today as a yellow weather warning is in effect across the country, but the political climate is equally turbulent with Sir Keir Starmer scrapping his summer holiday plans following a weekend of anti-racism demonstrations held nationwide in response to recent violent disorder and unrest in England and Northern Ireland, driven by far-right sentiments. Although Police Scotland has said they have no intelligence to suggest similar riots will reach Scotland, UK justice secretary Shanama Mahood has warned that the repercussions of the recent violence will be “felt for years to come” and will further complicate the new government’s already challenging task of rebuilding the justice system.
The home secretary, Yvette Cooper, argues that Britian has lost its respect for the police and believes that a lenient approach to justice has made too many people think that crime carries no consequences. However, in the coming days, hundreds more rioters will appear in court, with Stephen Parkinson, the director of public prosecutions, indicating that some of the most serious offenders could face up to 10 years in jail.
Meanwhile, council leaders in Scotland have presented a new pay offer to waste workers in an attempt to avert strike action planned across 26 council areas this week. This late offer comes after the workers rejected two previous wage increase proposals from Cosla. Unions are set to review the latest offer today and may choose to suspend strike action as a measure of goodwill. However, the prospect of another bin strike during the Edinburgh festivals remains their strongest leverage.
Ukraine launched a cross-border offensive inside Russia’s western Kursk region this weekend, bringing war to the Kremlin’s doorstep for the first time since Hitler’s invasion of Russia in 1941. While the mission was cloaked in secrecy, there’s no hiding how much of a humiliating blow this is for the Russian president, Vladimir Putin. Moscow has pushed back and while the battle is expected to become more ferocious, Ukrainian troops seem to be holding ground.
Across the water, more Americans now trust Kamala Harris to handle the US economy than they do Donald Trump, reflecting a stark shift in voter sentiment since President Biden’s withdrawal from the presidential race. Indeed, the pressure is intensifying as Republican hopeful JD Vance has launched attacks on Harris and Tim Walz during a tour of political shows, aiming to regain campaign momentum. On another note, it will be worth keeping an eye out for Donald Trump’s interview with Elon Musk later today, as two of the country’s most divisive characters chew the fat.
Finally, in case you missed it, in last week’s View from the Street Sophie Taylor explores how artificial intelligence could address Scotland’s labour shortages by transforming perceptions of blue-collar work and automating some white-collar tasks.
In brief - Scotland's economy and business
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As tourists crowd Edinburgh’s streets, Jeremy Grant, writing in The Scotsman (£), highlights a promising future for Princes Street. Grant suggests that a “mixed use” strategy - incorporating bars, restaurants, shops and hotels - combined with the boost in tourism, could restore the Capital’s high street to its former vibrancy.
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The Herald reported that a tunnel more than a kilometre long has been completed for a major new hydro energy storage facility at Loch Lochy. This a crucial part of the £100 million pumped storage hydropower project, which aims to nearly double the UK’s current electricity storage capacity.
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According to Insider, a new fund of up to £885,000 has been launched to support a "start-up economy" by educating young people about entrepreneurship. The Entrepreneurial Education Pathways fund, launched by the Scottish government, hopes to encourage the next generation of business owners, with a focus on under-18s.
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Independent analysis of Edinburgh’s Creative Informatics research and development programme found that it has already contributed over £33 million to the Scottish economy and is expected to generate an additional £45.5 million by 2026, as reported by Scottish Financial News.
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Daily Business reports that Iconsys, an industrial automation specialist focused on enhancing productivity, operational efficiency and sustainability has opened its first office in Scotland and appointed a head of operations.
- As reported by The Scotsman, the University of Edinburgh is implementing spending cuts and restricting new hires to essential roles as running costs soar to £100 million a month.
OpinioNation - columns of interest
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With a new Labour government eager to please, Mujtaba Rahman explores in the Financial Times (£) the European Commission’s demands for enhancing UK-EU relations. Rahman proposes a politically ambitious reset, focusing on security and trade, to benefit both sides amidst the changing geopolitical landscape.
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In The Sunday Times (£), Scottish Conservative leadership hopeful Russell Findlay advocates for a tougher approach to address the issue of misbehaviour in schools. The introduction of specialist behaviour units and removing disruptive pupils from the classroom are amongst the options proposed by Findlay.
- Rachel Amery reports results of a new survey inThe Scotsman (£) that suggests the cost and inaccessibility of public EV charging in Scotland is “out of control,” discouraging Scots from owning electric vehicles. Do you agree?
The week ahead - fill your diary with key events
The Scottish Parliament is in recess until 31 August, and Westminster is in recess until 2 September so it’s a quiet week in prospect politically, but several key economic indicators will be released over the coming days.
Monday
- UK: Chartered Institute of Personnel and Development labour market outlook
- UK: High Pay Centre publishes its annual survey of FTSE 100 chief executive pay levels
- US: former president Donald Trump expected to be interviewed by Elon Musk
Tuesday
- UK: monthly labour market figures
Wednesday
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UK: July CPI and PPI inflation rate data
- UK: Edinburgh’s waste and recycling workers expected to begin an eight-day strike, affecting the city’s world-famous arts festival, in a dispute over pay
- UK: Government Expenditure and Revenues Scotland (GERS)
- EU: Q2 GDP, Q2 employment and June industrial production figures
Thursday
- UK: A-level results in England, Wales, and Northern Ireland
- UK: preliminary Q2 GDP figures
- India: Independence Day. Financial markets closed
- South Korea: Independence Day. Financial markets closed
Friday
- UK: July Great Britain retail sales figures
- UK: English Premier League football season opens with Manchester United vs Fulham