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The Scottish Affairs Committee today publishes its Annual Report, which marks the conclusion of the Committee’s Industrial Transition in Scotland inquiry.

• Read the report: Industrial Transition in Scotland [HTML]
• Read the report: Industrial Transition in Scotland [PDF]

Although Scotland is home to a range of globally competitive sectors, many communities, particularly those across the central belt, continue to feel the long-term impact of deindustrialisation. This inquiry was launched to provide a high-level assessment of this experience of poorly managed transitions and identify lessons that can be applied today. 

The Committee concluded that Scotland’s experience of de-industrialisation offers a stark warning: when communities are not adequately supported throughout an industrial transition, the consequences are lasting. These include a legacy of worklessness, health inequalities and the loss of specialist industrial skills - skills which are urgently needed again in areas like the defence sector.  

The report stresses that there is an urgent need to avoid repeating historic mistakes, recommending that future industrial transitions should be grounded in practical action and deliverable commitment to support communities and retain skills.  

The Committee highlights that these lessons are all the more important today, as the North Sea oil and gas sector – which supports 66,000 jobs – stands at a critical junction. 

Scotland’s skills pipelines and its wider economic and industrial transition have been recurring themes throughout the Committee’s work to date, and will remain central to its priorities throughout 2026. 

In its annual report, the Committee identifies these areas as two of six strategic themes that will guide its scrutiny in 2026, to ensure Scotland’s industries remain competitive and its workforce are equipped to re-skill and adapt to evolving industrial needs.  

Alongside this continued interest in skills, the Committee will continue to focus on public health and community wellbeing. Following recent work examining The Thistle in Glasgow, the Committee has launched a new inquiry on the future of Scotland’s high streets to understand how local economies can adapt to changing community needs.  

The constitution and intergovernmental relations and collaboration also remain a key priority, reflecting the importance of effective co-operation across government to deliver for Scotland. 

Ensuring the voices of rural, remote and island communities are heard will be central to the Committee’s work in the year ahead. With new inquiries launched into digital and fixed-link connectivity, the Committee aims to support equitable service access and strengthen economic resilience across Scotland.  

Scotland’s creative industries, a vital part of its economy and identity, finalise this list of the Committee’s strategic themes, as it looks to explore how Scotland can build on its global reputation in creative sectors. 

Chair comment

Patricia Ferguson MP, Chair of the Scottish Affairs Committee, said:  

“I’m proud of the work that the Scottish Affairs Committee has undertaken since its election. This report reflects a year of rigorous scrutiny across some of the most significant issues facing Scotland today and demonstrates how we've worked to ensure people and communities across Scotland have their voices heard. I look forward to another full programme of work in 2026 as we continue to examine how Scotland can secure a resilient and prosperous future. 

“This report also provides an important opportunity to set out the Committee’s findings from our inquiry into Scotland’s industrial transition. We heard about the lasting impact of past mistakes during deindustrialisation - as Scotland faces further industrial transitions, its vital these mistakes are not repeated. Future transitions must ensure long-term, practical support communities so they can benefit from new industries and opportunities as they emerge."