Scottish Labour Conference arrives at a key moment, not just for Anas Sarwar and his party, but for Labour’s broader political positioning in the UK. The last UK election saw Scottish Labour riding high on their success, taking seats from the SNP for the first time in over a decade. But the latest Holyrood polling suggests that was a short-term, not a permanent shift. “Change” was the message of Labour and Scottish Labour’s winning General Election campaign, but has the change been enough to convince voters to back Scottish Labour in Holyrood?

For businesses and investors, this year’s conference is about more than just policies. It is a test of how Scottish Labour navigates its seemingly complicated relationship with UK Labour and whether it can convince Scotland’s business community that it has a distinct, credible vision for economic growth, investment, and industry in Scotland.

Voters want a government that protects free tuition, free prescriptions, and other universal benefits and businesses want to see a credible industrial strategy.

What We’re Watching Out For

Economic Growth

UK Labour’s messaging has been clear: growth is the priority. But Scottish Labour faces a different challenge. Economic levers are split between Holyrood and Westminster, meaning businesses need clarity on what Scottish Labour can actually deliver and what will depend on Keir Starmer’s government.

Energy & Infrastructure

The most visible policy divergence between Scottish Labour and the SNP has come on energy. Last week, Anas Sarwar challenged the SNP’s opposition to nuclear power, calling it an ideological block that is costing Scotland investment, jobs, and energy security.

Labour has also embraced public ownership in energy, with GB Energy headquartered in Aberdeen. The challenge now is to provide clarity on what role Scottish Labour would play in shaping energy policy, particularly when it comes to:

· How will Scottish Labour ensure that public investment leads to jobs and supply chains staying in Scotland?

· What will Labour do differently from the SNP to accelerate infrastructure upgrades?

· Will Labour be able to attract inward investment while delivering its commitments on public ownership?

Technology & Digital Exclusion

Labour is also looking at how technology can be used to modernise Scotland’s economy and public services. This month, Sarwar announced a plan to tackle digital exclusion, highlighting the 10% gap in internet access between Scotland’s richest and poorest communities.

For businesses, the key issue is whether Labour can harness Scotland’s tech sector as a driver of economic growth. Labour has committed to working with the industry on digital transformation, but there is still a need for clarity on skills, investment in digital infrastructure, and support for innovation.

SNP Guarantees: What Stays, What Changes?

Scottish Labour has made it clear that it will protect key SNP-era social policies. Free tuition, free prescriptions, and free personal care are politically untouchable, but that doesn’t mean there aren’t difficult choices ahead.

Labour must show how it will fund these guarantees while still delivering better public services and a stronger economy. The challenge is that the SNP has already maxed out Scotland’s tax powers, meaning Labour either has to:

1. Find new ways to generate growth and investment—so that Scotland has a larger tax base, rather than just higher taxes.

2. Cut spending elsewhere—something no party wants to talk about before an election.

The Road to 2026: Can Scottish Labour Win on Its Own Terms?

Scottish Labour faces a fundamental political challenge: how to be distinct enough to win Holyrood while staying aligned enough with UK Labour to offer stability. The last UK election showed that many Scottish voters backed Labour not out of enthusiasm, but as a means to remove the Conservatives from power. That dynamic will not apply in 2026.

Polling suggests that despite SNP challenges, they remain the largest party in Holyrood, with the potential for another pro-independence majority. If Labour cannot convince Scotland’s business community that it has a credible alternative to SNP economic strategy, then the risk is that the party simply doesn’t gain enough ground to govern in 2026. This conference is a moment to test that. It’s not just about policies, but it’s about whether Scottish Labour can set out a vision that businesses, investors, and voters believe is actually deliverable. The next few days will be critical in answering that question.