A new review by independent economists 4-consulting has highlighted the substantial economic impact of Scottish Water, revealing that the publicly owned utility creates £4.5 billion of value for Scotland's economy every year.

The report also found that Scottish Water supports more than 21,000 jobs directly and indirectly across the country.

The review's findings underscore the robust economic returns generated by infrastructure spending. For every £1 invested by Scottish Water, £3 in value is generated for the Scottish economy. This reflects a larger multiplier effect on the Scottish economy than the oil, gas, and power sectors. Furthermore, nearly 90% of Scottish Water's direct supply chain spending is with companies operating in Scotland, demonstrating a strong commitment to local businesses. The report also notes that the business creates a high proportion of jobs in Scotland's areas of deprivation.

Richard Marsh, the report's author and an economist at 4-consulting, commented: "There is no doubt the economic benefits of Scottish Water's work reach well beyond simply supplying vital drinking and waste water services." He added that as a major infrastructure investor, Scottish Water significantly impacts the Scottish economy through its focus on dependable local jobs and supporting local businesses. "Its work to design and deliver innovative engineering solutions is creating jobs not only in cities and towns but in more remote and rural communities, often in areas of the highest deprivation," Mr Marsh stated.

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Alex Plant, Chief Executive of Scottish Water, said: "This report shows that Scottish Water is not only investing in Scotland but for Scotland. As the country prepares for a massive increase in infrastructure investment across a number of industries, Scottish Water is showing how this can be done in a way that delivers a social return on investment, creating real benefits for customers and communities across Scotland."

Climate Action Secretary Gillian Martin welcomed the findings: "I welcome these findings which demonstrate the value that a publicly owned water company brings to the people of Scotland by keeping investment in water where it belongs. The Scottish Government will continue to work closely with our regulators and Scottish Water, to ensure our investment is targeted across the country so that customers get good quality water, good wastewater services and value for money."

Scottish Water continues to invest at record levels, having spent £1.09 billion on its capital investment programme in the last financial year. Operating across all parts of Scotland, the utility provides jobs in economically deprived communities, including Glasgow and less accessible areas in the Highlands. Its extensive supply chain spans the construction, engineering, and technology industries, fostering growth in both urban and rural areas.

Richard Marsh further highlighted that Scottish Water has collaborated with suppliers across Scotland to develop new technologies and nature-based solutions for challenges like flooding. This leverages Scotland's strengths in research and innovation to sustain employment opportunities for engineers, scientists, and digital occupations nationwide.