Scottish Water Brings £4.5bn in Value to Scotland’s Economy

29 July 2025

Infographic with text: How Scottish Water supports Scotland's economy

Infographic with text: Scottish Water supports the employment of around 21000 people directly and indirectly

Infographic with text: Scottish Water generates £4.5 billion annually for Scotland's economy

Infographic with text: Each direct job that Scottish Water creates supports 4, more than the Scottish oil, gas and power sectors

Infographic with text: For every £1 Scottish Water invests, £3 of value is created

Infographic with text: Nearly 90 per cent of Scottish Water's direct supply chain spending is with companies operating in Scotland

Helping Scotland Flourish

According to independent economist Richard Marsh, the economic benefits of Scottish Water reaches well beyond our vital water and waste water services

A new review of the economic impact of Scottish Water on Scotland’s economy shows the business creates £4.5bn of value every year.

The report, by independent economists 4-consulting, found Scottish Water supports more than 21,000 jobs directly and indirectly. The business, which is publicly owned, independently regulated and commercially run, also creates a high proportion of jobs in Scotland’s areas of deprivation, the report finds.

Among its other conclusions are:

For every £1 invested by Scottish Water, £3 in value is generated for the Scottish economy, reflecting strong economic returns on infrastructure spending and totalling £4.5bn annually
Each direct job Scottish Water creates, supports four jobs in Scotland, meaning water investment has a bigger multiplier effect on the Scottish economy than oil, gas and power sectors
Nearly 90% of Scottish Water’s direct supply chain spending is with companies operating in Scotland

Economic Impact Report

Read the full report into Scottish Water's economic contribution, assesed by independent consultants, 4Consulting

Read Report

Economic benefits

Scottish Water’s focus on investing in Scotland has strengthened over the last ten years, resulting in a 23% increase in how many additional pounds are sustained across the rest of Scotland’s economy.

The report’s author, economist Richard Marsh said: “There is no doubt the economic benefits of Scottish Water’s work reach well beyond simply supplying vital drinking and waste water services.”

“As a major infrastructure investor its focus on creating dependable local jobs and supporting local businesses means it has a major impact on the Scottish economy.

“Scottish Water runs thousands of assets which generate significant positive impacts, and its diverse supply chain helps support a number of industries, notably construction, engineering and technology. 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.”

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 said: “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.”

Record investment

Scottish Water continues to invest at record levels, with £1.09 billion spent delivering its capital investment programme in the last year. Given it operates in all parts of Scotland, the utility provides jobs in economically deprived communities including in Glasgow and less accessible communities in the Highlands. Meanwhile its supply chain spans construction, engineering, and technology industries, fostering growth in both urban and rural areas.

Richard Marsh added: “Scottish Water has worked with suppliers across Scotland to develop new technologies and nature-based solutions to problems like flooding. This has drawn on Scotland’s considerable strengths in research and innovation to sustain employment opportunities for engineers, scientists and digital occupations across the country.”