Scotland’s leading business organisation has welcomed the Scottish budget measures but warned they may not deliver the full support many struggling firms need to survive.
Scottish Chambers of Commerce chief executive Dr Liz Cameron CBE praised the government for listening to the call from business to provide additional relief on Non-Domestic Rates and urged them to go even further to protect overlooked sectors.
Dr Cameron said: “Providing urgent rates relief for the hospitality sector is an essential step and we are pleased the Scottish Government has listened to our calls to take action. However, whilst we understand the tough choices the government had to make, the significant level of NDR relief will not fully mitigate the rising costs for many businesses at breaking point.
“The Fraser of Allander Institute estimates that it would have cost an additional £70m more than the funds generated via the Barnett formula to bring business rates relief in Scotland in line with England. That would have been money well spent and, combined with the welcome budget plans to invest in our rural areas and town centres, it would have created many positive opportunities for businesses across Scotland.
“Finance Secretary Shona Robison has recognised the difficulties and many obstacles confronting businesses but this budget doesn’t go far enough to help us to protect jobs and deliver the innovation, investment and growth Scotland so desperately needs.
Ahead of the budget The SCC, Scotland’s largest business member organisation, had also called for urgent reform of the Apprenticeship Levy.
Dr Cameron said: “The levy is simply not fit for purpose and while we applaud the Scottish budget focus on people and skills, there is still an urgent need to align the levy to modern business needs and take bolder steps to address the skills gap, ensuring we’re equipping people with the tools they need to ensure Scotland remains a world leader in innovation, a magnet for investment, and a model of sustainable growth.”
“We still need a detailed and open evaluation of the levy and how the enormous funds businesses pay towards it are being spent. There is a need for additional enhanced skills focus at its heart but crucially business must be in the driving seat of the review, not a passenger on the bus.”
Incoming President Rodney Ayre said: “We welcome the Scottish budget announcements on capital investments of more than £7 billion, including the £768m on much needed affordable homes, and their pledge to continue supporting our valuable international trade. However, the focus on investment in infrastructure and skills must be matched with a concerted effort to cut costs and reduce barriers for businesses.
“We still need a lower cost base, less bureaucracy, and more government support for key sectors like renewable energy, tourism, and manufacturing. Policies that lift the constraints and bureaucratic hurdles placed in the way of business growth, including a planning system that enables swift development, are vital for Scotland’s economy as a whole.”
