ICAS calls for long-term financial planning and tax simplification in Scotland

ICAS also urged the government to make its plans for sustainable growth clearer.

In response to the Scottish Government’s Programme for Government, announced by First Minister John Swinney, ICAS CEO Bruce Cartwright CA said: “We all knew that this would be a difficult Programme for Government, given the financial pressures in Scotland and the rest of the UK.

“Yesterday’s announcement by the Scottish Finance Secretary that £500m worth of cuts are needed this fiscal year is unwelcome news for everyone and will make public service delivery improvement incredibly challenging, despite what the First Minister announced today.

“All of this means that business success is even more important, and we believe there are a number of ways that the Scottish Government can support this.”

Mr Cartwright continued: “Firstly, we need far more clarity and transparency about how we plan our public finances. Currently there isn’t a strategic, long-term vision for raising and spending public funds against which to consider priorities.

“This lack of financial planning means that the focus is always on tackling problems rather than preventing them. Short-term fixes usually cost more in the end.

“We also need more certainty about the tax strategies which the government plans to publish later this year. Businesses and investors need confidence in the environment they operate in, which comes from knowing what’s next and having a level of assurance from decision makers.

“Simplifying what is already one of the world’s most complex tax systems and addressing the widening tax gap between Scotland and the rest of the UK are key to maintaining Scotland’s competitiveness. The Scottish Rate of Income Tax (SRIT) is a crucial tool the government can use in attracting investment, jobs and talent to Scotland.”

He added: “We know that our members want easy access to important skills programmes that can help widen access and create a future-fit work force. The current apprenticeship offering in Scotland isn’t attractive to many employers and our members.

“We need the ability for qualified apprentices to gain higher level professional skills at level 11 (Masters), as in the rest of the UK. Firms also need to benefit appropriately from their levy contributions.

“The current inconsistent approach to the design and delivery of these schemes across the UK isn’t working, so a unified effort with the UK government is needed to make sure they operate as intended and can be improved.

“We look forward to working with the government as it develops a new, national approach to skills planning and introducing the Post-School Education Reform Bill to simplify the post-school funding body landscape.”

Mr Cartwright concluded: “Finally, we want the Scottish Government to drive the delivery of new interim net zero goals. Certainty around what it wants to achieve before 2045 will give a clearer picture of the context in which businesses and other organisations will be operating.

“We are reassured to see that Scotland’s ultimate climate ambition hasn’t changed, and there is still a commitment to end our contribution to global emissions by 2045 at the latest. But we need to see detailed targets, supported by action plans, to make sure this happens at a pace and scale that is feasible, fair and just, and includes long-term climate policymaking.

“We want to see this detail in the plans the First Minister mentioned in his speech today.”