CBI Scotland Calls for Government Action to Boost Economic Growth – Scottish Business News

As the economy begins to show signs of recovery after a period of stagnation and high costs, CBI Scotland is urging the Scottish Government to leverage the upcoming Programme for Government to support enterprise and drive sustainable growth.

The organisation emphasises the need for close collaboration with UK counterparts to enhance Scotland’s economic recovery, utilising both devolved and reserved powers to create a competitive and prosperous economy benefiting businesses and consumers across Scotland.

In a letter to the First Minister, CBI Scotland highlights the importance of prioritising policy competitiveness and stability, boosting business investment, and capitalising on opportunities in areas like the green economy, where Scotland has an early mover advantage.

Mags Simpson, Interim CBI Scotland Director, said: “With a new UK Government in place, there’s a real chance to re-set the relationship between Holyrood and Westminster because collaboration not confrontation is the only way to build a thriving economy that delivers for the people of Scotland.

“The two governments must now work hand-in-glove to break-down barriers to growth, crowd-in business investment, and build a high-skilled workforce.

“Giving certainty to investors is essential if we’re to capitalise on the amazing opportunities available to us.

“A thriving green economy is within our grasp, but we need to address the issues that are giving investors pause for thought.

“That means publishing long awaited net-zero strategies, addressing critical gaps in skills and infrastructure and cutting through burdensome red tape – particularly around planning.

“We also need to take stock of Scotland’s competitiveness, not just internationally but across the UK. In a fierce race for talent, it’s time to put business leaders’ minds at ease by committing not to widen the income tax gap between Scotland and the rest of the UK.

“We should also look closely at whether current income tax bands are helping or harming the Scottish economy overall.”

CBI Scotland’s Programme for Government focuses on three key areas:

1. Deliver a competitive investment-focused tax regime:  Avoid further income tax divergence with the UK, review its impact on competitiveness, and reverse business rates surtax for larger retailers.

2. Create a workforce that’s fit for the future: Align skills funding with market demand, consolidate skills strategies, and improve transparency around Apprenticeship Levy funding.

3. Breakdown investment barriers to unleash economic opportunities: Publish key strategies for policy certainty, address growth barriers, and invest in transport infrastructure to improve connectivity.

These recommendations aim to unleash economic opportunities and ensure a sustainable future for Scotland’s economy.