Six per cent of Scottish businesses say SNP works well with them

Barely one in 20 Scottish businesses think SNP ministers work well with their sectors, according to a report that reveals a decline since John Swinney succeeded Humza Yousaf as First Minister.

A survey of more than 350 companies found that 6 per cent believed the Scottish Government “engages effectively” with their fields, while 68 per cent disagreed.

Support has declined by 8 per cent since 2023 – when Mr Yousaf was First Minister – despite Mr Swinney’s attempts to rebuild relations with disgruntled business leaders.

The survey, which was conducted over August and September by the University of Strathclyde’s Fraser of Allander Institute, also found that 9 per cent of firms agreed that the SNP administration understood Scotland’s business environment.

The was the second year running that a low score was recorded, as 62 per cent of companies disagreed. 

Rebuilding relations after Sturgeon

The results were published a year after Mr Yousaf’s government unveiled its “New Deal for Business” in a bid to repair links that had fractured under Nicola Sturgeon’s leadership. 

SNP ministers revealed a joint forum to ensure business leaders were consulted “at all stages” on new red tape, and pledged to involve them in policy development.

Mr Swinney made a further attempt to improve business relations by appointing Kate Forbes as Deputy First Minister and economy secretary after he took office in May. 

However, the pair have shown little sign of bowing to demands to reverse any of the SNP’s income tax rises or to reduce business rates for larger premises to the same level as the rest of the UK.  

They also angered retailers by proposing to revive a levy on supermarkets selling alcohol and tobacco. 

João Sousa, the institute’s deputy director, said: “These results will undoubtedly be disappointing for the Scottish Government, particularly given that it’s been well over a year since the launch of the New Deal for Business.

“While no one expected a dramatic reconciliation in only a year, the Government would have hoped for at least some signs of progress. But that is not what we found.”

Murdo Fraser, the shadow business secretary for the Scottish Conservatives, said: “This damning verdict from Scottish businesses reveals just how disconnected SNP ministers are from the reality facing them.

“Despite their warm words towards businesses, the SNP government just don’t get it. Businesses across Scotland are struggling and are desperate for SNP ministers to give them proper support.”

‘More evidence of SNP failure’

Daniel Johnson, the business spokesman for Scottish Labour, said: “This is yet more evidence that the so-called SNP reset under John Swinney and Kate Forbes has failed.”

The study found that firms in the professional and scientific sector (10 per cent) and administrative and support services (8 per cent) were more likely to say that they worked well with the Scottish Government.

However, construction (83 per cent) and finance, insurance and communications (79 per cent) were the most likely to disagree or strongly disagree, followed by wholesale and retail trade (75 per cent).

Again, the professional, scientific and technical sectors were the most positive about the SNP’s understanding of business (12 per cent), while construction and finance (72 per cent), and insurance and communications (71 per cent) were the most negative.

A “stable” 19 per cent of companies agreed they knew how to influence SNP policy, but the proportion of those who disagreed rose from 39 last year to 46 per cent. 

Ms Forbes said: “The New Deal for Business Group has helped shape the First Minister’s recent Programme for Government and informed our key priorities regarding economic growth.

“We are listening, and there are good examples of business already feeding into policy development. Deepening this relationship is an ongoing process, and I’m committed to building on the progress to date.”