Business leaders have urged the next Scottish government to avoid “harmful” tax differences with the rest of the UK and adopt a “pragmatic” approach to nuclear power. CBI Scotland, in an election manifesto ahead of May’s Scottish election, said higher income tax rates for higher earners in Scotland are making it harder for businesses to recruit, forcing talent south of the border.
The organisation called for a “clear strategy that avoids harmful divergence” with the UK, modernisation of business rates, and a reassessment of Scotland’s opposition to new nuclear power stations. With the UK Government investing in nuclear technology for low-carbon energy, CBI Scotland warned that Scotland risks missing out on jobs and investment.
CBI Scotland also demanded an improved skills system and expanded childcare funding from the age of nine months, mirroring England’s support. It said this could help around 2,200 people return to work annually, boosting Scotland’s economy by £80 million a year. Additionally, it called for a Clyde Metro link between Glasgow and Glasgow Airport, describing it as a “transformational project for growth and connectivity”.
CBI Scotland director Michelle Ferguson said all political parties must “stay laser-focused on pro-enterprise policies” and that the election “must become a line in the sand”. She added that Scotland’s taxation, infrastructure, education and skills system “simply isn’t good enough”.
Deputy First Minister Kate Forbes defended the SNP’s record, saying the economy is “one of the best performing areas of the UK” with business investment at a 20-year high. She blamed Brexit and Labour’s national insurance hikes for holding businesses back, and reiterated the SNP’s goal to rejoin the European Union.
