Scotland's leading business organisation has issued a stark challenge to the next Scottish government, demanding it avoids "harmful" tax divergence with the rest of the UK and adopts a more pragmatic stance on nuclear power.
Tax and Talent Drain Top Business Concerns
In a manifesto published ahead of the Scottish Parliament election on May 7, 2026, CBI Scotland warned that higher income tax rates for top earners are actively hampering recruitment. The group insists this policy is forcing vital talent to move south of the border, undermining the Scottish economy.
The organisation, led by director Michelle Ferguson, called for a "clear strategy that avoids harmful divergence with the rest of the UK". It further pressed for a modernisation of the business rates system to improve competitiveness.
A Call for a Nuclear Reassessment
In a significant shift from the long-standing position of SNP ministers, the CBI demanded a "more pragmatic approach to nuclear energy". The business leaders pointed out that the UK Government is investing in new nuclear technology as part of its low-carbon energy push.
They argue that Scotland's steadfast refusal to back new nuclear power stations must be reassessed "to ensure the country does not miss out on the jobs and investment" associated with the sector.
Boosting Skills, Childcare, and Connectivity
The manifesto also outlined several other key priorities for economic growth:
- An improved skills system to better meet the needs of businesses.
- Expanded childcare funding to support infants from nine months old, mirroring support in England. This move, they claim, could help around 2,200 people a year return to work, boosting Scotland's economy by £80 million annually.
- The delivery of a transformational Clyde Metro link between Glasgow and Glasgow Airport to enhance growth and connectivity.
Launching the manifesto, Michelle Ferguson stated that the upcoming election "must become a line in the sand". She criticised the current setup for taxation, infrastructure, and skills as "simply isn't good enough," restricting domestic growth and global appeal.
"We need all parties competing at this election to recognise that growth really is the only game in town," Ferguson asserted.
In response, Deputy First Minister Kate Forbes defended the SNP's record, stating it is "the party of business". She highlighted strong business investment and prudent fiscal management, while blaming Brexit and Westminster decisions for holding Scottish businesses back. She reaffirmed the SNP's commitment to rejoining the European Union.
