Scottish Entrepreneurs Issue Demanding Growth Manifesto to Government
A powerful coalition of Scottish business leaders, spearheaded by renowned entrepreneur Sir Tom Hunter, has issued a stark demand for economic reform. Their newly published manifesto calls for the immediate reversal of recent SNP tax increases and a significant reduction in public sector bureaucracy through what they term a 'bonfire of the quangos'.
A Call for Tax Parity and Regulatory Overhaul
The report, coordinated by Sir Tom's Hunter Foundation, argues that Scotland's current income tax system acts as a direct penalty on growth and recruitment. It demands that Scottish income tax rates be brought into full alignment with those in the rest of the United Kingdom. The document labels the present divergence a 'penalising system' that forces businesses to pay a 'recruitment premium' to attract talent north of the border.
The manifesto highlights a critical example: an individual earning £50,000 annually pays approximately £1,500 more in income tax in Scotland compared to elsewhere in the UK. This disparity, the report warns, makes potential employees 'savvy', leading them to demand higher salaries to offset the tax burden—an additional cost that disincentivises hiring and expansion.
Proposals for a More Competitive Scotland
Beyond tax reform, the business leaders' action plan includes several key proposals designed to stimulate the economy:
- The appointment of a dedicated 'red tape tsar' to systematically cut bureaucratic hurdles for businesses.
- An urgent and comprehensive reform of the business rates system, which is branded a 'tax on entrepreneurship'.
- A reversal of the trend towards increasing numbers of quasi-autonomous non-governmental organisations (quangos), aiming to cut public sector costs and duplication across an estimated 130 agencies.
- The abolition of the windfall tax on the oil and gas sector.
The collective estimates that implementing these changes could unlock an extraordinary £20.2 billion in economic growth over the next five years and create more than 100,000 new jobs.
Leadership Voices and Political Reactions
Sir Tom Hunter, a foundational figure in Scottish business, emphasised the pragmatic nature of the demands. 'Scotland has the talent and the ambition to be a high-growth nation once again,' he stated. 'This manifesto is about practical changes that remove friction, speed up decisions and back the creation and retention of quality jobs. We're asking for a partnership focused on outcomes.'
The document is particularly critical of the marginal tax rate, noting that earnings between £43,500 and £50,000 face an effective rate of 50% due to combined income tax and National Insurance. 'We are punishing teachers, doctors, nurses, the very people so important to our futures,' it states.
The proposals have drawn immediate political commentary. Scottish Tory business spokesman Murdo Fraser endorsed the critique, stating: 'Sir Tom's been clear that high-tax policies and excessive regulations have created a hostile environment for businesses.' In response, SNP Deputy First Minister Kate Forbes pointed to government progress, citing a 17.9 per cent increase in start-up businesses and a 24 per cent growth in investment deals during the first half of 2025.
The entrepreneurs' manifesto presents a clear challenge to the Scottish Government, framing economic competitiveness not as a request for special treatment, but as a necessary partnership to rebuild a 'vibrant, world-beating nation'.
