Scotland's leading business organisation has issued a stark challenge to the nation's political parties ahead of May's Holyrood election, demanding an end to "harmful" tax differences with the rest of the UK and a major shift in energy policy.
A Call for Economic Cohesion and Pragmatism
In its election manifesto published on Thursday 8 January 2026, CBI Scotland insisted that the next Scottish government must develop a "clear strategy that avoids harmful divergence with the rest of the UK". The group argues that higher income tax rates for top earners in Scotland are actively hampering business recruitment, driving talent south of the border.
The plea extends to a complete modernisation of the business rates system. Furthermore, in a significant intervention, the CBI has called for a "more pragmatic approach to nuclear energy". This directly challenges the longstanding position of SNP ministers, who have consistently opposed the construction of new nuclear power stations in Scotland.
Unlocking Investment and Growth
With the UK Government investing in new nuclear technology as part of its low-carbon energy strategy, Scottish businesses warn the country risks missing out. CBI Scotland contends that reassessing the nuclear stance is vital "to ensure the country does not miss out on the jobs and investment" flowing into the sector.
The manifesto outlines several other key growth levers. It urges the next administration to deliver an improved skills system and to expand childcare funding, offering support for infants from nine months old. Mirroring the expansion already underway in England, this policy could help around 2,200 people return to work annually, boosting Scotland's economy by £80 million a year.
Infrastructure also features prominently, with a specific call for a transformational Clyde Metro link between Glasgow and Glasgow Airport to enhance connectivity and drive growth.
"A Line in the Sand" for Scotland's Economy
CBI Scotland director, Michelle Ferguson, stated that the upcoming election on May 7 must become a "line in the sand". She criticised the current setup for taxation, infrastructure, and skills as "simply isn't good enough" and is restricting domestic growth while making Scotland less attractive to global talent.
"For too long, Scotland’s households and businesses have been shortchanged by an economy that has fallen short of our ambitions," Ms Ferguson said. She called on all parties to recognise that "growth really is the only game in town" and to maintain a laser focus on pro-enterprise policies.
In response, Deputy First Minister Kate Forbes defended the SNP's record, stating it is "the party of business". She highlighted that business investment in Scotland is at a 20-year high and that the economy is one of the UK's best-performing areas. Ms Forbes attributed ongoing challenges to Brexit and Westminster decisions, reaffirming the SNP's commitment to rejoining the European Union.
