CBI Scotland responds to Programme for Government 2024/25

On Scotland’s fiscal position, Mags Simpson, Interim CBI Scotland Director, said:

“Against a challenging economic backdrop, with little fiscal headroom to play with, the Scottish Government must stay laser-focused in its quest to deliver the long-term sustainable growth that Scotland’s economy badly needs.

“There is no doubt that the Scottish Government faces tough choices. Businesses recognise this and know that big ticket spending is off the table for the foreseeable future. That means we need an ‘outsmart not outspend’ approach to public finances that views every pound spent as a downpayment on future growth.”

On reforms to planning processes and boosting green growth, Mags Simpson said:

“Business will welcome the commitment to address longstanding barriers to growth, particularly tackling a planning system that has become too costly, too burdensome and vastly understaffed. This new approach should dovetail with initiatives across the UK to improve effectiveness, boost investor confidence and ensure that key national infrastructure and decarbonisation projects can be started and delivered as swiftly as possible.

“Cooperation between the UK and Scottish governments – alongside partnership with business – will also be essential to making the most of the green growth and net zero prizes on offer. Collaboration between the two governments on green freeports has been hugely successful and it’s encouraging to see that the model will be replicated when it comes to Acorn, GB Energy and to the stewardship of our whole energy sector.”

On tackling economic inactivity and reforming the education and skills landscape, Mags Simpson said:

“The Scottish Government is also right to make helping people stay in and get back to work a key priority – particularly through tackling long-term ill-health and increased disability support. Not only will it help individuals to experience the financial security of employment, but it should also aid business by reducing unplanned absences and increasing the supply of labour for firms struggling to attract the people they need to grow and invest.

“A new national approach to skills planning is long overdue and, alongside educational reforms, should help edge us closer to an education and skills system that better reflects the needs of business. However, given the number of open-ended government frameworks, consultations and strategies, firms will want to see further detail on how this will be delivered and to what timescales.”