SFE responds to 2023 spring budget

 Commenting on the UK Government budget, Sandy Begbie CBE, Chief Executive of Scottish Financial Enterprise, said:

 “The UK Government budget is taking place at a time when many households and businesses are struggling with increasing costs and an uncertain economic outlook.

“It is therefore welcome to see today’s budget taking a considered approach to support vulnerable households, increase workforce participation, and to lay some foundations for sustainable, economic growth in key areas.

“Continued support for energy costs, the use of dormant assets to support vulnerable customers, and action on prepayment meters, are welcome actions for those who are hardest hit by the current cost crisis. There has clearly been some meaningful consideration of the reasons that different groups of people are leaving or not returning to the workforce, and the government’s plan to address this issue through varied measures like the increase of tax-free allowances for private pensions and increased childcare support will be helpful to improve workforce participation and boost productivity.

“On the economy and business, additional support for carbon capture, plans for at least one investment zone in Scotland, support for the festivals in Edinburgh, and tailored programmes of tax relief and incentives, are useful targeted actions for key sectors and the development of regional economic growth plans.

“Overall, this budget signals a constructive long-term approach to changes needed in our economy and aligns with many of the priorities we have been calling for. In time, we would like to see greater ambition and more incentives for businesses to invest, not only in machinery and technology, but also in areas like net zero transition, greater inclusion, upskilling and reskilling. We are not yet seeing the level of strategic ambition in these areas as in other advanced economies around the world who are competing internationally for the same private sector capital investment.  

“We know these priorities are also important to the Scottish Government and this is an opportunity for a renewed focus on collaboration and engagement between both governments and with business to help address some of the significant structural challenges Scotland faces, such as low productivity and skills gaps.

 “That must include a focus on Scotland’s world-class sectors, including financial services, where we have significant opportunities for growth and innovation, as well as the creation of highly skilled, well-paying jobs.”