SFE responds to Scottish Government budget

Commenting on yesterday’s Scottish budget, Sandy Begbie CBE, Chief Executive, Scottish Financial Enterprise, said:

"This budget comes at a moment of extreme fiscal pressure, and we recognise that the Government has to make difficult decisions to maintain the provision of vital public services and support for struggling families and businesses. In this context we are pleased to see non-domestic rates frozen, which will offer much needed breathing space to many of those businesses in the short-term.

"While it’s right that those with the broadest shoulders make the biggest contribution, we must also acknowledge that simply increasing taxes on higher and top rate earners will do little to address the underlying weaknesses in the Scottish economy. 

 “Scotland’s growth rate continues to underperform our nearest neighbours, our real terms productivity has remained stagnant and we face a projected reducing working age population. The Scottish Government must monitor this situation closely going forward as the clear risk is these serious structural challenges will only be exacerbated if Scotland is viewed as a less attractive location to live, work and invest. 

"Our ability to improve the provision and funding of public services, particularly for those in lower-and middle-income households, can only be achieved if we successfully increase our tax base and adopt a laser-sharp focus on achieving sustainable, inclusive growth. Indeed, we cannot expect to tax our way to growth. 

"That is why we are working with other industry bodies on a targeted manifesto for growth that outlines a range of key priorities for Government to consider as they weigh up policy interventions in the coming period.”