01 Mar 2023
By Stuart Patrick, Chief Executive of Glasgow Chamber of Commerce
With March comes the official arrival of spring and a political decision which could change the climate for business in Scotland. On 27 March the process for electing the country’s new First Minister reaches a conclusion and we will know whether there will be a different approach to supporting economic growth.
The candidates’ campaigns may have started on social policy ground that business prefers to avoid but in more recent days many of the issues that have concerned Chamber members are getting an airing. At least one candidate has explicitly acknowledged that the relationship between the Scottish Government and business has not been ideal and needs to be reset. Not every member of the current administration accepts a problem exists but Benny Higgins, author of the 2020 pandemic economic recovery report for the government, recently confirmed his view that business priorities have not been foremost in ministerial minds in the two years since he published his findings.
The evidence has been a steady procession of initiatives that did not appear to be focused on securing economic recovery. Chief among these has been the beleaguered Deposit Return Scheme. For Glasgow Chamber of Commerce this has been a major disappointment given our seven-year commitment to promoting the principles of a circular economy. A deposit return scheme should be an uncontroversial tool in delivering circularity, reducing waste and improving our environment.
These are principles that Chamber members actively support and there are plans for return schemes under development in all four UK countries. But this is the nub of the problem. The implementation of separate plans for each country is creating costs and complications that could be avoided with a single scheme for the UK as a whole. Given that all three First Minister candidates have proposed either scrapping Scotland’s version or making significant changes suggests that the current plan is unlikely to be progressed even without the UK Government withholding its approval of an exemption under the UK Internal Markets Act.
Next up is the consultation on the banning of alcohol advertising which is proving hugely unpopular across the drinks, tourism and hospitality sectors. Given the importance of whisky and gin to Scotland’s balance of trade and the widespread sympathy for the tourism and hospitality industries throughout the pandemic it is remarkable how little engagement there had been with business prior to the publication of the consultation document. Here is one very tangible example of a policy proposal which appears hostile to business interests and places little emphasis on economic recovery. Again it is refreshing to have heard at least one candidate promising to block this proposal.
There are plenty more policies the business community considers unfriendly including those addressing the role of North Sea oil and gas, taxation on tourists through a transient visitor levy, the imposition on employers of a workplace parking levy and the ongoing challenge to the residential property industry of rent controls. A new First Minister will have considerable scope for improving business relationships simply by scrapping or radically amending each of these interventions.
Perhaps then there is an opportunity to work with business to develop policies that support both economic growth and the delivery of our collective targets for achieving net zero emissions. We could begin with a joint plan to secure private funding for radical improvements in our public transport systems in line with the recently published Strategic Transport Projects Review. Or we might work together to help Scots develop the skills they need to secure the jobs industry has been struggling to fill. There have also been plans laid out by the government to grow exports, increase inward investment and encourage more entrepreneurs to scale up businesses in Scotland. This is territory that can win widespread business support.
In the weeks leading up to Christmas I detected a weariness among Chamber members exhausted from three years of pandemic, Brexit and war-related disruption. A First Minister willing to engage would be a welcome spring gift.
This article was first published in The Herald on Wednesday 1 March 2023
