14 December 2017

  |  CBI Scotland

Press release

A budget for business but tax kicker remains a concern - CBI Scotland

CBI Scotland has responded to the Scottish Government’s Draft Budget for 2018/19.

A budget for business but tax kicker remains a concern - CBI Scotland

Hugh Aitken, CBI Scotland Director, said:  

“The Finance Secretary promised that today’s draft Scottish Budget would be a boost for business and he delivered on a number of fronts. 

“On business rates, we’re delighted to see that our call for full implementation of the Barclay Review recommendations and the linking of rate increases to CPI instead of RPI will largely be taken forward. We look forward to seeing further clarity on how this will be achieved in the implementation plan published today.

“Companies across Scotland will also benefit from additional investments in business R&D, transport, digital connectivity, education and city deals. Support for the Scottish National Investment Bank and the introduction of the new Building Scotland Fund should also be applauded.

“By putting productivity at the heart of the Budget it’s clear that Derek Mackay has listened to organisations like the CBI that have said consistently that boosting productivity is the only sure-fire way to grow our economy, generate the revenues we need for quality, sustainable public services and raise living standards. This is a step in the right direction and evidence of the value of business and government working together. 

“But things aren’t all rosy – the prospect of income tax rises and added complexity in Scotland’s tax code will be a bitter pill to swallow. At a time when our economy is stuck in a cycle of weak growth and we face unprecedented levels of uncertainty, the last thing we need is to make it harder for companies to attract talent or make Scotland appear a less attractive place to do business.”

See the full CBI Scotland 2018/19 budget submission