CBI Scotland calls for a ‘whole system’ approach to delivering a net zero economy in Programme for Government

• The Scottish Government must adopt a ‘whole system’ approach with faster actions and collaboration key to driving Scotland’s greener future in 2023/24 Programme for Government.
• Speed up the consenting process for offshore wind and other net zero projects; and cut red tape to roll-out electric vehicle infrastructure.
• Improved productivity and a ‘future-proofed’ workforce is needed to support entrepreneurship, drive innovation and investment that creates better paid jobs.
• A long-term tax strategy to boost Scotland’s competitiveness and drive inward investment.

CBI Scotland has called for a ‘whole system’ approach to deliver a productive, innovative and sustainable net zero economy in the Scottish Government’s 2023/24 Programme for Government.

Businesses identified the decarbonisation of infrastructure, construction of new homes and improved broadband & transport connectivity; the labour market, productivity, and a competitive business environment as key areas for economic performance gains.

With the National Planning Framework 4 (NPF4) putting climate change at the heart of decision making, CBI Scotland warned long-standing planning barriers still needed to be addressed and consenting times for projects reduced if the policy is to be implemented successfully.

The Scottish Government must utilise Scotland’s energy strengths, which is among 27 green growth prizes that could boost the UK’s annual GDP by between £37-£57billion by 2030 via Carbon Capture Utilisation and Storage (CCUS) and other projects.

The Scottish Government should unlock trapped tax investment, including boosting exports and creating a long-term competitive tax strategy as part of efforts to cut the costs of doing business and drive inward investment. That includes lowering business rates to give Scotland a level playing field with England on the large business supplement.

Firms also want the devolved administration to take account of UK Government incentives and regulations to drive energy efficiency improvements, including the development of a clean heat market mechanism and the Great British Insulation Scheme, which aims to upgrade inefficient homes.

CBI Scotland also would like to see gigabit-capable digital connectivity rolled out by the end of the next parliamentary term, a national target to build 25,000 homes each year and transport infrastructure investments that improve connectivity to key markets, including the rest of the UK.

Tracy Black, Director, CBI Scotland, said:

“The Scottish Government needs to start delivering now to achieve net zero by 2045.

“A long-term tax strategy would create certainty and simplicity. It would boost international competitiveness,  make it more attractive to investors and enhance Scotland’s reputation as a  place to do business.

“Scotland can steal a march on its rivals by speeding up the consenting process to cut down on the 12 years it takes to build an offshore wind power project in the UK. Business rates should incentivise investment to decarbonise older buildings, with rates relief giving tax breaks to firms that improve energy efficiency.

“Firms know long-term sustainable growth will help support life opportunities, fund public services and deliver on shared policy priorities. They are ready to work with government to make sure Scotland marches ahead of its international rivals.

“The First Minister’s ‘New Deal for Business’ must be the starting point of an effective partnership between government and business to create a clear, stable policy environment to grow the Scottish economy for the benefit of all.”

Read CBI Scotland’s 2023/24 Programme for Government submission here.