Scottish Businesses Want More Government Support

Business will bear the brunt of Labour’s record tax raising UK budget and need more government support, Scotland’s business leaders have warned.

The Scottish Chambers of Commerce has urged both the UK and Scottish governments to find additional solutions to ease significant cost pressures.

SCC Chief Executive Dr Liz Cameron CBE said: “While we accept the principle behind these budget changes and acknowledge the tough fiscal challenges the government faced, we were looking for a fairer and more balanced approach."

“The increase in employer NICs and the reduction in the payment threshold will push costs even higher for our 12,000 member organisations. Combined with the rise in the minimum wage and the new Employment Rights Bill that’s likely to lead to cost cutting, lower pay increases, and fewer jobs at a time when we need more growth and investment.”

The SCC called for the additional £3.4 billion of consequential funding for Scotland to be used to provide support for economic growth and the business community.

“In particular, we hope the Scottish budget will deliver long overdue reform of business rates and bring relief for the hard-pressed hospitality sector in line with the rest of the UK,” said Dr Cameron.

The SCC shared the disappointment that will be being felt by Scotland’s whisky industry at the increase in Alcohol Duty.

“It is disappointing that despite the Prime Minister’s commitment to back Scotch producers to the hilt, we have yet another increase in alcohol duty. The last government’s hike cost the Treasury more than £300m in lost revenue while this latest rise takes the minimum UK tax burden on a bottle of whisky to over £12 for the first time – and the highest of any G7 country."

“Clearly lessons are not being learned and we would urge the Chancellor to either re-think this decision or provide the whisky industry with additional support to enable future growth and investment,” said Dr Cameron.

The SCC welcomed the increase in Employment Allowance from £5,000 to £10,000 saying it will support Scotland’s micro and small businesses with less than ten employees. However, Dr Cameron called for further measures and support.

She said: “Rachel Reeves’ budget promised growth and investment and while there are many excellent measures they don’t seem to be bold enough or fast enough to counter this tax raid on businesses."

"We need a faster, more proactive approach to support Scotland’s ambition, entrepreneurship, and innovation."

“The budget boost for the Cromarty Green Hydrogen and Whitelee Green Hydrogen projects will help Scotland become world-leaders in alternate energies and boost international investment and jobs in a growing sector."

“Together with the Argyll & Bute Growth Deal and the extension of the Innovation Accelerator Programme in Glasgow, these are the kinds of initiatives and support we need to see more of."

“Glasgow’s achievement as one of the most innovative cities globally, and its status as the second leading emerging tech destination in the UK, underscores the region’s potential. Extending the programme will build on these strengths and create high-value jobs.”

The SCC has also welcomed the £750,000 funding boost for the Scotland Office in 2025/26 to champion Brand Scotland.

Dr Cameron said: “We urge the UK Government to expand this further and would welcome further engagement with the UK Government on working in partnership with business to promoting Brand Scotland across the globe.”

The SCC is the leading voice of business in Scotland and represents firms from start-ups to major employers.

Dr Cameron said: “The Chancellor’s move from short to long-term decision making will enable the retention and attraction of investors to Scotland, while schemes like the Enterprise Investment Scheme are the global gold standard and have put the UK at the forefront as an incubator of innovative start-up."

“Extending such schemes is vital for the founders and workers generating the growth that is important to the government’s goal of restoring public finances.”