Action on regulations and non-domestic rates, as well as closer collaboration with business on government policy, are key recommendations of the New Deal for Business Group, which has submitted its report to the First Minister.
The creation of a new independent review board to oversee regulations will be taken forward, in response to requests from business to help government work more closely with industry.
The group has also looked at improved working around sharing data, creating a wellbeing economy, and involving business in the development of policy.
Recommendations include:
- setting up a new independent Regulatory Review Group to work with industry and government on a renewed remit;
- featuring non-domestic rates among the wider considerations of a new Tax Advisory Group;
- ensuring the right voices are heard in engagement with business about policy;
- working on labour market participation with a focus on supporting parents into employment and the skills businesses need for a transition to net zero; and
- gathering data on the type of support businesses are searching for, to help government better understand their needs.
Wellbeing Economy Secretary Neil Gray responded: “The Scottish Government is listening to business and is committed to taking forward these recommendations to deliver a wellbeing economy with sustainability and fairness at its heart that allows business - and in turn society - to thrive.
“The relationship between government and business is key to ensuring we have an economy that is fair, green and growing.
“The New Deal for Business Group was set up to reset that relationship with a focus on co-designing policies that will have a positive impact on the day-to-day operations of business.
“This is the start of a process to ensure we can create the conditions together to support business, which in turn will drive economic growth that feeds into strong and sustainable finances to support public services and communities, as well as a just transition to net zero.”
Co-chair of the group, Dr Poonam Malik, said: “I believe government and business are two pillars of our society with the same goal – to deliver a healthy and happy future with the equitable, diverse, and fair communities and thriving economy with the wellbeing of people at its heart.
“It is important they are in sync with each other and iron out the main challenges.
“I have been impressed by members’ desire for change and a positive mindset for trusting engagement to work towards our common goals,“ she continued, adding: “These short, medium and long-term recommendations go a long way to helping us achieve our shared ambitions, to ensure we co-design with Scottish businesses the policies which impact them.”
Malik, head of investments at the University of Strathclyde, alongside Gray, co-chair the group, which draws upon the expertise of business leaders, and representatives from a range of organisations.
This initial report to the First Minister is the start of a process, with an implementation plan being developed to make progress over the next 12 to 18 months.
A previous independent Regulatory Review Group was stood down in 2020 to allow a faster response to the pandemic. The new group, headed up by chair of South of Scotland Enterprise, Russel Griggs, will have an expanded membership and an enhanced brief to respond to the transition towards a wellbeing economy.
Non-domestic rates will continue to be discussed with the new deal sub-group, as well as being part of the wider considerations of the new Tax Advisory Group, announced by the Deputy First Minister Shona Robison.
Leading economists, academics and figures from the private, public and third sectors have joined this new advisory group on tax, established as part of the Medium-Term Financial Strategy.
In line with a recommendation from the New Deal for Business, this will include the role of non-domestic rates and other taxes in achieving the right balance between sustainable levels of taxation and creating a competitive environment to do business while also supporting communities.
The group will include figures from think tanks such as the Fraser of Allander Institute and the Institute for Fiscal Studies, the anti-poverty charity the Robertson Trust, the Scottish Chambers of Commerce and the Scottish Trades Union Congress, among others.
Its work will feed into both the Scottish Budget 2024/25 and the tax strategy over the longer-term.
Robison said: “As we set out recently in our Medium-Term Financial Strategy, we want to build a tax system that works for everyone in Scotland, while allowing us to continue to deliver high-quality public services and keep our finances on a sustainable footing.
“A core part of this is ensuring we talk to as wide a range of people as possible, which is why I am convening this group to provide us with strategic advice.
“Each member will bring to the table ideas and insights from across Scottish society, ensuring we can develop a tax system that is fair, progressive and effective.”
The members of the Tax Advisory Group, whose positions are non-remunerated, are:
- Stuart Adam, senior economist at the Institute for Fiscal Studies.
- Dave Moxham, deputy general secretary at the Scottish Trades Union Congress.
- Mairi Spowage, director of the Fraser of Allander Institute.
- Jim McCormick, chief executive of the Robertson Trust.
- Katie Hagmann, COSLA Resources spokesperson.
- Aidan O'Carroll, chair of Revenue Scotland and former chair of the Institute of Directors in Scotland.
- Liz Cameron, chief executive of the Scottish Chambers of Commerce.
- Charlotte Barbour, director of Regulatory Authorisations at the Institute of Chartered Accountants of Scotland and deputy president of the Chartered Institute of Taxation.
- Professor David Heald, emeritus professor in the Adam Smith Business School.
The group will meet for the first time on 20 July, with a further two meetings in the lead up to Budget 2024-25. It will then meet four times a year for the remainder of the Parliamentary term.
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