Sir Tom Hunter's guide to economic success in Scotland is a must read
It’s time to remove the dead hands of excessive regulation and taxation from the Scottish economy
According to business leader Sir Tom Hunter, Scotland once “led the world in invention, philosophy, philanthropy and education”. Not only that, he says this country “invented the modern world”. However, in his foreword to the new “Entrepreneurs Manifesto for Scotland”, he then asks: “What went wrong and how do we fix that?”
The document goes on to lay out how sweeping reforms to taxation, energy and government could create more than 100,000 new jobs and add up to £20 billion to the Scottish economy in the next five years.
It puts forward a string of sensible proposals that have the potential to kickstart Scotland’s lacklustre economy. Some passages will make uncomfortable reading for politicians across the political spectrum – especially the SNP whose lack of business experience is a persistent concern – but they should take note all the same.
Cut tax on incomes and oil
Most controversial is the call for Scotland to adopt the same income tax regime as the UK’s, with the Scottish Government and Hunter Foundation then working together on “a new system that will increase the tax take”.
The SNP may boast that 55 per cent of Scots pay less, but the difference is small while someone earning £50,000, for example, pays £1,500 more. Given the shortage of skilled workers, this financial disincentive for people to move to Scotland is a real problem.
Labour should also replace the Conservatives’ windfall tax on oil and gas “to ensure investment flows into the North Sea, not out from it”, which the manifesto says could save 1,000 jobs a month. A new nuclear plant at Hunterston could also create a £1bn regional boom and help achieve net-zero carbon emissions.
Quangos and Brexit holding us back
To our delight, it argues for a much-needed “bonfire of the quangos”, estimating that tackling “red tape, bureaucracy and multiple duplication across government agencies” could increase Scotland’s GDP by around £2.2bn.
Another source of red tape is, of course, Brexit, with an estimated £4bn hit to the economy from reduced trade alone.
It’s time for politicians to take business people like Hunter seriously. Scotland can be a thriving, prosperous country but only if the dead hands of excessive regulation and taxation are removed.
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