Why we 'presume' the SNP will start listening to business leaders about taxes and growth
The next Scottish Government should pay more attention to the views of business leaders
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The Scottish Government has developed a particular fondness for ‘presumptions’ about one thing or another. For example, there are presumptions against short prison sentences and (probably) new oil and gas exploration, but in favour of ‘mainstreaming’ children, regardless of special needs, in ordinary schools.
So the call by Scottish Financial Enterprise (SFE) for the next government to adopt a presumption against further income tax rises is using the kind of language that civil servants and, based on current polls, their returning SNP masters will understand.
Given UK taxes are at historically high levels and the extra ‘tartan taxes’ on top, we had pretty much reached our own ‘assumption’ that no politician would be so foolish as to raise them even higher.
Anyone earning more than £33,500 in Scotland pays more than their counterparts south of the Border – in some cases substantially so – while those who pay less do so by a minimal amount.
Few more important voices
Clearly, governments need funds for public services, some of which, like education, health and transport infrastructure, are economically vital. However, a sensible balance must be struck as taking too much money out of people’s pockets risks throttling growth and, by extension, tax revenues.
So it is important for politicians to know the point at which higher taxes cause more problems than they solve. In this task, there are few more important voices than those of business leaders.
The SNP has faced criticism for a lack of understanding of the business world. The loss of Kate Forbes, Deputy First Minister and Economy Secretary, who developed a reasonable reputation in this area but is standing down, may make this situation worse.
So the SFE’s suggestion that ministers should “consider bringing senior business people into substantive roles in government” is another that should be taken seriously. The SNP’s recent track record has been poor and they should have the humility to accept they could use some expert help.
The SFE holds out the prospect of turning Scotland into “the engine room” of the UK economy. It should not be far-fetched to subscribe to a ‘presumption’ that everybody, including the SNP, would be in favour of that.
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