Firms call for 'competitive' tax system ahead of Holyrood election
Claire Mack, the chief executive of Scottish Renewables, said confidence depends on issues such as tax competitiveness
A coalition of business and industry leaders has called on Scotland's politicians to prioritise a "competitive" tax system ahead of the Holyrood election, alongside other measures aimed at boosting growth.
Trade Associations’ Scotland (TAS) warned policy uncertainty, slow planning and infrastructure constraints are already delaying investment decisions across Scotland.
“Businesses are ready to invest but confidence depends on tax competitiveness, policy stability, faster delivery and infrastructure that works,” said Claire Mack, the chief executive of Scottish Renewables, on behalf of the coalition.
“This is not about special pleading for any one sector. It is about creating an investable environment where jobs, homes, town centres and energy projects can be delivered at pace.”
The 13 trade associations represented account for nearly £90 billion in economic value and more than 1.4 million jobs.
They said Scotland’s renewable energy sector supports around 47,000 jobs and £15.5 billion of economic activity, while retail, housing and the built environment continue to underpin employment, town centre vitality and public revenues.
However, they argued that without clearer long-term signals from government, Scotland risks weaker growth, stalled regeneration and lost competitiveness.
In a manifesto published ahead of the election in May, the TAS calls for a competitive tax environment and a “stable and predictable” economic framework, alongside “a clear long-term infrastructure plan”.
“A competitive, predictable personal and business tax regime and regulatory environment is essential if shops, workplaces and homes are to attract sustained investment,” it said.
The manifesto says the planning system should be “reset” to accelerate housing delivery, regeneration and development, and warns skills shortages are now “a structural risk to Scotland’s economic ambitions”.
It advocates a “managed energy transition that protects skilled jobs, retains supply chains and sustains regional economies, particularly in the north east”.
“Scotland has the assets, skills and ambition to compete globally,” Ms Mack added. “What businesses are asking for now is delivery: joined-up policy, infrastructure that unlocks growth, and a workforce strategy aligned to future demand.
“The next Parliament has a real opportunity to set that direction. We are ready to work constructively with all parties as they develop their manifestos ahead of the election. We have a shared goal of strengthening Scotland’s economic resilience and long-term prosperity.”
Businesses have long called for tax cuts in Scotland. Last year, Alastair King, the lord mayor of the City of London, said the income tax gap between Scotland and England was creating difficulties for businesses north of the Border. Anyone earning more than £30,318 pays more income tax in Scotland than if they lived down south.
The TAS consists of the Association of British Insurers, Food and Drink Federation Scotland, Homes for Scotland, Logistics UK, Offshore Energies UK, Salmon Scotland, Scotch Whisky Association, Scottish Engineering, Scottish Property Federation, Scottish Renewables, Scottish Retail Consortium, Scottish Tourism Alliance and UKHospitality Scotland.
Finance Secretary Shona Robison will set out the Scottish Budget for 2026/27 on Tuesday afternoon, while will outline the Scottish government’s tax and spending proposals for the coming months.
However, Scottish Labour leader Anas Sarwar has already indicated he could rip this up if his party wins power at the election in May.
He said Labour reserved the right “to look at whether emergency provisions are needed, or an alternative Budget is needed, or an emergency Budget is needed, after the election in May, to meet the aspirations and the needs that people have in Scotland”.
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