CBI calls for competitiveness boost from Scottish Budget

The CBI has called on Finance Secretary Derek Mackay to put competitiveness at the heart of his Scottish Budget next week.

The business lobbyist group urged the minister to focus on three key priorities – skills, a clear and stable taxation regime and boosting productivity – in order to deliver an uplift to the economy.

In each instance, the CBI has set out short, medium and long-term measures it wishes to see the government deliver.

Among the mid-term ambitions under the skills banner is a priority urging the Holyrood administration to work with business to highlight the importance of ensuring the post-Brexit immigration system works for Scotland.

The CBI also wants to see research and development spend increased to a level of a joint public and private sector equivalent spend of 3% of GDP.

“For the past couple of years, the CBI Scotland message for the Scottish economy has been a clear one: address weak levels of productivity and safeguard Scotland’s competitiveness,” CBI Scotland director Tracy Black said.

“Alongside avoiding a catastrophic no-deal Brexit and the untold damage that would do to the economy, this remains the key priority for Scottish firms as we approach the Scottish Budget.”

While the CBI recognised efforts to support exports and upskill workers, Ms Black said firms were feeling less confident about their own competitiveness and income tax could become a major issue for companies keen to attract the best talent.

“Following the UK Budget, Scottish firms will rightly be concerned about their ability to compete with rivals across the UK in the event of further divergence,” she added.

“There’s no escaping the fact that hard choices lie ahead.”