‘There are some mixed messages for businesses’

Calum Haggerty is managing director of the Coco Chocolatier shops in Edinburgh and described the budget announcement as sending “mixed messages” to workers and business owners.

Mr Haggerty, 36, said he “liked the idea” of a Scottish National Investment Bank (SNIB) but felt the contrast with the increase in personal taxation for higher-earning workers was a “contradiction”.

He said: “I do believe the Scottish Government believes in Scottish business and does its best to promote domestic businesses.

“The idea of the SNIB in scaling up business in Scotland is sending the right message, but I think there is a massive contrast there with the high personal taxation that is likely to be passed on to workers.

“The gulf now between Scotland and the rest of the United Kingdom when it comes to that middle ground is massive and there is always the risk that it may turn some of the most talented individuals in that salary bracket off coming to Scotland.”

Mr Haggerty added: “A £40,000-£50,000 salary is not a particularly highly-paid job. It is very aspirational, but the idea that it is mitigated by the taxation of those earning over £150,000 is a bit of a stretch.

“The percentage of people who actually pay tax in that bracket is very low, by contrast there are more people in the middle bracket, so they are going to be the ones who feel the brunt of it.”

Mr Haggerty admitted he was slightly disappointed to see funding for the regeneration of Scotland’s high streets at just £50 million, but said leaving the small business bonus scheme untouched was a positive measure.

He said: “When you see the state of some of our high streets, funding like this is definitely needed, but I think they have missed the point a little on the biggest barrier to local businesses having a presence there.

“The biggest challenge local businesses have to overcome is rates and to be honest, £50m is a drop in the ocean when you consider some of the hurdles those businesses have to overcome.”

Mr Haggerty added: “Leaving the small business bonus scheme alone is positive, no changes were the best we could have hoped for in the current climate, so I am pleased about that.”