SFE calls for business figures in government roles – Daily Business

Sandy Begbie: opportunity

Scotland’s financial services body has called for business people to be brought into government roles as part of a package of measures to grow the economy.

In its election manifesto, Scottish Financial Enterprise (SFE) wants all parties to commit to a binding annual growth target and a presumption against more income tax divergence with the rest of the UK.

However, the demand for no divergence with the UK is ambiguous as it could be interpreted as a commitment not to reduce income taxes, which leaves it opposed to Reform UK’s plans to cut 1p off the three main bands.

Its manifesto is published amid speculation of a new Holyrood partnership between the SNP and the Green Party which has listed a range of new tax demands, including higher taxes on the highest earners.

Sandy Begbie, SFE’s chief executive, said: “The next Scottish government, whatever its make-up, has a huge opportunity to turbocharge economic growth in Scotland.

“By following these measures, the next administration can not only stimulate growth, strip away red tape, and encourage investment – they can also fundamentally reset the relationship between business and government.

“Incoming ministers should also consider bringing senior business people into substantive roles in government, as many other countries with higher growth rates have successfully done.

“Only by working with Scotland’s world-leading sectors, including financial and professional sectors, can the next Scottish government deliver on its ambitions, boost growth and increase the tax revenues that support the public services on which we all rely.”

The SFE manifesto wants to see private capital employed in major infrastructure projects and it calls for a “meaningful” review of university and college funding. It does not provide further details, but the implication is that funding is not being well managed.

The manifesto supports those, such as the Institute for Fiscal Studies, which have called for a broader simplification of the tax system. Reforms wants to bring the current six income tax bands back into line with the UK’s three bands.

SFE wants the UK government’s Investment Acceleration Unit to fast-track critical planning applications.

Scotland’s finance industry is worth £17.7 billion to the economy and is by far the most valuable export, according to recent figures from fellow industry group TheCityUK.

Miles Celic, chief executive of TheCityUK, said: “Scotland’s financial and related professional services industry is a major national asset.

“SFE’s manifesto builds on many of the themes from our No time to lose report with PwC, which makes clear that against a backdrop of geopolitical and technological change, the UK must act with greater ambition and pace to reinforce its position as an open, internationally connected, world-class financial centre.”

“By backing innovation and resetting the framework for growth through stable, predictable tax and proportionate regulation, we can unlock investment and deliver lasting benefits for households and businesses across the country.”

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