A new report has sounded a clear warning about the pressures facing Scottish businesses, as decisions made in Westminster put the brakes on growth.
The Scottish Chambers of Commerce, working with the Fraser of Allander Institute, has published a survey showing that while confidence and sales are improving, the wider economic picture remains fragile.
Business leaders say rising costs, trade uncertainty, and a sharp increase in National Insurance Contributions are hitting small firms the hardest.
The UK Labour government’s rise in employer NICs, which came into force in April, has been described as a “life or death” blow for microbusinesses and SMEs already stretched thin.
Despite this, many firms across Scotland are working hard to stay positive.
But the report makes it clear that policy choices from London are making that job far harder than it needs to be.
Gordon MacDonald MSP called on Westminster to listen closely to the growing frustration across the business community.
“These findings should ring alarm bells in Westminster,” he said.
“Scotland’s businesses are resilient, but their ability to invest, grow and employ is being strangled by a Westminster government entirely out of touch with the needs of our economy.”
He pointed to the lack of tailored immigration policy and tax decisions that fail to reflect Scottish priorities as key examples.
“While the UK government refuses to reform immigration to match our labour needs, and hikes taxes on employers trying to stay afloat, the SNP is doing everything we can with one hand tied behind our backs,” he said.
According to the report, the structural limits of the UK’s current fiscal system are becoming clearer.
Supporters of independence argue that Scotland would be far better placed to design an economic model that works for its own people and businesses.
“With full powers over tax, immigration, trade and energy, we could chart a fairer, more sustainable path for Scottish growth,” said Mr MacDonald.
Until then, the SNP says it will continue pressing Westminster to reverse policies that harm Scottish employers and to deliver a new approach on migration and trade that meets the country’s real needs.
The message from this report is unmistakable.
Scottish firms are determined to grow, hire and innovate, but they need a government that backs them, not one that gets in the way.
