To the Deputy First Minister and Cabinet Secretary for Finance,

As representatives of Scotland’s business community we are united in our commitment to growing the economy and ensuring Scotland remains an attractive place to live, work and invest.

We therefore urge the Scottish Government to avoid measures in the forthcoming budget that may make Scotland less competitive, particularly in relation to any decisions on income tax rates and thresholds. We are concerned that further divergence with the rest of the UK will reduce the spending power of Scottish consumers, damage business confidence, remove money from the real economy, disincentivise investment in Scotland and inhibit our ability to create jobs and attract and retain the talent our economy and society needs. This is of vital importance if we are to achieve the economic growth necessary to increase our tax base and ultimately fund vital public services. Against the backdrop of the cost-of-living crisis, leaving people with more of what they earn allows households to better manage their way through the crisis.

We recognise this year’s Budget takes place in a challenging context and there are many competing pressures facing Ministers but to collectively deliver on our shared ambition to achieve sustainable and inclusive growth, a pragmatic long-term approach must be adopted.

Signed,

Sandy Begbie CBE FRSE, Chief Executive, Scottish Financial Enterprise

David Lonsdale, Director, Scottish Retail Consortium

Dr Liz Cameron CBE, Director & Chief Executive, Scottish Chamber of Commerce

Russell Borthwick, Chief Executive, Aberdeen & Grampian Chamber of Commerce

Marc Crothall MBE, Chief Executive, Scottish Tourism Alliance

Catherine McWilliam, National Director, IoD Scotland

Tavish Scott, Chief Executive, Salmon Scotland

Colin Wilkinson, Managing Director, Scottish Licenced Trade Association

Leon Thompson is Executive Director of UKHospitality