Chancellor urged “Restore Confidence & Unlock Investment” by Scottish Chambers of Commerce

THE SCOTTISH CHAMBERS OF COMMERCE (SCC), REPRESENTING THOUSANDS OF BUSINESSES ACROSS EVERY SECTOR OF SCOTLAND’S ECONOMY, HAS WARNED THAT THE AUTUMN BUDGET MUST BE A TURNING POINT FOR GROWTH, COMPETITIVENESS, AND CONFIDENCE ACROSS THE UK.

In a letter to the Chancellor, SCC says that firms are facing a perfect storm of rising costs, squeezed cashflow, and policy uncertainty. Its latest economic survey shows business confidence declining across most sectors, investment intentions put on hold, and hiring costs at record highs.  

Dr Liz Cameron CBE, Director and Chief Executive of SCC, said:
"Firms across Scotland are ready to invest and grow, but a complex and costly policy environment is holding them back. We hear all too often that firms want to invest in their premises and people, but that the spiralling cost burden has seen investment intentions shelved. This Chancellor needs to make this Budget a turning point for businesses.

“The measures we’ve outlined will unlock investment, drive innovation, and create jobs in every region of the UK. Bold, evidence-led decisions today will secure growth and prosperity for decades to come."

SCC is calling for a package of measures that strengthen the UK’s global competitiveness and support long-term productivity:

1.    Create a Competitive Tax and Cost Environment: Reverse the Employer National Insurance increase and introduce targeted VAT reductions for hospitality and tourism.
2.    Stimulate Investment and Innovation: Enhance capital allowances, support R&D for SMEs, and reinstate economic development funding.
3.    Boost Scotland’s Global Competitiveness: Reinstate VAT-free shopping for overseas visitors and freeze spirits duty for multiple years.
4.    Secure Energy Investment and Transition: Reform the Energy Profits Levy to a permanent, profit-based mechanism to unlock billions in investment and accelerate the low-carbon transition.
5.    Prioritise Infrastructure and Skills for Growth: Commit to long-term infrastructure funding and expand flexible skills programmes for emerging industries.

Concluding, Dr Cameron said:
“The message from Scotland’s business community is clear: we’re ready to invest, innovate, and create jobs. Now we need a Budget that matches our ambition, and takes the necessary steps to restore business confidence.
“With the Scottish Budget due in January, we urge both Governments to work together to deliver a settlement that unlocks the full potential of Scotland’s businesses.”

Sarah Medcraf, Director of Scottish Chambers of Commerce and Chief Executive of Moray Chamber of Commerce, said: “Businesses across Scotland need to see confidence restored and stability prioritised. These businesses are working hard to invest, innovate and retain staff in an extremely challenging environment. This Budget is a key moment for the UK Government to signal that it understands the reality on the ground and is prepared to back the businesses that drive growth in our communities. If we get the right decisions now, Scotland’s businesses will create jobs, develop skills and deliver investment where it matters most – which is what they do best!”