The overwhelming victory for Labour in the UK election reflects a clear desire for positive change but that message from the electorate also brings a huge weight of expectation.
From a business perspective that means the new government urgently delivering on its promises on growth and prosperity – helping drive the economy and creating much needed jobs.
With a resounding mandate, we hope they will seize the opportunity to act quickly to help Scotland’s business community.
There is a real need for urgency to deliver a framework of measures for the growth Sir Keir Starmer has said will raise public finances and underpin his plans for the UK. Confidence in our economy depends on early action.
A thriving business creates profits and jobs which in turn fill the Chancellor of the Exchequer’s coffers but we need greater support and a new collaborative approach if we are to make that positive difference.
As the leading business organisation in Scotland we have already issued a 15-point action plan for government, built by business for business, including setting up a Joint Economic Growth Board within the first 100 days of being in office.
Taking that step will provide a much-needed early vote of confidence that there will be a new approach to the relationship between government and business.
A productive and thriving economy is key to addressing many of the wider societal challenges we face. Restoring consumer footfall and confidence among our retail sector is one such way to do this.
The SCC Network including Edinburgh Chamber of Commerce have called for the re-introduction of tax-free shopping. The Association of International Retail figures show spending by non-EU visitors to Europe in 2022 down £1.5 billion since it ended and the evidence of British people shopping tax-free in the EU suggests that places like Edinburgh are missing out on a share of a new £10 billion market.
That will be an early test for their approach to governing for all of the UK and whether they will be a listening government happy to actively engage with industry sectors and the communities that depend on them.
Taxation conversations dominate boardrooms across the country, driven by the fact that the last parliament was the biggest tax-raising one since records began, resulting in historically high levels of UK tax revenues. Businesses will be watching closely to see what direction the new Chancellor will take and we re-iterate our call for no new UK tax levies on business for the lifetime of the next Parliament.
We also need a reset in the relationship between Westminster and Holyrood and that means Labour recognising the significance and impact of the swing away from the SNP. Without it their overall share of the UK vote would have remained flat. Quite simply Scotland delivered for Labour and now Labour need to deliver for Scotland.
First Minister John Swinney’s recent pledge to work more collaboratively is welcome and we would urge UK Labour to adopt a similar partnership approach.
We need both governments to deliver an ambitious programme of pro-enterprise and pro-growth policies but without urgent action the opportunity for positive change so clearly mandated by the electorate will be wasted.
First published in The Scotsman on 6th July 2024.
