SCC calls on the Scottish Government to utilise consequential funding to support economic growth

Dr Liz Cameron CBE , Chief Executive of the Scottish Chambers of Commerce (SCC) said:

“We welcome the additional ￡3.4 billion of funding for Scotland but as always the devil is in the detail, and we need to see a full breakdown of how this will be utilised to support economic growth.

“As we look ahead to the Scottish budget, we urge consequential funding to be utilised to support the business community, particularly on non-domestic rates and planning, to ensure a level playing field with the rest of the UK.”

On National Insurance Contributions, Dr Cameron said:

“The increase in employer NICs and the reduction in the secondary threshold at which businesses have to pay it is a double tax hit for firms.

"Firms are bearing the lion’s share of plugging the ￡40 billion fiscal funding gap cited by the Chancellor, with the increase in employer NICs accounting for half of this. However, increasing the Employment Allowance from ￡5,000 to ￡10,000 will support Scotland’s micro and small businesses with less than ten employees and this is to be welcomed."

“Many businesses will be unable to absorb these costs and will have no alternative but to pass onto consumers. The scale of this additional cost will mean that pay rises and additional staff hiring could go on hold, or new jobs won’t be created.

“Staffing remains the most significant cost pressure for businesses and impacts recruitment, retention and training and as the Office for Budget Responsibility’s highlighted the majority of any rise in employers' NICs would be passed on to workers via lower pay rises.”

SCC welcomed the continuation of the freeze in fuel duty, Dr Cameron said:

“The continuation of the freeze on fuel duty is a welcome boost during times of escalating costs and this is a positive measure at a time when cost pressures remain.”

On support for Scotland’s drinks industry, Dr Cameron said:

“There is a cheer for the draught products industry today, but Scotland’s national drink loses out on support. We urge the Chancellor to re-think this decision and provide the whisky industry with essential support to enable future growth and further investment.”

On Capital Gains Tax, Dr Cameron said:

“It is perhaps too early to see the impact of the increases to Capital Gains Tax but it is rarely a positive move given the competitive landscape we operate in. The substantial increase in the higher rate from 18% to 24% and a near doubling of the lower rate from 10% to 18% is likely to be difficult for many businesses to absorb.”

On Energy, Dr Cameron said:

“The energy industry will welcome the commitment to 100% first year allowances for oil and gas investment, and confirmation of the initial funding of Great British Energy.

“However, it is disappointing that the Windfall Tax on the North-East economy and beyond has been extended. This is a sector where major investment decisions require confidence and certainty about the future and we call upon the government to work with industry to design a new tax approach that secures billions of investment and tax receipts, while protecting the jobs of tens of thousands of working people.”

Welcoming investment for hydrogen projects, Dr Cameron said:

“Scotland is world-leading in alternate energies with hydrogen production at the forefront. Further support for the Cromarty Green Hydrogen and Whitelee Green Hydrogen projects is a major boost for international investment and supporting jobs in this growing sector.”

On the Argyll & Bute Growth Deal, Dr Cameron said:

“This will be critical to help boost connectivity, infrastructure, and investment in the region. Local businesses will be looking for both governments to get round the table to sign off on the Growth Deal as soon as possible.”

SCC welcomes the Chancellor’s announcement of a clearer corporate road map for further business tax incentives, in particular the expansion of the eligibility of full expensing of leased and rented assets. Dr Cameron said:

“It provides certainty and gives business the confidence to invest and grow. However, it needs to be balanced by the disappointing lack of help for businesses struggling with the high cost of VAT and the lack of movement on VAT free shopping for overseas tourists. We hope the Chancellor will work with business to consider this policy at a later stage.”

Dr Cameron welcomed ￡750,000 for the Scotland Office in 2025/26 to champion Brand Scotland:

“We welcome the funding to boost Brand Scotland and urge the UK Government to expand this further. We would welcome further engagement with UK Government on working in partnership with business to promoting Brand Scotland across the globe.”

On Investment, Dr Cameron said:

“We welcome the Chancellor’s approach to move away from short-term to long-term decision making which will enable the retention and attraction of investors to Scotland and the UK.

“Schemes like the Enterprise Investment Scheme (EIS) are rightly acknowledged as the global gold standard and have put the UK at the forefront as an incubator of innovative startup.

“Extending such schemes is vital for the founders and workers generating the growth that is important to the government’s goal of restoring public finances.”

On the extension of the Innovation Accelerator Programme in Glasgow, Dr Cameron said:

“Glasgow’s notable achievement as one of the Top 20% most innovative cities globally, and its status as the second leading emerging tech destination in the UK, underscores the region’s potential. Extending the programme will build on these strengths, creating high-value jobs and advancing key sectors through collaborative innovation partnerships.”

To read the Autumn Budget 2024, please click here .