When it was signed in 2021 the Bute House Agreement that has collapsed as of this morning included 10 areas where the Greens and the SNP could continue to differ on policy, one of which was "the economic principles related to concepts of sustainable growth".
Asked at the time what exactly was meant by that, Greens co-leader Lorna Slater said her party "doesn’t believe that growth is a sensible measure to use on a finite planet". This heightened alarm among many in the business community about the impact of this power-sharing deal on the Scottish economy.
Among the most scathing critics were those in the fishing industry. Salmon farmers warned of the "catastrophic" impact on rural economies should the Greens succeed in their stated intention of banning open net farming and blocking further expansion of the sector.
READ MORE: Fergus Ewing calls for SNP government 'spring clean' with new focus on oil and gas
The agreement also committed both parties to the goal of turning at least 10% of Scotland's seas into Highly Protected Marine Areas by 2026. However, the proposals to ban fishing and other human activities such as seaweed harvesting from designated coastal sites were scrapped in June of last year, around the same time as the controversial Deposit Return Scheme (DRS) was in its final death throes.
While these policies never came to fruition, the former coalition government remains accused of abandoning the offshore oil and gas sector in the push towards a renewable energy transition. Though the UK's North Sea Transition Authority (NSTA) has been granting new licenses, the Scottish Government's draft energy policy published in January proposes a presumption against new oil and gas projects.
The Greens have lauded the freeze on rents during the height of the cost-of-living crisis as a major influence of their party under the Bute House Agreement. The freeze has since been replaced by a 3% cap on rental increases that has provided some respite to hard-pressed tenants, but industry leaders warn that such measures are discouraging desperately-needed investment to combat Scotland's growing housing crisis.
READ MORE: Yousaf facing no confidence vote after deal with Greens ends
The head of Scottish estate agency DJ Alexander says the departure of the Greens from the Scottish Government will hopefully allow for a "reset" on housing policy.
"The last couple of years have seen a toxic atmosphere with policies designed to negatively impact on the private rented sector, completely unrealistic targets for boiler replacement in homes, and an approach that was not inclusive, consultative, or constructive," chief executive David Alexander said.
“I would hope that we can rebuild relations and restart discussions on the future of the housing sector and build a consensus which accurately reflects the needs of Scots now and in the future."
Following passage of the latest Scottish budget in February, there are now six income tax bands in this country compared to three in England and Wales. According to the Scottish Fiscal Commission, anyone in Scotland earning more than £28,500 pays more than they would if living south of the border.
READ MORE: Lorna Slater launches attack on Humza Yousaf as Green pact scrapped
Sandy Begbie, chief executive of Scottish Financial Enterprise, said there is "clear evidence" from a recent survey of the group's membership of the negative impact of this on attracting jobs and talent to Scotland. With the Bute House Agreement now dead, he hopes the Scottish government will focus its priorities on building a stronger economy while revisiting its approach to taxation.
“There have been too many issues where business concerns have gone unheeded, including DRS, the retail levy, tax divergence and the Heat in Buildings draft legislation which is not fit for purpose," Mr Begbie said.
"The policy-making process works best when government and business work hand in hand and we urge ministers to use this reset to engage meaningfully with the private sector to deliver better policy and economic outcomes."
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