AMID all the hype, leaks and warnings ahead of the Chancellor Rachel Reeves’s first Budget announcement we shouldn’t lose sight of its critical importance to business and the Scottish economy.

The actions promised – or ignored – and the message it will send will directly impact business confidence and investment at a time when we need to create positive momentum.
Scotland’s Chambers of Commerce network has been clear on our own messages to government and the support we are desperately calling for to unleash business growth, accelerate investment, boost global trade, and prioritise people and talent.

Scottish firms call for migration strategy to tackle skills shortages

The country succeeds when business succeeds, and the members we represent are the drivers of economic growth and employ millions of people. But we can’t do it alone and the Chancellor’s Budget must reflect that.

Given economic growth is forecast to remain flat in 2025 and 2026, and coupled with warnings of a tough Budget and increases in taxation on firms, business leaders have been left wary. We need to see a government listening to our concerns, delivering incentives and solutions, if we are to restore confidence and create the foundations for investment and growth.

We don’t underestimate the scale of the financial pressures the Chancellor faces but there are also many inexpensive measures the government could take to help business, including easing the plethora of burdensome restrictions on firms looking to grow.

The delays and obstacles put in the way of progress, be it infrastructure projects or small planning applications, all contribute to the current stagnation and flatlining investment prospects.

Immigration policy holding back Scottish firms

To address these concerns and provide affordable solutions, SCC has published a detailed, pro-growth 15-point action plan for the UK Government to implement which will turbo-charge investment, innovation, and job creation.

We have identified five key policy areas for the Autumn Budget: people, work and skills; economy; energy; digital; and international trade and investment. These business priorities were produced with constructive input from across all sectors, and valuable insight from Scottish and UK business leaders.

Ahead of those demands, we recognise and welcome confirmation of the decision to base Great British Energy in Aberdeen. It boosts its status as the global energy capital and restores some confidence in the North Sea.

Keir Starmer confirms GB Energy HQ to be based in Aberdeen

Choosing to back the Granite City is a long-overdue commitment amid the current lack of clarity around Labour’s green energy strategy and we hope it signals a more positive approach to protecting the industry and the thousands of people it employs. At the very least, the Chancellor must maintain North Sea capital investment allowances, support future exploration in the oil and gas sector, and consider the impact of the windfall tax which is supressing investment in the industry.

The north east is home to specialist infrastructure, hundreds of energy companies – both onshore and offshore – and a highly skilled workforce. However, the benefits of a just transition to net zero will only be felt if there is a clear and a detailed plan to protect jobs and investment, supported by a green industrial strategy to drive investment through incentives, green skills and enabling technologies such as sustainable aviation fuel where there is potential for seven plants to be located in Scotland.

The Chancellor should also recognise the important contribution carbon capture utilisation and storage can make to the UK’s net-zero targets by implementing the CCUS strategy in full and facilitating the quick implementation of grid upgrades to make connectivity easier to support the net-zero transition and the wider economy.

The SCC has long called for greater support for high street businesses as long-established stores, restaurants and pubs close. In our daily commutes, we have all experienced visible signs of decline in both footfall and trade where there should be vibrancy, creativity and energy.

GB Energy and why investment in Scotland is the key

That’s why we need an immediate cut in VAT for the hospitality, leisure and tourism sectors, and no new UK taxes or levies on business. A study by UKHospitality found that over 10 years, a reduced rate of 12.5% would provide £550 million in additional sector turnover and create nearly 22,000 new jobs in Scotland.

And, of course, restoring an internationally competitive, tax-free shopping incentive will grow the number of overseas visitors and help support those businesses.

There is little doubt Brexit has had an impact and we need more pro-active measures to boost overseas trade, including improving access to the EU, investing in key air routes, and growing the number of exporting SMEs.

Brexit has also been a major contributor to the huge talent and skills shortage. Businesses can’t grow without having the right people with the right skills. There needs to be a skilled migration strategy to attract international talent.

Reeves urges Labour members to support tough decisions

Setting key skills priorities aligned to economic growth is key and we should be working closer with colleges and universities to deliver a workforce with the meta and digital skills to compete on the world stage. There are new markets to be won but we are in real danger of being left behind.

And let’s tackle the staff sickness issues by reducing the employer and employee tax on workplace health services to enable businesses to support employee wellbeing. That’s a simple, cost-effective solution, providing staff with quick access to specialist care when needed and easing the burden on businesses and the NHS.

Ms Reeves’s first Budget will be a clear indication of how closely she has listened to the SCC’s call for an ambitious programme of pro-enterprise and pro-growth policies – and how important she regards our businesses and the ambition we want to achieve.

As Scotland’s largest business network, we are optimistic that the Chancellor will work with business in a meaningful, constructive partnership to unlock growth and help support struggling sectors. We can only hope the plans for an Industrial Strategy Council will encompass that promised partnership approach between government and business.

I hope we and our flagship whisky industry are raising a glass to a reduction in the anti-competitive and burdensome 73% alcohol duty on each bottle and toasting a Budget that delivers for business.

Dr Liz Cameron CBE is chief executive of the Scottish Chambers of Commerce