The next Scottish Government must tackle tax and regulatory “drift” from the rest of the UK, commit to nuclear energy and improve childcare to help women in the workforce, says CBI Scotland.
Issuing its Business Manifesto, the group wants “bold action” on higher education and skills and a faster pace in the planning system.
It says the divergence on income tax rates is making it harder for Scottish firms to recruit, and is pushing talent south of the border, though the SNP government has provided figures disputing this claim.
There is a clear demand to help women whom, it says, are not being helped by current childcare provision.
“Childcare is now an essential economic policy lever, not just a social policy,” says the CBI. “Without reform and proper funding, parents – especially women – are being locked out of work, failing to realise their potential and employers can’t fill vacancies and access a more diverse talent pool.”
CBI analysis shows that mirroring the expansion of childcare funding support recently seen in England could bring around 2,200 people back into the workforce annually and deliver an £80 million boost to Scotland’s GDP per year.
Going one better than England – by making sure no parent earns more but takes home less – could make Scotland competitive again for the best paid jobs, it says.
On specific projects it calls for a Clyde Metro, including a direct link between Glasgow and the city’s airport.
Reassessing Scotland’s position on new nuclear energy would “ensure the country does not miss out on the jobs and investment associated with the UK’s Small Modular Reactor programme”.
This will be a particular challenge to the SNP and the Greens which are strongly opposed to nuclear energy.
The CBI argues that billions of pounds are already being committed elsewhere in the UK and failing to assess the economic opportunity risks excluding Scotland from high-value supply chains and long-term energy security.
It wants a national rail-electrification plan with clear funding, delivery milestones and alignment to the UK Rail Network Enhancements Pipeline – phased electrification plans across the central belt, north-east and the Highlands prioritised. It says this will unlock labour markets, investment zones, and supply chains.
On skills, it wants a full audit of funding in Scotland, including Apprenticeship Levy income and expenditure, “to make the system more transparent and accountable”. It is calling for a “system-wide review of tertiary education, examining the future shape, size and funding of colleges and universities”.
The CBI argues that Scotland’s “go-it-alone” rules on procurement are adding cost, confusion and disadvantage for Scottish bidders.
It argues that “opt-out class action suits” risk making Scotland a playground for speculative claims, while failure to mirror judicial reforms in other parts of the UK could leave major commercial projects exposed to delay and legal risk.
Michelle Ferguson, director, CBI Scotland, said: “For too long, Scotland’s households and businesses have been shortchanged by an economy that has fallen short of our ambitions.
“We need all parties competing at this election to recognise that growth really is the only game in town and that they need to stay laser focused on pro-enterprise policies that will boost prosperity across every part of the country.
“Tax and regulatory drift, creaking infrastructure and an education and skills system that isn’t meeting the needs of business simply isn’t good enough. Not only does it restrict investment and growth at a domestic level, but it makes us less attractive to the global talent and investment we need to thrive in the years ahead.
“This election must become a line in the sand. A moment when we start to match our ambition for a high skilled, high growth, digital economy with the action needed to make that a reality.
“The key to success lies in every party’s manifesto – business is committed to that goal and simply wants our political leaders to pledge to joining us on that important journey.”
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