CBI Scotland responds to Scottish Budget

Tracy Black, Director, CBI Scotland, said:

"Businesses recognise that tough decisions were needed in the Budget, and it's right the government prioritised the vulnerable and those most in need across society.

"The focus on key supply side blockers to growth, most notably around the consultation on planning reform and moves to boost digital infrastructure is welcome. The long-awaited completion of the dualling of the A9 will benefit transport connectivity to and from the Highlands.

"However, the decision to introduce an advanced rate of tax will harm Scotland's ability to attract highly skilled employees and our competitiveness nationally and internationally.

"More action is also needed to develop a skilled workforce with well-funded training and apprenticeships to plug the recruitment crisis, amid a falling working age population.

"Ultimately, the key to raising living standards and improving public services is tackling Scotland's productivity problem. The absence of a sustained focus in the Budget on boosting productivity, particularly in the public sector, will stunt the potential of Scotland's prosperity."