CBI Scotland, the leading business organisation in the country, has called on the Scottish government to take urgent action to improve the planning system and reduce the tax burden on businesses ahead of the Scottish Budget on December 16.
Planning system ‘restrictive and costly’
The group said that the current planning system was restrictive and costly, and that it was holding back investment and growth in key sectors such as housing, infrastructure, and renewable energy. It urged the government to simplify and streamline the planning process, and to align it with the national economic strategy.
CBI Scotland director Tracy Black said: “Scotland’s planning system is in urgent need of reform. It is too slow, too complex, and too unpredictable. It is frustrating businesses and communities alike, and preventing Scotland from reaching its full potential.”
She added: “We need a planning system that is fit for the 21st century, that supports our ambitions to tackle climate change, build more homes, and boost productivity. A system that is more flexible, more transparent, and more collaborative. A system that delivers certainty and confidence for investors, developers, and the public.”
CBI Scotland said that some of the reforms it wanted to see included:
- Reducing the time and cost of planning applications and appeals, and ensuring that decisions are made within statutory timescales
- Introducing more flexibility in the planning system, allowing for changes in market conditions and customer preferences, and enabling more innovation and experimentation
- Improving the quality and consistency of planning decisions, by ensuring that they are based on robust evidence, clear guidance, and best practice
- Enhancing the engagement and collaboration between planning authorities, developers, communities, and other stakeholders, and ensuring that their views are taken into account and balanced
- Aligning the planning system with the national economic strategy, the national planning framework, and the regional spatial strategies, and ensuring that they reflect the priorities and needs of different sectors and regions
Tax burden ‘uncompetitive and unsustainable’
The group also said that the tax burden on businesses in Scotland was uncompetitive and unsustainable, and that it was undermining the attractiveness and competitiveness of the country as a place to do business. It urged the government to reduce and simplify the tax system, and to align it with the UK and international standards.
CBI Scotland director Tracy Black said: “Scotland’s tax system is too complex, too high, and too volatile. It is creating a competitive disadvantage for Scottish businesses, and deterring investment and growth. It is also putting pressure on public finances, and limiting the scope for spending on vital public services and infrastructure.”
She added: “We need a tax system that is fair, simple, and stable. A system that supports our ambitions to boost productivity, innovation, and skills. A system that is aligned with the UK and international standards, and that does not create unnecessary barriers or distortions for businesses operating across borders.”
CBI Scotland said that some of the reforms it wanted to see included:
- Reducing the headline rates of business taxes, such as corporation tax, business rates, and landfill tax, and ensuring that they are competitive with the UK and international averages
- Simplifying the tax system and reducing the number and complexity of tax reliefs, exemptions, and allowances, and ensuring that they are targeted and effective
- Stabilising the tax system and avoiding frequent and unexpected changes, and ensuring that there is adequate consultation and impact assessment before introducing new taxes or reforms
- Aligning the tax system with the UK and international standards, and ensuring that there is coordination and cooperation between the Scottish and UK governments and other devolved administrations on tax matters
Scottish Budget ‘a critical opportunity’
CBI Scotland said that the Scottish Budget, which will be delivered by Finance Secretary Shona Robison on December 16, was a critical opportunity for the government to address the challenges and opportunities facing the Scottish economy, and to set out a clear and credible fiscal strategy for the next five years.
CBI Scotland director Tracy Black said: “The Scottish Budget is a pivotal moment for the Scottish government to demonstrate its commitment and vision for the Scottish economy. It is a chance to set out a bold and ambitious agenda for recovery, growth, and sustainability. An agenda that supports businesses, creates jobs, and delivers prosperity for all.”
She added: “We urge the government to listen to the voice of business, and to work with us to deliver a Budget that is pro-growth, pro-investment, and pro-competitiveness. A Budget that reforms the planning system and the tax system, and that aligns them with the national economic strategy. A Budget that boosts confidence, certainty, and collaboration, and that sets Scotland on a path to success.”
