Press & Policy

This article was first printed in The Herald on 31 August 2026

It is hard to believe another summer has been and is now all but gone.

However much we may wish to deny it, there can be no doubt that the schools are back, the nights are drawing in, and supermarket shelves are already filling up with Halloween-related merchandise.

Any day now, someone is going to mention Christmas.

Many among us will groan at the thought but, for businesses, forward-planning is an essential prerequisite for survival and success.

In recent years, the ability to prepare with any certainty has been hampered by a series of setbacks, not least those caused by the rising costs linked to international events and conflict.

That has been laid bare in every quarterly survey conducted by the Scottish Chambers of Commerce over the last five years.

Short periods of improving business confidence have too often been followed by another setback.

The consequences are visible across the economy: in the investment that is held back, the projects that do not go ahead, and the jobs that are never created.

International events have played their part, but policy choices have often accentuated the pressure.

From sharp rises in National Insurance contributions to the growing tax gap between Scotland and the rest of the UK, businesses have too often found the goalposts moving just as recovery seemed within reach.

We can only hope these old habits are left behind with the arrival of autumn, alongside refreshed administrations both north and south of the border.

The Scottish Government has an early opportunity to demonstrate its commitment to providing greater economic stability and growth through this week’s Programme for Government.

The programme is the first major set-piece event for the Scottish Government since the SNP’s election victory in May.

First Minister John Swinney must view it as an opportunity to set the tone for the next year and beyond, as his party approaches two decades in government.

At Scottish Chambers of Commerce, we have not submitted a laundry list of undeliverable demands on behalf of our members.

Instead, we have urged the Scottish Government to focus on three key priorities that would make a practical difference to whether businesses invest, grow, and create jobs.

The first priority is cutting the cost of doing business. With almost half of responding businesses in our recent research delaying or cancelling investment because of cost pressures, and a third implementing a hiring freeze, the clearest place for ministers to start is Non-Domestic Rates.

In truth, fundamental reform is required, but immediate action should include raising or removing the £100,000 threshold for rates relief for retail, hospitality and leisure businesses, which creates a cliff-edge for many firms.

Fresh Start relief must also be amended for all hospitality and retail units in our city and town centres, regardless of how long they have been empty.

But business rates are only part of the challenge.  Scotland should be one of the most attractive places in the UK to live, work, invest, and build a business. That is harder to achieve while the tax gap with the rest of the UK continues to widen. The Scottish Government should begin closing the gap with the rest of the UK by reducing the higher and top rates of income tax.

More fundamentally, ministers should apply a simple test to every major tax, regulatory, and spending decision: will it make businesses more or less likely to invest, hire, and grow in Scotland? If it does not, government should think again.

The same test should apply to infrastructure, the second of three priority areas highlighted in our submission to ministers.

Too often, essential upgrades to Scotland’s transport, energy and digital arteries are clogged up by bureaucracy, resulting in endless delays and escalating costs. Offshore wind developers are being offered grid connections well into the 2030s, while viable projects wait behind schemes that may never be built. If Scotland is serious about grasping the vast promise of renewable energy, ministers need a mechanism with the authority to unblock delays and drive major projects forward.

The SNP’s election manifesto committed to establishing a Major Projects Office. It should be set up without delay and given the authority to coordinate major projects, cut through red tape and escalate unresolved delays. Fast-tracking vital energy grid upgrades should be among its first priorities.

However, infrastructure alone will not unlock growth if businesses cannot find the people they need.

Skills shortages are one of the most persistent challenges faced by businesses, which is why they are the third priority area we have flagged to the Scottish Government.

In fact, our research shows around half of businesses attempting to recruit continue to experience difficulties finding suitable staff.

After years of businesses reporting the same problem, ministers should be prepared to try something new. We have proposed piloting targeted tax incentives that encourage young people leaving education or training in Scotland to build their careers in sectors where persistent shortages are holding back growth.

None of these proposals offers a silver bullet to the challenges businesses face. But together, they would begin to answer the three questions every entrepreneur asks before committing their capital: what will it cost, will the infrastructure be there, and will we be able to find the people we need?

The summer may be over but with the right package of measures from those in power, brighter days can lie ahead for Scotland and its economy.

Charandeep Singh BEM is Chief Executive of the Scottish Chambers of Commerce