David D Murray: 'Scotland not a good place for business'

Published on Saturday 20 March 2010 12:43

ONE of Scotland's highest profile entrepreneurs has claimed the country is becoming a more difficult place in which to do business and has accused the government of failing to tackle the problem.

• David D Murray: 'taxes too high'. Picture: Complimentary

David D Murray, the son of one of the country's most successful entrepreneurs, Sir David Murray, claimed a triple whammy of taxes, political uncertainty and the Scottish banking crisis is actively discouraging investment in new business ventures.

He claimed this comes at a time when the growth of the private sector is more vital than ever as swingeing cuts to the public sector appear inevitable. He has called for greater support of existing entrepreneurs in Scotland.

Murray was commenting on a survey of Scottish business owners that found taxes and bureaucracy in Scotland are acting as barriers to growing existing businesses or establishing new ones. This is despite a high level of the respondents citing factors such as quality of life as a good reason for staying put.

Murray junior, who is managing director of the Murray family office, Murray Capital, said: "Scotland is not the easiest place for an entrepreneur. Given the constraints of the tax system, the political environment and the difficulties of the banking community it is becoming more difficult to operate from here.

"A greater awareness and support for the role that successful entrepreneurs play both in job and wealth creation would be welcomed."

Asked which one change was most important to make Scotland a more attractive place to establish a business, 48 per cent identified tax breaks while 27 per cent called for a reduction in government bureaucracy.

The research, commissioned by HSBC Private Bank Scotland, polled 103 high achievers across Scotland and found that 93 had been involved in start-ups and 54 had experience of setting up new business locations.

Joss Mitchell, director for HSBC Private Bank in Scotland, said that the Scottish government's current focus on risky, young start ups at the expense of supporting entrepreneurs with a successful track record was too limiting.

"Scotland has a great tradition of supporting the young entrepreneur with the odds stacked against him or her," said Mitchell. "But this survey shows that perhaps greater attention and encouragement should be given to those who have a track record for job and wealth creation."

A Scottish Government spokesperson said it understood Murray's concerns and said taxes were not in the remit of the Scottish Government to adjust.

"We understand David Murray's concerns over taxes, but unfortunately these powers and therefore his concerns lie with the UK Government. By gaining responsibility for all taxation, the Scottish Government wish to create a competitive environment for Scottish business – one where the field slopes in Scotland's favour.

"The Scottish Government is working hard to support our entrepreneurs and small businesses."