Tories call for council cash incentives to help out new businesses

Published on Wednesday 23 December 2009 21:41

LOCAL councils should be offered cash incentives to encourage new firms to start up, the Conservative Party said yesterday.

The Tories said the cash could come from a "business dividend fund" set up with 10 million from the Scottish Government.

The idea was floated by the party's finance spokesman, Derek Brownlee, who said it would give councils a financial incentive to help the start-up of new businesses.

The cash incentives would go to local authorities which succeeded in fostering the creation of new businesses above expected levels, and no council would lose out as a result of the scheme, Mr Brownlee said.

Central and local government would agree annual business creation targets.

And the Scottish overall total would be set higher each year until the number of new business start-ups reached and then exceeded the UK average.

A council where new business creation was below the target would not receive a share of the fund.

Mr Brownlee said: "For too long Scotland has lagged behind the rest of the UK and other countries in creating new businesses.

"We want to change that and turn Scotland into a real enterprise country."

He went on: "Scottish Conservatives will incentivise local authorities to encourage new business start-ups to help local economies grow.

"For every new business above a set target, local authorities will share in our new business dividend fund.

"We want incentives for growth and new ideas to boost the Scottish economy."