Business leaders warn tax hikes will put skilled workers off coming to Scotland

Business chiefs have warned the Scottish Government against future tax hikes with a stark message that it risks discouraging highly skilled workers from coming to Scotland.

There are even fears that among industry leaders that Holyrood is “losing sight of the big picture” on the economy over the approach to business rates

But finance secretary Derek Mackay insisted Scotland has the “fairest” taxes in the UK.

CBI Scotland is also calling for business rates to be brought in line with the rest of the UK, in a submission to Mr Mackay ahead of next week’s budget. CBI Scotland director Tracy Black said: “The Scottish economy continues to stutter and that’s why we want politicians of all stripes to show leadership by committing to implementing the kind of solid, evidence-based economic policy that can deliver greater prosperity across the country. Business is absolutely clear that it wants politics out of the boardroom so that it can focus on what it does best: deliver jobs, higher wages and economic growth. To achieve that, we need to put the political games and brinkmanship of the past few years to one side and start pulling in the same direction.”

Business chiefs have warned the Scottish Government against future tax hikes as it poses a risk to highly skilled workers coming to scotland. Picutre: JPI Media

New income tax rates and bands in Scotland means anyone earning above £27,000 pays more than workers south of the Border.

The submission states: “Attracting talent to live and work in Scotland remains one of the top concerns facing businesses of all sizes in nearly all sectors. Any further income tax divergence with the rest of the UK risks making this more difficult.”

But Mr Mackay said the government was seeking to establish the right environment for business to grow, create jobs and invest.

He said: “Our Economic Action Plan sets out the range of support available to business and our Prepare for Brexit campaign is helping businesses to build economic resilience and prepare for all eventualities. We have the fairest system of income tax in the UK, and under our progressive approach we are able to raise additional revenue to support our economy and invest in the delivery of first-class public services.”