David Lonsdale: Whoever wins next month, here's my wish list for Scots business

WHAT is it that business wants to see from the political parties in their General Election manifestos?

Many substantial economic levers are devolved to the Scottish Parliament, such as planning, education and skills, transport infrastructure, economic development, and local taxes. However, many other important decisions affecting business and the economy reside at UK level.

Regardless of who forms the next UK government, what is important is that the needs of the economy are at the very heart of their agenda. Without economic growth, high unemployment will continue, firms will remain reluctant to invest, the mammoth deficit in the public finances will be harder to reduce, and other social and political aspirations will become less affordable.

To prioritise the long-term wellbeing of the economy, the next UK administration must take action on a number of areas:

• The most challenging task will be to pursue a sustainable, clear and robust path back to fiscal health. With interest payments on the national debt set to exceed 42 billion each year, business wants to see credible action to get spending under control sooner rather than later, and an emphasis on spending adjustments rather than extra taxation, which would hamper firms' investment plans and cash flow.

• The focus of public sector expenditure constraint needs to be on current spending, rather than capital investment, which aids the economy. An early test will be an unequivocal commitment from all of the main political parties' to extend the high-speed rail line from London to Scotland.

• The next government also needs to restore Britain's competitive tax regime. While the current fiscal crisis rules out significant immediate reductions in the overall burden of taxes, the political parties do need to set a strategic target to bring down taxation to restore the UK's attractiveness as a place to invest. This is particularly so if the contribution of Scotland's indigenous North Sea reserves and whisky industry are to be maximised.

• The next government must strengthen the banking system, while having regard to the possible international consequences of unilateral action. The most important regulations to get right will be those that cover capital adequacy.

• The new administration should provide a global voice for business, and resist protectionism abroad and burdensome regulations emanating from Brussels. It should support further capacity at Heathrow, a key interlining airport, which allows firms from across Scotland access to global markets and customers and, likewise, international investors and talent easy access to Scotland.

• Business also wants to see public sector pension liabilities addressed. These liabilities represent an enormous burden on future generations of taxpayers. Step one will be to publish reliable estimates of the liabilities as they now stand. Step two will be to establish the best way to cap them over time.

The next government must prioritise energy security. Large chunks of our energy infrastructure urgently need replacing if we are to maintain a balanced energy mix and help the shift towards a low-carbon economy.

• The new UK administration and its Holyrood counterparts need to work collegiately for the good of Scotland's economy. It is important that both the UK and devolved governments work together and with business to ensure any changes – particularly to taxation – are implemented in a sensible and cost-effective way.

The political parties and ultimately the next government must have the decisiveness needed to act on these recommendations.

• David Lonsdale is assistant director, CBI Scotland.