Salmond warns Budget will leave Scots businesses worse off than in England

The former first minister said the decision not to replicate tax breaks down south was ‘politically naive’

Former first minister Alex Salmond

Alex Salmond has warned the Scottish Government’s Budget will leave businesses in Scotland in a worse position than their counterparts in England.

The former first minister said the decision not to replicate tax breaks down south risked job losses and threatened supply chains, and was “politically naive”.

It comes after the UK Government chose to extend its 75 per cent business rates discount for retail, hospitality and leisure firms in England until 2025.

Shona Robison, the deputy first minister and finance secretary, decided not to follow suit in Scotland, arguing the money should instead go towards the NHS.

She said the Budget had involved making “wicked decisions and choices”.

Business rates for premises valued under £51,000 will be frozen in Scotland, while island hospitality businesses will be given 100 per cent rates relief, capped at £110,000.

Mr Salmond said: “The government I led improved the lives of people across Scotland and established the social contract that protects our universal entitlement to free tuition, prescriptions and many more vital services. For much of the period from 2007, Scottish growth and employment rates outperformed those of the UK for the first time in generations, much of it led by small business benefiting from very generous rates relief.

“We made more progress in a short period than Labour had made for Scotland in several decades. One of the most important aspects of how we built the case for independence was to show people that we governed competently and created manifestly better services in Scotland."

He added: “The draft Budget, if it is not amended, will leave a key sector of Scottish business in a worse position than those south of the Border. Not only does that risk job losses, threaten supply chains and further diminish our town and city centres, it is politically naive.

“If you want to build a case for independence you can’t allow Scottish medium and large businesses to claim they would be better treated under the Tories in England or even Labour in Wales. The current budget is certainly challenging, largely down to the poor fiscal framework the Scottish Government allowed themselves to be conned into, but there has to be improvement in this particular area or an important sector to Scotland’s economy will be left behind and the case for independence further damaged.”