Scotland’s economy: Swinney tells Osborne to take ‘urgent action’ to boost small businesses in Scotland

FINANCE Secretary John Swinney has called for urgent action to support Scotland’s small business in next week’s Budget.

Mr Swinney has written to George Osborne as the Chancellor prepares to unveil his spending plans on 21 March.

Small and medium-sized enterprises (SMEs) will form an important part of a “successful economic recovery” his letter states.

“We must do what we can to support these firms,” he said.

“The Scottish Government has set up the Scottish Investment Bank to support Scottish companies, yet small and medium-sized businesses in Scotland have been deprived of affordable finance, limiting their ability to support investment in the economy. We need to see urgent action here.”

Mr Swinney has made a number of suggestions for inclusion in the Budget, including a National Insurance holiday for employers who recruit young people and additional capital investment.

He has also called for more transparent reporting of companies’ payment performance to help SMEs get paid on time, and the introduction of a fuel duty regulator to automatically reduce fuel duty when oil prices rise.

Mr Swinney said: “The economic outlook remains highly uncertain and the UK government’s policies have withdrawn demand from the economy at a time when Scotland needs urgent action to promote investment, employment and economic growth.”

The finance secretary has also asked Mr Osborne to consider reducing the rate of VAT for the tourism and hospitality sector.