Exclusive:Scottish Budget: Demands for Government to change Scotland's 'anti-business' reputation, as poll shows only a third think Scotland good place to do business

The exclusive new poll also found less than half of Scots are confident about finding or retaining a job in the next 12 months

Business leaders have demanded Scotland’s reputation as an “uncompetitive” place to do business must change, as a new poll found only a third of people think the nation is good for business.

The poll, carried out by Survation for consultancy firm True North, showed almost half of people think Scotland has a bad policy environment for business, with only 35 per cent agreeing that it is good.

The results have been published on the day MSPs prepare to vote for the first time on the Scottish Budget, with businesses urging the Scottish Government to reverse its “anti-business policies”.

Buchanan Street in Glasgow is one of Scotland's main retail areas.

The Government’s financial plans have been branded a “tax and axe” Budget by opposition parties amid controversial tax rises for higher earners and plans to “explore” a new business rate surtax on retail premises to help plug a major gap in public finances.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “Over many years, Scotland has garnered a reputation as an uncompetitive and high-regulation place to do business. This narrative has to change.

“The business community is entrepreneurial, innovative and adaptable. However, it is in the gift of the Scottish Government to either enable us to invest more and create more jobs or, on the other hand, force us to take difficult choices on investment and hiring as a result of increased regulation and higher taxation.

“Given the shared uncertainty being experienced by the public and by the business community, now is the time for government to act by reversing anti-business policies and work with us to stimulate investment, create jobs and widen the tax base to support public services.”

The poll also revealed 30 per cent of Scots are not confident about finding or retaining their job over the next 12 months, and only 46 per cent are confident of their long-term job prospects.

A total of 1,029 Scots were interviewed online from January 23-25 for the survey.

When asked if they thought the Scottish Government had the right policies in place to make Scotland a competitive place to do business, only 35 per cent of respondents agreed. Men were more likely than women to disagree with this statement, as well as 60 per cent of respondents who were over the age of 65.

Those in higher income groups were less positive about the business environment than others in the poll. However, those living in more affluent parts of the country tended to think more favourably on this issue.

Perceptions in the business environment were noticeably lower in the Highlands and islands, which has a larger proportion of seasonal and low-paid employment.

The Scottish Government was criticised when it unveiled its Budget in December for not replicating the UK government’s 75 per cent rates relief in England.

However, there are proposals for businesses whose premises are valued below £51,000 to have their non-domestic rates frozen – something finance secretary Shona Robison has claimed will save businesses £37 million.

Island hospitality businesses will also enjoy a 100 per cent rates relief up to the value of £110,000.

The Scottish Retail Consortium has branded the Budget “muddled” and said the impact on retailers was a “recipe for self-inflicted economic harm”. Those polled were also asked if they were confident of finding or retaining employment over the next 12 months.

Less than half (49 per cent) said they were confident, with women being slightly more confident than men. Employment confidence was lower among those earning under £20,000 a year and those with the lowest levels of qualifications.

The poll also found only 46 per cent of people felt positive about their future job prospects in Scotland, with women more likely to feel confident than men. Confidence in this area was highest amongst those aged between 25 and 34, higher earners, those with higher level qualifications, and those who were already in work.

Only 17 per cent of those who are out of work or classed as economically inactive were confident in their future job prospects.

Management consultancy firm Alba Partners said the Government needed to offer more incentives for companies to start up in Scotland.

Richard Jacobs, the company’s co-founder and managing director, said: “The poll findings do suggest the Scottish Government must put greater emphasis on ensuring they can incentivise more companies such as ours to start up and scale businesses. Scotland is blessed with truly world-class financial services, energy, and food and drink sectors, but it is clear that many Scots feel the business environment isn’t as competitive as it could be and feel less confident about their own career and job prospects.”

Mr Jacobs added: “Scotland hosts some of the finest universities in the world, with a global reputation for innovation, research and skills. We therefore need both the Scottish and UK governments to use the policy levers at their disposal to ensure we retain and attract talent.”

The Scottish Government’s Wellbeing Economy Secretary Neil Gray said: “We will continue to use the limited powers we have to create an economy which supports businesses to thrive and to drives improvement in Scotland’s economic performance however the majority of these powers lie with the UK Government.

“Despite this, our share of the UK’s Foreign Direct Investment projects reached a record high last year, according to the latest EY survey – showing the attractiveness of Scotland as a place to do business. Our economy experienced faster earnings growth than the rest of the UK in 2023, and unemployment remains low. We are also seeing a return to positive real wage growth across our economy.”