With a General Election called for 4 July, Insider is rounding up economic spokespeople from all the major political parties to quiz them on the policies that will potentially impact Scottish businesses.
To keep things objective, we've asked everyone the same set of questions.
For this edition, it's the Scottish Conservative MSP for Mid Scotland and Fife, Murdo Fraser.
- What is your position, party experience and business background?
I am MSP for Mid-Scotland and Fife and I have held that position since 2001. I am also the Scottish Conservatives lead on business, economy and tourism - having previously held the finance brief - and before that was deputy leader for a time.
Before entering politics I was a lawyer in private practice with a specialism in commercial property and contracts, working with private sector developers, ranging from SMEs to multi-nationals.
- What's your assessment of the current Scottish business landscape?
Scottish businesses will always strive to succeed, but there is increasing frustration at the lack of support from the current Scottish Government.
The pursuit of a high tax agenda, creating a substantial tax differential between Scotland and the rest of the UK, is already having an impact on the ability of firms to recruit staff to senior positions.
The introduction of new regulations without proper consultation with business, such as the Deposit Return Scheme, rent controls, the regulation of short-term lets and the visitor levy, are all having a negative impact on business.
The New Deal for Business pays lip service to engagement with the business community, but too often the messages that are received are not heeded, and government pushes on regardless introducing policies that make doing business in Scotland more difficult. We need a change in approach with a government that actually listens to business and responds accordingly.
- What does your party - if elected - plan to do to support Scottish businesses?
Last year we published our policy paper Grasping the Thistle setting out a range of detailed proposals to support Scottish business and help grow the economy. Given that the economy is a shared responsibility between the UK and Scottish Governments, our first initiative would be a joint board bringing together Scottish and UK Ministers, tasked with developing an action plan for economic growth.
Beyond that, there are initiatives around the areas of taxation, regulation, infrastructure, skills, innovation and entrepreneurship. Fundamentally, governments at all levels need to recognise that businesses will only succeed in a supportive fiscal and policy environment.
- Within this, are there any key priorities to tackle first?
The growing income tax differential between Scotland and the rest of the UK is undoubtedly having a negative impact on the opportunity for economic growth in Scotland, and actively deterring companies from expanding. We need to move towards restoring parity with the rest of the UK in relation to income tax.
We also need to see the business rates relief of 75% granted by the UK Government to retail, hospitality and leisure businesses passed on by the Scottish Government to avoid these vital sectors being put at a competitive disadvantage.
We need greater support for apprenticeships, ensuring that the Apprenticeship Levy funds are properly directed at employers.
Finally, we need to review policies such as the licensing of short-term lets and the rent cap, and impending rent controls, which between them are deterring investment in housing. If we are to grow the economy successfully the government should not be proposing new policies that actively make this more difficult.
- And how will any major changes be paid for or legislated for?
We would institute a review of current legislation such as the Housing Bill, short-term let licensing and the visitor levy, all of which are likely to have a detrimental impact on growth. In relation to paying for tax changes, removing the burdens on economic growth will deliver a more successful economy, and higher tax receipts.
Since 2014, the Scottish economy has grown on average at one half the UK growth rate. If we were to match UK economic growth in Scotland over a 10-year period this would give us an estimated £6bn to £7bn in additional in tax revenues. It is through economic growth that we will raise the tax revenues we need to fund vital public services.
- What is your party's approach to North Sea oil and gas, and its transition to renewable energy?
We are supportive of a just transition to renewable energy, and we have seen very substantial progress made in this respect in recent years, with Scotland benefitting from the boom in offshore wind developments in particular. However, that does not mean we should be seeking to close down the North Sea oil and gas sector prematurely, as both Labour and the SNP would propose.
We should continue to grant exploration licences for the North Sea for so long as it is economically and financially viable for extraction from the waters around Scotland. The reality is we will be dependent on oil and gas for many decades to come even as we transition to net zero, and it makes more sense to produce this supply domestically rather than import it, and lose the advantage of industry and jobs here as a result.
- And are there any plans to encourage entrepreneurship, inward investment or scale-up growth?
Our recent economic paper set out in detail plans to promote entrepreneurship.
Scotland currently has the lowest rate of new start-ups across the UK. We need to change the culture to encourage more people to take the risk of setting up in business for themselves, and this means creating a supportive fiscal and regulatory environment.
We will look to more closely align Business Gateway services with regional and national economic agencies and strategy and ensure that they are properly funded to act as one-stop shops for enterprise advice and support.
We would also ensure that more is done to promote an entrepreneurial culture amongst women, where numbers lag behind the number of men involved in start-ups.
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