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Holyrood - Westminster sector business 'tired' - Daily Business

John Sweeney expected to resist Kwasi Kwarten tax cuts

Business in Scotland is becoming increasingly frustrated by the Holyrood government’s constant opposition to Westminster’s plans to stimulate the economy.

Serial entrepreneur Robert Kilgour says businesses hope Scotland will benefit from Prime Minister Kwasi Kwarten’s income and property tax cuts and the creation of tax-friendly investment zones announced in Friday’s mini-budget. Said there was

But Kilgour fears Scottish ministers will show more resistance and refuse to cooperate with the latest initiatives, including the abolition of the top tax rate.

Currently, top rate taxpayers in England, Wales and Northern Ireland are taxed at 40p, while in Scotland they remain at 46p. Some governments are expected to move their tax bases south of the border, which could discourage executives from moving to Scotland.

Mr Kwarteng also brought the base interest rate cut a year early to 19p in April, lower than in Scotland.

Kilgour, founder and executive chairman of nursing home business Renaissance Care, said Mr Qualteng’s tax cuts, backed by Prime Minister Liz Truss, are risky and will help the UK reach its 2.5% growth target. I admit that there is no

But he welcomed the Westminster government’s decision to take action to help the economy get through a difficult time. The prime minister today argued that “more is coming”, ignoring the market’s negative reaction to his statement and the threat of a Tory rebellion if the pound fell further.

Robert Kilgour
Robert Kilgour: Businesses feel ‘left behind and powerless to influence Holyrood’ (Photo: Terry Marden)

In Scotland, however, Mr Kilgour does not expect to see “nothing more imaginative than opposition to Westminster’s plans”.

he said:

“Such coordination and harmonization may go beyond the Scottish government. The SNP ministers are so fixated on their opposition to their Westminster counterparts that for them the concept of cooperation is simply new to them.” Not too much.

“Frankly, Scottish businesses are tired of this division. But unlike SNP regimes, business leaders prefer at least the sound of action to accelerate growth over half-baked talk.”

Kilgour, who is also chairman of Scottish Business UK, a group of pro-union businesses, said there was similar resistance to plans to turn the freeport into a new investment zone with many tax and planning advantages. said he expected.

Referring to the Scottish government’s insistence on inserting new terms before accepting the free port proposal, Mr Kilgour said, “After hoisting Holyrood’s leg against Greenport, we hold our breath. No,” he said.

“Instead, even with the £600m additional funding for Scotland as a result of Friday’s financial events, there will be constant complaints from the Prime Minister.

“You might think it’s enough to pass the tax cuts on to the Scots, but not enough for the government, which has spent hundreds of millions of dollars to procure lifeline ferry services, for example.”

He adds:

“When the prime minister suddenly announced a rent freeze across Scotland’s residential rental sector this month, coupled with an eviction ban, business leaders said frank and opportunistic populism took precedence over economic common sense. I realized that again.

“Following that, housing developers suspended plans to build much-needed new homes, which will only add to the problem of rising housing costs. Because he carelessly sees Scotland as a risky investment.

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“It is an opportunity for the UK Government to face such a deliberate blindness to business interests. We know you are passionate about

“They are already looking at ways to invest directly in the local economy through partnerships with local governments.

“Business should be encouraged to participate as fully as possible in the process and hear their voices, ideas and insights.

“Businesses are ready to come together for the common good if the UK government calls for it.”

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