Support for whisky, airports and Sir Ian Wood’s plan to galvanise investment in the North Sea topped an influential Scottish business group’s Budget day wishlist.
Unveiling its advice to Chancellor George Osborne yesterday, on the eve of his Budget speech, the Scottish Council for Development and Industry (SCDI) said its recommendations would boost Scotland’s economic potential by supporting business growth.
SCDI called on the UK Government to stop “penalising” the whisky industry by axeing the alcohol duty escalator for wine and spirits.
It also asked the chancellor to “incentivise” energy exploration and implement the recommendations of Sir Ian Wood’s recent review to maximise recovery of North Sea oil and gas.
The organisation also said it wanted Mr Osborne to deliver “greater certainty” for investment in the renewable-energy industry
Reducing and devolving power over air passenger duty would improve Scotland’s international competitiveness, it said.
SCDI also called on the chancellor to bring forward infrastructure investment to stimulate economic activity.
Its other recommendations included prioritising support for science and research funding to “maintain Scotland’s global reputation for research excellence”.
Perhaps surprisingly for a business group, SCDI said raising the minimum wage and employee national insurance threshold would support the low-paid.
Finally, it said Westminster and Holyrood should work together to make the most of the 2014 Commonwealth Games, this year’s Ryder Cup golf tournament at Gleneagles and other key events.
Chief executive Ross Martin said: “Positive signs are on the horizon, with output increasing, unemployment falling and confidence growing, but now is the time to stimulate growth to drive the economy and accelerate investment. SCDI’s key actions would be a welcome step to help unlock Scotland’s economic potential, bolster our competitiveness and support business to build a stronger Scottish economy.
“I hope the chancellor will take this chance and end the penalisation of Scotch whisky by abolishing the duty escalator, support oil and gas exploration in the North Sea and deliver on the priorities we have put forward to give us a Budget we can raise a toast to.”
SCDI said research had shown that ending the alcohol duty escalator would boost Treasury finances by £230million in 2014 alone.
On oil and gas, it said a slump in exploration and appraisal drilling meant there was an “urgent need to consider further changes to the fiscal regime and action taken to support the recommendations of the Wood review”.
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