Scottish Chambers call for tax cuts and business rates overhaul to boost growth

Scottish Chambers of Commerce (SCC) has urged the Scottish Government to cut income tax, overhaul business rates and accelerate major infrastructure projects as part of a package of measures designed to restore business confidence and unlock economic growth.

In its priorities for the 2026-27 Programme for Government, SCC warns that business confidence has failed to recover on a sustained basis over the past five years, with firms increasingly focused on protecting day-to-day operations rather than investing, recruiting and expanding.

The leading business network – which represents more than 12,000 companies and more than half of Scotland’s private sector workforce – is calling on ministers to focus on three key areas where it says government action can make the greatest difference.

These are reducing the cost of doing business, accelerating infrastructure delivery and addressing skills shortages.

Among its headline recommendations, SCC wants meaningful reform of Non-Domestic Rates, including action on the £100,000 rateable value threshold for support available to pubs, clubs and live music venues.

Alongside reform, the SCC wants to extend Fresh Start relief to all retail and hospitality premises in city and town centres, removing the existing vacancy-length requirement.

It is also calling for the Major Projects Office promised in the SNP’s 2026 manifesto to be established immediately and given responsibility for driving forward nationally and regionally significant projects. SCC wants named accountable leads, published milestones and six-monthly reporting on costs and delivery timescales.

The organisation is also calling on the Scottish Government to use the next Scottish Budget to reduce the higher and top rates of income tax, with the aim of restoring Scotland’s tax competitiveness with the rest of the UK.

Charandeep Singh, Chief Executive of Scottish Chambers of Commerce, said: “Scotland’s businesses do not need another diagnosis of the challenges they face. They need action which makes it easier to invest, recruit and grow.

“Business confidence has been battered by years of rising costs and economic uncertainty. Too many firms have been forced to delay investment, freeze recruitment and focus on simply protecting their day-to-day operations.

“The Programme for Government is an opportunity to change that. Ministers should use the powers available to them to reduce the cost of doing business, restore Scotland’s tax competitiveness and give businesses confidence that major infrastructure will actually be delivered.

“Scotland should be one of the most competitive places in the world to live, work and do business. That means being prepared to look seriously at the tax gap with the rest of the UK and the impact it has on our ability to attract entrepreneurs, investment and skilled workers.

“This is about creating the conditions for growth. If we get the fundamentals right – competitive taxation, modern infrastructure and access to the skills businesses need – Scotland has enormous economic potential.”

The submission also calls for statutory consenting timescales for offshore wind projects, warning that lengthy delays are creating uncertainty for developers and putting investment at risk.

Mr Singh added: “Scotland has major investment opportunities in front of it, particularly in energy and infrastructure, but opportunities do not wait forever.

“When businesses are being asked to commit billions of pounds, they need certainty over grid connections, consenting and the infrastructure their investments depend upon. We need to move from talking about delivery to actually delivering.

“The same principle applies to skills. Employers know where the shortages are and where the opportunities are emerging, so they need a much stronger voice in deciding how public skills funding is deployed.

“Our message to the Scottish Government is straightforward: you have committed to delivering economic growth – so work with us to ensure Scotland’s potential delivers investment, jobs and prosperity for businesses across the country.”