Simply 9% of companies imagine Scottish Government understands enterprise, ballot suggests
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ust 9% of firms requested in a current ballot say the Scottish Government understands the enterprise panorama within the nation.
The Fraser of Allander Institute spoke to 400 firms for its Scottish Business Monitor to gauge the sector’s confidence in policymakers.
First Minister Humza Yousaf has sought to be extra enterprise pleasant since taking workplace earlier this 12 months, together with providing a “new deal for business”.
The survey discovered that simply 9% of respondents agreed or strongly agreed that the Scottish Government understood Scotland’s enterprise panorama, in contrast with 64% who disagreed or strongly disagreed.
These outcomes are clearly fairly disappointing for the federal government, with the overwhelming majority of companies not feeling that the federal government understands enterprise or that they have interaction successfully
It discovered that 8% agreed ministers and officers have interaction successfully with the enterprise group, whereas 67% disagreed.
Some 80% of respondents within the hospitality sector disagreed with each statements.
For each questions, bigger firms had been extra prone to disagree with the statements.
Mairi Spowage, director of the Fraser of Allander Institute, stated: “These results are obviously pretty disappointing for the government, with the vast majority of businesses not feeling that the government understands business or that they engage effectively.
“However, they underline the importance of the Scottish Government resetting their relationship with business. It is therefore more important than ever that the new deal for business leads to changes in approach in the future.
“These indicators can help us track progress over time – and hopefully see improvements in the relationship.”
David Anderson, head of company at Addleshaw Goddard in Scotland – the agency which helped the assume tank undertake the enterprise monitor – stated: “Developing the best environment to do business is essential for the economy to thrive, so it’s important for policymakers to be aware of the sentiment among business leaders in this regard, the good and the not so good.
More than anything, however, the findings emphasise the need for business and government to come together and engage more effectively
“These results are very timely and speak to the frustrations that businesses are clearly feeling.
“More than anything, however, the findings emphasise the need for business and government to come together and engage more effectively – working in partnership with the business community is what the new deal of business is about and these figures provide a benchmark as we move forward.”
Responding to the survey, Wellbeing Economy Secretary Neil Gray stated: “While we are doing everything we can to support business at this tough time – given the impact of inflation, energy prices, and higher costs of borrowing – this report highlights that more is needed to show that the Scottish Government is working alongside the business community.
“This is why the new deal for business group was set up, to reset that relationship with a focus on co-designing policies that will have a positive impact on the day-to-day operations of business.
“The group’s first set of recommendations have been accepted by the First Minister and we are in the process of implementation.
“Next week’s Programme for Government will include further initiatives to support business as we develop an economy that is fair, green and growing.”
Scottish Tory financial system spokesman Murdo Fraser stated the research was an “abysmal verdict” for the Scottish Government, including: “It’s weeks since Humza Yousaf was promising a ‘reset’ of his party’s relationship with Scottish businesses – itself an admission of their previous failure.
“But he’s still refusing to pass on the money received from the UK Government to give firms rates relief they would get elsewhere in the UK. And has reaffirmed his commitment to the Greens, a party explicitly opposed to economic growth.
“So far, there’s no indication Humza Yousaf is prepared to listen, or change the policies that have seen stagnant growth and a host of new burdens and regulations on Scottish firms.
“He must abandon the stubborn position that was taken with the disastrous Deposit Return Scheme and is being repeated with short-term lets regulations, pass on rates relief, and finally engage with the business community’s real priorities.”