BUSINESS lobby group the Confederation of British Industry Scotland has urged members of the Scottish Parliament to test new policies for their impact on the economy, as it awaits the expected unveiling of the Scottish Government's legislative programme tomorrow.

The CBI called on Holyrood to halt moves to increase rates paid by firms with empty premises.

It also wants more public services outsourced to private companies and Scottish Water detached from the public sector.

CBI Scotland's director Iain McMillan said: "The past 12 months have been tough for business and for the economy.

"As we face the coming year, our political leaders need to channel their collective energies into aiding the recovery and ensuring the delivery of policies that help. All MSPs have a role to play. "

He added: "If we are to see a meaningful resumption of growth take root then there are key issues that must be addressed within the legislative and governing agenda over the coming months.

"The overriding challenge to our politicians is straightforward – test all policies against a single benchmark: will it make Scotland a better place to create jobs and wealth as the economic recovery takes hold?"

The Scottish Government's ability to improve the country's economic situation was downplayed by Brian Ashcroft, economics editor of the highly-regarded Fraser of Allander Institute commentary, in The Herald last week.

He said the ability of the Holyrood administration to improve matters would be similarly restricted even if Scotland was independent.