There has been “improvement” in relations between the Scottish Government and the business community but there is “still a way to go”, Glasgow Chamber of Commerce chief Stuart Patrick has declared.
Mr Patrick a year ago highlighted problems in the relationship between business and the Scottish Government. He said then that the business community was “unsure” of its importance in the eyes of the Scottish Government, from which it sensed “moderated hostility".
Analysing what has happened since then, in an interview with The Herald, he said: “Last year, I was being relatively unenthusiastic, at least on behalf of the members. There was a sense businesses were not top of the priority list.”
Mr Patrick added: “I think we can safely say the tone has changed. There is a greater degree of willingness to engage. There is more of a sense that progress is being made on responding to some of the comments that are being made.”
He highlighted moves by Humza Yousaf after his elevation to First Minister in spring in response to concerns over the deposit return scheme and proposals for restrictions on alcohol advertising.
Mr Patrick said: “If we look back over the period since Humza took office…the suspension of the deposit return scheme - that was an issue [a year ago], the suspension of the alcohol advertising [proposals] - that was an issue.”
However, Mr Patrick added: “Rent controls is still an issue, particularly in the property industry.”
Looking back to last December, the Glasgow Chamber chief reflected: “There was this sense of a gradual tide of tax changes coming in - [the] transient visitor levy, workplace parking levy.
“There was just a sense that an accumulation of those pressures was affecting the mood.”
Referring to a session with businesspeople and John Swinney, just before the SNP MSP stood down as deputy first minister, Mr Patrick said: “The room was pretty critical of the number of measures that were coming in that were affecting sector after sector. Run forward 10 months, we have had a reasonable amount of engagement with the key ministers.”
While noting this was not to say there had previously been no ministerial engagement, highlighting good engagement previously with former minister for business, trade, tourism and enterprise Ivan McKee, Mr Patrick added: “We have had more tangible response from the likes of [Cabinet Secretary for Wellbeing Economy, Fair Work and Energy] Neil Gray and [Minister for Small Business, Innovation, Tourism and Trade] Richard Lochhead.”
The Glasgow Chamber chief welcomed the setting up of the New Deal for Business Group by Mr Yousaf, to establish a “formal structure” for engagement with the business community.
Mr Patrick said: “That is a critical statement of intent that there needed to be change. I think the bit around business regulation - and there should be a formal review of every piece of legislation to consider what the impact could be on business during the consultation stages – it still hasn’t had a chance to prove itself in practice.”
He observed a “fairly tangible improvement in relations” but added that it was “probably too early to say…whether we see measures that are generally supporting aspirations the business community have”.
Mr Patrick noted that it remained to be seen in what form the alcohol advertising proposals would return and “what red lines the [Scottish] Government will draw to avoid the damage that could be done”.
He observed this had particular implications for Scotland’s whisky industry “given its significance in the export markets”.
Mr Patrick said: “The signals suggest they will come back with something on alcohol advertising - that may be one of the big tests of the new tone and structures. We have no signals on timings or processes.”
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