Scottish Budget must boost business confidence, says the CIPD

Commenting ahead of the Scottish Budget on Tuesday 13 January, Marek Zemanik, senior public policy advisor for the UK nations at the CIPD, the professional body for HR and people development, said: 

“The Scottish Budget must lay out clear efforts to boost business confidence and support investment, skills and jobs. This is vital given that increases to the national minimum wage and higher employment costs - announced in the UK Government’s Budget - along with new employment legislation, risk stalling growth in Scotland by deterring recruitment and reducing job opportunities.

“Given this ‘perfect storm’ of cost pressures, it’s more important than ever that the Scottish Budget sets out how the Scottish Government intends to support employers, and particularly those across lower wage sectors such as retail and hospitality.

“Scotland also urgently needs a better skills system, boosted work-based learning and upskilling opportunities, alongside a significant uplift in employer investment in training. This is critical in the context of an ageing workforce, and the rapid rise of AI, which is already reshaping many jobs. More support for apprenticeships and investment in employer skills development is also vital to attract and retain more young people.

“With the new year and the upcoming Scottish election, this is a pivotal moment for the Scottish Government to step-up and show how it intends to support businesses - of all sizes - to boost productivity and tackle rising employment costs. Unless this is addressed, it’s hard to see how there will be sustained improvement to economic growth or living standards in Scotland.”