SNP urged to set out budget for business as Forbes prepares to reveal spending plans

The SNP has been urged to "step up for business" in Thursday's Scottish Budget and unveil a major package of support that will allow firms to survive the coronavirus crisis.

Kate Forbes, the finance secretary, will set out her spending pledges in what she has described as the most important budget in the history of devolution.

Business leaders have pleaded with her to unveil a series of tax breaks, further compensation for lockdown curbs on trading, and new measures designed to boost consumer spending and confidence.

Little is known about what Ms Forbes will announce, although the Scottish Government has been accused of hoarding hundreds of millions in emergency Treasury funding.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said this year’s budget was an opportunity to present a “clear economic route map” out of the pandemic that would allow firms to “plan, hire and invest”.

“Large portions of government support from both Holyrood and Westminster have been essential to mitigating the pain of the jobs crisis and recession we are now in,” she said.

“However, there is growing frustration that it does not go far enough to reflect the extreme limits that businesses now have on their ability to trade.

“This has been compounded by a drip-feed approach to business support measures and a lack of any certainty as to when the economy will be allowed to reopen.”

Mainland Scotland has been in a level four lockdown since Boxing Day, meaning swathes of sectors face severe restrictions, or are unable to operate at all. Although Covid cases have begun to decline, there has been little indication from ministers over when curbs will be eased.

Dr Cameron added: “For today’s Scottish Budget, we have urged the Scottish Government to provide the confidence and stability that our businesses sorely need. We must see a comprehensive plan to support business cashflow, jobs and industry throughout 2021, as well as long-term measures to support the restart, rebuilding and growth of Scotland’s economy.’’

Ms Forbes has already said there will not be a public sector pay freeze similar to that imposed by the UK Government.

She has also hinted at the extension of rates relief for businesses, though has stressed the Scottish Government has "limited resources" with which to back the policy.

David Lonsdale, director of the Scottish Retail Consortium, said his members were hoping Ms Forbes would offer them “certainty and support in these profoundly unsettling times”.

He added: “Many non-food stores are focused on survival due to repeated Covid-induced lockdowns and restrictions and against a backdrop in which retail revenues have fallen for ten consecutive months, footfall has slumped, and with shop vacancies at a five-year high.

“The Budget must recognise this reality, and include further business rates relief, a moratorium on non-Covid regulation, and measures to drive consumer spending once we emerge from lockdown.”

The Scottish Tories listed nine points it wants the Scottish Government to commit to, including to rule out tax rises, to cover free school meals for all primary school children, and to defund any preparations for another independence referendum.

The SNP will have to persuade at least one other party not to oppose its budget, the last before the Holyrood election, if it is to pass in March. Over recent years, the SNP have struck deals with the Scottish Greens to pass its spending plans.

Speaking ahead of her Budget statement in Parliament, Ms Forbes said: "This is the most important Budget in the history of devolution. It comes as we are tackling a global pandemic and working to mitigate the damaging effects of a Brexit that Scotland did not vote for.

"I must ensure that every penny I have at my disposal makes an impact. The measures I am laying before Parliament today will provide certainty and stability to business, support families and bolster public services, while promoting sustainable growth and creating jobs.”