CBI Scotland, the trade organisation which represents Scottish businesses, is urging the Scottish government to use the forthcoming Programme for Government to support enterprise, and go “full throttle” to achieve long-term sustainable economic growth.

The plea follows a prolonged period of stagnating growth and high costs, though more recently the economy has been showing early signs of recovery.

With the Programme for Government, which is published annually to set out governmental aims and ambitions, the trade organisation has advised that Scots gov should work closely with UK counterparts to provide crucial momentum for Scotland’s economic recovery.

Further, it must use all available levers—both dissolved and reserved—to build a more competitive, prosperous, and sustainable economy that benefits both businesses and consumers across Scotland.

In a letter to the new first minister, John Swinney, CBI Scotland has called on the Scottish government to prioritise policy competitiveness and stability, to boost business investment, and seize on the opportunities available to Scottish businesses both at home and abroad.

This is particularly true for areas like the green economy, where Scotland already boasts an early mover advantage.

Mags Simpson, who’s the interim Scotland director at CBI, commented: “With a new UK government in place, there’s a real chance to re-set the relationship between Holyrood and Westminster because collaboration not confrontation is the only way to build a thriving economy that delivers for the people of Scotland.

“The two governments must now work hand-in-glove to break-down barriers to growth, crowd-in business investment, and build a high-skilled workforce.

“Giving certainty to investors is essential if we’re to capitalise on the amazing opportunities available to us. A thriving green economy is within our grasp, but we need to address the issues that are giving investors pause for thought.

“That means publishing long awaited net-zero strategies, addressing critical gaps in skills and infrastructure and cutting through burdensome red tape – particularly around planning.

“We also need to take stock of Scotland’s competitiveness, not just internationally but across the UK. In a fierce race for talent, it’s time to put business leaders’ minds at ease by committing not to widen the income tax gap between Scotland and the rest of the UK.

“We should also look closely at whether current income tax bands are helping or harming the Scottish economy overall.”

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CBI Scotland’s suggestions for the new Programme for Government focus on three key areas: delivering a competitive investment-focused tax regime, creating a workforce that’s fit for the future, and breaking down investment barriers to secure economic opportunities.

To achieve this, the trade organisation recommends actions such as committing to avoiding further income tax divergence with the rest of the UK, better aligning skills funding to market demand, and working with the UK government counterparts to address long-standing barriers to growth.