The call comes ahead of tomorrow’s 2023/24 Programme for Government announcement, detailing how Scots Gov aims to “deliver a wellbeing economy that boosts economic growth.”

CBI Scotland’s businesses have identified infrastructure decarbonisation, building new homes, improved broadband and transport connectivity, the labour market, productivity, and a competitive business environment as the key areas for economic performance gains in Scotland.

The group said that the devolved government must utilise Scotland’s energy strengths, as well as take account of UK Government incentives and regulations to drive energy efficiency improvements. This includes the development of a clean heat market mechanism, and the Great British Insulation Scheme, which aims to upgrade inefficient homes.

Regarding tax, CBI Scotland suggests that the Scottish Government should unlock trapped tax investment, including boosting exports and creating a long-term competitive tax strategy as to cut the costs of doing business and drive inward investment. This includes lowering business rates, thereby providing Scotland a level playing field with England on the large business supplement.

CBI Scotland would also like to see gigabit-capable digital connectivity rolled out by the end of the next parliamentary term, a national target to build 25,000 homes each year, and transport infrastructure investments that improve connectivity to key markets.

Speaking on this “whole system” approach, Tracy Black, CBI Scotland’s director, said: “The Scottish Government needs to start delivering now to achieve net zero by 2045.

“A long-term tax strategy would create certainty and simplicity. It would boost international competitiveness, make it more attractive to investors and enhance Scotland’s reputation as a place to do business.

“Scotland can steal a march on its rivals by speeding up the consenting process to cut down on the 12 years it takes to build an offshore wind power project in the UK. Business rates should incentivise investment to decarbonise older buildings, with rates relief giving tax breaks to firms that improve energy efficiency.

“Firms know long-term sustainable growth will help support life opportunities, fund public services and deliver on shared policy priorities. They are ready to work with government to make sure Scotland marches ahead of its international rivals.

“The First Minister’s ‘New Deal for Business’ must be the starting point of an effective partnership between government and business to create a clear, stable policy environment to grow the Scottish economy for the benefit of all.”

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In April, First Minister Humza Yousaf initially announced the “New Deal for Business,” conceived in a bid to “help business and trade to thrive and maximise the opportunity of the green economy.”

To help support the New Deal, the New Deal for Businesses Group has been created to “provide a forum for government and business leaders to explore how best to support businesses and communities and to actively work together to achieve common goals, aligning Scottish Government policy with business.”

However, just months after the New Deal’s initial announcement, the most recent Scottish Business Monitor report from the Fraser of Allander Institute found that the majority of Scots businesses don’t believe that the government is in touch with business.

The report uncovered that just 9% of Scottish companies agree that Scots Gov understands the business environment in Scotland, and just 8% of businesses feel that it effectively engages with their sectors.

Professor Mairi Spowage, the director of the Fraser of Allander Institute, noted that the results “underline the importance of the Scottish Government resetting their relationship with business.”