Scottish Financial Enterprise (SFE) has called for a “reset” of the relationship between government and business ahead of next month’s Holyrood elections.

Building on its 2026 election manifesto, the financial services body is urging the next Scottish Government to adopt formal economic growth targets and introduce tax reforms in line with the rest of the UK, in the hope of bolstering Scotland’s sluggish economic performance.

Arguing that Scotland stands at a crossroads, SFE said that the next administration should focus on creating the right conditions for growth and developing tax policy that ensures Scotland remains competitive within the UK. 

To nurture a stronger business environment, the SFE’s manifesto calls for the introduction of an annual growth target as “part of the budget process”, which the trade body said will guarantee economic growth is “front and centre of government policy and decision making”.

Another measure the SFE touts is the simplification of the tax system, underpinned by a presumption against further divergence from the rest of the UK, a recommendation in line with the Institute of Fiscal Studies, which recently found that Scotland’s tax system has become “unnecessarily complex and distortionary”, particularly when it comes to business rates.

However, the SFE’s proposal could put it at odds with the SNP, which currently leads most polls, as speculation mounts over a potential renewed partnership with the Greens following the election, who most recently pledged to introduce an “Amazon tax” targeting large online retail businesses.

Meanwhile, the SFE is also pressing parties to commit to tapping more private capital for major infrastructure projects as well as to establish a cross-government Investment Acceleration Unit to fast-track key decisions to “get investment decisions over the line”.  

Lastly, the manifesto calls for political leaders to ring-fence revenues from the apprenticeship levy to boost the skills system, and for a “meaningful” overhaul of university and college funding, following multi-million-pound bailouts for the likes of Dundee Uni last year, which have taken a toll on public finances.

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“The next Scottish government, whatever its make-up, has a huge opportunity to turbocharge economic growth in Scotland,” said Sandy Begbie, chief executive of SFE.

“That is why we are calling for these measures, including the introduction of annual growth targets, as part of a package to turn Scotland into the engine room of our economy.

“By following these measures, the next administration can not only stimulate growth, strip away red tape and encourage investment, they can also fundamentally reset the relationship between business and government.”