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Scottish Budget 2026-27 offers glimmer of hope for business, but there needs to be more support

Scottish Chambers of Commerce has said that businesses can take heart from today’s Holyrood Budget, which offered firms immediate relief from rising cost pressures.
It welcomed measures such as NDR relief, changes to income tax, investment in infrastructure resilience and funding for skills and training but called for more support and ambition to protect business and deliver economic growth.
Dr Liz Cameron CBE, Chief Executive of SCC, said: “In December, SCC called for the Scottish Government to provide immediate relief to firms battling cost pressures by cutting NDR, and to implement wider reforms to our skills and planning systems which would strengthen the foundations and lead to growth over the long-term. This pragmatic, deliverable package of measures would have effectively hit the reset button on Scotland’s economy.
“We are encouraged that the Government has listened to some of these proposals, demonstrating that it shares the ambitions of Scotland’s entrepreneurs. It offers a glimmer of hope but we need more support and more ambition to fully restore confidence and help all our struggling businesses.

 

“Scotland’s political leaders must now partner with the business community to deliver clear, joined-up policy to build on this Budget changes to secure the future of thousands of businesses across every region and sector of the Scottish economy.”
On business rates, Dr Cameron said: “Last week, SCC issued a stark warning on proposed NDR hikes, cautioning the Government that inaction risked pushing businesses to the brink. While we welcome the fact that the Government took notice, reducing business rates and providing transitional relief ahead of the 2026 revaluation, it’s important to look at the combined impact. For a small number of businesses, significant increases in rateable value risk pushing them beyond eligibility thresholds for support, creating cliff-edge effects despite no improvement in trading conditions. The Government must clearly state how it is planning to support the businesses who are at risk of falling through the cracks.”
On skills, Dr Cameron said: “SCC has long called for a realignment of Scotland’s skills system to meet employer needs and fuel the industries of the future. Today’s announcements offer hope, but must go further if we are to realise our full potential. A 10% funding increase of £70m for Scotland’s colleges, combined with a commitment to 31,000 additional apprenticeships targeted to offshore wind, oil and gas, and agriculture will expand the skills base of Scotland’s workers, and raise the competitiveness of the businesses who employ them. The Government must now clearly lay out how this funding will be allocated, and how it will involve employers in those discussions.”
On public sector reform, Dr Cameron said: “It is encouraging that the Government is committed to £1.5bn in public sector efficiencies through modernisation and digital delivery – business owners are forced to think about cost efficiencies every day.”
On income tax, Dr Cameron said: “The increase in the threshold for basic and intermediate tax rates by 7.4% is a step in the right direction. By reducing the tax burden for 55% of Scots, the Government will stimulate demand in the economy.”
On investment in infrastructure, Dr Cameron said: “If Scotland is to capitalise on the economic opportunities of the future, we must improve connectivity with modern, resilient infrastructure. The Government’s recommitment to infrastructure development, including the completion of A9 dualling by 2035, is important, but the process must be accelerated, with clear routes for private capital to support.”