Sir Tom Hunter's blueprint to unlock £20bn for Scottish economy and halt 'punishing' tax strategy
Sir Tom Hunter is leading calls for Scotland’s tax system to fall in line with the rest of the United Kingdom.
Scotland’s leading entrepreneurs have called for SNP ministers to reset their tax strategy amid fears it is “punishing” teachers, doctors and nurses - as part of a blueprint to unlock £20 billion for the economy.
A key document, drawn up by the Hunter Foundation following a summit at Gleneagles in November attended by 200 of Scotland’s leading entrepreneurs and business leaders, has called for a reset of the Scottish Government’s economic growth strategy.
The so-called ‘entrepreneurs manifesto for Scotland’ claims it can boost the economy by up to £20.2bn and create more than 100,000 jobs.
The blueprint warns that “it is our firm belief that the current Scottish tax system is a disincentive for investment and growth of the Scottish economy”.
The document points to “someone earning £50,000 in Scotland pays £1,500 more in tax than someone living in the rest of the UK”, adding that “anyone earning between £43,500 and £50,000 pays an effective 50 per cent tax rate”.
The manifesto adds: “We are punishing teachers, doctors, nurses and many more through this tax system, the very people so important to all our futures.
“Our ambition is to find a better tax system that incentivises growth, that is fair and equitable and drives increased investment and jobs and therefore increases the tax take; it is not the tax rate that’s critical for the economy, it’s the tax take.”
The document calls for the Scottish Government to “adopt the rest of the UK tax regime, so extinguish the penalising system that is causing that ‘recruitment premium’”.
It also calls on Scottish ministers to “work with a specialist team which The Hunter Foundation will fund to investigate both the impacts of the current system and to develop a new system that will increase the tax take”.
The paper calls for politicians to address Scotland’s housing emergency by introducing a central planning portal which would “deliver a fast track planning process for investments over £10m both in housing and industrial development”.
The manifesto also proposes a “bonfire of the quangos” and a “red tape tsar” in a move alongside government efficiency the document claims could add more than £2bn to Scotland’s economy.
Sir Tom Hunter, founder of The Hunter Foundation, said: “This manifesto is about practical changes that remove friction, speed up decisions and back the creation and retention of quality jobs.
“Entrepreneurs aren’t asking for special treatment. We’re asking for a serious partnership focused on outcomes to bring about more opportunity, homes, investment, and more funding for public services.
“Our ask of the Scottish Government, all political parties, policy makers and local authorities is simple - work with the people who start and grow companies, and focus relentlessly on delivery. If we do that, Scotland can not only compete on the big stage, but prosper.”
Scottish Conservative shadow business secretary Murdo Fraser said the document was “a damning indictment of the SNP government’s failure to listen to business and promote the growth on which Scotland’s economy and services depend”.
He added: “Businesses are being strangled by punitive taxes, red tape, soaring rates and a skills shortage.
“As one of Scotland’s most successful entrepreneurs, Sir Tom’s been clear that the nationalists’ high-tax policies and excessive regulations have created a hostile environment for businesses. John Swinney must heed his warnings.”
The Scottish Government has been approached for comment.
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