Colin Marr, Chief Executive of Inverness Chamber of Commerce, voices his, and businesses across the Highlands, concerns about the potential direction of fiscal policy by the Chancellor, ahead of the UK Government’s Autumn Budget tomorrow (Wednesday 30 October). He explains:
“The latest Scottish Chambers of Commerce (SCC) survey reveals that over half of businesses across Scotland, and a striking 77% of those in tourism – a sector vital to Inverness and the Highlands – are concerned about additional taxation. This underscores how any increase in employer’s National Insurance would significantly impact businesses that are already navigating a challenging post-pandemic recovery landscape. Additional personal taxes, such as those on fuel, capital gains, or pensions, would be likely to lead to greater wage demands which also put a strain on smaller businesses. Increased fuel duty is a particular worry in our rural economy, where car dependence is higher than the national average. Such taxation pressures, coupled with recent employment legislation, could put small businesses – which form the backbone of our local economy – at even greater risk.
“Another area of critical concern is infrastructure investment which is recognised by most economists as a good driver of economic growth. The dualling of the A9 has been a long-awaited project that promises to enhance connectivity and economic activity in the Highlands. However, a reduction in UK infrastructure spending could jeopardize the Scottish Government’s capital budgets, which would affect not only the A9 project but other essential investments for rural connectivity.
“We understand the difficult position the Chancellor faces in balancing economic growth with fiscal responsibility. Nonetheless, we urge the government to recognise that businesses need stability. Targeting additional taxes on businesses at this point risks stifling the recovery efforts that our local and regional economies are striving to achieve. It is essential to approach this Budget with a balanced view, ensuring that businesses – especially small and rural enterprises – are given the support they need to continue driving economic growth in the Highlands and beyond.”