Hansard

In closing for Labour today, I commend the work of the Economy, Energy and Fair Work committee in producing its very thorough report into business support in Scotland. Gratitude should also be given to the various stakeholders that contributed to the report and the businesses that provided valuable insight into the reality of seeking business support on the front line.

There seems to be agreement in the chamber today that the response from COSLA perhaps leaves more questions than answers and that it is crucial that we get joined-up working at every level of government. I hope that the committee convener and deputy convener can follow up with COSLA and iron out any difficulties that they have perceived.

Another thing on which we can agree is that support for start-ups, local businesses and entrepreneurs across the country should be welcomed, encouraged and strengthened. There is also agreement that, in those areas, we can do better. Taking that to the next stage demonstrates why the committee report is important.

The vast majority of businesses in Scotland are sole traders, which make up 69 per cent of the business base; a further 30 per cent of businesses are classed as small and employ between one and 49 people. Those businesses contribute vastly to our communities, with many of them being the lifeblood of our high streets at a time when high streets across the UK are struggling. We should be doing all that we can to ensure that businesses such as those have clear access to whatever support is available to ensure that they can flourish, helping to employ people in our communities and reversing the decline of our high streets.

It is clear from the committee report that, although there is a lot to be celebrated in the current Scottish landscape for business support, there is a huge lack of joined-up government in relation to the various support services that are on offer. The report makes it clear that

“signposting and co-ordination between multiple stakeholders and partners remains an ongoing challenge.”

The report notes that, when the committee scrutinised the 2018-19 draft budget, it found

“gaps in business support, despite a cluttered landscape of programmes and services.”

That needs to be addressed.

In 2008, when the Scottish Government transferred business gateway and local regeneration activities to Scotland’s local authorities, the intention was to steer businesses through the multitude of programmes and services that were available, such as enterprise agencies, city deals, private sector programmes, growth deals and other regional partnerships. However, it has been noted that even 10 years later,

“signposting and co-ordination between multiple stakeholders and partners remains an ongoing challenge.”

Indeed, the committee report notes:

“The policy intention for Business Gateway to act as the entry point for businesses seeking business support has not been fulfilled.”

In its written submission to the committee, COSLA highlighted the uneasy mix of national and local priorities. We need to consider that. COSLA said:

“The enterprise agencies are gatekeepers to the additional support available in the Growth Pipeline and Account Management, but the national priorities placed on them by the National Government do not necessarily fit with those relevant to Local Government which has a greater focus on local priorities.”

We need to work together. COSLA paints a picture that is recognisable to many who work in and alongside local government of a lack of a joined-up approach between the Government in Holyrood and local government. There is more that can be done there; we can do better, whether we are talking about house building strategy, planning or—with regard to today’s debate—business support. There clearly needs to be a rethink in the way in which interactions between local and national Government are communicated and planned. I hope that those discussions can follow the publication of the committee’s report.

The Scottish Government’s failure to work closely with local authorities to review, set targets and appropriately fund business gateway has resulted in the business landscape becoming cluttered, misaligned and confusing for businesses to navigate. The Scottish Government spends only £15 million a year on delivering business gateway services. That is not nearly enough to promote the Scottish economy at the local level. A decade of austerity has meant that local authorities are struggling to deliver essential services, so we need to address the funding crisis that local authorities find themselves in. However, most of all, we can do better with regard to growing our economy and supporting business start-ups and business growth.