Chamber
Plenary, 11 Jun 2008
11 Jun 2008 · S3 · Plenary
Item of business
Small Business Bonus Scheme
I am delighted to open this debate on the impact of the small business bonus scheme. The introduction of the new scheme on 1 April marked an important stage in the fulfilment of the Government's ambition to create a more successful country by increasing sustainable economic growth.
The Administration was elected on a mandate of change with a strong commitment to reinvigorate the economy and make Scotland a more successful and prosperous nation. Our economy has suffered from decades of underperformance: in the past 30 years, growth in Scotland's annual average gross domestic product has been about 1.8 per cent, which is significantly below the United Kingdom average of 2.3 per cent. At the same time, Ireland and other small but prosperous countries around us have flourished. Ireland's average growth of 5.2 per cent has had real implications for the quality of life that its citizens enjoy. Iceland, Norway and Ireland come first, second and fifth respectively in the United Nations human development index.
We want Scotland to achieve such gains, which is why last November we launched our Government economic strategy, which focuses the Government and the entire public sector on a unifying single purpose, which is to increase sustainable economic growth. The strategy is also the first of its kind to set measurable time-bound goals from which success can be judged.
The scale of our ambition is clear: we want to increase Scotland's GDP growth to the UK level by 2011 and to match the GDP growth rate of small independent European Union countries by 2017. Those are highly ambitious goals, particularly in the current global economic environment, but they are the Government's defining mission. Our declared purpose lies at the heart of the decisions that we have already made and those which are to come. The moves are designed to make Scotland more prosperous, wealthier and fairer and to sharpen both the appetite for economic powers and the competitiveness that will deliver increased sustainable growth. The major tax cut will help many businesses and communities and thereby help in that process.
Small businesses are the cornerstone of Scottish commerce. They help to grow our economy and sustain our local communities. Their viability and success contributes to the vibrancy and quality of life in Scotland, so the Government wants a business environment in Scotland that encourages more small business start-ups, creates more jobs, widens the tax base, increases local economic vibrancy and improves and retains local services and local confidence.
We are a listening Government: in the past year, we have listened carefully to the business community in many meetings and have made many direct connections. We have talked to the business community about the disincentive effect that rates can have in creation and expansion of small businesses, which is why we took swift action to reduce the burden of business rates. From 1 April this year, up to 150,000 businesses in Scottish high streets, towns and villages have begun to benefit from an unprecedented reduction in fixed costs, with an average saving of some £750 in 2008-09 and £1,040 from 2009-10 onwards.
The Administration was elected on a mandate of change with a strong commitment to reinvigorate the economy and make Scotland a more successful and prosperous nation. Our economy has suffered from decades of underperformance: in the past 30 years, growth in Scotland's annual average gross domestic product has been about 1.8 per cent, which is significantly below the United Kingdom average of 2.3 per cent. At the same time, Ireland and other small but prosperous countries around us have flourished. Ireland's average growth of 5.2 per cent has had real implications for the quality of life that its citizens enjoy. Iceland, Norway and Ireland come first, second and fifth respectively in the United Nations human development index.
We want Scotland to achieve such gains, which is why last November we launched our Government economic strategy, which focuses the Government and the entire public sector on a unifying single purpose, which is to increase sustainable economic growth. The strategy is also the first of its kind to set measurable time-bound goals from which success can be judged.
The scale of our ambition is clear: we want to increase Scotland's GDP growth to the UK level by 2011 and to match the GDP growth rate of small independent European Union countries by 2017. Those are highly ambitious goals, particularly in the current global economic environment, but they are the Government's defining mission. Our declared purpose lies at the heart of the decisions that we have already made and those which are to come. The moves are designed to make Scotland more prosperous, wealthier and fairer and to sharpen both the appetite for economic powers and the competitiveness that will deliver increased sustainable growth. The major tax cut will help many businesses and communities and thereby help in that process.
Small businesses are the cornerstone of Scottish commerce. They help to grow our economy and sustain our local communities. Their viability and success contributes to the vibrancy and quality of life in Scotland, so the Government wants a business environment in Scotland that encourages more small business start-ups, creates more jobs, widens the tax base, increases local economic vibrancy and improves and retains local services and local confidence.
We are a listening Government: in the past year, we have listened carefully to the business community in many meetings and have made many direct connections. We have talked to the business community about the disincentive effect that rates can have in creation and expansion of small businesses, which is why we took swift action to reduce the burden of business rates. From 1 April this year, up to 150,000 businesses in Scottish high streets, towns and villages have begun to benefit from an unprecedented reduction in fixed costs, with an average saving of some £750 in 2008-09 and £1,040 from 2009-10 onwards.
In the same item of business
The Presiding Officer (Alex Fergusson):
NPA
The next item of business is a debate on motion S3M-2102, in the name of Jim Mather, on the small business bonus scheme.
The Minister for Enterprise, Energy and Tourism (Jim Mather):
SNP
I am delighted to open this debate on the impact of the small business bonus scheme. The introduction of the new scheme on 1 April marked an important stage ...
Johann Lamont (Glasgow Pollok) (Lab):
Lab
The minister said that, as a listening Government, it received the message from the business community that what was happening was a disincentive. Is he awar...
Jim Mather:
SNP
I have not heard that message directly from the housing associations. We deal with them in my constituency as a key sector in the economy. I look forward to ...
John Park (Mid Scotland and Fife) (Lab):
Lab
Will the minister explain how he can guarantee that there will be increased investment from smaller companies that will lead to more jobs and greater economi...
Jim Mather:
SNP
I regret that John Park has a zero-sum game mentality. The Government is putting business in the driving seat, and business has a sense of obligation. Let us...
Tavish Scott (Shetland) (LD):
LD
On the minister's point about his discussions with business, is his position on regulation still that it should be one in and one out?
Jim Mather:
SNP
We have a mature approach with the regulatory reform group. Better regulation is the objective and the process, and it has to be the focus. I can assure Tavi...
John Park:
Lab
Would it be appropriate for you to make available the names of the companies that you are talking about today? It would be useful for us in the wider debate.
Jim Mather:
SNP
There are plenty examples from around the country. I advise John Park to do what I did the other day, which was to walk around Oban and Rothesay and talk to ...
The Presiding Officer:
NPA
Before I call Elaine Murray, I remind all members that contributions should always be made through the chair, which means referring to members by their chose...
Elaine Murray (Dumfries) (Lab):
Lab
I ought to start by declaring an interest as one of the people who has received a small business bonus. That is probably true of many members who run offices...
Gavin Brown (Lothians) (Con):
Con
In 2000, Jack McConnell ended the uniform business rate that applied to both Scotland and England. Was that a good result for businesses in Scotland?
Elaine Murray:
Lab
As I was just about to explain–and as has been long rehearsed over the years—business rates comprise two factors: poundage, which at that point increased in ...
Derek Brownlee (South of Scotland) (Con):
Con
The minister is often attacked—not without cause—for bewildering people with management gobbledegook, but today I will forgive him his mention of Deming beca...
Elaine Murray:
Lab
I offer a brief correction. I said:"Tax cuts are always popular with the beneficiaries."
Derek Brownlee:
Con
I stand corrected. On the subject of correction, the establishment of a town centre regeneration fund was a policy in the Conservative manifesto, as Elaine M...
Liam McArthur (Orkney) (LD):
LD
Small businesses are the lifeblood of our economy. The contribution that they make to the diversity, competitiveness and resilience of our economy is immense...
Derek Brownlee:
Con
I accept the logic behind Mr McArthur's argument. Do the Liberal Democrats think that that logic should also apply to other Government interventions to assis...
Liam McArthur:
LD
I would not disagree with that point, but it does not seem to reinforce the point that Derek Brownlee has just made in his speech. Good governance and sound ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
I am sorry, but I must make progress.I am astonished that, amid their self-congratulation, Mr Brownlee and his colleagues cannot bring themselves to support ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
No.Our amendment also provides the basis on which to address the concerns that underlie the Labour amendment. Skills, energy efficiency and, of course, physi...
Roseanna Cunningham (Perth) (SNP):
SNP
I have looked forward to the debate for some time, and not just because I, too, can declare as an interest the fact that my constituency office is saving mon...
John Park (Mid Scotland and Fife) (Lab):
Lab
I have been consistent on this issue since entering Parliament last year and I made my views known in one of my first speeches. Reductions in business rates ...
Roseanna Cunningham:
SNP
Just exactly what size of business does the member think that he is talking about when he talks about fleets of cars? Most of the businesses benefiting from ...
John Park:
Lab
That is why we want to give those businesses more investment and ensure that the public infrastructure is there to support their businesses, rather than just...
Alasdair Allan (Western Isles) (SNP):
SNP
As other members have done, I declare an interest in as much as my office pays rates.Whatever our arguments today, there can, I hope, be no disagreement abou...
David Whitton (Strathkelvin and Bearsden) (Lab):
Lab
Just as the sun shines, I stand up. Does Mr Allan think that it is an economic benefit to the Western Isles that the minister turned down the Lewis wind farm...