Scottish Ministers "must explain impact on business"
Minister听"alarmed" at reaction that the Scottish Government's Spending Review has provoked from the business community
The Secretary of State for Scotland, Michael Moore is to write to the Scottish Government鈥檚 Finance Minister asking for an explanation of the impact on Scottish Business of the Scottish Government鈥檚 spending review.
He will also invite John Swinney to suggest how his government can contribute to the work of the new Scottish Trade and Growth Board which Mr Moore announced this week.
Moore said: 鈥淚 am alarmed at the reaction that the Scottish Government鈥檚 Spending Review has provoked from the business community.
鈥淚n particular I鈥檓 concerned at the fears expressed about the projected business rates and the significant risk that they could prove a major disincentive to new investment in Scotland.
鈥淭he UK government, aware of the difficulties caused by the global financial situation, is currently trying to help business by reducing corporation tax, cutting red tape and keeping interest rates low.
鈥淪cottish firms鈥� fears that they could be facing a damaging hike in business rates set by the Scottish government must be addressed.
鈥淭heir reaction also underlines the need to focus on barriers to economic growth and the importance of the work of the recently announced Scottish Trade and Growth Board, where I hope Scotland鈥檚 two governments can work together.
鈥淏ut right now we need to know the assessment the Scottish Government听 has made of the impact of their proposals, in particular with regard to business rates and the so-called 鈥楾esco Tax鈥�.
鈥淔ar from being a panacea, the Scottish Government鈥檚 so-called 鈥淧lan听 MacB鈥� has been shown to have a nasty sting in its tail.鈥�
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