Business support 'only skin deep'

The remarks sparked calls for greater economic powers for Scotland

Support for business in Scotland is sometimes only "skin deep", it has been claimed.

CBI Scotland said the proposed local income tax could turn business away and raised concerns about ruling out the creation of new nuclear power plants.

The employers' organisation said the government should use the key levers of power to help the economy.

The Scottish Government said the criticism backed its calls for greater fiscal autonomy for Scotland.

CBI Scotland did find some common ground on the approach to transport, planning, education and business rates but the emphasis was on what the Scottish Government was doing wrong.

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Iain McMillan, director of CBI Scotland, said: "The Scottish Government holds the key levers of power to deliver Scotland's long-term economic success and, thus far, has put in place some welcome measures for business and the economy.

"Business is looking favourably on those policies that will improve the performance of the Scottish economy over time - transport, planning, education, skills, business rates and regulation.

"We are also supportive of the measures taken to assist businesses in the short-term during the economic downturn.

"But, the Scottish Government's support for business often appears to be only skin deep and ministers need to do much more in 2009 than they have to date to develop our economy for the long term and improve Scotland's reputation in the rest of the UK and internationally as an attractive place in which to do business."

There was also disagreement over private sector involvement in the National Health Service and measures to deter alcohol sales.

The Scottish Government called for further economic powers to be devolved to Holyrood and pointed out that Mr McMillan was a member of the Calman Commission which is examining the future of devolution.