A new survey conducted by the Fraser of Allander Institute at Strathclyde University has found that most Scottish businesses are dissatisfied with the SNP government’s understanding and engagement with their sector. The survey, which polled more than 400 businesses in July and August, suggests that the change of leadership from Nicola Sturgeon to Humza Yousaf has not improved the relations between the government and the business community.
SNP out of touch with business environment
According to the survey, only 9% of businesses said that the Scottish Government understands the business environment, while 91% disagreed or strongly disagreed. Similarly, only 8% of businesses said that the Government engages effectively with their sector, while 92% disagreed or strongly disagreed. The survey also found that only 20% of businesses believed they knew an effective route to influence government policy, while 40% said they did not.
The dissatisfaction was highest among hospitality companies and other service-led businesses, which have been hit hard by the Covid-19 pandemic and the subsequent lockdowns and restrictions. Among these sectors, 80% and 92% respectively denied that the Scottish Government understands the business environment. Larger companies were also more vocal in their discontent, with 90% of firms with at least 250 employees disagreeing that the Government engages effectively.
Humza Yousaf fails to win over business community
The survey results indicate that the new First Minister Humza Yousaf has not been able to win over the confidence and trust of the business community since he took over from Nicola Sturgeon in March this year. Sturgeon resigned after she was arrested and released on police bail amid allegations of financial misconduct. She had faced criticism from Scottish companies for overlooking business during her time in power.
A former important advisor to the SNP, Benny Higgins, had called for Sturgeon’s departure to act as a reset for poor relations with the business community. However, the recent polling suggested that despite recent attempts to improve relations, Yousaf is struggling to connect with businesses and address their concerns. Yousaf has pledged to make Scotland a more attractive place for investment and innovation, but his policies have been met with skepticism and opposition from some sectors.
Business and government need to engage more effectively
The survey report, which was produced in collaboration with law firm Addleshaw Goddard in Scotland, highlighted the need for business and government to come together and engage more effectively. The report said that businesses are looking for clarity, consistency and consultation from the Government on key issues such as Covid-19 recovery, Brexit, climate change and skills development.
Prof Mairi Spowage, director of the Fraser of Allander Institute, said: “These results are obviously pretty disappointing for the Government, with the vast majority of businesses not feeling that the Government understands business or that they engage effectively.” She added that the grim numbers underlined the “importance of the Scottish Government resetting their relationship with business”.
David Anderson from Addleshaw Goddard in Scotland said: “These results are very timely and speak to the frustrations that businesses are clearly feeling.” He added: “More than anything … the findings emphasise the need for business and government to come together and engage more effectively.”
