Access to the EU single market without financial tariffs and a slashing of domestic business rates have emerged as the key priorities for Scottish firms as they adjust to the post-Brexit landscape.
A major survey carried out by Scottish Chambers of Commerce in the wake of the June 23 poll also found that most companies wanted to see a renewed focus on investment in vocational skills and infrastructure in order to help drive growth.
Liz Cameron, chief executive of Scottish Chambers of Commerce, said action was needed to shore up the economy north of the border..
“The Scottish economy was faltering even before June’s EU referendum and the result has sparked another period of uncertainty,” she said.
“Businesses, however, are clear in terms of the support they need and the expectations they have of the Scottish and UK Governments at this time.
“This support is required in order to address Scotland’s underlying economic needs and is consistent with the views expressed by the business community over recent years.”
A total of 677 responses were received from companies to the SCC survey.
Of the options given, the respondents strongly indicated their priorities were maintaining access to the EU single market without financial tariffs and getting clarity on what Brexit means for EU-derived legislation such as employment rights and the working time directive.
However, Ms Cameron said businesses were concerned about a number of different issues relating to the UK’s future trading relationship with the EU.
She said: “High on the list of priorities is continued tariff-free access to the EU single market, but businesses are also looking for clear guidance on how current EU legislation implemented in the UK will apply once the UK leaves the EU.
“ For more than one in six businesses, the continued free movement of people between the EU and the UK is a key priority and as a start, we are calling for the UK Government to unilaterally guarantee the rights of EU citizens already in the UK to remain here, contributing to our economy.”
Respondents were also asked about the support they most wished to see from Holyrood and Westminister.
Almost half of respondents pointed to the current business rates system as being their greatest issue.
“A reduction in business rates would deliver a clear boost to a wide spectrum of businesses, reducing business costs and freeing up resources to invest for future growth,” Ms Cameron said.
“This is an area where the Scottish Government has the powers to deliver for Scottish business and with a rates revaluation coming up in just seven months, the timing could be perfect to provide a boost to Scotland’s businesses.
“The UK Government can also play a part by targeting reductions in VAT, which is a particular priority from Scotland’s tourism sector, and by continuing the recent downward trend of Corporation Tax rates.”
Finally, companies were asked to identify investment priorities to drive growth in the Scottish economy.
Ploughing more cash into apprenticeships and colleges and improving the country’s roads infrastructure came out ahead of increased capital project spend.
Ms Cameron said: “Investment in vocational training and in colleges is a strong demand from businesses alongside investment in roads and other infrastructure that will deliver long term economic benefit such as digital connectivity and housing. Government spend should have a clear economic objective.”