7. To ask the Scottish Government how outcomes from the new deal for business will be measured. (S6O-03156)

The new deal for business is about resetting the relationship between Government and business, aligning our objectives and working in partnership on policy goals to support a thriving wellbeing economy. The new deal for business metrics sub-group is developing a set of metrics on business sentiment, engagement and confidence, which will be used in conjunction with indicators to measure the outcomes from the new deal for business.

When it was announced, the new deal for business was warmly welcomed as a change in direction from the Government, but it is fair to say that its members are now bitterly disappointed that their voices have not been listened to across a range of issues.

There is a chance for the Government to redeem itself. Just this week, the Scottish Retail Consortium highlighted that the large business supplement that is payable in non-domestic rates is currently double the rate that is payable by businesses south of the border. That will cost Scottish businesses £125 million extra over the next two years. If the Government is serious about listening to business and delivering on the new deal, will it commit to reducing that Scotland-only surcharge?

Early on in my appointment as economy secretary, I met my new deal for business group co-chair, and I will hold the first meeting of the group next week. I have already been clear that I want—and I know that the members want—focused, business-like agendas with measurable output.

On support for business, I am acutely aware of the pressures that have been bearing down on businesses in Scotland, not least from the extremely difficult financial circumstances, many of which were either created or exacerbated by Murdo Fraser’s colleagues in the United Kingdom Government. In the most challenging budgetary settlement in the devolution era, we have had to make difficult choices in order to protect our public services, including our national health service. However, I remain absolutely committed to working with the business community, understanding what it would like to see and advocating for that.

Last month, it was announced that the UK went into recession in 2023. Can the Cabinet secretary tell us whether the new deal for business, which is designed to support economic growth, has had an impact on the Scottish economy, helping it to continue to grow, or did we follow the UK into recession?

I would characterise the situation as follows: the failing UK economic model saw the UK Government enter a technical recession at the end of 2023, with two consecutive quarters of negative growth. The Scottish economy is, of course, intrinsically bound to that failing model and is still battling against some extremely challenging circumstances, including a self-imposed Brexit and the self-imposed disastrous mini-budget. It is encouraging, however, that, unlike the UK, Scotland avoided a recession in 2023.

Metrics are vital to tracking progress on the new deal for business. What is the Government’s response to yesterday’s report from the Confederation of British Industry and Fraser of Allander Institute showing that Scotland lags behind the UK average on 10 out of 13 productivity metrics? Is the Government going to use those metrics? When will we see improvement?

L ike Daniel Johnson, I paid close attention to the CBI’s release. I thought that it was an interesting account of various opportunities and challenges that are currently bearing down on the Scottish economy, and I will continue to engage with the CBI on many of the points that it raises. I go back to the answer that I gave to the first question, which was about the importance of the new deal for business and the metrics that we are developing as part of how we measure its outputs. I will very closely foster those metrics with members of the group.