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Low confidence in the Scottish economy and its tax system is holding back investment and job creation, according to a new report.<\/p>\n
A pre-election survey by the Institute of Chartered Accountants of Scotland found that about 80% of respondents were unhappy at the state of the economy or current tax policies.<\/p>\n
In its report, ICAS lays bear the challenges facing the incoming government and demands more focus on skill, tax and financial literacy.<\/p>\n
\u201cScotland has higher economic inactivity than the rest of the UK,\u201d it says. \u201cIts education system is under pressure, with international rankings moving in the wrong direction over the last 15 years.<\/p>\n
\u201cEconomic growth is stagnant, with little improvement expected next year. On top of this, global instability is creating new doubts about Scotland\u2019s future economic strength and security.\u201d<\/p>\n
The survey found that:<\/p>\n
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- 78%<\/strong>\u00a0said they do not have confidence in the health of Scotland\u2019s economy, with just\u00a06%<\/strong>\u00a0expressing confidence\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n
- \n
- 83%<\/strong>\u00a0disagreed that Scotland\u2019s current tax system\u00a0benefits\u00a0the economy, with only\u00a06%<\/strong>\u00a0believing it does\u00a0<\/li>\n<\/ul>\n
The report,\u00a0Chartered Accountants: A\u00a0strategic\u00a0asset for Scotland<\/em>,\u00a0published\u00a0a week\u00a0ahead of the Scottish elections argues that improving financial capability across the population, from primary school\u00a0onwards,\u00a0is vital to building a more\u00a0robust,\u00a0productive\u00a0and inclusive economy.<\/p>\n
It says: \u201cScotland needs a long-term fiscal strategy, that sets out a multi-year roadmap for Scottish tax and fiscal policy \u2013 this will give greater transparency and certainty about how tax revenues can effectively deliver quality public services and encourage sustainable growth.<\/p>\n
It also wants \u201csimplification of the tax system, including a review of LBTT, some of the newer devolved taxes and the divergence in personal income tax bands.\u201d<\/p>\n
ICAS calls for financial literacy to be embedded at the heart of Scotland\u2019s education system as part of a wider programme of reforms to support economic growth, strengthen public finances and build long-term resilience.\u00a0<\/p>\n
The\u00a0organisation\u00a0is\u00a0also\u00a0calling for closer collaboration between government, professional bodies,\u00a0businesses\u00a0and educators to\u00a0drive long-term\u00a0systemic\u00a0reform,\u00a0instead of\u00a0short-term policy\u00a0shifts.\u00a0\u00a0<\/p>\n
Gail Boag, ICAS CEO, said:\u00a0\u201cThe next five years\u00a0are\u00a0critical for Scotland\u2019s future. The incoming government will\u00a0face\u00a0a set of\u00a0serious challenges,\u00a0from high economic inactivity and weak growth to pressure on education outcomes, skills shortages and increasing global uncertainty.\u00a0<\/p>\n
\u201cOnly\u00a0long-term,\u00a0ambitious\u00a0policies will deliver the\u00a0investment and sustainable\u00a0growth Scotland needs.\u00a0<\/p>\n
\u201cFinancial literacy must be a core building block of Scotland\u2019s economic success.\u00a0Embedding\u00a0it across the\u00a0education system will\u00a0boost\u00a0resilience, improve decision making and fuel\u00a0a more productive, inclusive economy.\u00a0Without\u00a0action,\u00a0Scotland risks limiting its own economic potential and growth.\u00a0<\/p>\n
\u201cScotland\u00a0can\u00a0only grow its economy and tax base\u00a0by\u00a0creating\u00a0the\u00a0conditions\u00a0people and businesses need\u00a0to succeed.\u00a0<\/p>\n
\u201cThat means\u00a0predictable\u00a0and stable\u00a0policies, a tax system developed in partnership with business,\u00a0backed by\u00a0real improvements in\u00a0vital\u00a0public services such as\u00a0education,\u00a0health, childcare,\u00a0transport\u00a0and housing.\u00a0<\/p>\n
\u201cAlongside this, we need a strong pipeline of skilled professionals, decisive action on climate change and a\u00a0clear\u00a0focus on energy security. These priorities\u00a0cannot wait, and they are essential\u00a0if Scotland is to compete, innovate and prosper in the years ahead.\u201d\u00a0<\/p>\n
\t <\/div>\n
- 83%<\/strong>\u00a0disagreed that Scotland\u2019s current tax system\u00a0benefits\u00a0the economy, with only\u00a06%<\/strong>\u00a0believing it does\u00a0<\/li>\n<\/ul>\n