Scotland’s technology trade organisation has described the lack of ‘targeted support’ for the tech sector as ‘disappointing’ following yesterday’s Budget.
ScotlandIS, which represents the interests of over 1,000 digital technology companies in Scotland through its cluster ecosystem, said the sector needs more focused support to realise the potential for the country’s future prosperity.
In her Budget yesterday, finance secretary Shona Robison announced a record £22 billion funding package for the NHS and social care, and £15 billion for local councils.
But there were fewer measures aimed at stimulating economic growth, compared to spending commitments which necessitate further potential tax rises, including Council Tax.
Karen Meechan, chief executive of ScotlandIS, said: “Although we were pleased to see an increased focus on skills and education, it was disappointing to see barely any mention of targeted support for Scotland’s tech sector in the finance secretary’s speech. The sector already contributes £6.87 billion to Scotland’s GVA and has an enormous amount to offer Scotland’s future prosperity. But we need focused support to realise this potential.
“The decision to increase the thresholds for the basic and intermediate rates of income tax will offer some relief to lower earners but does little to address the ongoing challenge facing Scotland’s tech employers: finding and keeping high-value talent, particularly at senior levels.”
She added: “The introduction of two additional council tax bands further risks undermining Scotland’s attractiveness as a place to live, work and invest. Our members consistently tell us that access to talent is one of the biggest barriers to growth for the Scottish tech sector and today’s Budget announcement will only compound the issue.”
She said: “In positive news, the increased investment in the NHS creates an opportunity for the tech sector to play a meaningful role in supporting service transformation. Many of us are already aware of ongoing pressures around waitlists and workforce capacity; the tech sector can help digitise processes and deliver efficiencies that save money and support staff – but we must be engaged with these changes early on.
“As we head into this year, ScotlandIS will continue to push for change and keep an open dialogue with Scottish Government to develop policies that genuinely support innovation and growth within our sector.”
Finance and Local Government Secretary Shona Robison said: “Delivering sustainable public services that meet the needs of communities is at the heart of our priorities.”
