Prosper calls for confidence, investment and local growth in Budget submission

In its submission to John Healey, the chancellor, Prosper highlights the need for policies that provide businesses with greater certainty and confidence to invest for the long term.

While recent economic indicators suggest business activity and confidence are improving in Scotland, many firms continue to report concerns about economic and political uncertainty, with investment and export activity remaining under pressure.

Prosper welcomes the government’s commitment to the Modern Industrial Strategy – the UK’s 10-year growth plan – and argues that long-term policy stability is essential if businesses are to increase investment and drive productivity growth.

The organisation calls for continued support for the existing business tax framework, increased investment in research and innovation, and a stronger focus on developing artificial intelligence skills across the workforce.

The submission also emphasises the importance of supporting Scotland’s exporters. Prosper welcomes improvements in UK-EU relations and measures to reduce trade barriers, while calling for action to strengthen services exports and improve international market access. It also argues for a fairer tax framework for Scotch whisky, one of the UK’s most valuable export industries.

Infrastructure investment is identified as a key driver of economic growth. Prosper supports continued investment in transport, energy and digital infrastructure, including action to improve cross-border rail connectivity and unlock greater private-sector investment in strategic UK infrastructure projects.

Economic security is another central theme. Prosper argues that affordable and secure energy supplies are critical to the UK’s future prosperity and recommends accelerating the introduction of the new Oil and Gas Revenue Levy framework to encourage continued investment in domestic energy production while supporting the transition to clean power.

The submission highlights the importance of delivering major energy projects, including ScotWind developments and the Acorn carbon capture and storage project, while addressing concerns that north east Scotland risks losing valuable skills and supply chain capacity during the energy transition.

Prosper also calls for greater devolution of powers and resources to Scotland’s regions, arguing that stronger local decision-making can help deliver sustainable growth. The organisation recommends closer collaboration between the UK and Scottish Governments on regional economic development and explores ways to give Scottish regions greater incentives to grow their local economies.

Finally, Prosper urges the Government to take steps to reduce the cost of employment, particularly for entry-level roles, and to support employers investing in workplace health and wellbeing.

Sara Thiam, chief executive of Prosper, said: “This Budget is an opportunity to strengthen confidence, unlock investment and support growth across every part of Scotland. By working together across governments, sectors and regions, we can build a more competitive, resilient and prosperous economy.”