Scotland facing 'managed decline' under SNP, Sir Tom Hunter warns

Sir Tom Hunter commissioned a report by Oxford Economic through his foundation, which found productivity per worker in Scotland is half of that of the south-east Asian country, while the top rate of tax is twice as high.

He accused the Scottish Government of failing to support business for a decade, though conceded things had improved under John Swinney.

Appearing on BBC Scotland’s Sunday Show, he said: “We’re ahead of an election in about a year’s time, and I’m looking for the big ideas, the bold ideas for Scotland.

“If we look at where we are, a kind of state of the union, not in a political sense, our education standards are falling, our health service is struggling and we have a lacklustre economy.

“So if this was a business, which is my background, I would be looking to see where my competitors were doing better than me.”

Scotland ‘not pro-business for the past ten years’

Pointing to the country’s tax regime, the businessman said: “How do we pay for our NHS, our education, the civil society that we all want?

“Well, frankly, Governments set a tax regime to raise tax from you and me and business and they decide how to spend it.

“My proposition is that Scotland has not been a pro-business friendly country for the past ten years.

“It’s getting better under John Swinney and Kate Forbes, but under Nicola Sturgeon it was not business friendly and that was the to detriment of Scotland that’s why I say managed decline.

“Let Government sit with business and produce their business policies with business, not to business without any consultation with them.”

Also appearing on the show, Social Justice Secretary Shirley-Anne Somerville defended the Scottish Government’s income tax policy, saying: “The overall progressive taxation system that we have as compared to the UK, allows for £1.5 billion more to come into the system than we would already have.

“I appreciate there may be people who wish to see that and can make the case that there will be changes in the longer term about what will happen with tax takes.

“But in the short term, as we are setting our budget. If you were to change those decisions, that would see £1.5 billion coming out.

“Of course, what those tax takes allow us to do is that social contract with the people, whether it’s free tuition, free prescriptions, whether its our early learning and childcare offer for three and four and eligible two-year-olds.

“Those are aspects that many people, also who pay higher taxation, can benefit from.”

Scottish Tory economy spokesman Murdo Fraser said the report was “utterly damning” for the Government.

“He says that their policies have been anti-business and anti-growth, that they have ignored Scottish companies, and that Scots’ incomes and essential services have been badly damaged as a result,” he said.

“Without economic growth, we will never reverse the SNP’s disastrous policies and improve living standards, provide jobs and fund essential services.”