Financial Sector |
RECOMMENDATION | COMMENT |
38. For the Scottish financial sector to thrive there needs to be a background of certainty and stability. It is desirable that the Parliament therefore sets out a clear vision for the future. The Parliament also needs to act in a way that will enhance opportunities within the marketplace. | The Executive recognises the importance of the Financial Services sector to the Scottish economy and has developed an Action Plan for Financial Services in conjunction with Scottish Enterprise. Entitled 'Investing in Our Future', the Financial Services Action Plan was launched in June 2001. |
39. Scotland's biggest competitive advantage is the skill of its people. It is vital that standards continue to rise in schools, further and higher education. The financial sector will do whatever it can to help the Parliament achieve this. The Parliament should encourage Scottish universities to work together and to call on the expertise of the professional institutes in designing relevant courses. It will be very important to ensure cohesion in this respect as well as to ensure that education is delivered both effectively and efficiently. | Guidance provided to SHEFC since devolution has encouraged the Funding Council to promote collaboration both among institutions and between institutions and key partners such as, SFEFC, Scottish Enterprise, Highlands & Islands Enterprise, the business community and new bodies such as learndirect scotland. |
40. We would advocate the designation of a Minister for Financial Services, Business and Industry and that this post be filled by someone with business experience who understands the background and issues. The present Scottish Industry Department should also be renamed to reflect the changed nature of the Scottish economy. Education is too important to be combined with other responsibilities and should have a Minister and Department of its own. | The Scottish Office Education & Industry Department has been renamed as the Enterprise & Lifelong Learning Department. It was not appropriate to have a Minister solely for Financial Services. Much better that it remains within a wider portfolio of Enterprise and Lifelong Learning. The Education Department now has its own Minister. |
41. Good communications are essential for the continued expansion of business in Scotland. The Parliament should use its own powers to improve and integrate road, rail and telecommunications links within Scotland and abroad. The Parliament should also lobby Westminster and Brussels to bring more competition into air services within the UK and from Scotland to Europe. In particular, airport taxes unfairly disadvantage companies headquartered outside London. The Parliament should lobby Westminster to reduce or remove them. | The Executive's vision for transport centres around the building of a sustainable, effective and integrated transport system which it is working to deliver. There are no restrictions on the development of new air services or in competition in the provision of air services either within the UK or between Scotland and Europe. Capacity constraints at main hub airports might, however, limit certain development opportunities. Following lobbying from the Executive changes were made to Air Passenger Duty which exempts all air services within the Highlands & Islands and all air services from the Highlands & Islands to elsewhere. |
42. The Parliament should consult widely before varying taxes or sanctioning increases in business rates, to assess their likely impact on growth and jobs, especially where there is likely to be a heavy administrative cost in implementing a change. The maintenance of a level playing field across the UK is vital to the competitiveness of Scottish companies and therefore to jobs. Taxes should be harmonised with the remainder of the UK. | Valuation treatment and practice, for business rates purposes, is harmonised as far as possible north and south of the border. The rate poundage has been tied to increases in the RPI in Scotland as well as in England.
Business representatives and individuals, rating practitioners, professional and public sector bodies and economic advisers have contributed to the consultation on proposals for a small business rate relief scheme.
See 19 and 51 |
43. It is important that there is consistency of approach between the Parliament and local authorities, particularly over planning and other infrastructure issues which could impact on business expansion. | National Planning Policy Guideline (NPPG) 17 provides for integration between transport and planning. The need to provide for greater certainty for economic development will be reflected in the revisions to NPPG2
See 1 |
44. The Scottish Parliament will provide an opportunity to revise and modernise areas of Scottish Law which have fallen behind those of England and other countries. However, it is important that law reform achieves a consistency of approach with the rest of the UK and with Europe. This could involve the Parliament not just in changing law in Scotland, but sometimes in lobbying Westminster or Brussels to seek changes in UK or European law. | Although much of the law governing the financial sector is reserved, the Executive has had input into a number of finance-related Westminster Bills, these include: - The Limited Liabilities Partnership Act 2000
- Financial Services and Markets Act 2000
- The Enterprise Bill
See 48 |
45. The financial sector welcomes the Parliament's intention to involve non-politicians in pre-legislative scrutiny and is eager to help. | Ministers and officials have regular contact with the Financial services sector. Several representatives of the sector have participated in Executive taskforces. |