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Scottish Entrepreneurs Blast Government Economic Policies

  //business-finance.news-articles.net/content/202 .. preneurs-blast-government-economic-policies.html
  Published in Business and Finance on Monday, February 16th 2026 at 16:49 GMT by The Independent
      Locales: Scotland, UNITED KINGDOM

By Mark Waghorn

Edinburgh, Scotland - February 16, 2026 - A growing chorus of Scottish entrepreneurs are voicing increasingly sharp criticisms of the Scottish government's economic policies, alleging a systemic disadvantage that is pushing businesses south of the border and stifling innovation. The concerns, originally highlighted last year, have intensified in recent months, reaching a boiling point as operating costs surge, regulatory burdens mount, and a perceived tax penalty continues to plague business owners.

The central grievance revolves around discrepancies in income and corporation tax rates between Scotland and the rest of the United Kingdom. David Jones, an Edinburgh-based tech entrepreneur, remains a vocal critic, stating, "The situation hasn't improved. In fact, it's worsened. We're still facing a GBP10,000-GBP15,000 tax disadvantage annually compared to identical businesses operating in England. This isn't a minor issue; it directly impacts our ability to reinvest in growth, hire more staff, and compete effectively." This initial claim, made two years ago, has been consistently supported by a widening number of businesses.

Fiona MacLeod, owner of a Highland-based artisan food producer, echoes these sentiments, adding the issue extends beyond simple tax rates. "The regulations are relentless. It's not just the financial cost of compliance, but the administrative overhead. We spend an inordinate amount of time navigating bureaucracy that our counterparts elsewhere simply don't have to deal with. It's not about wanting special treatment, it's about a level playing field. We want to contribute to the Scottish economy, but it feels like an uphill battle." MacLeod points to specific areas like food safety regulations and environmental reporting as particularly burdensome.

The Scottish government maintains it is actively supporting businesses through various initiatives, including tax reliefs and grant programs. A spokesperson stated today, "We acknowledge the challenges facing Scottish businesses, particularly in the current economic climate. We are committed to fostering a thriving entrepreneurial ecosystem and continue to refine our support programs based on feedback from business organizations and ongoing economic assessments. The recent implementation of the 'Growth Accelerator' fund is designed to provide targeted financial assistance to high-potential startups."

However, entrepreneurs argue that these measures are insufficient to offset the fundamental disadvantages they face. The perceived lack of responsiveness from the government, coupled with recent political instability surrounding former First Minister Humza Yousaf's vote of no confidence and the subsequent transition to a new leadership, has further eroded trust. The political turbulence has created a climate of uncertainty, making long-term investment planning exceedingly difficult.

Several industry groups are now actively lobbying for a comprehensive review of Scotland's tax and regulatory framework. The Scottish Chambers of Commerce recently published a white paper outlining a series of recommendations, including harmonization of corporation tax rates with the rest of the UK, simplification of the regulatory landscape, and increased access to venture capital funding. The paper argues that a failure to address these issues will lead to a significant outflow of entrepreneurial talent and investment, hindering Scotland's economic prospects.

The concerns aren't limited to tax and regulation. Access to funding remains a persistent challenge. While some government-backed loan schemes exist, entrepreneurs often report difficulties in securing financing, particularly for early-stage ventures. "Banks are hesitant to lend to businesses in Scotland, citing the perceived risk associated with the economic climate and the regulatory environment," explains Alistair Campbell, a financial advisor specializing in Scottish SMEs.

Increasingly, reports are surfacing of Scottish entrepreneurs actively considering relocating their businesses to England or Ireland to take advantage of more favorable conditions. This potential exodus poses a serious threat to the Scottish economy, potentially leading to job losses and a decline in innovation. The situation is described by some analysts as a "slow-motion entrepreneurial brain drain." The Scottish government needs to seriously address these issues or risk seeing the engine of the economy stall and potentially reverse. The failure to foster a competitive business environment could have long-lasting consequences for Scotland's economic future.