2016 Scottish Parliament Election Manifesto. Strong and sustainable A plan for the North-east

Transcription

1 2016 Scottish Parliament Election Manifesto Strong and sustainable A plan for the North-east

2 Contents Introduction 03 Foreword manifesto review 05 Deliver housing 06 Enhance connectivity 08 Develop the workforce 10 Implement a competitive fiscal policy 12 Support international growth 14 Cooperate on devolution 16 An open letter to the candidates 17 Aberdeen City Region Deal 18 Contacts 19 Cover image courtesy of Fennel Media

3 On May 5, elections are being held for the Scottish Parliament at Holyrood. Ahead of this important date, Aberdeen & Grampian Chamber of Commerce has produced this manifesto to outline the crucial issues for businesses in the North-east, and to urge parliamentary candidates to address them in their party manifestos. The Chamber is North-east Scotland s leading business membership organisation, representing around 1,300 organisations and 130,000 employees across all sectors. Government decisions have an impact on all businesses and the Chamber is here to make their voice heard by those in power. 3

4 Edel Harris, President, Aberdeen & Grampian Chamber of Commerce FOREWORD The North-east is clear about its policy priorities. Many carry over from the previous parliamentary term: investment in housing, improvements to transport and digital connectivity, skills development and a competitive fiscal policy. However, this time we face a different economic context due to the downturn in the oil and gas industry. This is only partly cyclical, but despite the negative impacts we are resilient. However, when investor confidence is low, that is when we most need the Scottish Government to show its trust in our region. We want to ensure that we will bounce back quickly and continue to be a successful global focus of energy expertise. This is of course in addition to our other strong and growing sectors such as tourism, food and drink and life sciences. This document sets out Aberdeen & Grampian Chamber members recommendations to foster a progressive economy through changes in policy and the use of fiscal instruments. It will be necessary to anchor the oil and gas workforce, as well as support the needs of key workers like teachers, social carers and nurses who are vital to the region s economic and social prosperity. We do not just have a vision, we have a plan. Currently there are exciting new opportunities for strategic development of the North-east, created by both the private and the public sector in collaboration: the Aberdeen City Region Deal, Opportunity North East (ONE) and this Chamber manifesto. Underpinning the above requires strong support from politicians for a stronger region at the heart of a strong Scotland. The North-east s contribution to the Scottish economy 69% of North-east firms recorded international sales growth in 2014, more than the national UK average of 59% Aberdeen has consistently been among the top five highest-growth cities in the UK since 2012, according to a PwC study Scottish supply chain companies for the oil and gas sector generated 11.2billion in international sales in

5 2011 MANIFESTO REVIEW What did we ask from the previous Scottish Parliament? This is what we advised: what was achieved, what is still in progress, and what was not fulfilled? REBUILDING SCOTLAND S TRANSPORT INFRASTRUCTURE Begin work on the AWPR and associated road projects Prevent a rise in Air Passenger Duty Re-open Kintore railway station Improve the capacity, comfort and reliability of rail connections Extend the benefits of High Speed Rail to Scotland Reduce journey times between Aberdeen and Central Scotland by 20 minutes Reinstate the Route Development Fund and support a sea route development fund Invest in the transport network around the region s ports and harbours SUPPORT FOR BUSINESS Encourage cooperation between education and business Use industry intelligence on labour market needs to inform Scottish qualification strategies Create a single entry portal and PQQ document for Scottish public sector contracts Develop a proactive export strategy and support capacity building initiatives Support entry to high growth markets, like Central Asia and Africa BREAKING DOWN BARRIERS FOR GROWTH Review the planning system and reduce its complexity Review the funding formula for local authorities Provide businesses with access to high-speed broadband Improve the delivery of utilities and access to developments Reform Business Rates Legislate to restore transitional relief Review the frequency of the revaluation process Assign the average Scottish local authority grant to Aberdeen City and Aberdeenshire 5

6 DELIVER HOUSING High land values and under-supply have created a lack of housing availability and affordability in the North-east. This acts as a barrier for growth and for the recruitment of key workers. Affordable housing policies and funding for North-east housing associations must reflect the realities of a region that has farabove-average housing prices. Decisive action is required from the next Scottish Government to deliver development and support for the Aberdeen City Region Deal. Accountability must also be allocated for delivering development plans. MEMBER OPINION Unlocking housing development is critical to the Northeast realising its economic potential. We need prompt action, not talk Simpson Buglass Director, Head of Office Savills 38% net negative impact on business caused by shortfall of suitable housing CHAMBER S NORTH-EAST BUSINESS WEEK SURVEY

7 AIMS Increase the number of homes built in the region to relieve the pressure on supply and cost Streamline the planning process and improve the delivery of utilities infrastructure HOW CAN HOLYROOD HELP ACHIEVE THIS? Construct 3,500 new affordable homes for working families in the North-east by 2020, in addition to those already identified in the Strategic Housing Improvement Plan Pilot a housing land corporation in the Northeast, to compile a register of development land in public and quasi-public ownership Support the proposed Aberdeen City Region Deal which will enable the delivery of more homes, including social and affordable housing Provide up-front investment for development, with cost recovery by Government spread evenly over time Use the Review of the Scottish Planning System to create a more efficient system for the delivery of infrastructure Speed up the delivery of utilities infrastructure in the North-east to ensure they are not a barrier to growth Provide greater flexibility for local government on the implementation of planning policy in response to economic changes in the region Fast-track brownfield sites in addition to the Local Development Plan allocations Review the use of Compulsory Purchase Orders as a last resort option to provide housing land assembly 7

8 ENHANCE CONNECTIVITY 86% After many years of delay, projects like the Aberdeen Western Peripheral Route (AWPR), the Third Don Crossing, the proposed expansion of Aberdeen Harbour and investment in Aberdeen International Airport are set to be delivered. While these are welcome steps, the Northeast needs more investment to bring its transport network fully into the 21st century. We expect the Scottish Government to understand the potential risks to critical infrastructure and ensure all transport links are resilient. It is essential that the next Scottish parliament works to ensure that the Northeast remains competitive within the UK and globally, improving connectivity for businesses beyond MEMBER OPINION Aberdeen is a globally recognised energy hub. Connectivity in and to the North-east must reflect that if we are to continue to be a net contributor to the Scottish economy Derick Murray Director Nestrans 8

9 of members report broadband as very important or critical to their business AIMS A fit-for-purpose transport network in the North-east which guarantees access to key destinations and encourages growth Access to a competitive mobile and super-fast broadband service HOW CAN HOLYROOD HELP ACHIEVE THIS? Deliver the outcomes recommended in the Aberdeen to Fraserburgh/ Peterhead multi-modal study Deliver the long overdue promise to cut 20 minutes off the rail journey time between Aberdeen and the Central belt Improve the local rail service for the North-east, including the opening of new stations, made achievable by delivering promised improvements on the Inverness - Aberdeen line Ensure rolling stock and the level of services on trains from and to the North-east are fit for purpose Dual the A96 from Aberdeen to Inverness within the announced timeline Ensure the AWPR is opened on time and on budget Honour the commitment to improve the Haudagain roundabout following the AWPR s completion Work with the UK Government to secure a commitment to expand Heathrow s capacity Support Aberdeen International Airport to retain links to London and overseas markets Invest in the transport links around Aberdeen and Peterhead harbours Continue to support ferry services to and from Aberdeen Roll out mobile and super-fast broadband connectivity within the timeline set by Digital Scotland 9

10 DEVELOP THE WORKFORCE MEMBER OPINION Maximising the scale and effectiveness of our workforce is complex. Only multiple interventions can support young people, people returning to work and those not in the workforce to realise this potential Sian Odgers Business Services Director activpayroll Skills Development Scotland (SDS) found that North-east businesses will need an additional 120,000 staff by 2022, most of them with a high level of qualifications. Developing our workforce is relevant to all ages. As we move into a new economic cycle in the North-east, it is more critical than ever that we retain and develop our people across key roles and sectors. In particular, the Developing the Young Workforce group for North-east Scotland (DYWNES) must become embedded and continue to receive support from Scottish Government. 24% of Chamber members report a skills gap in the North-east 10

11 AIMS Improve the workreadiness of young people and increase their awareness of opportunities available in key sectors HOW CAN HOLYROOD HELP ACHIEVE THIS? Support the development of training opportunities for teachers to gain a better understanding of business Continue to ensure the regional Developing the Young Workforce groups have the resources and autonomy to deliver local initiatives which address local needs Allow schools and local authorities the flexibility to develop a curriculum and timetable that allows meaningful interaction with employers Support employers to invest in skills and training Recognise employers who invest in their workforce and offer them support to reduce their cost burden Ensure the Northeast is a globally competitive location that attracts skilled workers Increase the provision and reduce the cost burden of childcare by identifying better local delivery and funding models. Simply providing more childcare places will not address some of the existing market failures Retain talented international students educated in Scotland Work with the UK Government to change the existing rules on post-study work visas for international students, particularly in sectors with skills shortages 11

12 IMPLEMENT A COMPETITIVE FISCAL POLICY North-east businesses have repeatedly highlighted that the cost burden placed on them by government is excessive. In alignment with the Scottish Chamber network, we believe that a taxation system can only be competitive if it is proportional to businesses ability to pay. The Chamber discussed its members views on taxation with the Independent Commission for Competitive and Fair Taxation in Scotland. Now is the time for Holyrood to evaluate the current Scottish fiscal regime s effects across Scotland in order to use its new powers strategically. MEMBER OPINION For too long we have tinkered with the cost of doing business. It is time for a concerted effort to either simplify what we have or understand the implications of wider change Moira Kelly Senior Manager Anderson Anderson & Brown LLP 12

13 26% of respondents reported business rates as their most burdensome cost AGCC 2013 RETAIL SURVEY AIMS Reduce costs which make Scottish businesses less competitive than UK and international counterparts Greater clarity for Scottish and international taxpayers with regards to the new fiscal regime in Scotland HOW CAN HOLYROOD HELP ACHIEVE THIS? Complete a full review of business taxation, considering its impact on businesses and being aware of the current incentives for players in the marketplace Remove the disincentives around the power to raise Council Tax, allowing changes to be made within agreed limits to meet regional needs Examine the impact of LBTT and consider devolving the ability to set LBTT bands to local authorities Evaluate whether planning application fees are proving a barrier to development Deliver the commitment to cut Air Passenger Duty by 50% within the next term of the Scottish Parliament Provide clear and unambiguous statements on how new powers will be used from April 2016 and after the Scotland Bill has been passed Provide simple and updated guidance on how Scottish taxation will operate in relation to the UK fiscal regime 13

14 SUPPORT INTERNATIONAL GROWTH Aberdeen is an international city with a proud history of global trade. However, Chamber research has shown that limitations in the support available to business constrain our members aspirations for growth in new markets. MEMBER OPINION Exports are an integral part of our company s growth. Supporting internationalisation will require more collaboration among business-support organisations, better access to international talent and improved connectivity Scott Kelman Commercial director Deans of Huntly Too few of our businesses are exporting or internationalising. Companies that do not qualify for account management support from Scottish Enterprise (SE) and Scottish Development International (SDI) need greater support. The next Scottish Parliament must significantly increase the breadth of companies that are internationalising and encourage new exporters. 71% 14

15 AIMS Increase the number of North-east businesses trading internationally, using support resources efficiently to reach all businesses with high potential for international growth HOW CAN HOLYROOD HELP ACHIEVE THIS? Clearly differentiate support for increasing the number of exporting businesses from that aimed at Foreign Direct Investment (FDI) activity Strengthen the business support structure for non-account managed companies. SE and SDI should be encouraged to collaborate more with trade associations Encourage collaboration on trade missions to high growth markets between Chambers of Commerce, SE and SDI Improve opportunities for SMEs in the oil & gas supply chain to internationalise their business through the creation of an export hub in Aberdeen involving the Chambers, UKTI, SE and SDI Support universities to attract funding and investment in order to continuously improve their international standing and links Utilise existing international networks, such as those in the overseas business network of British-International Chamber of Commerce, to connect regional businesses directly with businesses in overseas markets of North-east exporters have been trading internationally for more than 10 years BRITISH CHAMBER OF COMMERCE RESEARCH

16 COOPERATE ON DEVOLUTION The Scottish Parliament elections will coincide with a time of great legislative change through the creation of the Scotland Bill. Discussions on devolution must not be derailed by politics. Businesses look forward to the completion of this part of the devolution process. However, in order to retain confidence and sustain business performance throughout these changes, it is important for every Scottish political party s manifesto to be clear on how they would use the powers being devolved to the Scottish Parliament. 18% of business leaders would prefer better collaboration between parties, government and councils AIMS Efficient delivery of the Scotland Bill powers HOW CAN HOLYROOD HELP ACHIEVE THIS? Continue working collaboratively towards the delivery of the Smith Commission s recommendations through the Scotland Bill Collaborate and communicate with the UK Government on issues which require the approval of both governments, such as the Aberdeen City Region Deal Holyrood s strategic use of the newly devolved powers for the benefit of the Scottish people and economy Develop an evidence-based view on the application of the newly devolved powers Empower Scottish cities and regions through local devolution of power and funding, as appropriate Commit to embedding the new powers and assessing their impact before seeking further devolution in Scotland 16

17 AN OPEN LETTER TO THE CANDIDATES We enter another massive year for politics and look forward with anticipation and some nervousness in the North-east economy. We expect a lot from the Scottish Government and our members expect more from their politicians. We know you work hard and are committed to your constituents but there is a reason why, like some other occupations and businesses, politicians suffer from distrust. Firstly, like any business we expect you to report honestly on proposals from the last manifesto process and tell us what you have achieved and what you have not. You may not be able to do this easily in retrospect, and so this time our members want to be clear about the KPIs in your manifestos. Critically, you also need to be very specific in your manifestos on how you intend to use the new powers vested in the Scotland Bill. Now is the time to invest more confidence in local authorities by devolving power and finance. This will help the North-east deal with our current challenges. Government needs to stop making vote-winning policy changes and make tough long-term decisions which facilitate economic growth. Most of all, don t make promises you cannot keep. That will only create further distrust at a time when we need to build confidence in our economy and in our wider community. James Bream Research & policy director Aberdeen & Grampian Chamber of Commerce 17

18 ABERDEEN CITY REGION DEAL Aberdeen & Grampian Chamber of Commerce s requests reflect the plans laid out for Aberdeen through the City Region Deal in the key themes of Innovation, Internationalisation, Housing and Connectivity. The published bid document, Powering Tomorrow s World, details how by working with government the, North-east can secure a bright economic future Deliver 03 Deliver 04 Deliver 05 Support 06 Realise 07 Actively Build on the success of the United Kingdom Continental Shelf, and its contribution of 32billion to the economy, through development and export of energy expertise a radical new economic development model focued on internationalisation, skills and innovation and based on meaningful collaboration between industry, academia and all three layers of government a programme of essential and competitive infrastructure to improve our connectivity and enhance effectiveness of our transport networks to help retain the energy sector in a globally competitive area and allow them to maximise recovery from UK territorial waters a programme of affordable and key worker housing as the city faces similar housing pressures as those experienced in London the energy sector to retain, anchor and manage talent and expertise in the North-east, ensuring that the region is a good place to live and work for that talent the wider potential of our people and our businesses in key sectors such as renewable energy, food and drink and tourism promote our offer and the transition to a low carbon economy 18 Aberdeen City Council and Aberdeenshire Council

19 CONTACTS James Bream Research and policy director T E james.bream@agcc.co.uk Rachel Elliott Policy executive T E rachel.elliott@agcc.co.uk Irina Bonavino Research and policy assistant T E irina.bonavino@agcc.co.uk What do you want from the Scottish Government? Tweet

20 #WellConnected The Hub Exploration Drive Aberdeen Energy Park Bridge of Don Aberdeen AB23 8GX T E info@agcc.co.uk