by One of Scotland’s most prominent businessmen has launched a scathing attack on the SNP Government’s “on the head” tax policies ahead of a major speech on Monday by Humza Yousaf which will seek to boost his economic credibility.
Andrew Murphy, former chief operating officer of John Lewis and head of toy retailer The Entertainer Group, attacked SNP ministers for “stealthy” introduction of new business taxes and argued the industrial strategy was a joke.
Mr Murphy, who co-chaired the Scottish Government’s Retail Industry Leadership Group (RILG), said it was “somewhat depressing” that retailers only found out about plans for a new public health levy on shops in “print little” last month. SNP Budget.
Writing on professional networking site LinkedIn, he said: “It is this sort of loose-gun, stealth, unpredictable policy that makes it impossible for the Scottish Government to provide constructive support or advice.”
Mr Murphy, who was awarded an OBE for services to the British retail industry in the New Year’s Honors list, accused SNP ministers of speaking the “language of co-operation” but “clearly contradicting their words by their actions”.
In a scathing reference to Mr Yousaf’s promise to reset the Scottish Government’s business relationship, which has deteriorated badly under Nicola Sturgeon, he said: “New deal? So old.”
Mr Murphy concluded: “Industrial strategy? I can’t type for laughs.”
His silent intervention came ahead of a major speech by Mr Yousaf on Monday evening at Glasgow University who will say independence is needed to improve Scotland’s living standards and slow economic growth.
The Prime Minister will argue that there is a “case of hope” for the Scottish economy in particular based on the country’s “extraordinary resources” such as renewable energy, food and drink, and finance and business services.
The Scottish Government said the lecture will be the first “in a major series of economic speeches” which will be “evidence-based and designed to stimulate a comprehensive debate on better ways forward for Scotland’s economy and society”.
But the address comes amid anger from business leaders over last month’s Scottish Budget, in which Shona Robison, the Finance Secretary, increased income tax again and refused to cut business rates for companies in the other of the UK.
Although she failed to mention it in her budget speech, the accompanying documents contained proposals to reintroduce a public health levy for major retailers by the end of this year.
This would apply to large shops selling products such as alcohol and tobacco, rather than individual items sold to customers.
But retail leaders have warned that shops would pass the cost of any such levy on to consumers, adding to the cost of living crisis for families across the country.
‘Shock plan’
David Lonsdale, director of the Scottish Retail Consortium, posted on LinkedIn a column he wrote attacking Ms Robison’s “disturbing plan for a new arbitrary business rates surcharge on food retail”.
In response, Mr Murphy praised the “necessary restriction piece” but attacked “what is another policy announcement that was not announced”.
“It is extremely depressing that despite the many joint bodies in place, Scottish retail leaders have had to find out about this through the fine print of the Budget,” he said.
Tackling the “stealth approach” tax announcement from SNP ministers, he said: “Over and over again they speak the language of collaboration, strategy and consultation but then, before you can say, please Minister, forgive my skepticism based on evidence for past government performance’, their words are up and clearly contradicted by their actions.”
In August 2022, the Scottish Government appointed Mr Murphy as co-chairman of the new RILG, which aimed to help the retail sector recover from the pandemic and deal with rising energy costs. He stepped down from the role in August last year.
Scottish Financial Enterprise, the trade body representing the country’s lucrative financial services industry, also praised Mr Lonsdale’s piece and warned the Robison Budget would “reduce prospects for growth and investment”.
‘Independence is urgent’
Mr Yousaf is expected to say in his speech: “There will be people who will never support independence. That does not mean that those people should be dismissed. Far from it. There is much to learn from an opposing perspective. And we can all still fight, even if we don’t agree, with respect.”
Arguing that independence is “urgent”, the Prime Minister is expected to say: “Because it is through independence, and especially through the powerful combination of independence and EU membership, that we can raise living standards. That’s not to say that you’d ever hear a higher level of independence.”
Highlighting Scotland’s economic strengths, he will say: “Our established capabilities in renewables, advanced engineering, food and drink, life sciences, creative industries and finance and business are recognized worldwide.”
A Scottish Government spokesman rejected Mr Murphy’s attack on the public health levy plans, saying: “This announcement in the Scottish Budget showed the intention of ministers to explore the reintroduction of a public health supplement for retailers big before the next Budget.
“We will consult with representatives from the retail sector and other relevant stakeholders as part of that exploratory work.”
