Chamber and committees

Theresa May is on the record as warning, back in 2013, that Scotland would be denied access to the UK’s most sophisticated and secret intelligence and counterterrorism tools if we became independent—in other words, we would be less safe. Can the member explain how Brexit has changed that, given that our European neighbours are our closest allies in this space?

The reality remains that the decisions that the United Kingdom Labour Government has made in the short time since it came to power will fundamentally damage our ability to deliver public services in Scotland. Public services need investment, as Scottish Labour frequently reminds us, and we cannot cut our way to more police officers. What assessment has been made of the threat that continued Westminster austerity poses to vital public services such as our police service?

The early authorisation of the Acorn carbon capture project in Aberdeenshire would be a significant boost to efforts to find new opportunities at the Grangemouth site. Will the cabinet secretary provide an update on the latest engagement with the UK Government with a view to securing the approval that is needed?

I thank the member for his kind comments. I think that we have both made the point that there are people behind these businesses. Many members in the chamber will have friends and family members who work in small businesses, and it is important to recognise the hard-working people behind such businesses.

I am delighted to bring to the chamber today this debate celebrating the 50th anniversary of the Federation of Small Businesses. I am grateful to colleagues for signing the motion, and to those who will speak today. I look forward to hearing their contributions.

First, I acknowledge that we are having this debate straight after members received an update on the closure of Grangemouth refinery. I was pleased to hear the cabinet secretary acknowledge the impact of that on small businesses, and I know that organisations such as the Federation of Small Businesses stand ready to offer as much support as they can.

Talking of the FSB, I am delighted that we are joined this afternoon by colleagues from the organisation—David Groundwater, Stacey Dingwall, Euan McGrory and, of course, Colin Borland. It is nice to see them in the gallery. I also extend my thanks to Mike Duncan, the north-east Scotland region development manager, for his invaluable support to me, particularly during my recent small business spotlight, about which I will say more shortly.

I shamelessly dedicate today’s debate to my dad. He was a greengrocer in Aberdeen who, like many small business owners, worked long hours, supported a local supply chain and, most of all, knew his community like the back of his hand. If you are listening, dad, I always thought that you massively undercharged for fresh Perthshire strawberries every summer.

Founded in 1974, the Federation of Small Businesses was established in response to an increase in national insurance for self-employed workers by the then United Kingdom Labour Government. That measure has since been repealed, and now, 50 years later, the FSB is the UK’s leading business campaigner and has proven to be a powerful voice in Government through its policy work and political engagement. FSB members benefit not only from the organisation’s cross-party campaigning but from other services that it provides, including tailored support, research, financial expertise and specialist advice.

Today, in Scotland, small businesses make up almost the entirety of the economy, accounting for 98 per cent of the business population. Those 335,000 businesses employ 900,000 people, with an annual turnover of £82 billion.

Scotland’s population of small businesses and self-employed people is resilient, diverse and innovative. From traditional retailers and grocers such as my father, to carbon capture technologists and spaceports, today’s small businesses are continuing Scotland’s long history of innovation and invention.

Almost half of small businesses now work from home in areas such as professional, technical and scientific activities. Digital nomads are increasing in number, offering business owners the flexibility to travel while being able to work remotely with access to technology and the internet.

My Aberdeen South and North Kincardine constituency has an amazing variety of small businesses and, over recess, my summer business spotlight was the perfect excuse to visit some of them. Those businesses included Farm Stop, which is an expansion of a busy working farm that offers animal interaction or lots of cuddles with piglets and lambs and is the inspiration of Christina and Tom. I also met Megan Falconer, who creates unique silver jewellery at the amazing Deemouth Artist Studios. Another business is the Bread Guy, which sells artisan breads and cakes across the city and was created by local lad Gary McAllister.

I now want to get into the detail of local businesses’ plans for growing and diversifying, what is working and what the challenges are. It was apparent that the Scottish Government’s small business bonus scheme was—and I quote—“a life saver” for many businesses. Having the confidence and means to diversify also enabled businesses to react to changing consumer behaviour and to adapt and expand their offering accordingly.

However, a reality for many small businesses is that Brexit has been extremely damaging, restricting export opportunities, increasing costs and forcing businesses to source materials from cheaper overseas markets. For one business, planning was creating a blockage to its expansion plans, while, for another business owner, a lack of access to affordable studio space to expand her Scottish knitwear business might mean her having to leave Scotland.

On a positive note, we cannot talk about support for small businesses without acknowledging their presence in the energy supply chain across Scotland, especially across the north-east. They create vital job opportunities and help grow our economy—and I am talking not only about those working in what I will call the hard-hat space but about events planners, lawyers, architects, programmers, digital content developers and many more.

I am particularly pleased to note that the programme for government outlines a commitment to supporting women starting and scaling businesses, and to supporting our universities in continuing with world-leading research and innovation that will lay the foundations for small business development across Scotland. Under the Scottish Government’s Scottish growth scheme, businesses can access financial support through a number of initiatives such as DSL Business Finance, Business Loans Scotland and Techstart Ventures. Initiatives such as those provided by the Scottish Government will help grow micro and small businesses, and will allow for innovation within their respective sectors.

Despite the economic conditions following Brexit and the Covid-19 pandemic, the small business index reports that in the first quarter of 2024, the number of Scottish businesses that expect their performance to improve over the coming quarter is at its highest level since 2022. That certainly shows encouraging signs of recovery, but the Federation of Small Businesses has made it clear that, in order to take full advantage of that, the Scottish Government needs to continue to prioritise measures aimed at economic growth. Even in the current challenging fiscal environment, I am confident that that will happen.

Scotland’s small businesses will always remain important to our economy and to local communities. The FSB recognises that, and it has been a great asset to small businesses across Scotland. For half a century now, the FSB has armed its members with necessary knowledge and tools to help them grow and create sustainable businesses. Likewise, the FSB has been a powerful voice in Government, championing positive change for small businesses. I very much look forward to working alongside it and to ensuring that I play my part in supporting my local small businesses, which I will join next month for a business networking event in my constituency.

In closing, I congratulate the Federation of Small Businesses on its 50th anniversary, and I look forward to its future contributions over the next 50 years.

Full delivery of our ambitious net zero agenda will require full funding, and yet the Scottish Government faces an almost 9 per cent cut to its capital budget. Given the significant up-front cost to reaching net zero, to what extent will achieving our climate goals be contingent on the United Kingdom Government reversing capital cuts?

There is absolutely no escaping the deep complexities that are associated with tackling drug and alcohol harm. I know that the cabinet secretary agrees that the commitment of those working in the sphere cannot be overstated.

In his statement, the cabinet secretary made reference to the workforce. Through my engagement with local ADP services, I am aware that concerns exist about workforce planning, specifically in relation to the option of a national qualification and a national training plan. Will the cabinet secretary provide an update on the work that is being done to address those concerns, thereby ensuring that we develop a highly skilled workforce and secure improved retention?

Willie Rennie might recall that, earlier today, during First Minister’s question time—I think that it was during FMQs or general question time—I asked a question on the issue of the almost 9 per cent cut in our capital budget by the UK Government. Does Willie Rennie agree that, given that we are talking about the importance of inward investment, the cut must be reversed?

Before Ms McQueen comes in, one of the earlier witnesses—I am not sure whether it was the chief constable—spoke about some of the work that has been done to pull the commitment arising from major events, such as football matches, parades, and so on, away from Police Scotland, to take a more risk-positive approach. I think that that was said in response to a question from Ben Macpherson. Purely from a budget perspective, could more be done in and around that?

Thank you for that update on the very important body of experts that is deployed on a regular basis. We appreciate that helpful update.

That takes us slightly over time, so I thank you all for coming along and providing very helpful evidence.