By Colin Borland, head of external affairs for the Federation of Small Businesses in ScotlandWell, I told you. Right here in this column last month, I said that Holyrood 2011 was going to be a different kind of election. OK, I thought it would be different because economic austerity would banish the usual pledges of “free” this and “free” that for everyone. (Ah, the naiveté of middle-age.) But, even if the campaign quickly reverted to wearily familiar ground, the result takes us into uncharted territory. As has been said repeatedly, Holyrood’s voting system supposedly made it impossible for one party to secure an overall majority. But the SNP’s landslide has done just that. The political pundits are telling us what this means for the parties and the parliament. But what does it mean for business? Well, we will have some stability in what will be a very tough five-year term. And businesses tend to like stability and certainty. Uncertainty means risk – and risk carries a cost. Also, a solid ruling majority could prove essential if the new government is to steer some difficult measures through the chamber, while maintaining an environment in which businesses can lead the recovery. Employment in the public sector looks set to fall, as will other spending. How public services are delivered is under review. The case for universal benefits versus targeted help is going to come under closer examination. More specifically, a decision will need to be made soon on renewal of the Business Gateway contracts. At a time when we’re relying on the private sector to create jobs, the support to do so needs to be at the core of the new contracts – possibly at the expense of existing priorities. Similarly, there’s a choice on the vexed issue of public procurement. Should public bodies go for quick cuts now by aggregating contracts and awarding them to large multinationals? Or do they look after local jobs by giving more small firms an equal chance of bidding for smaller deals? The other side of this stability, of course, can be a lack of accountability. And fears have been voiced that none of the checks and balances in the unicameral Scottish parliament work when the government has an overall majority. The committees will have government majorities; votes on the Parliamentary Bureau, which decides on the parliament’s business, are weighted according to seats in the chamber. Realistically, though, it will probably be outside economic factors which are the most effective restraint on the new government.
This opinion piece is part of The Caledonian Mercury’s ongoing debate about Scotland’s national life and is part of our commitment to raise the level of debate in Scotland. If you or your organisation would like a platform to voice your views, then please contact us at stewart@caledonianmercury.com.
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