Tech support ‘barely mentioned’ in Scottish budget

The head of Scotland’s technology trade body, Karen Meechan, has expressed disappointment at the lack of targeted support for the sector in the Scottish budget.  

The chief executive of ScotlandIS said the growing cluster requires focused support from the Scottish Government if it is to reach its full potential.

Meechan said: “Although we were pleased to see an increased focus on skills and education, it was disappointing to see barely any mention of targeted support for Scotland’s tech sector in the finance secretary’s speech today.  

“The sector already contributes £6.87bn to Scotland’s GVA and has an enormous amount to offer Scotland’s future prosperity. But we need focused support to realise this potential.”  

Finance secretary Shona Robison’s budget allocated only £126m for investment in digital, data and AI technologies, despite the Scottish Government emphasising the importance of AI and technology to the Scottish economy throughout the last 12 months.  

In addition to £326m expenditure for Enterprise Agencies and £200m for the Scottish National Bank, a further £45m was pledged towards innovation, enterprise, and entrepreneurship, aimed at supporting startups.  

Raising the threshold for basic and intermediate rates of income tax was welcomed by Meechan, but she has warned that it does not go far enough to address the challenge of attracting and maintaining high-value talent, particularly at senior levels.  

The addition of two extra council tax bands for homes valued over £1m “further risks undermining Scotland’s attractiveness as a place to live, work and invest”, Meechan said.  

She said: “Our members consistently tell us that access to talent is one of the biggest barriers to growth for the Scottish tech sector, and [yesterday’s] Budget announcement will only compound the issue.”

The £21.3bn funding for the NHS, with a record increase of £2bn on the previous year, was welcomed by the trade body head, saying it creates an opportunity for “the tech sector to play a meaningful role in supporting service transformation”.

Meechan said: “Many of us are already aware of ongoing pressures around waitlists and workforce capacity; the tech sector can help digitise processes and deliver efficiencies that save money and support staff – but we must be engaged with these changes early on.”  
 
She added: “As we head into this year, ScotlandIS will continue to push for change and keep an open dialogue with the Scottish Government to develop policies that genuinely support innovation and growth within our sector.”