There is surely much to consider for the SNP and Labour in the findings of a major poll of Scottish business leaders by The Herald, writes Ian McConnell.

What do the findings tell us about what business leaders are thinking as the Scottish Parliament election looms? What do they think about the performance of the Scottish Government?

There is surely much to chew over for First Minister John Swinney and his government in the findings of a major poll of business leaders by The Herald, as the Scottish Parliament election looms.

And there should also be much to consider for Scottish Labour, notwithstanding the fact the questions asked related specifically to the Westminster government and to Mr Swinney’s administration.

So what do the findings tell us about what business leaders are thinking as next month's Scottish Parliament election looms?

Businesses obviously do not have a vote.

However, they do tend to make themselves heard very loudly when it comes to expressing views on government policy and how this affects them and the economy.

And, of course, individual business leaders have a vote just the same as everyone else. Sometimes, perhaps naturally, their personal political beliefs come to the fore when asked for a view from a business perspective. That said, business leaders are able to offer a valuable view from the coalface which politicians should heed, even if for very good reasons they cannot accede to every demand.

Returning to the poll, conducted in conjunction with the Institute of Directors in Scotland, it was a real mixed bag from a Scottish Government perspective.

Starting with one big plus for the SNP, and by extension a negative for Labour as a whole even though the question related to Westminster, the poll revealed a view among business leaders north of the Border that the Scottish Government is doing a better job on business and the economy than the UK Government.

Given the somewhat prickly attitude of business towards the Scottish Government in recent years, this is an eye-catching finding.

Asked whether the Scottish Government or UK Government is performing better on business and the economy, 23% of the 123 respondents said the “Scottish Government” with 14% opting for the “UK Government” and 2% saying they “don’t know”.

The first thing to observe in these numbers is that the Scottish Government is ranked quite significantly ahead of Prime Minister Sir Keir Starmer’s administration by business leaders north of the Border in terms of performance on business and the economy.

And the second thing to note, and it does not take an arithmetical genius to spot it, is the majority of Scottish business leaders must have opted for an alternative response when asked whether the Scottish Government or UK Government is performing better on business and the economy.

They did indeed – with around 61% of respondents selecting the “neither” option in the poll.

To be fair to both the Scottish and UK governments, these are undoubtedly tough economic times.

And we should not forget the dismal overall UK economic situation left by the Conservatives after their 14 years in power.

That said, the fact that a significant majority of respondents said “neither” will probably not be music to the ears of the SNP or Labour.

The poll meanwhile points to a significant difficulty for Labour, at least in its relationship with business, on the burning issue of Brexit.

Asked if they “believe the UK Government is doing enough to address the detrimental effects of Brexit arising from the loss of frictionless trade and ending of free movement between the UK and European Economic Area”, 84% of the 123 respondents replied “no”.

Meanwhile, 6% replied “yes”, with 7% saying they “don’t know”.

And 3% declared “there have been no detrimental effects”.

Labour has of course stuck with its red lines, made plain in the run-up to the July 2024 General Election, of refusing to take the UK back into the European Union, the single market or even the customs union.

In contrast, Mr Swinney has declared that rejoining the EU is Scotland’s “best hope for a more prosperous future”.

In terms of minuses for the SNP administration in the poll, there were the hard numbers on the views of Scottish business leaders on how the performance of the Holyrood administration had changed in the last year.

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About 31% responded “slightly worse” and nearly 20% declared “much worse”. Meanwhile, 4% think that the performance has “greatly improved”, more than 20% believe it has “slightly improved”, and nearly 23% have seen “no change”, with 2% responding that they do not know or prefer not to say.

The total 51% seeing some degree of worsening of the performance might well be a disappointment for the Scottish Government and perhaps also a surprise.

These numbers might also make uncomfortable reading for Labour given that the Scottish Government, even though its performance is viewed by 51% of respondents as having worsened in the last year, is still ranked well ahead of Sir Keir’s administration on business and the economy.

Will the Scottish Government be surprised about business leaders’ views on how its performance has changed over the last year? It is difficult to tell. There have been some more positive noises about the state of the relationship between business and the Scottish Government but also still a fair number of bones of contention.

Stuart Patrick, chief executive of Glasgow Chamber of Commerce, declared in an interview with The Herald in December that the “wounds” in relations between the Scottish Government and the business community have been “cauterised” and “the blood has stopped flowing”.

He highlighted exemptions from rent controls in the Housing (Scotland) Act 2025 for mid-market rent and build-to-rent properties as a positive development in relationships between the Scottish Government and business.

Mr Patrick also underlined the part played by Deputy First Minister and Cabinet Secretary for Economy and Gaelic Kate Forbes, who is not standing for re-election next month, in improving relations between the Scottish Government and business. He flagged as one example her allocation of £2 million for the development of maritime engineering skills in the Glasgow City Region.

There might be some consolation for Mr Swinney and Ms Forbes in observations from Catherine McWilliam, nations director of IoD Scotland, about positive engagement with business by the Scottish Government.

Ms McWilliam, however, also declared there was an “expectation” that this must “translate into tangible action”, signalling a view that more needed to be done on this front.

She said: “We have seen a renewed emphasis on engagement with our members over the past year. Many of our members have welcomed the increase in dialogue and direct interaction with ministers and senior policymakers.”

Ms McWilliam added: “We hope to see this continue no matter the outcome this year, but there is a clear expectation that engagement must now translate into tangible action that supports economic growth.”

Whoever forms the next Scottish government can probably be sure of one thing: the demands of the business sector will continue to be heard at great volume.

And all the more so given the difficult UK economic backdrop.

In the meantime, there is probably more to smile about for Mr Swinney than for Sir Keir and Scottish Labour leader Anas Sarwar in the poll results.

© Herald Scotland