The Business Pledge Launch

I attended the Business Pledge launch at Tynecastle today. As a statement of intent, this is a bit of "motherhood and apple pie" - but the Government's recognition that "business" (what exactly is that?) has a positive role to play in communities and wider society is welcome, even if it raises the question whether they believed it did not have such a role before! The pledge is worthy and well meant: as chamber members have indicated in DACC, a minimum wage needs to be a living wage. I am still bewildered by the political obsession with zero hours contracts which only affect 2.3% of UK employment contracts and, according to the CIPD, is most prevalent in the public and third sector. Employers in the voluntary sector (34%) and the public sector (24%) were more likely to use zero hours contracts than private sector employers (17%).

My question over the Pledge is what outcomes in reality will it have for businesses. I asked FM what material advantages would accrue to Pledgers and what sanctions would be imposed on non-Pledgers. She stated clearly that - at the moment - neither course of action would accrue advantage or disadvantage. It was more the shared desire to do things better as a sector that would motivate Pledgers. It also means that challenging legislation to impose a living wage can be avoided. She did say that Pledgers would get guidance, advice and encouragement from Government, Scottish Enterprise and SDI - but we assume that all Scottish businesses would benefit from those tax payer funded bodies.

I hoped to see a matching pledge by FM to reward Pledging business with reduced NI contributions, targeted business rate reductions and more open access to government procurement for SMEs. I wanted to see the detail of policy that might stimulate and incentivise SMEs and DACC members, but there were no specifics on show. Just Mom with her apple pie.

Tynecastle looking good, mind.