Labour has betrayed Scottish businesses with ‘tax on jobs’, claims Swinney

John Swinney has accused the UK Government of “betraying” Scottish businesses with “broken promises” and tax hikes.

The First Minister said Labour had also failed on its pledge to reduce energy bills.

Prime Minister Sir Keir Starmer has promised to cut annual energy bills by £300 a year by 2030.

Ofgem, the energy regulator, announced on Friday that the price cap would fall by 7% in July to £1,720 a year for the average household, although that is still higher than the £1,568 cap in July last year.

Mr Swinney accused the party of putting a “tax on jobs” – a reference to the Chancellor’s decision to raise employers’ national insurance.

Ahead of the Hamilton, Larkhall and Stonehouse by-election on June 5, Mr Swinney said the SNP has backed Scottish business, including support for more than 6,000 firms in South Lanarkshire.

He said 6,090 properties in the region had received £30.3 million of non-domestic rates relief in 2024, with 5,180 being lifted out of paying rates altogether.

Across Scotland, more than 150,000 properties receive rates relief worth £727.1 million, he added.

The SNP said after the Scottish Budget, more than 95% of non-domestic properties will pay less property tax than elsewhere in the UK, and over 100,000 will not pay any rates under the Small Business Bonus Scheme.

Mr Swinney said: “Scotland’s small businesses are the backbone of our economy and communities.

“The SNP recognises that, and that’s why we introduced the Small Business Bonus Scheme – the most generous support of its kind in the UK.

“That’s just one of many SNP policies which is making sure over 6,000 premises in South Lanarkshire receive rates relief worth over £30 million.

“That’s my SNP Government in action, delivering on what matters to people.

“Meanwhile the UK Labour Government is betraying Scotland’s businesses with their tax on jobs and broken promises on energy bills.

“While Labour treat Scotland as an afterthought, the SNP is always on your side.”

Katy Loudon, the SNP’s candidate in the by-election, added: “Hamilton, Larkhall and Stonehouse are brimming with potential, and the SNP Government recognises that.

“While we are supporting local businesses to thrive and make our communities the best they can be, the Labour Party has broken promises and increased costs during a cost-of-living crisis.

“Labour decisions mean that every person employed by businesses across this constituency costs them roughly £850 more than it did under the Tories.

“That’s the cost of a Labour Government.

“Only a vote for the SNP on June 5 is a vote to put this community first, and if elected as your next MSP I will always stand up for local businesses.”

Scottish Secretary Ian Murray said: “This attack is an embarrassing own goal from John Swinney.

“The SNP leader wants to highlight rates relief but, the truth is, despite a £50 billion block grant, the SNP refused to deliver full rates relief enjoyed by leisure, hospitality and retail in England, meaning 2,500 hospitality businesses in Scotland are losing out.

“As a former small business owner, I can say that what will really help business in Hamilton is regenerating the town centre – but the SNP’s carpetbagging candidate from Cambuslang voted against £8 million for it.

“Scottish Labour’s Davy Russell is a local man who will fight for jobs and businesses in Hamilton, Larkhall and Stonehouse.”