Anger over soaring fuel prices and bank lending practices surfaced when three political heavyweights took to the stage at a major business gathering in Aberdeen yesterday.
First Minister Alex Salmond, UK Business Secretary Lord Mandelson and Tory shadow chancellor George Osborne were in the city to deliver their views on the economy.
Speaking at the annual conference of the Federation of Small Businesses (FSB), each of them set out their ideas for creating a climate for growth and helping firms prosper in the recovery.
Delegates representing small and medium-sized enterprises (SMEs) throughout the UK had some pressing concerns they wanted tackled, such as the rocketing cost of filling up their company vehicles, difficulty getting
finance from the banks and a looming increase in national insurance contributions (Nics).
Fuel duty is due to rise another 3p on April 1, provoking fears that petrol prices could hit a record £6 a gallon this year.
The answers from the politicians ranged from Lord Mandelson’s “It’s for the chancellor to decide” to Mr Salmond and Mr Osborne explaining their similar proposals for keeping the price at the pumps down.
If they win the looming general election, the Tories aim to launch a consultation on a “fair fuel stabiliser” they say will cut fuel duty when oil prices rise and increase it when they fall.
According to Mr Osborne, the measure will create more stability in petrol prices and protect them from the “vagaries of the international oil market”. The SNP’s proposal for a fuel price regulator would see an automatic freeze on duty rates if the value of oil climbs.
Any extra cash raised from VAT on petrol or diesel as a result of the higher pump prices would go back into an equivalent cut in fuel duty.
Mr Salmond urged Chancellor Alistair Darling to cancel next month’s 3p rise in fuel duty in the Budget on Wednesday.
On bank lending, the first minister said the new £5million East of Scotland Investment Fund – reported in yesterday’s Press and Journal – would go some way towards helping businesses finding it difficult to access finance.
The initiative – under which loans of up to £50,000 will be issued – is expected to help more than 430 growing firms in the east of Scotland and generate increased turnover of up to £34.56million for SMEs.
Lord Mandelson assured delegates the UK Government was keeping up the pressure on banks over lending.
“We are giving them a tough time,” he said.
“Some SMEs are being treated with a degree of scorn or indifference, which is unacceptable.”
He later said banks that were not “in the main” acting like loan sharks – as one delegate complained – but needed to “realise they must behave responsibly”.
Mr Osborne offered to meet Mr Salmond to discuss next year’s Scottish budget.
The first minister has written to Mr Osborne, as well as to the chancellor and Liberal Democrat Treasury spokesman Vince Cable, seeking reassurances the Scottish budget for 2010-11 will not be reduced.