We asked a number of our clients and contacts to provide us with their perspectives on the issues impacting Scotland's political and business environment. As well as providing their views on these issues, we also asked them to give us their opinions on the performance of the Scottish Parliament and Scottish Executive post-devolution. A summary of the results can be found below.

SCOTTISH BUSINESS LEADERS BACK STRENGTH OF THE UNION
Transport infrastructure and public sector inefficiency identified as key concerns for Scottish Parliament to resolve.

In a survey conducted by Scott-Moncrieff, one of Scotland's leadingprofessional servicesfirms, Scottish business leaders have overwhelmingly backed the status quo of the Union, with 81% of respondents stating that they believe Scotland would benefit most by remaining part of the UK.

However, it is interesting to note that when asked their view of how Scotland has performed since devolution, 44% have said it is 'headed in the right direction' against 25% who think it has 'gone off on the wrong track'. Incumbent MSPs should also note that almost one-third of respondents (31%) reported 'no discernable difference post-devolution'.

Looking at the Scottish Parliament in greater detail, respondents were asked to evaluate its performance across a range of issues as 'good', 'fair' or 'poor'.

The Parliament's best result was in its performance on employment (the quality and availability of jobs), where 50% classed it as 'good' and 30% as 'fair'. On promoting tourism, 40% of respondents rated it 'good', with the same number rating it 'fair'.

On the downside, 63% of respondents stated its performance on the quality of Scotland?s transport infrastructure as 'poor' and only 6% as 'good'. Worst of all, however, was its efforts to improve public sector efficiency, where 70% rated its performance as poor and only 10% as 'good'.

Respondents appear to be less impressed with the performance of the Scottish Executive. In only one area out of 12 did the respondents give the Executive a higher 'good' rating than the Parliament (and that was 6% as against 3% for doing a good job on the quality of Scotland's transport infrastructure).

Again, the highest 'poor' rating, 77%, was for 'improving public sector efficiency'; followed by 55% 'poor' for transport infrastructure, 48% 'poor' for quality of health care and 45% 'poor' for its efforts to reduce carbon emissions.

Turning to the respondents views on business outlook, it was not a case of 'doom and gloom' on this front muddying their views of the political scene. Indeed, 16% rated themselves as 'very confident' and 58% as 'fairly confident' on the prospect for revenue growth for their business in the next 12 months. Only 3% are 'not at all confident' and 18% 'not particularly confident'; (5% are 'not applicable').

Perhaps not surprising for a survey of business leaders the economic climate is identified as the single most important issue facing the people of Scotland today (35%), followed by independence and an ageing population (both 13%) and education, health and global warming each chosen by 10% of respondents.

The business issue upon which the leaders are most concerned is the amount of red tape, with 24% selecting at as the key problem facing business. Again, transport infrastructure is seen as key - 18% rate it as most important - closely followed by a shortage of skilled workers (17%). Perhaps surprisingly, in fourth place at 8% is concern over business taxes. This may reflect the overall positive outlook of business leaders supported by the fact that only 6% are concerned over lack of market opportunities and 5% about the threat from emerging technologies.

Who responded:

• The majority of respondents (81%) were either business owners,chief executives or company directors.
• Market sector representation: Consumer Products & Services (26%); Technology, Information, Communication & Entertainment (21%); Industrial Products & Services (18%); FinancialServices (16%); Public Sector & Not-for-Profit (16%); Other (3%).
• The survey was conducted from February to March 2007.

If you would like more information on this survey, or if you would like to take part in future Scott-Moncrieff surveys please contact us.