All eyes will be on Scottish Finance Secretary John Swinney on Thursday when he delivers his Budget.
The Scottish Government is under intense financial pressure- recently announcing £1.2billion of cuts, as inflation continues to wreak havoc on public finances.
Companies will be particularly interested to hear what he has to say on important areas affecting them, including business rates and tax.
There are fears that he could hike both in a bid to bring in much-needed extra cash for the country.
Aberdeen & Grampian Chamber of Commerce today called for a financial prospectus to drive growth and productivity.
Priority areas
It has outlined three priority areas for Mr Swinney for next year:
- Freeze business rates - no rise in rates poundage for premises across Scotland at a crucial time of economic recovery and as firms grapple with rising costs.
- Create a competitive tax regime - tax levers the Scottish Government holds should be used to set competitive rates which encourage aspirational professionals to live and work here. This includes reviewing the Land and Buildings Transaction Tax and Income Tax rates to ensure we are not deterring people from moving to Scotland.
- Invest in enterprise - now is the time to build for the future. The Scottish Government should be investing in enterprise, allowing new businesses to flourish, scale-up and compete in a global market. A joined-up approach should allow business to take the lead, maximise return on investment and create high-quality jobs.
Chamber chief executive Russell Borthwick said: "We know that businesses have experienced some of the toughest conditions over recent years - particularly in our region, with an oil price shock, cost of pandemic restrictions, impact of Brexit and spiralling inflation.
"The Scottish Budget is a critical test for John Swinney - and the decisions he takes could mean sink or swim for many businesses across the north-east in the coming months.
Rates freeze
"We want businesses given the comfort of a rates freeze, against a rising tide of costs, so they can invest for the future. It would also be a welcome boost for our city and town centres and the well-known challenges they continue to face.
"We want Scotland to be the most-competitive nation in a globally competitive UK - we don't achieve that by taxing young, aspirational people a hefty surcharge simply for wishing to make their lives here.
"While we respect that a balance has to be found in funding public services, the best way to do that is growing our tax base and creating high-quality jobs, not taxing people through the nose.
"And finally, in challenging times, governments will look at where they can cut their cloth. We are absolutely clear this must not be to the cost of investing in new business start-ups and scale-ups.
"We've seen, for example, a £62million real-terms cut to the budget of Scottish Enterprise in recent years - there are better places to seek government efficiencies than pulling the rug out from underneath Scotland's entrepreneurs who are the very people who can create the conditions for success in our economy over the long term.
"We look forward to a Budget this week which prioritises growth, productivity, allows Scotland to compete and lets business lead from the front in delivery."
Rates poundage
As part of his speech on Thursday, Mr Swinney is to announce the rates poundage for non-domestic properties. The new draft rateable value of each property is multiplied by the rates poundage to arrive at the actual rates payable on a building in 2023/4.
There are concerns that Scottish taxpayers could face a financial bombshell running to hundreds of millions of pounds if Holyrood decides to follow Westminster's lead on balancing the books.
UK Chancellor Jeremy Hunt outlined a number of eye-watering tax increases in his Budget in November. Speculation is now mounting that Mr Swinney is planning similar measures.
Scottish Conservative finance spokeswoman Liz Smith said yesterday that Scotland already had the highest income tax rates in the UK.
She said: "Any widening of the tax differential would put us at an even greater competitive disadvantage.
"Those on the 41p rate are not by any means top earners - they are middle-income Scots who are already feeling the squeeze from the cost of living crisis."
Tax-raising powers
Her comments came as Scottish Ministers were urged to use their tax-raising powers to help fund public-sector pay rises and provide more help for the poorest.
The Scottish Trades Union Congress (STUC) says this week's Budget could raise an extra £1.3billion to help address the cost-of-living crisis.
STUC general secretary Roz Foyer said it was time for politicians to be "stepping up to the plate".
A congress report has proposed a range of measures to raise more money within the scope of the Scottish Government's devolved powers.
The STUC estimates this could raise an extra £1.3billion of additional revenue a year, with an extra £2billion possible through more complex reforms to the tax system in the longer term.
Ms Foyer said she sympathised with the Scottish Government because she believed it should be getting more support from Westminster, but she insisted there were measures available to it.
Radical action call
She told the BBC: "We need radical action from the Scottish Government, who claim to be on the people's side."
The Scottish Government said the country already had a progressive tax system.
Social Justice Secretary Shona Robison refused to reveal what might be in Thursday's statement, but said Scotland's tax system already took more from those "with broader shoulders".