Director Weekly  Whoever wins this week’s elections in Scotland and Wales will be expected to address business concerns about the barriers to growth

We published manifestos for both nations ahead of the elections, setting out our strategic vision for thriving economies and stronger business growth. Whether the incumbent administrations are returned or new governments are elected, we will be engaging with ministers to represent directors’ views about the policy decisions needed to deliver those visions over the coming years.

Here are three of the biggest priorities.

1. Tax reform

In Scotland, one of the biggest concerns for directors is the divergence between the tax regimes found north and south of the English border. The 2024 introduction of the Advanced band, raising tax on incomes above £75,0001, has proven particularly controversial.

In our latest survey in Scotland, we found that 75% of directors think that income tax is too high, with 49% concerned by the growing divergence with England.

The higher rates directly affect many directors, dampening the incentives for them to grow their businesses. We have also heard that it’s having a chilling effect on Scottish employers’ ability to attract talent. Faced with a choice between postings in Manchester and Edinburgh, many employees would opt for the former.

Although Scottish voters have tended to accept higher taxation, there’s now an increasingly strong case for simplification and reform.

2. Infrastructure investment

Scotland and Wales are both being held back by sub-standard infrastructure. Many rural and remote communities are poorly served by weak transport connections – and, critically, by unreliable digital infrastructure.

We’ve called for a renewed focus on infrastructure, including the creation of a national infrastructure delivery unit in Scotland, and supporting the progress of the Wales Infrastructure Commission.

These should be supported by greater use blended finance models such as public-private partnerships to unlock capital for strategically significant projects.

3. Skills and skills shortages

Skills shortages are consistently one of directors’ top three policy concerns. Brexit has constrained access to overseas talent at a point when AI transformation means many businesses are looking for digital expertise – and struggling to find the right people.

The priorities include ringfencing funds raised through the Apprenticeship Levy, so that employers benefit from the full amount collected – and reforms that provide employers with greater flexibility. Employers are better judges than government officials of their skills needs, so policy should empower businesses to direct funding to where it is needed.

There is also a need to look at how policymakers can improve access to overseas talent, such as through the proposed Scottish Graduate Skills Visa.

Whatever the complexion of the Scottish and Welsh governments after this week, the IoD will ensure that directors’ voices are heard by ministers. We’ll be waiting eagerly for the votes to be counted.

IoD Manifestos

For more on the IoD’s agenda for the devolved governments, read the IoD Scotland Manifesto 2026 and the IoD Wales Manifesto 2026, available in English and in Welsh.