However, the business representative group has warned that the findings must continue to be pushed forward if a true reset of the relationship between business and government is to be delivered.

The NDBG was convened by former First Minister, Humza Yousaf, in 2023 after policies including the Deposit Return Scheme and proposed restrictions on alcohol marketing had strained relations between the Scottish Government and the business community. An 18-month implementation plan followed from October 2023, with FSB Scotland participating in subgroups on regulation and non-domestic rates, as well as the overall NDBG.

FSB Scotland director of devolved nations and NDBG member, Colin Borland, said: “It’s fair to say relations between government and business were at a particularly low point in the period immediately preceding the formation of the NDBG. So, the former First Minister is to be commended for not only recognising this but taking steps to try and address some of the issues.

“It’s also fair to say that some of the key achievements of the group won’t immediately be felt on the ground by business. However, if fully implemented, they’ll pay dividends in the long run. 

“For example, a key piece of work to which we contributed, revising Business and Regulatory Impact Assessments so they give particular regard to the impact of new policies and regulations on small businesses, is a massive step forward.  Coupled with the development of a new Policy Cycle process, which should mean more input from those businesses who will have to implement the policies and regulations on the ground, there’s a real opportunity for us to start seeing legislation coming through that is genuinely co-designed with business.”

FSB warned, however, that the progress demonstrated in the final report must not just sit on a shelf, and that government must now embed NDBG principles in all decision-making that affects business, including in next week’s Programme for Government announcement.

Mr Borland continued: “A key tenet of the NDBG was that of ‘no surprises’. While we have to accept that business will not always like every decision made by government, things are made more difficult if big changes are sprung on the business community in set-piece events.

“Our latest Small Business Index shows some signs of optimism. Although confidence among small firms in Scotland remains in negative territory, there has been a marked improvement on the previous quarter. Obviously, we want to sustain or even improve this into the next quarter – and our members tell us that a government focus on economic growth is key to this.

“With trade tariffs the latest challenge to face our small businesses, we’re calling on the First Minister to be sensitive to the current situation and not bring forward anything in next week’s legislative programme that will exacerbate the burden of regulatory compliance or implementation, financially or operationally.”