'A re-set, yet again': Scottish business reacts as Humza Yousaf resigns as First Minister

ITV Border's Barnaby Papadopulos went to meet businesses in Dumfries to see how they've been hit.

The Chair of the Scottish Hospitality Group says businesses will have to re-set their relations with the devolved administration "yet again" following the sudden resignation of the First Minister.

Humza Yousaf announced his intention to step down from the role on Monday, after just over a year in office. His successor will become Scotland's third First Minister since the last Holyrood election when they take power.

The comments from the hospitality group come as other business leaders urged the next First Minister to make economic growth a priority.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, urged the new First Minister to “prioritise economic growth" on Monday, whilst the CBI said that "whoever comes in as First Minister must put addressing Scotland’s faltering economy first."

Speaking inside the 400-year-old Globe Inn in Dumfries, marketing manager Lee Medd said the leadership transition could be "tough" for business.

"We're going to have a new First Minister, or we're going to have a new election process," he said.

"It's really confusing for how we plan over the next six or twelve months."

No politicians have officially announced their intention to run as Mr Yousaf's replacement, but former Deputy Leader John Swinney and former Finance Minister Kate Forbes are among those touted as possible contenders.

Speaking to ITV News, Lee Medd said candidates needed to recognise that the south of Scotland "is unique."

"I'm not saying the need to make massive changes, but they need to have an actual understanding by getting boots on the ground and actually engaging with and listening to businesses in this area," he said.

Last year Mr Yousaf said his programme for government would be "pro-growth and anti-poverty," but he was criticised by the Scottish Conservatives and Labour who felt he didn't do enough to support small businesses in the last Scottish budget.

The First Minister did not pass on the UK Government 75% business rates relief for the hospitality sector and created a new 'higher rate' tax band for those earning between £75,000 and £125,000 a year.

However he did announce a "new deal for business", setting up a group to provide space for industry leaders to share concerns with the Government.

"Humza was one of the first ministers who brought in the New Deal for business groups," said Stephen Montgomery, "which were designed to have a reset for business relationships because they completely broke down through the pandemic."

"With the new First Minister coming in they need to have that complete reset with business again.

"It'll be on the new First Minister to either look at the New Deal for Business and say 'this is working or it isn't,' and then take it from there and start to reset that relationship yet again."

In a statement a Scottish Government spokesperson said that the First Minister was "proud to have laid the foundations of his vision for Scotland.

"The Scottish Government and its Ministers continue to work towards a fair, green and growing economy during the process to select a new First Minister.”

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