In its submission to the Scottish Government ahead of the Programme for Government, the SCC said business confidence has failed to recover in the last five years.
Businesses in Scotland have instead become focused on survival and protecting day-to-day operations rather than investing, recruiting and expanding, the SCC said.
Reform of the non-domestic rates system is one of the key demands, including changes to the £100,000 rateable value threshold that determines eligibility for relief schemes covering pubs, clubs and live music venues.
Prime Minister Andy Burnham announced in his first week in Downing Street an additional 20% business rates relief for clubs and live music venues from 2027-28, on top of a 15% relief announced in January.
The Scottish Government has faced calls to replicate this scheme.
The business body, which represents more than 12,000 firms, also intervened amid growing concerns about tax competitiveness with the rest of the UK, where earners face lower income tax rates than north of the border.
SNP ministers have been urged to reduce higher and top rates of income tax to narrow the gap and make Scotland more attractive to investors.
Charandeep Singh, chief executive of Scottish Chambers of Commerce, said businesses needed action rather than another assessment of Scotland’s economic challenges.
He said: “Scotland’s businesses do not need another diagnosis of the challenges they face. They need action which makes it easier to invest, recruit and grow.
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“Business confidence has been battered by years of rising costs and economic uncertainty. Too many firms have been forced to delay investment, freeze recruitment and focus on simply protecting their day-to-day operations.
“The Programme for Government is an opportunity to change that. Ministers should use the powers available to them to reduce the cost of doing business, restore Scotland’s tax competitiveness and give businesses confidence that major infrastructure will actually be delivered.”
The organisation said Scotland should aim to become one of the most competitive places in the world to live, work and do business.
But it warned ministers they must be prepared to look seriously at the tax differential with the rest of the UK to do so.
Mr Singh added: Scotland should be one of the most competitive places in the world to live, work and do business. That means being prepared to look seriously at the tax gap with the rest of the UK and the impact it has on our ability to attract entrepreneurs, investment and skilled workers.
“This is about creating the conditions for growth. If we get the fundamentals right – competitive taxation, modern infrastructure and access to the skills businesses need – Scotland has enormous economic potential.”
The chambers network is also pushing ministers to establish immediately the Major Projects Office promised in the SNP’s 2026 manifesto.
It wants the body to take responsibility for driving nationally and regionally significant infrastructure projects, with named accountable leads, published milestones and six-monthly progress reports on costs and delivery timescales.
The SCC has also called for statutory timescales for offshore wind development, arguing lengthy delays are creating uncertainty for developers and putting investment at risk.
Mr Singh warned Scotland could miss out on major opportunities if projects continue to move slowly through the planning and regulatory stages.
“When businesses are being asked to commit billions of pounds, they need certainty over grid connections, consenting and the infrastructure their investments depend upon,” he said.
“We need to move from talking about delivery to actually delivering.”
A Scottish Government spokesman said: “The Scottish Government continues to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities.
“The Deputy First Minister recently announced a comprehensive review of non-domestic rates, which will examine improvements and reforms that can be made to the system. We are working closely with business to ensure the clarity, incentive and transparency that businesses need.
“The majority of taxpayers in Scotland pay less income tax than those in the rest of the UK thanks to our progressive Income Tax policies, which raised a record £18.8 billion for the Scottish Budget in 2024-25. These decisions have delivered additional funding for measures that ease the cost of living, including the Scottish Child Payment, free prescriptions, free bus travel for under-22s and free university education.”
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