Most Scotland-based executives still consider income taxes north of the border are too high but fewer are concerned about the level of business taxes, according to a survey.

The 2025 State of the Nation survey by the Institute of Directors Scotland found 75% are unhappy with the level of personal taxes, barely changed from the previous year (74%).

However, on business taxes, respondents who felt business taxes were too high fell to 63% from 71%, a figure that contrasts with other data and comments from the business community which regularly calls for cuts in business rates.

A larger proportion, 81%, expressed concern over tax policy differing from the rest of the UK, unchanged on last time (82%). Within that group the largest area of concern was related to the ability to hire staff (40%).

The survey found evidence of a softening in attitudes to tackling climate change.

While the need for more support to meet the Scottish Government’s Net Zero target is unchanged at 50%, the number now working on a plan has fallen sharply to 27% from 39% last year.

Despite continuing reports of skills shortages a majority of the IoD Scotland membership say their organisation has the right number of skilled people for current jobs (71%), an increase in confidence on last year (61%).

In terms of the ability to recruit sufficient skilled staff in the next 12 months, this year’s 59% is broadly comparable with 2024 (54%).

The State of the Nation Survey reeceived responses from 15% of members of the Institute of Directors in Scotland from 8 January until 17 February

Catherine McWilliam, the nations director for Scotland at IoD, said: “Our State of the Nation has arrived at a particularly important juncture as we are just over a year away from the Scottish Holyrood Elections in 2026.

“Although our members continue to face acute challenges at the present and for the year ahead, I am optimistic that the resilience and agility they demonstrate on a daily basis, will stand them in good stead for future challenges.”