Political Factors (SQA National 5 Business Management): Revision Note

The UK government sets corporation tax rates, which directly affect how much profit businesses can keep

A rise in tax reduces profits, while a cut in taxes may encourage business investment

A tax paid on consumer spending

If VAT increases, the price of goods and services offered by businesses is likely to increase, which can reduce demand

Councils set business rates on commercial properties

Higher rates increase costs for retailers, restaurants, and offices, especially in city centres like Glasgow or Aberdeen

Rules on minimum wage, working hours and equality affect staffing costs and practices

The UK's National Living Wage increases costs for hospitality businesses

Organisations must provide safe working conditions

This can mean extra spending on equipment and training

Construction firms must provide hard hats and safety harnesses for staff on building sites

Protects customers by ensuring products are safe, accurately described, and fit for purpose

The Consumer Rights Act ensures customers get refunds or replacements if goods are faulty

Rules on recycling, carbon emissions and waste disposal affect production methods

Scotland’s Deposit Return Scheme aims to increase recycling of drinks containers, requiring changes in the retail and manufacturing sectors

Councils can introduce their own regulations that apply only in their area

These byelaws can add costs or limit how businesses operate locally

Glasgow City Council restricts delivery lorries from entering certain streets at peak times to reduce congestion