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Scottish businesses are increasingly pessimistic with confidence dipping in the final quarter of 2025 to its lowest point of the year.<\/p>\n
The survey of 550 businesses by the Scottish Chambers of Commerce and Fraser of Allander Institute found for the first time in three years more firms expect turnover to fall than to rise in the next quarter.<\/p>\n
Pressure from labour costs and taxation continued to dominate firms\u2019 concerns. Only 15% of firms said they would increase investment, the lowest level recorded in 2025, \u00a0while 77% reported increased pressure from labour costs.<\/p>\n
Two-thirds (65%) are expecting to raise prices, up ten percentage points over the quarter and the highest level recorded in 2025. \u00a0This is also the highest figure since Q1 2023.<\/p>\n
The\u00a0survey, though traditionally on the gloomy side, concurs with a British Chambers of Commerce survey\u00a0at the turn of the year which found less than half of respondents (46%) are\u00a0expecting\u00a0increased turnover\u00a0over\u00a0the next 12 months \u2013 the lowest level\u00a0in\u00a0three\u00a0years.<\/p>\n
The SCC data comes at a sensitive time for ministers with the Scottish Budget to be delivered on Tuesday and companies hoping it will provide some further support, not least on business rates.<\/p>\n
Doug Smith, vice president of the SCC, said: \u201cThese results point to an economy that is losing momentum rather than turning a corner. <\/p>\n
\u201cWorryingly, confidence has weakened again, sales are under pressure, and firms are cutting investment at a time when growth should be gathering pace.<\/p>\n
\u201cParticularly concerning is the forward-looking picture: more firms expect turnover and investment to fall than to rise for the first time in three years; rising labour costs and taxation worries are now firmly embedded, with pricing decisions entrenching inflationary pressures for consumers as well as businesses.<\/p>\n
\u201cWith investment faltering and confidence fragile, policy choices at Holyrood and Westminster matter more than ever. A clear focus on competitiveness, skills and planning, alongside a stable and predictable tax environment, is essential to restore confidence and put the economy back on a path to sustainable growth.\u201d<\/p>\n
Liz Cameron, director and chief executive of SCC, said: \u201cAfter a tough Autumn Statement and fresh pre-Budget jitters ahead of the Scottish Government\u2019s announcements tomorrow, business confidence is at a worryingly low level.<\/p>\n \u201cOur largest survey in years underlines the growing strain placed on businesses by the tax system, and a lack of meaningful policies to tackle the structural challenges facing our economy.<\/p>\n \u201cIn December, we\u00a0urged the Scottish Government to use their Budget to boost planning capacity, prioritise skills funding, and freeze business rates.<\/p>\n \u201cSince then, businesses across every sector have been hit with eye-watering rates hikes, with some warning the increases will price them out of existence this year.<\/p>\n \u201cTomorrow is a pivotal moment. The Scottish Government must act decisively to restore confidence and put Scotland\u2019s businesses back on the front foot.\u201d<\/p>\n \t <\/div>\n![\"Liz](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2017\/06\/2017-06-01-19.13.55-1-scaled.jpg\")