Confidence drops among Scots firms

Confidence among small businesses in Scotland has plummeted amid rising costs, according to a new survey.

The latest index from the Federation of Small Businesses (FSB) found business optimism in Scotland fell to -15.2 points in the third quarter of the year, from -3.8 points in the previous three months.

Over the same period the equivalent UK figure dropped 13.9 points to +1 point.

FSB Scottish policy convener Andy Willox said: “While we saw a slight uptick earlier this year, this quarter business confidence in Scotland, and across the UK, has taken a hit.

“Rising inflationary pressure and a weakening domestic economy are the twin drivers of plummeting confidence among 0 Andy Willox says the fall in sterling is having a big effect UK businesses. Scottish small firms will be looking to the Chancellor to extend a lifeline at the Budget. In such a difficult trading environment, new tax grabs and loss of reliefs for entrepreneurs will exacerbate existing challenges.”

The survey found a net balance of 7 per cent of Scottish smaller firms reporting a fall in gross profits.

“The depreciation of sterling is still having a big impact on those firms which import goods or services, or who are part of international supply chains,” Mr Willox added.”