Two-thirds of Scots give thumbs-down to European split
Report says most SMES sceptical that good deal will be secured for them
Nearly two-thirds of Scottish smaller businesses would like to “reset” Brexit negotiations and remain in the European single market, a survey suggests.
The report says that just 14 per cent of SMES north of the Border trust Prime Minister Theresa May and senior colleagues to secure a good deal for UK businesses after the withdrawal from the EU in March 2019.
Commissioned by Citibase, which provides serviced business centres for SMES at 40 locations nationwide, the survey says 23 per cent of firms have seen revenues fall since the Brexit vote in June 2016.
“Following sustained political and economic uncertainty, 63 per cent of Scottish SMES would like to reverse the Brexit process and retain UK membership to the EU”, says Citibase in its latest Business Confidence Index.
It notes that this compares with a figure of 61 per cent across the UK. However, that figure drops sharply to 29 per cent in Yorkshire, a region seen as voting heavily for EU withdrawal.
Steve Jude, Citibase’s CEO, said: “The message is clear. Scottish confidence in the Westminster government to secure a good deal for them is at an all-time low, with (most) SMES wanting to press the reset button on the entire process.
“As a result these SMES are cautious about the future and don’t want to commit to anything that may stifle their success, such as long-term office contracts that don’t allow them the flexibility to be agile, successful businesses.”
Jude said the group’s four Scottish flexible office hubs were seeing “strong demand” from start-ups, entrepreneurs and SMES against this uncertain Brexit backdrop.
Equally positively, the report says that despite revenue pressures, just 12 per cent of Scots firms report finding it harder to secure funding since the EU referendum.
That compares to the UK average of 37 per cent and 61 per cent in London. In a further blow to the credibility of the British negotiating team with Brussels, the survey reveals Scotland’s First Minister Nicola Sturgeon has overtaken the Prime Miniser for the first time in the Scottish SME ratings as the best person to lead the UK in the EU talks.
A total of 23 per cent of firms voted for Sturgeon in the first quarter of 2018 compared with 21 per cent for May.
“This was Scottish SMES’ greatest endorsement of the SNP leader so far in the index, followed by Q3 2017 in which she was the most joint most popular, equal with May (16 per cent),” the report added.
“Jeremy Corbyn ranked third with a 12 per cent share, while Sir Richard Branson, Sir James Dyson and even Popeye also received votes – suggesting that (smaller firms) would like to see someone who has actually run a business at the helm of the ship.”
SMES are defined as having turnover between £1 million and £25m. The Federation of Small Businesses has 17,000 member firms in Scotland.
mflanagan@scotsman.com