Scots businesses invest less amid fears over leaving EU

SCOTS bosses are investing less in their businesses amid concern over a no-deal Brexit.

Spending has been scaled back in the past three months as firms become less optimistic, a survey published yesterday by the Scottish Chambers of Commerce revealed.

It found 21 per cent of firms reported declining optimism in the third quarter of this year, compared to 1 per cent in the previous one, while the number of firms reporting declining business investment increased from 11 per cent to 16 per cent in the same period.

Professor Graeme Roy, director of the Fraser of Allander Institute, which carried out the research, said: ‘The apparent lack of meaningful progress on the Brexit negotiations is increasingly showing up as a key risk for many Scottish businesses.

‘Whether you agree or disagree with the decision to leave the EU, the need for an orderly transition is vital. Sleepwalking into a no-deal outcome cannot be viewed as an effective economic plan. Now is the time for effective and strong leadership from our political leaders.’

A Scottish Government spokesman said: ‘We have been clear the prospect of being taken out of the EU continues to be the biggest threat to jobs, investment and prosperity.

‘Due to the steps we are taking to offset the impact of Brexit, Scotland’s economy remains strong. We will continue to support businesses to stimulate growth, jobs and investment.’