Cost of living causing ‘crisis’ for businesses

SCOTLAND’s businesses are in ‘crisis mode’ as cost of living concerns cripple their Covid recovery, a report has found.

More than three quarters of businesses plan to increase their prices, according to the Scottish Chambers of Commerce (SCC) study.

The survey, which interviewed 360 firms in Scotland, found rising energy, food and raw material costs and labour market insecurity, have caused weaker growth prospects.

Seven in ten firms said that soaring energy bills was the largest contributor to their rising costs.

SCC president Stephen Leckie said: ‘The UK Government must introduce a Small and Medium Enterprise energy price cap and cut VAT on energy bills to 5 per cent. This would shield businesses in a similar way to households.’

Retail, tourism and construction sectors all reported a successive fall in profits, with half of firms reporting challenges hiring staff.’