Scottish firms showing signs of optimism
DESPITE ongoing economic challenges, Scots businesses are showing signs of resilience and optimism.
In February, business optimism in Scotland surged to an 11-month high, with 42% of businesses expecting stable or improved performance in the coming months. This rise in confidence is attributed to a reduction in cost inflation which appears to have eased the financial pressures on businesses, resulting in 37% predicting an increase in business and only 6% expecting a decline.
These positive trends were mirrored across the UK, with 11 out of 12 regions recording higher outputs in
March alongside notable increases in new work. This has fostered an atmosphere of assurance across all regions, with confidence levels in March above long-term averages.
However, amid this optimism, there is a call from businesses for a simplified interface between them and government bodies. The aim is to better understand the support available, which could further bolster businesses and economic growth.
Additionally, there is a significant demand for investment in skills and further education to propel economic development and meet the evolving demands of the marketplace.
Scotland’s unemployment rate stands favourably at 4%, lower than the UK’S 4.2%, showing a decline over the past quarter. Despite this, the economic inactivity rate remains a concern at 22.6%, slightly higher than the UK average, with NHS waiting lists contributing to this.
This has fed into public frustration with service delivery, particularly in healthcare, which has become a prominent concern, with 49% of Scots identifying healthcare and the NHS as their top concern, followed by the cost of living (41%), and issues related to poverty and inequality (20%). This sentiment has translated into a strong public demand for increased public spending, even if it necessitates higher taxes, a stance more prevalent in Scotland (36%) than in the rest of the UK (30%).