Fears over number of company takeovers

The number of Scots firms being taken over by multinational giants may be holding back economic growth and incentives are needed to keep ownership in Scotland, MSPS have warned.

The Scottish Government has now been asked to set out how many firms are being sold off and how much is then reinvested in Scotland’s struggling economy, in a report by MSPS today.

Holyrood’s economy committee has also called for a revamp of the country’s economic strategy as Scotland continues to trail behind the rest of the UK.

The report draws concerns over the “missing middle” among Scotland’s businesses, with smaller firms fearful of the risks associated with “scaling up”.

The committee warns this could have a “significant economic impact” and firms are then left open to takeovers.

“In Scotland businesses are often being acquired rather than scaled up,” today’s report states.

“If the money is reinvested in the Scottish economy, that can be beneficial. However, it can also result in the loss of entrepreneurial role models and experienced people to manage larger-scale businesses based in Scotland.”