Majority of Scots SMES want to stay in EU

● 70% of Scots SMES want to remain as UK finance firms remain pessimistic

New research has found that 70 per cent of Scottish SMES want to press the reset button on Brexit.

The report from a business confidence index found that more than twothirds wanted to retain membership of the EU, up from 63 per cent from the first quarter. A quarter of SMES have seen a decline in revenue since the Brexit vote in June 2016.

It came as a separate survey found confidence in the UK’S financial services sector has also fallen in all but one quarter since 2016.

More than two-thirds of Scottish SMES want to reverse Brexit, according to new research, while optimism in the UK’S financial services sector remained negative in the second quarter of 2018, according to separate surveys published today.

Serviced office space provider Citibase’s Business Confidence Index, which collects responses from decision-makers in more than 1,000 small and medium-sized businesses, reported that 70 per cent of SMES in Scotland would like to retain membership to the European Union, an increase from 63 per cent in the first quarter.

The national average for SMES across the UK wanting the decision reversed was slightly lower at 66 per cent.

Citibase cited the sustained political and economic uncertainty surrounding the UK’S future outside of the EU as a main contributor to the high number of Scottish firms hoping for a Brexit reversal.

A quarter of SMES in Scotland said they had experienced a decline in revenue since the Brexit vote in June 2016, a significant increase from 15 per cent in the final quarter of 2017.

Oneinfivealsosaidtheywere finding it harder to secure funding or attract investment for their company, suggesting that the uncertainty surrounding Brexit is having substantial financial impact.

Steve Jude, Citibase chief executive, said: “With 70 per cent of Scottish SMES now wanting to press the reset button on the entire Brexit process, up from 63 per cent in Q1 of 2018, what they want now are cost-conscious solutions.”

The concerns follow a study published last week by the Federation of Small Businesses, which indicated that Scottish small business confidence was at a three-year high and prompted calls for Scottish decision-makers to “nurture” the reported optimism,

However, the latest CBI/PWC Financial Services Survey found that optimism in the UK’S financial services sector stabilised in between April and June, following sharp falls over the previous two threemonth periods.

The quarterly survey of 100 firms found that a balance of -4 per cent were more optimistic about the overall business situation compared with three months ago (in contrast to -17 per cent in the quarter to March).

Confidence has fallen in all but one quarter since the beginning of 2016, and while sentiment was unchanged in banking, building societies and investment management, it improved in finance houses and general insurance. Additionally, overall business volumes were flat but are expected to pick up marginally over the coming three months.

Rain Newton-smith, CBI chief economist, said: “In order for the sector to continue to attract investment and create jobs in the run up to Brexit and beyond, the [UK] government must work hard with Brussels to agree a unique agreement that develops the sector after Brexit.”