Scottish small businesses in confidence decline
Confidence levels among Scottish small businesses has fallen to the lowest levels since the pandemic.
Figures from the Federation of Small Businesses show a dip in confidence to -67.2 at the end of 2024, the previous low was -69 at the end of 2020.
UK figures are slightly higher than Scotland with a score of -64.5 during the 4th quarter which showcases the shared struggle small businesses face even across borders.
The stagnant UK economy has been a feature of frontline politics and many owners feel it has had a negative effect on their businesses.
60% of Scottish respondents to the survey point to the economy as one of the biggest factors when it comes to a reduction in business,
70% of respondents reported a rise in costs such as tax, bills and labour.
There was an increase in Scottish businesses looking to expand over the next year, however there has still been a drop since last quarter.
Businesses are also wary of the upcoming employment rights bill.
The proposed bill includes tighter restrictions on employee working hours and a rise in national employer contributions which could make it more expensive to run a business.
