Understanding Business-December 2024

The latest findings from the Understanding Business survey provide an insightful snapshot of the challenges and opportunities that Scottish businesses are currently facing. As we approach the end of 2024, businesses have expressed a mixture of concern and cautious optimism about the economic outlook, with significant shifts in how they view their prospects both for the next 12 months and beyond.

This wave of the survey shows a notable increase in the proportion of businesses that believe conditions have improved compared to the previous year. Despite this positive shift, many still anticipate rising costs and continued economic uncertainty. The significant concern surrounding rising operational costs, taxation, and inflation reflects the broader pressures that businesses are under.

At the same time, the survey points to areas of optimism. A growing proportion of businesses are forecasting increases in turnover and profitability, indicating that, despite the challenges, there is potential for growth. Recruitment remains a key issue, with businesses continuing to struggle with skills shortages and the complexities of attracting and retaining talent.

The reaction to the UK Government’s Autumn Budget has been mixed. Businesses are particularly concerned about the changes to National Insurance outlined in the budget. The budget’s overall impact has been viewed by many as exacerbating the financial pressures businesses are already under with many reporting anticipated impacts including increased overall costs and increasing prices in response. This has led to a call for more support in areas such as taxation relief, workforce development, and cost management.

You can read the full report here:Understanding Business- Wave 7-Dec 2024