Understanding Business- December 2025

The latest findings from the Understanding Business survey show how Scottish businesses are faring during ever-changing economic times.

This wave shows several shifts from September. Notably, there has been a rise in pessimism towards current and future economic conditions. Despite previous waves showing positive trends, a majority now believe the economy is worse than it was a year ago and a plurality believe it will be even worse in a year’s time.

This wave also shows a deterioration in anticipated business turnover and profitability and a steady belief that prices will generally increase, driven mainly by workforce costs, but increasingly by taxation and the price of utilities.

Adding to the negativity is a slight downturn in positive attitudes towards the perceived concern and action of the UK and Scottish governments when it comes to business issues. Reducing taxation is still the most frequently cited intervention that governments could take to promote growth.Despite shifts in attitudes towards government, the SNP remains the most frequently mentioned when businesses consider the party that best represents their interests.

This wave asked about Scotland-specific business news, garnering mixed responses on whether the country is well served. Questions moved beyond general attitudes to capture engagement with types of news and the salience of business subscriptions.

It also asked a series of questions on artificial intelligence (AI), capturing both the use of AI within businesses and perceptions of AI’s likelihood of meaningfully changing sectors across Scotland. These questions found mixed AI uptake to date, with most businesses using the tool at least some time across certain day-to-day tasks. It also found that businesses see the potential for positive change from AI.

You can read the report here.