Understanding Business – June 2026

Business rate hikes have added to mounting cost pressures for Scottish businesses, with seven in ten (69%), excluding ‘don’t knows’, reporting that they’ve experienced increases in the last 12 months. 

In the latest quarterly Understanding Business survey of more than 500 Scottish firms, published today (Monday 29 June), business rate increases were listed as a contributing factor in rising costs, with other causes including workforce costs and the price of utilities and raw materials. 

 More than half (51%) of affected companies said they have raised prices in response to rising business rates.  

 Other actions firms have taken in response to rising rates include changing strategy (38%), delaying growth plans (27%), dipping into savings or investments (22%), creating new charges (18%), and cutting staff (14%). 

 More broadly, two-in-three firms (65%) expect to increase prices over the next three months, which is the highest level recorded in the survey since June 2023, at the peak of the post-pandemic cost-of-living crisis.  

 These pressures have contributed to wider concerns over business survival, with two-fifths (40%) of businesses saying they are more concerned about survival than they were three months ago – the highest levels since March 2024. Fuel costs have also emerged as a significant concern, with two-thirds (66%) saying they are more worried about fuel prices than three months ago. 

Understanding Business is a quarterly survey, which is designed and conducted by Diffley Partnership and Charlotte Street Partners. More than 500 senior decision-makers at Scottish firms are asked a range of questions about the prospects for their own organisation, the wider economy, and topical issues in business and politics. Interviews for this latest quarter were conducted during May and June.  

You can find the full report here: Understanding Business, Wave 13 – June 2026 – FINAL