Decline in number of VAT-registered businesses

There were 171,350 VAT-registered businesses in Scotland in 2022/23, down from 173,655 in 2021/22, according to the Office for National Statistics.

Michael Shanks, Scottish Labour’s shadow Scotland minister, said: “Small business owners across Scotland are struggling with the weight of SNP and Tory incompetence hurting their businesses.

“The lack of stability caused by both of Scotland’s governments is impacting growth in our economy, with fewer businesses operating than were recorded last year.

“Scottish Labour is the only pro-business party in Scotland as we understand that growing businesses are good for everyone, helping to create wealth and fund our public services.

“Small business owners are increasingly concluding that it’s time to remove the Tories and the SNP, and that only a Labour government will be serious about growth with our mission to get Scotland building again.”