Edinburgh and Glasgow SMEs to increase economic contribution by 18 per cent by 2025

The economic contribution of small and medium-sized businesses in Scotland’s two largest cities is set to hit a combined £11 billion by 2025.

According to the study by challenger bank Hampshire Trust, which was conducted in partnership with the Centre for Economics and Business Research (CEBR), SMEs in Edinburgh will raise their contribution from £4 billion to £5 billion during the period, while those in Glasgow are predicting an increase from £5 billion to £6 billion.

The figure projected for Edinburgh and Glasgow in 2025 marks an 18 per cent on the figure recorded last year and compares with an average of 19 per cent projected across the other eight cities making up the UK’s top 10.

Those cities are are expected to generate a combined £241 billion in 2025, up from £202 billion last year.

More than a third of those businesses questioned said their growth expectations have declined following the UK’s decision to leave the EU.

The negative impact from Brexit has been felt most sharply in London, where 43 per cent are predicting slower growth.

SMEs in Leeds and greater Manchester are set to boost their contributions the most by 2025, with 26 per cent growth expected in both cities. Bristol follows closely behind at 23 per cent.

Mark Sismey-Durrant, chief executive of Hampshire Trust Bank, said: “If the UK is to be prosperous as we move away from the European Union, we need the government to keep the spotlight on smaller companies by creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”