Andrew McRae

FSB Scotland policy chair, Andrew McRae, said the Budget on 4 December will be critical for the future of many of the country’s 330,000 small businesses, which together employ 900,000 people.

FSB research shows sharply rising costs are continuing to put pressure on small Scottish enterprises, with the majority experiencing increases of at least triple the rate of inflation and some seeing rises of 10% or more.

Mr McRae added: “Small businesses are being squeezed by a combination of rising costs and customers cautious about spending in a cost of living crisis. Many are operating on extremely thin margins and contemplating hard decisions as they try to protect staff jobs and secure their futures.

“Our members tell us they need to see clear signs the Scottish Government understands these pressures and is taking action to address them.

“That means passing on the business rates relief which has been extended yet again for retail, hospitality and leisure businesses in England, at a rate of 40%. Their counterparts in Scotland are experiencing exactly the same challenges, yet have seen no additional relief since July 2022.

“Similarly, the rates relief offered through the Small Business Bonus Scheme is often described by business owners as a ‘lifeline’ that gets them through the most challenging times. Given the small businesses who lost out during the last reform of this scheme are still dealing with the effects of those changes, it is imperative the scheme is maintained at at least its current levels.”

Mr McRae has written to Finance Secretary Shona Robison urging her to use some of the extra funding allocated to Scotland from the recent UK Budget to fund rates relief at 40% for the country’s retail, hospitality and leisure sector. Doing so would be a clear indication from the Scottish Government that there really is New Deal for Business.

In his letter, he also asked the Finance Secretary to ensure local authorities and other public bodies have the resources they need to build on recent progress made in awarding more public contracts to small, local firms. This will help to ensure more of the £7 billion a year Scotland’s local authorities spend on goods and services stays in their local communities, one of the key aims of the forthcoming Community Wealth Building Bill.