According to research by Rathbones, 44% of Scottish business owners have provided their employees with regular financial support, while a further 22% have given a one-off lump sum to their staff to help with rising costs.

Inflation soared again in February by 10.4%, and with the cost of everyday groceries the main driver, many households are feeling the strain on their finances. Some business owners have therefore stepped in to support.

This is despite many businesses, and in particular SMEs, also facing a significant uptick in costs, supply chain issues and the tailing down of the Energy Bills Support Scheme this month.

Those in the Highlands and Islands were the most generous to staff with half (49%) reporting to have offered regular financial support in the last six months. Business owners in Edinburgh and the Lothians (45%) and those in Glasgow and Strathclyde (41%) have also been providing considerable regular monetary support to their employees.

More widely, Rathbones’ research found that higher earners across Scotland have also been stepping in to support their loved ones. Over half (55%) of high net worth individuals (HNWs) in Scotland have helped their children or grandchildren over the last six months with regular financial support for bills, with a further 29% having provided a one-off cash payment. Many have also been regularly supporting extended family members such as aunts, uncles, and cousins (37%) and their close friends (41%).

Angus Kerr, head of Scotland at Rathbones, commented: “It is in challenging times where you feel the benefits of having your community the most. With times tough for many individuals, it’s encouraging to see so many business owners stepping in to support their employees. Whether it’s regular financial support or a one-off payment, the help provided by business owners or higher earners will make a real difference in many people’s lives.

“However, it’s vital that business owners are also protecting their businesses and their personal finances throughout this time too. With limited support for SMEs currently available, many could see their costs rise significantly in the coming months. SMEs account for 99.9% of the UK business population and play an important role both as an employer across the UK and to our economy. Ensuring your business is equipped to handle whatever comes next is therefore important.”