With the Fraser of Allander Institute forecasting that Scotland’s economy will shrink by 1% in 2023, Mark Mulholland, partner in the Wylie & Bisset’s business advisory department, advises business owners to bear in mind that this means that much of the economy will remain robust and so they should avoid making a kneejerk response to the gloomy outlook.

Mr Mulholland said: “I do see that discretionary spending behaviour is changing, with consumers really starting to tighten their belts and trade down to less expensive options.

“For service sector businesses, that means that maintaining your profit margins is essential. I would advise such businesses to consider bundling services and products and contemplate value offerings to attract custom.

“And seek professional advice should you have any pressing financial concerns.”