Tag: Bank of Scotland

Dentists secure £650,000 to open practice of the future and create jobs

Two Edinburgh-based dental practices – one NHS and one private – have been acquired as part of ambitious plans to modernise and expand their treatment offerings, thanks to support from Bank of Scotland.  

The businesses will offer implants, adult orthodontics and facial aesthetics with the goal of becoming a referral hub for specialist work from other dentists. To expand the types of dentistry on offer they have already employed an additional 6 members of staff.

La Belle Court Dental & Implant Clinic and Q Court Dental Studio, based in the same building, were purchased in August 2022 by Dr Shahad Al-Dabbagh and Dr Nadine Al-Farhan. 

After meeting at university, the women both worked in various dental practices around Scotland but wanted to own their own business that could offer specialist treatments including digital dentistry, smile makeovers, adult orthodontics and facial rejuvenation treatments such as fillers and anti wrinkle injections.

Shahad and Nadine approached The Bank of Scotland, securing a £650,000 funding package that enabled the businesswomen to purchase the two practices. The support is also funding specialist machinery including an ITERO Scanner, which takes accurate scans of the natural tooth in seconds, reducing the length and number of appointments needed. Also a CBCT machine that can produce precise 3D images of a patient’s mouth was also bought. 

As part of the acquisition, the practice is introducing improved services including same-day appointments for complex treatments.  The business is also updating the interiors including a beauty therapy room, waiting area and bathrooms. The pair also plan to change the layout of the building so they can have more surgery rooms, expanding the number of appointments on offer.

Shahad Al-Dabbagh, co-owner of Sana Corporate said: “We are delighted to open our doors and showcase the future of dentistry to the public.

“The support of Bank of Scotland has allowed us to bring our vision to life. We wanted to create somewhere that offered more than regular d

ental appointments; a place for people to relax in our Therapy Suite and be confident with their smiles with our skilled clinicians.

“We endeavour to grow our dedicated team over the next few years to provide the best dental care and want to continue expanding treatments for our patients across Edinburgh and beyond. The sky really is the limit with two working mothers at the helm!”

Scott Beaton, relationship director at Bank of Scotland commented: “We are proud to support businesses like Q Court Dental Studio and La Belle Court Dental & Implant Clinic.

“Shahad and Nadine have taken their impressive dental experience a step further by creating a space that offers more of what their customers want. It’s a great example of how businesses are evolving alongside customer needs and trends to secure success. 

“We will remain by the side of businesses across Scotland as they work to reach their full growth potential.”

Business confidence in Scotland is highest in the UK

Bank of Scotland Business Barometer for November 2022 shows:   

·       Business confidence in Scotland rose 19 points during November to 24% – the highest reading since July 2022 and highest of all UK nations and regions 

·       Scottish businesses identify top growth opportunities as investing in their teams (43%), evolving their offering (40%) and introducing new technology (35%) 

·       Overall UK business confidence remains robust at 10% with all regions and nations reporting a positive confidence reading apart from the South East 

Business confidence in Scotland rose 19 points in November to 24% – the highest reading since July 2022 and highest of all UK nations and regions, according to the latest Business Barometer from Bank of Scotland Commercial Banking.  

The survey was conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Thursday the 17th November. 

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up eight points to 30%.  When taken alongside their optimism in the economy, up 30 points to 16% this gives a headline confidence reading of 24%.  

Scottish businesses identified their top target areas for growth in the next six months as investing in their teams (43%), evolving their offering (40%), and introducing new technology (35%).   
 
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 
 
A net balance of 8% of Scottish businesses expect to increase staff levels over the next year, down eight points on last month. 
 
Overall UK business confidence fell five points during November, but remained positive at 10%. Firms’ outlook on their future trading prospects was down two points to 25%, and their optimism in the wider economy dropped four points to -2%. Despite a seven-point dip, UK businesses remained positive about hiring intentions with 14% of firms aiming to create new jobs in the next 12 months. 

All UK regions and nations, apart from the South East, reported a positive confidence reading in November, with seven recording a month-on-month increase in confidence. Of those recording an increase in confidence, Scotland, Wales (up 12 points to 17%) and the South West (up nine points to 5%) saw the largest monthly changes. 

Chris Lawrie, area director for Bank of Scotland, said: “It’s encouraging to see confidence among firms in Scotland reach the highest in the UK, as they show their trademark resilience in the face of numerous headwinds and a challenging economy. 

“As firms look to the year ahead, they’ll have a close eye on managing rising prices, and keeping a close eye on working capital will help firms as they try to mitigate the effects of inflation on their operations. We’ll be by their side to ensure they are in the best position possible in the months ahead and they look to capitalise on opportunities for growth.” 

Business confidence in retail increased to 15% (up from 9%), perhaps reflecting a renewed confidence in trading prospects ahead of the festive season. However, business confidence in the manufacturing sector fell for the sixth month in a row, to 4%, down 9 points, the lowest confidence level since early 2021. 

The construction sector held gains made in October, remaining unchanged at 20%, although this level still remains weaker than in the first half of the year. 

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Business & Commercial Banking, said: “The fall in confidence shows just how tough it is for businesses right now. 

“Pressures from rising costs continue and businesses are starting to feel the burden of higher energy bills. However, the tentative easing of wage expectations should provide some solace although we know the labour market is still tight. 

“We would encourage businesses to keep a keen eye on their costs and cash flow as we head into the festive period. If any businesses are struggling, we would encourage them to reach out for support. At Lloyds Bank we remain by the side of businesses to help navigate these challenging times.” 

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Given the recent political and economic landscape, it comes as little surprise that economic optimism and business confidence have fallen this month.

“Pay growth expectations remain high by historical standards, which could signal ongoing difficulties ahead for businesses to fill vacancies.

“Looking ahead, it will be interesting to see if the clearer policy picture provided by the Autumn Statement will lead to business confidence moving in a more positive direction as we go into 2023.” 

Bank of Scotland Business Barometer: Dip in Scottish business confidence

Bank of Scotland’s Business Barometer for October 2022 shows:  

  • Business confidence in Scotland fell 10 points during the last month to 5%
  • Country’s businesses identify top growth opportunities as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%)
  • Overall UK business confidence fell one point during the last month to 15%, with five out of 11 nations and regions reporting a higher reading than September

Business confidence in Scotland fell 10 points during October to 5%, according to the latest Business Barometer from Bank of Scotland Commercial Banking – conducted between 3rd-17th October.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 11 points at 22%.  When taken alongside their optimism in the economy, down 10 points to -14%, this gives a headline confidence reading of 5%. 

Scottish businesses identified their top target areas for growth in the next six months as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%).

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 16% of Scottish businesses expect to reduce staff levels over the next year, down two points on last month.

Overall UK business confidence fell one point during October to 15%, in line with the average over the last three months. Firms’ outlook on their future trading prospects was up two points to 27%, and a net balance of 21% are planning to create new jobs, up four points on last month. However, businesses optimism in the wider economy dropped three points to 2%.

Five UK regions and nations recorded a month-on-month increase in optimism in October. Of those, London (up 16 points to 49%), the North West (up 14 points to 28%) and Wales (up nine points to 5%) saw the largest monthly increases, with London remaining the most optimistic region overall.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “Ongoing economic challenges, not least the cost of doing business, is hitting firms and we’re seeing this reflected in a less optimistic outlook.

“As we approach the busiest trading period of the year for many, businesses across the country need to prioritise maintaining a steady cashflow to remain resilient and be well-equipped for any opportunities to grow.

“After all, Christmas can be a frenetic and expensive time for businesses and their customers, so firms need to have a plan in place to manage this, as well as having some money aside to cover unexpected costs.

“We’ll remain by the side of Scottish businesses to help them continue to navigate the challenging market conditions and push for growth.”  

Business confidence in the manufacturing sector fell for the fifth month in a row, to 13%, down 1 percentage point, the lowest confidence level since February 2021.

Confidence in the retail sector declined by 6 percentage points to 9%, while confidence in the services sector also fell to 16%, both the lowest levels since early 2021.

However, the construction sector saw a 10 percentage point rise to 20%, although this level still remains weaker than in the first half of the year.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “While confidence has marginally decreased this month, this also comes at a time of great economic uncertainty. The fact that it has only fallen by 1% suggests that businesses are showing resilience.

“As we head into the winter months and price pressures continue, energy price increases will start to bite and we are seeing continued pressure on pay expectations.

“Businesses need to keep a watchful eye on costs to ensure they are in the best possible position to face any future headwinds. For businesses that may be struggling, we encourage them to reach out to their networks for support. At Lloyds Bank we remain by the side of businesses to help navigate these challenging times.”  

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “While business confidence has marginally fallen this month, along with a drop in forward looking economic optimism, it is encouraging to see businesses still looking to increase their headcounts.

“However, cost pressures remain evident as businesses raise prices to protect their margins and wage pressure continue to be impactful. Given the recent turbulence in financial markets, it will be interesting to see how this will affect business confidence.”

Scotttish business confidence dips in August but remains in positive territory 

Bank of Scotland’s Business Barometer for August 2022 shows:   

·       Business confidence in Scotland fell 11 points during August to 5% 

·       Country’s firms identify top growth opportunities as diversifying into new markets (30%), evolving their offering (30%) and investing in their teams (27%) 

·       Overall UK business confidence fell nine points during the last month to 16%, its lowest level since March 2021, with only three out of 11 nations and regions recording a higher reading than July 

Business confidence in Scotland fell 11 points during August to 5%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.   

Companies across the country reported lower confidence in their own business prospects month-on-month, down 29 points at 3%.  When taken alongside their optimism in the economy, down 5 points to -6%, this gives a headline confidence reading of 5%.  

Scottish businesses identified their top target areas for growth in the next six months as diversifying into new markets (30%), evolving their offering (30%) and investing in their teams (27%). 

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 
 
A net balance of 10% of businesses in the region expect to increase staff levels over the next year, up 5 points on last month. 
 
Overall UK business confidence fell nine points during August to 16%, its lowest level since March 2021. Firms’ outlook on their future trading prospects was down 32 points to 5%, and their optimism in the wider economy dropped six points to 6%. The net balance of businesses planning to create new jobs also decreased five points to 16%. 
 
While every UK region and nation reported a positive confidence reading in August (except the South East, where confidence dropped 15 points to 0%), only three recorded a month-on-month increase in optimism. The three regions were the North West (up 26 points to 44%), South West (up 12 points to 23%) and Yorkshire (up nine points to 23%), with the North West now the most optimistic region overall. 

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Ongoing pressures around rising costs are clearly continuing to impact Scottish businesses but, despite this month’s dip, that confidence remains in positive territory is evidence of firms’ resilience.  
 
“At times like these, businesses need to keep a close eye on cash flow to help mitigate turbulence in the months ahead. It’s encouraging to see businesses continuing to target new growth opportunities, with nearly a third planning to diversify into new markets. 
 
“We’ll remain by the side of Scottish firms to help them successfully navigate the challenging period ahead.”  

Business confidence declined across all four sectors in August. Confidence within the retail sector declined the most this month (13%, down 18 points), with the service sector also seeing a significant nine-point decrease (15%). Other sectors saw moderate decreases, with manufacturing down by four points (16%) and construction (26%, a fall of two points), in line with recent trends. 

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:  “With inflationary pressures growing, businesses will no doubt be looking to their supply networks along with tight control of costs and profit margins where they can.  

“We know that rising costs are already dealing a heavy blow to businesses, but remaining agile to the changing economic environment will be vital for businesses in the months ahead.

“Firms must keep a tight watch on costs and structure their finances wisely, so they are in the best position possible. Businesses should try to remain flexible, and use the capital and cashflow available to them.  At Lloyds we remain by the side of businesses to help deliver that support.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Business confidence declined for a third consecutive month as firms continue to face economic challenges in the period ahead and as inflation concerns intensify.

“Despite edging lower this month, the outlook for both wage and price pressures remains elevated. However, there are some brighter points as the demand for staff remains positive, and firms reported lower concerns about staffing issues and the pandemic.”  

Business leaders seek tax, trade and skills support to meet the challenge of the next twenty years

Almost half (47%) of UK businesses said taking on new staff is their key ambition in the medium-term, according to new research to mark the 20th anniversary of Bank of Scotland Business Barometer.

The survey asked 600 businesses about the major challenges and opportunities faced in the last two decades and anticipated challenges up to 2040 and beyond.

Companies also highlighted developing new products and services (36%) and increasing online sales (30%) as major ambitions and priorities.

The survey found that businesses expect online purchasing (20%) and demand for instant products and services (18%) to be the biggest changes in consumer behaviour in the next 20 years, forcing them to be more creative and innovative in order to adapt to deliver quickly.

These predictions mirror the factors which businesses cited as having had the biggest impact on their operations in the past 20 years – chiefly greater access to information (24%) and more online purchasing (22%) changing customer behaviour. 

However, firms are optimistic about further changes to consumer behaviour, with 38% reporting that advances in technology have had the biggest positive impact on their business in the past 20 years.

Challenges ahead

Despite a clear drive towards growth, a net balance of 83% of firms anticipate the next 20 years will be more challenging than the past two decades – which included the financial crisis and resulting credit crunch, recession, the Brexit referendum and the global pandemic.

Some of the challenges that businesses see themselves facing can be linked back to the pandemic, including rising costs (23%) and the ability to recruit staff (11%). In addition, one in ten (11%) businesses see the need to keep up with technological developments as their biggest challenge in the next two to three years.

Government provision of greater access to more vocational-based learning was seen by 44% of firms as being a way to help mitigate these challenges. However, companies believe that future growth opportunities will need to be supported by more favourable taxation to encourage sustainable business practices (52%) and new trade agreements with major trading partners (48%).

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “The Business Barometer has provided unique insights into the views of British businesses for 20 years. 

“In that time, we have seen a seismic shift in the economic context in the UK, as well as the extraordinary ability of business leaders to adapt and evolve to meet changing market needs.

“Perhaps it is not unsurprising that, having faced a quite unprecedented period of late and enormous change over the last twenty years, the majority of business leaders feel the next twenty years will be more challenging. 

“To help them through this, businesses are looking for support on skills, finance, trade and taxation to navigate in this environment. One thing that is clear is that our businesses and business leaders are incredibly resourceful and resilient and are adept at facing into constant change.

“They tell us they are gearing up for growth and expect to increase headcount, enhancing their service offering or utilising new technologies. We’ll be by their side over the months and years ahead as they deliver on their ambitions.”

Carmichael lays green foundations with Lanark Road development

A Glasgow-based housing developer has broken ground on a new sustainable 25-flat development in Edinburgh, with support from Bank of Scotland.

Carmichael Homes has delivered 11 developments across Greater Glasgow over the past nine years, including sites in Finnieston and Bishopbriggs. Building on its success, the firm has recently started construction on a new 25-flat development made up of a range of one to four-bed flats on Lanark Road in Edinburgh.

The latest development in Edinburgh will feature a green roof to help the building retain water and aid local biodiversity, enhanced high performing glazing for added insulation, modern fans and an energy efficient boiler system, linked to solar panels.

To support the development, Carmichael Homes secured a seven-figure funding package via Bank of Scotland’s Clean Growth Finance Initiative (CGFI) which provides discounted lending to help firms invest in sustainable projects.

The construction of the new flats is expected to take 16 months, with completion expected by December 2022. The business currently has three live developments across Glasgow and Edinburgh and is expecting a further three projects to go live next year – all of which will be developed with a focus on sustainability.

Carmichael Homes is also supporting Scottish businesses during the development, using products from Wick-based Ashley Ann Kitchens, Aberdeen-based Stewart Milne and many more locally sourced companies. 

Scott Carmichael, managing director of Carmichael Homes, said: “At Carmichael Homes, we create high-quality properties that are sustainably built to help Scotland on its way to net zero.

“The support from Bank of Scotland has been a massive boost to our business. It has enabled us to equip each property with a host of eco-friendly features and ensure each flat has a low carbon footprint.

“The project will also mark a continuation in our expansion into Edinburgh. A recent report* found that people across Edinburgh are concerned with the current climate emergency and by building new homes with this in mind, we are continuing our commitment to provide sustainable homes across Scotland.”

Douglas Spowart, relationship director at Bank of Scotland, said: “Earlier this year it was reported that renewables met 97% of the country’s electricity demand in 2020.

“While this was a positive development on our path towards net zero, there’s still more that can be done. Businesses in sectors ranging from agriculture to construction can all play a considerable role in helping us decarbonise.

“Carmichael Homes’ new project in Edinburgh is a prime example of a Scottish business doing just that and we’re proud to be supporting them with this new sustainable project.

“With COP26 just around the corner, we’ll continue to support businesses like Carmichael Homes as they work to reduce Scotland’s carbon emissions and strengthen our ever-growing green credentials.”

Scottish Business confidence soars to highest levels in UK

Bank of Scotland’s Business Barometer for June 2021 shows:

  • Scottish business confidence leaps 27 points to 42% – the highest in the UK
  • Net balance of 18% of businesses in the country expect to increase staff levels over the next 12 months
  • UK business confidence remains steady at 33% with all regions and nations reporting a net positive reading for the third consecutive month

Business confidence in Scotland rose 27 points during June to 42%, according to the latest Business Barometer from Bank of Scotland Commercial Banking. This is the sharpest rise in overall confidence this year and means Scotland has the highest levels of optimism anywhere in the UK.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 32 points at 42%.  When taken alongside their optimism in the economy, up 24 points to 43%, this gives a headline confidence reading of 42%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

When it comes to jobs, a net balance of 18% of Scottish businesses expect to increase staff levels over the next year, up ten points on last month and the third consecutive month the reading has increased.

Overall UK business confidence remained steady month-on-month at 33%. Firms reported a small increase in their business prospects, up two points to 30%, the highest reading since September 2020. Confidence in the economy dipped marginally by two points to 36%.

Across the UK all regions and nations reported positive confidence readings for the third consecutive month. Businesses in Scotland, London (up 17 points to 41%) and the East of England (up ten points to 36%) reported the highest increases in confidence.

While confidence remained positive, firms in eight regions reported a month-on-month drop. The biggest decreases were in Yorkshire and Humber (down 14 points to 30%), the West Midlands (down 12 points to 29%), the North West (down nine points to 29%) and East Midlands (down nine points to 31%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Business confidence in Scotland rose again in June as firms across the country slowly but surely returned to normal trading. It also positive to see that more firms are now planning to hire new staff this year – another clear indicator that the country is on the path to recovery.

“Despite this, the well-trailed postponement to the easing of lockdown restrictions will have dampened spirits, especially for those in the country’s tourism and hospitality sector and is another sign that we are not out of the woods yet.

“We’ll continue to stand by Scottish business and support firms through the coming months as we look to build back better.”

Differences in confidence between the UK’s regions and nations narrowed this month (chart 5). There were sizeable increases in Scotland (up 27 points to 42%), London (up 17 points to 41%) and the East of England (up 10 points to 36%).

Along with the South West (36%), these were the most confident parts of the country. The largest falls, albeit from previously elevated levels, happened in Yorkshire and the Humber (down 14 points to 30%) and the East Midlands (down 9 points to 31%). There were smaller declines in the South East (down 6 points to 31%), Wales (down 6 points to 31%) and Northern Ireland (down 6 points to 11%).

The majority of responses were given before the various UK governments formally announced the delay to the removal of all limits on social contact, which was originally expected to happen on 21st June in England and close to that date in other parts of the UK.

However, it is likely that anticipation of the delay may have had a small negative impact in confidence particularly in the retail sector (down eight points to 36%) while manufacturing also fell (down 18 points to 35%).

Despite this, confidence remains at historically high levels across the broad industry sectors – in part due to services increasing by five points (31%) to its highest level in more than three years and construction remaining steady at 35%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “Despite a fall in business confidence in eight of the UK’s nations and regions from the highs of last month, the differences are narrowing.

“It’s pleasing to see such significant improvements in a number of regions, in particular Scotland and London, with both reporting strong increases in confidence. We can be optimistic that the increase in confidence in the services sector, as well as the overall historically high levels across the broad industry sectors, bodes well for businesses as we remain by their side on their road to recovery.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “A fifth consecutive monthly increase in trading prospects and employment expectations highlights the resilience of UK businesses as they continue to recover from the challenges presented by the pandemic.

“Although we must now wait slightly longer for the last remaining COVID-19 restrictions to ease, it’s an encouraging sign that firms continue to have strong overall confidence in the outlook for the UK economy, as well as their expectations for their own growth prospects.”

New Digital Academy set to boost 10,000 small Scottish businesses

Bank of Scotland has launched a new digital academy to help people, businesses and charities across Scotland boost their essential skills.

The academy launches today (16th June) and includes live training sessions as well as videos, interactive webpages and guides that can be accessed on demand at any time, all for free. It is also committed to helping more than 10,000 Scottish businesses with their digital skills.

The online lessons are available to everyone, and will build a wide range of skills, from improving confidence online to developing a website for your business, managing your money and staying connected with friends and family. The academy also provides access to online events for small businesses and charities to network virtually and hear from expert speakers.

Bank of Scotland’s latest research revealed that 67% of people said they would improve their digital skills if they knew support was available.

The new data also found that almost two-thirds (63%) of people across Scotland are spending more time online. People are not only spending more time online but are also doing more online. For those who have tried new things for the first time during lockdown, more than nine in ten (94%) expect this to continue in the long-term and almost a fifth (17%) are concerned that their digital skills still aren’t good enough.

More than half (53%) of Scots rely on the internet for day-to-day life and 49% agreed being online helped them to find and get a job.

Philip Grant, chair of Lloyds Banking Group’s Scottish Executive Committee, said: “During the pandemic, digital skills have been a lifeline for many, helping people stay in touch with friends and access services like banking and online shopping. 

“Being online has become part of everyday life for many more people and creating the Bank of Scotland Academy is all about helping people build the right digital skills.

“For small businesses digital confidence and capability have been crucially important. In the last year, 44% of small Scottish businesses wouldn’t have continued trading without digital facilities.[1]

“Having the right digital skills means that people can stay connected with loved ones, businesses can run more efficiently, and charities can raise more funds by reaching more people.

“The lessons are open to everyone, easy to follow and completely free, so my message is: get involved.”

Kate Forbes MSP, Cabinet Secretary for Finance and the Economy, added: “Digital technology plays a key role in a great many aspects of our lives and is essential to our economic recovery. As many people also choose the convenience of digital banking services, industry led initiatives such as the Bank of Scotland Academy will ensure that our financial system remains inclusive and accessible.

“If people have access to devices and the skills and confidence to use them, it will have significant benefits in economic growth and ensuring services work for us all. I would encourage anyone who thinks they would benefit to make use of this excellent new resource.”

The live lessons and resources have been created by Bank of Scotland with the help of expert learning and technology partners. The number of lessons available will evolve over time to reflect changing needs.

Sessions can be booked through Eventbrite[2] and more bespoke sessions will also be available, built around the specific needs and objectives of organisations.

*Statistics taken from the Consumer Digital Index 2021.

Scottish business confidence enters positive territory for first time since the pandemic began

Bank of Scotland’s Business Barometer for April 2021 shows:

  • Scottish business confidence rose 11 points to 9% in April, the first net-positive reading since February 2020
  • But firms are still expecting to reduce staffing levels over the coming months
  • Overall UK business confidence at highest level since September 2018 as lockdown restrictions lift in England and firms in Scotland and Wales begin to reopen

Business confidence in Scotland rose 11 points during April to 9%, the first positive reading since February 2020, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 10 points at 5%.  When taken alongside their optimism in the economy, up 11 points to 13%, this gives a headline confidence reading of 9%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

When it comes to jobs, a net balance of 9% of firms expect to reduce staff levels in the next year, down from 20% last month.

Overall UK business confidence surged 14 points in April to 29%, the highest reading since September 2018. The result follows the reopening of outdoor hospitality venues and non-essential retail and personal services providers in England and comes ahead of further restrictions easing in Wales and Scotland. Firms’ confidence in their own business prospects rose by 14 points to 26% and their optimism in the economy increased by 15 points to 32%.

Most UK regions and nations reported a month-on-month increase in confidence during April, with firms in the South West (up 22 points to 30%), London (up 20 points to 32%), the East Midlands (up 20 points to 40%) and Yorkshire and the Humber (up 20 points to 32%) reporting the largest surges.

No nation or region reported a fall in confidence, and nowhere had a net-negative confidence reading for the first time since July 2019.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “With hospitality and retail reopening this month, firms are feeling more optimistic as they begin to welcome people back to shop, eat and enjoy what Scotland has to offer.

“While some businesses are still planning to reduce staffing levels this year, it’s encouraging to see the number of companies planning job cuts has decreased month-on-month, a trend we hope to see continue. As lockdown restrictions ease over the coming weeks, we will continue to stand by Scottish businesses as they look to their recovery.”

Confidence increased in all sectors, with manufacturing and retail confidence levels at three-year highs. Manufacturing stood out as the most positive sector (40%), likely reflecting strong global demand and notwithstanding ongoing supply chain issues. Retail confidence jumped to 39%, while construction confidence also increased to 28%. Services confidence rose to 25%, which was also the highest it has been since 2018.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “It’s very encouraging to report a continued improvement in sentiment for the UK’s regions and nations, particularly the Northern English regions that are leading the upward trend.

“In the sectors, the story is broadly positive – especially manufacturing and retail, which stood out and reported confidence levels at three-year highs. The retail sector, specifically, experienced some much-needed relief this month with the easing of lockdown restrictions.

“We hope that pent-up consumer demand will drive growth as the economy reopens further.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “A third consecutive monthly rise in business confidence alongside the highest level of confidence for two-and-a-half years tells us a positive story about the UK’s continued economic recovery and leaves us optimistic about the road ahead.

“While uncertainties remain regarding the evolution of the pandemic, this month’s improvement in sentiment reflects a further easing of COVID-19 restrictions, while progress in vaccine deployment is raising hopes that the negative impact of the health crisis will continue to fall in the months ahead as the economy reopens.”

Borders-based Agricultural Society gears up to re-open

A Kelso-based agricultural society is ready to re-open this year after overcoming the challenges of the past twelve months, thanks to support from Bank of Scotland.

The Border Union Agricultural Society (BUAS), formed in 1813, would typically hold four major events a year but saw them all cancelled thanks to the pandemic.

The Championship Dog Show qualifier for Crufts, the Border Union Agricultural Show in July and the BUAS’ annual Kelso Ram Sales, the biggest of its type in Europe, and the Borders Countryside Education day for all primary 5s in the Scottish Borders, were all cancelled in 2020.

The Society’s income was also hit by the cancellation of weddings, events and seminars that were frequently held in its main hall and the showground.

The BUAS received support from Bank of Scotland with a £210k Coronavirus Business Interruption Scheme loan.

The funding has helped the business to pay ongoing business costs not covered by government support schemes and cancellation costs for events.

Now, the Society has become the site of an NHS vaccination clinic to support vaccination efforts in the Borders, and is hoping to hold some of their events this year.

Verity Mutch, administrator at the Border Union Agricultural Society, said: “After the first lockdown last March we saw all of our main events and hall hires for the year cancelled. This was extremely difficult for the Society as we missed out on our main sources of revenue for the entire year.

“Thankfully Bank of Scotland have been very supportive. We’ve been working with them since 1964 and knew they’d be on hand to help us through this difficult time.

“Over the coming months we are hoping to hold some of our events again – albeit in a scaled back capacity. While we took the difficult decision to cancel our agricultural show in January, we hope to hold our ram sales again in September and potentially our dog show in October.”

Julie McLaren, relationship manager at Bank of Scotland, said: “Despite the cancellation of its major annual events, BUAS has worked hard to keep operations running and is now in a position to welcome both members and visitors back once restrictions allow.

“At Bank of Scotland, we’ve supported the business through this challenging period and look forward to seeing the events back on our calendar as soon as possible.

“As with BUAS, we will remain by the side of business in Scotland as we support firms through the remaining months of the pandemic.”