Tag: business

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.”

Alcohol sales in Scotland fell to 26-year low in 2020

Minister welcomes figures but pledges further action

Overall alcohol consumption in Scotland fell to a 26-year low during 2020, according to a comprehensive report published today by Public Health Scotland.

The annual Monitoring and Evaluating Scotland’s Alcohol Strategy (MESAS) report brings together data on alcohol consumption, price and related harms into a single publication. It shows that total alcohol sales fell 5% on the previous year, to the lowest level recorded since 1994.

Last year, COVID-19 restrictions affected alcohol sales from premises such as pubs, clubs, and restaurants.  Nine in every ten units of alcohol sold in Scotland in 2020 were sold via off-trade outlets including supermarkets and other off-licences – an increase from seven in every ten units in 2019.

In addition to the evidence from 2020 – the year of the pandemic – today’s MESAS report also details a 10% year-on-year reduction in the number of deaths wholly caused by alcohol in 2019.

Commenting on the results of the studies, Public Health Minister Maree Todd said: “I welcome this report showing that total alcohol sales in 2020 fell to their lowest level for 26 years.

“The study provides valuable insight allowing us to gauge the impact of alcohol sales and consumption during the period of the pandemic. Clearly COVID-19 and the associated restrictions have had a dramatic impact on the hospitality trade, but these figures demonstrate that the restrictions in place did not simply translate into an increase in the total amount of alcohol being consumed. In fact, the opposite is the case.

“We have already seen that alcohol sales were falling since the introduction of our world-leading Minimum Unit Pricing policy in 2018. We know that it will take longer for the full impact of reduced consumption to feed through into health related statistics, but I am more convinced than ever that MUP is one of the main drivers in reducing alcohol harms. 

“Although this is the largest recorded year-on-year reduction in alcohol sales – and also the narrowest recorded gap between sales north and south of the border – it is important to bear in mind that the average number of units drunk during this period was still nearly 30% per cent more than the UK Chief Medical Officers’ guidelines of drinking no more than 14 units a week.

“In addition to these 2020 figures, the report also details a 10% reduction in the number of deaths caused wholly by alcohol in 2019. While we are on the right trajectory, this still equates tragically to nearly 20 deaths every week across Scotland – each one preventable.

“We continue to make progress in reducing inequalities across a number of public health areas – remaining focussed on addressing the underlying causes that drive health inequalities and doing more to address harms from alcohol. I am determined to build on this progress including consulting on potential restrictions to alcohol advertising and promotion.”

LOST SUMMER?

Scottish licensed trade operators are braced for “potentially another lost summer” after First Minister Nicola Sturgeon said this week that it is “unlikely” that any part of Scotland will move down a level from June 28.

Responding to the First Minister’s suggestion that current restrictions will remain in place for a further three weeks, and national clinical director Jason Leitch’s widely-reported comments that Scotland’s lockdown exit plans could be pushed back by up to 10 weeks due to the more infectious Delta strain of coronavirus, the SLTA said: “Another summer season, essential for business survival, will be lost.”

The trade association’s managing director Colin Wilkinson pulled no punches, stating: “The hospitality sector is at breaking point with Tuesday’s announcement that the brakes are on for further easing of restrictions.”

Calling for further financial aid to ensure the survival of the licensed hospitality industry as it plays its part in rebuilding the economy, Mr Wilkinson said: There needs to be an extension to the current support schemes available such as furlough, VAT reduction, deferral of loan repayments and so on.

“Our pubs and bars have already invested millions to provide a safe environment as we all learn to live with this virus and we need to be able to open without restrictions as soon as we can.

“Currently, we can only operate at around 30% of our capacity, but with increased staff costs to provide table service and fewer tables because of social distancing rules, most business continue to operate at a loss, racking up further debt every time they open the doors.

“For those still unable to open because of their size or the entertainment they provide, such as late opening premises and night clubs, it is another devastating blow for an abandoned sector crippled by restrictions and with no route map out of the pandemic.

“Tuesday’s announcement created further uncertainty for the industry and the people it employs. We understand the need for caution but the Scottish Government must also understand that this delay will cost an already beleaguered  industry millions of pounds and puts in jeopardy the future survival of many of the pubs, bars, restaurants, hotels and late night operations that form part of Scotland’s social fibre.

“Our big fear is that the Glasgow fan zone could lead to further Covid outbreaks followed by a fresh lockdown, forcing licensed premises to close again when they have only just managed to start reopening.”

Business accelerator supports young Scottish entrepreneurs by offering £250,000 in startup grants

A business accelerator that supports budding entrepreneurs is offering £250,000 to young people across Scotland who want to grow a digital business. 

The sought-after scheme from TwinklHive provides grants and mentorship to individuals aged 18 to 24 and enables young people to commit and pursue entrepreneurship as a full-time career path and make their business dreams a reality.  

The combination of funding and dedicated support on offer has been designed to provide a unique educational experience and equip successful applicants with the knowledge and skills to grow successful and sustainable businesses.

To apply, the young entrepreneurs must have a validated concept for a technology-enabled business and a clear vision. Their idea should also be focused on solving a real problem for their customers, as the scholarship is looking to develop the next mission driven founders and cultivate startups that will make a real difference to society. 

Each successful applicant will receive a grant of up to £40,000. The scholarship is a full-time position that is set to run for six months, with the opportunity to apply for follow-on investment from the TwinklHive accelerator at the end of this period. 

The applicants are not required to pay back the grant, which also covers the founding team’s salaries of up to £20,000 for the six month period.

Set up in 2019, TwinklHive was created by the entrepreneur Jonathan Seaton, who is the Co-Founder and CEO of the global educational publisher Twinkl. Jonathan started Twinkl with his wife Susie Seaton in their spare bedroom over ten years ago. The business now operates in over 200 countries and regions and has over 790 team members based at its offices in Sheffield and around the world. 

Since its launch, TwinklHive has supported a variety of mission-led founders from startups in the tech sector, including EdTech, FinTech and HealthTech. The accelerator is working to continually extend its support to the startup ecosystem more widely, including assisting and supporting young and aspiring entrepreneurs with their scholarship scheme.

Alongside the non-repayable grant, candidates will receive mentorship and support from Jonathan and the current startup founders from within the Hive. Candidates will also gain access to the accelerator’s expansive business network. All support and mentorship can be accessed virtually to suit candidate’s locations.  

Jonathan Seaton, Co-Founder and CEO at Twinkl and TwinklHive, said: “We’re absolutely delighted to now be in a position to offer support and mentorship to young individuals in Scotland.”

 “We have all been living in unprecedented circumstances due to the pandemic. Covid has undoubtedly impacted the job market, and people are looking to find new opportunities and explore new directions as a result.

“For young people who  are looking for a new direction or to pursue their business ideas, it can be an exciting yet daunting time. Through the TwinklHive scholarship we endeavor to support young entrepreneurs looking to take that leap and pursue and grow a business of their own.

“When my wife, Susie and I founded Twinkl,  we experienced first hand the difficulties young entrepreneurs face when trying to get a business venture up and running. It can be difficult to get investment and having advice from people with experience is invaluable. We hope that we can provide the same kind of advice that helped us all those years ago and give people the opportunity to make a difference to their own lives and to others. ”

Amber Jardine, Hive Manager at Twinkl, said: “The scholarship was created to support young people who are passionate about building a sustainable business. I am so pleased that this year we are able to open this opportunity nationwide and I am looking forward to the prospect of working alongside mission-driven entrepreneurs with innovative solutions.”

The scholarship is open to people across the UK and applications are open now. If you or someone you know would like to apply, please email hive@twinkl.co.uk where further information will be provided.

The closing date for applications is Friday 11th June.

For more information about the scholarship and to find the application form visit the TwinklHive blog.

For more information about TwinklHive visit: www.twinkl.co.uk/hive 

Hink Differently!

Scottish entrepreneurs invest DigitalBoost Development Grant to help businesses

Scottish entrepreneurs Lee Fitzpatrick and Jake Murray have joined forces to create a digital enterprise with a difference. Funded with the support of the DigitalBoost Development Grant, Hink is on a mission to help businesses solve real problems, in a post-pandemic era, using the power of creative thinking.  

With the capabilities of supporting business owners and organisations of any size, across any industry, using a diverse mix of creative exercises and business tools, the Hink approach replaces open discussions and brainstorming with a structured process that leads to more ideas, clearer decisions, and better outcomes.  

Lee Fitzpatrick, Co-Founder of Hink, said: “2020 was a year of significant change, where even the smallest challenges have become difficult to navigate.

“We’ve been inspired by the resilient approach taken by business leaders and their teams during this period. Our workshops have been designed to facilitate the clear and creative thinking that is required, right now.” 

Hink’s workshops include Quick Fire Decision Making, Lightning Sprint, Lego Serious Play, and Design Sprint 2.0, provide an unbiased environment for teams to safely express and explore. Using creative problem-solving techniques to ensure that their workshops are interactive, and goal orientated, their aim is to deliver value and clarity for everybody involved. 

Lee continues: “We believe that matching the right person with the right problem, is the key to a successful workshop outcome. That’s why we’re growing a network of workshoppers from across the globe to help solve your business challenges.

“From culture and team building to brand positioning and product development, there’s no business problem we can’t solve thanks to our diverse team of Hinkers.” 

Funded by The Scottish Government in conjunction with Business Gateway, the £10m DigitalBoost Development Grant was launched in 2020, to help businesses do more online and support the Scottish Economy in these challenging times.

The grant was open to all businesses across Scotland who were looking to enhance their service or organisation using digital technology, platforms, and innovation. 

Effective decision making and creative problem solving can accelerate the growth of businesses and the team at Hink are dedicated to facilitating growth and change that will ultimately contribute to better business and a better world.  

Currently, all Hink workshops will be delivered remotely via Zoom through interactive software facilitating an engaging environment, however, the long-term plan is to bring businesses together physically in an inspiring and engaging environment, when it is safe to do so.  

Hink is currently offering free 45-minute support sessions for all businesses across Scotland, providing them with the opportunity to discuss their challenges, meet experienced workshoppers, and explore workshop solutions.

For more information visit www.hink.co 

Local business leader to chair Young Enterprise Edinburgh & Lothians team

Local businessman, Peter McLean, has been appointed to head up the Young Enterprise Scotland team in Edinburgh and the Lothians and drive forward the charity’s mission to give all local school children access to enterprise learning.

As Chair of the volunteer group, Pete will co-ordinate efforts to introduce more schools and more students to entrepreneurial skills development through the Young Enterprise Scotland (YES) Company Programme.

With his team of business advisers, as well as fundraising and organising events, the role includes working directly with senior school students who set up their own commercial ventures as part of the Company Programme.

Last year, more than 300 students across Scotland achieved an SCQF level six accredited qualification for the Company Programme, which is recognised by UCAS for university entry.

Many sixth formers take the experience of the Company Programme further by setting up their own businesses outside school, while for others, the skills for teamworking, communication and making ideas a reality provide them with a competitive advantage in the jobs market.

In 2019/20, the Edinburgh & Lothians Area Team helped to inspire nearly 300 students and supported 32 YES companies to go through the Company Programme.

Having taken part in the Company Programme himself while at school in Edinburgh, Pete has been involved with YES for over two decades.

A successful serial entrepreneur in his own right, he now acts as a business growth adviser with Napier University, where he helps students, staff and alumni grow and launch businesses.

Pete said: “I have been involved with Young Enterprise for over 20 years, from being part of a team at School, judging, running workshops, a local Board member and now Lothians Chair.

“I am passionate about enterprise for all at every age but especially in education and look forward to helping Young Enterprise achieve its goals. 

“I launched my own food and drinks business whilst at University and grew it to 36 staff over 13 years. There were many highlights over the years, but an equal number of failures and lessons learnt.

“It is these valuable lessons that has led to my current role as Business Growth Adviser at Edinburgh Napier University. I have a passion for the start-up community and hope that in my new role with YES I can steer others down this path and achieve their goals.”

New research reveals changing consumer habits

Over a third of Britons have tried a local small restaurant or shop for the first time by ordering online during the Coronavirus lockdowns, new research prepared by Public First on behalf of Internet Association (IA) has revealed.

And with 71 percent of small and medium sized businesses (SMEs) surveyed planning to continue selling products online after the end of lockdown, the research highlights how changing consumer habits have opened new revenue streams – both during the pandemic and into the future – for small businesses in the UK. 

As non-essential retail in England opened its doors on Monday, the findings – which include new public opinion research and a survey of 250 SMEs in the wholesale, retail and food sectors – show how shopping behaviours have changed during the pandemic and will continue after lockdown eases, as well as highlighting the vital role the internet has played in helping SMEs continue selling products throughout the pandemic.

The extent to which the internet has given SMEs the opportunity to continue selling products throughout the pandemic is clear – with 30 percent offering a delivery function for the first time and 20 percent offering online sales for the first time in order to continue being able to earn revenue while their shops were shut. 

The figures also highlight how the public used the internet to try local small shops and restaurants for the first time during the pandemic – as well as detailing the changing behaviour between online and in person shopping that will remain once the lockdown eases this week. 

The new research shows:

  • Nearly half of the public (48%) ordered food or drinks online from local restaurants during coronavirus lockdowns.
  • 36 percent of the public tried a local shop or food outlet for the first time by ordering online during the pandemic, with three quarters (76 percent) of those people now planning on visiting the outlet physically for the first time once restrictions are eased;
  • More people now plan on taking a blended approach to their shopping habits from next week, with 29 percent now saying they will shop half online, half in person (up from 23 percent saying the same of their habits before the coronavirus pandemic);
  • This blended approach from consumers is also expected by SMEs. When asked about their pre-pandemic sales, 17 percent said they had a mixture of online and in-store sales. However, a quarter (25 percent) now expect to have a mixture of online and in-store sales once retail reopens next week. 

An IA spokesperson said: “This new research shows how the internet has played a vital role during the lockdowns over the last 12 months. Importantly, it also shows how the internet can help drive the UK recovery forward.

“The way people work, shop, and do business may have changed for good – it is clear that the internet sector can help ensure that those changes boost the UK economy, communities, and wider society.

The new research of SMEs also showed:

  • 61 percent of SMEs surveyed said their business would not have been able to survive without using the internet to sell products during the lockdown;
  • 20 percent set up a social media page for the first time, helping firms expand their reach while physical shops had to be closed;
  • 25 percent allowed staff to work from home for the first time.

Business calls for inclusive debate on economic strategy

ISSUED ON BEHALF OF CONCERNED BUSINESS LEADERS

We believe the Oxford Economics report, ‘Raising Scotland’s Economic Growth Rate’ underscores the need for inclusive debate across political parties, Government, trade unions, business, the third sector and the media, indeed all concerned parties, to determine a new economic strategy for Scotland.

Radical and ambitious policy changes are required if Scotland’s economic performance is to be transformed and significantly boosted within the next 15 years and there must be no sacred cows as we determine those changes.

We must, as a necessity not a choice, address Scotland’s low productivity, poor business birth rate and lack of success with scale-ups that mean Scotland’s GDP per head is a mere 44% of Singapore’s level, 48% of Ireland’s, 68% of Norway’s and 75% of Denmark’s.

As the report states “it is not realistic to think that the current economic policies of either the UK or Scottish governments will produce a transformation of Scotland’s economic performance”.

Hence we must act now, in collaboration not conflict, to support and deliver a strategy that takes us up the ladder of GDP and drives innovation and scaling not just within business but across the whole of the public sector.

Achieving significant growth in our GDP is not just in every single persons’ interest, it’s an imperative if we are to maintain and indeed enhance our public services and drive the jobs that are so desperately needed post-pandemic.

We owe it to our young people that we create a vibrant economy for them to inherit and we need to be exceptional custodians of Scotland’s future for their sakes. To do so we cannot simply do what we have always done, tinkering on the edges, Scotland needs to think big and it needs to think fast.

Our opportunity is our size, we are a speed boat compared to the super tanker economies and we are a nation that has historically invented the modern world, its not beyond our ken to do that again.

We implore a rational, national debate on our economic future to then deliver a strategy and an operational implementation plan for Scotland’s growth. 

Signed:

Andrew Parfery,          Company Director,     Caresourcer

Andrew Wilson,          Founding Partner,       Charlotte Street Partners

Carolyn Currie,            Chief Executive,          Women’s Enterprise Scotland

Chris Van Der Kuyl CBE,          Chairman,                   4J Studios

Claus Marquordt,        Co-Founder & CEO,     Integrated Graphene Ltd.

Colin Blair,                   Chairman,                   Buzzworks Holdings

Craig Letton,               CEO,                            MRM Global

Duncan Maclean,        CEO,                            Candle Shack

Ellis Watson,               Company Director

Fraser Edmond,          CEO,                            Broker Insights

Kieran Coyle,               Company Director,     Premiership Experience

Liz Cameron OBE,       Chief Executive,          Scottish Chambers of Commerce

Mairi Mickel,               Company Director and Family Business Adviser

Marie Clare Tully,        Chief Executive,          Columba 1400

Marie Owen,               CEO,                            LS Productions

Mark Beaumont BEM, Athlete, broadcaster, investor and author

Mark Scott,                 Company Director,     Bella & Duke

Paddy Burns,               CEO,                            4J Studios

Philip Ross,                  Company Director,     Safehinge Primera

Poonam Gupta OBE,   CEO,                            PG Paper

Ramin Golzari,            Company Director,     Highlander Outdoor

Ray Perman,                Chairman,                   Inner Ear Ltd

Robin Marshall,           CEO,                            Bain Capital

Ross Tuffee,                CEO,                            Iceberg.tech

Sandy Kennedy,          Chief Executive,          Entrepreneurial Scotland Foundation

Sara Thiam,                 Chief Executive,          Scottish Council for Development and Industry (SCDI)

Steven Easton,            Managing Director,     Green Home Systems Limited

Recovery Loan Scheme launched

A new UK government-backed loan scheme has launched to provide additional finance to those businesses that need it.

  • new loan scheme will provide further support to protect businesses and jobs
  • loans will include 80% government guarantee and interest rate cap
  • government has backed £75 billion of loans to date as part of unprecedented £350 billion wider support package

The Recovery Loan Scheme will ensure businesses continue to benefit from Government-guaranteed finance throughout 2021.

With non-essential retail and outdoor hospitality reopening next week, Ministers have ensured that appropriate support is still available to businesses to protect jobs. From today, businesses – ranging from coffee shops and restaurants, to hairdressers and gyms – and can access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.

The Chancellor of the Exchequer, Rishi Sunak, said: “We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.

“As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”

This is in addition to furlough being extended until 30 September, and the New Restart Grants scheme launched last week, providing funding of up to £18,000 to eligible businesses.

The UK Government is also supplementing this with the Plan for Jobs, focused on protecting, supporting and creating jobs across the country through the Kickstart scheme, T-level and a National Careers Service.

The scheme, which was announced at budget and runs until 31 December 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.

26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.

The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – put into place last year.

So far, the government’s emergency loan schemes have supported more than £75 billion of finance for 1.6 million British businesses and this new scheme will build on that success. This is part of the government’s unprecedented £350 billion support package which has included paying millions of workers’ wages through the furlough scheme and generous grants and tax deferrals.

Business Secretary Kwasi Kwarteng said: “We’re doing everything we can to back businesses as we carefully reopen our economy and recover our way of life.

“The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic.”

Reactions from business groups:

Rain Newton-Smith, CBI Chief Economist, said: “The coronavirus loan schemes have provided a critical lifeline to businesses, and so its successor – the new Recovery Loan scheme – comes as a huge relief to firms.

“These loans can be taken alongside existing COVID loans to help firms refinance, restructure and go for growth.

“It’s vital support remains as restrictions relax and demand returns to normal, allowing businesses to recover, save jobs, and support for reopening.”

Commenting on the Recovery Loan scheme, Suren Thiru, Head of Economics at the BCC, said: Accessing finance remains crucial to the lifeblood of a business and so the launch of the Recovery Loan scheme is welcome.

“The new scheme can play a potentially pivotal role in supporting the recovery by getting credit flowing to the firms who most need it.

“Chambers of Commerce will continue to work with government and the banks to ensure that businesses have the clarity they need to enable them to use the new scheme to help them return to growth.”

David Postings, Chief Executive of UK Finance, said: The banking and finance industry remains committed to supporting businesses of all sizes through the next phase of the pandemic response.

“As focus turns to economic recovery, we know that many firms are still facing uncertainty. The new Recovery Loan Scheme, alongside other commercial financial support, will help firms rebuild and invest for future growth.”

Quarter of Scottish businesses able to expand during pandemic

  • 16% of business owners said that they had started their business during the pandemic
  • But 40% of business owners say they have struggled in the last year
  • Business owners and High Net Worth Individuals (HNWI) in Scotland broadly optimistic over future economic outlook due to easing of social restrictions

Despite a difficult year, over a quarter of Scottish businesses have been able to expand during the pandemic indicating some ‘green shoots’ of recovery according to research by Rathbone Investment Management.

Indeed, some businesses have been able to adapt their business models during the pandemic, with many moving to online sales in order to generate income. This has had a positive impact with a quarter (26%) of business owners having expanded their business during the pandemic.

In addition, a further 16% of business owners founded their business during the last twelve months as the pandemic sparked new ideas and opportunities.

Businesses in Orkney and Shetland were the most likely to have expanded in the pandemic (33%), while Dundee, Perthshire and Angus had seen the highest numbers of newly created businesses (25%).

However, the pandemic has had significant implications for many businesses across Scotland, with four in ten (37%) reporting that they had suffered during the pandemic according to Rathbones’ research.

The ongoing social restrictions have forced large numbers of businesses to close over the last year, with businesses in retail, leisure and hospitality most impacted. Indeed, while a roadmap has been announced that spells out Scotland’s path out of lockdown, one year into the pandemic many businesses have seen significant losses in income.

It’s clear that the pandemic has had a mixed impact on Scottish businesses. As Scotland, alongside the rest of the UK begins to open up many of Scotland’s business owners and HNWIs (those with investable assets over £250k) are optimistic about the state of the economy.

Indeed, 59% of those surveyed by Rathbones said that they were optimistic about the economic outlook of the next twelve months. Of those, 44% said that the easing of COVID-19 restrictions was a key driver behind this belief in the future strength of the economy.

Simon Dewar, Regional Director at Rathbones comments: “The past twelve months have been difficult for businesses across Scotland with every organisation needing to adapt to some extent due to the pandemic.

“However, the impact has been disproportionate with some businesses severely financially impacted. While government support has gone some way to support these businesses throughout this period, its unlikely we’ll see a true recovery until restrictions are fully lifted.

“With the vaccine roll-out ongoing, many business owners will be holding their breath and hoping that this effort reaps dividends and we can stick to the timelines set out in the roadmap.

“It’s clear from our research that Scottish businesses are largely optimistic for the future, with a high proportion expecting a positive outlook for the economy in the next twelve months. As businesses start to recover from the initial impact of the pandemic putting a financial plan together to rebuild any safety net that may have been eroded away during this period will be key for business owners.

Many businesses have deferred any expansion plans over the last year as the focus has been on survival. As confidence grows, so will the sparks of entrepreneurial endeavour, with businesses dusting down these plans and using what they have learned through the crisis to seize opportunity and build robust businesses that drive our economy.”

Scottish business confidence returns to pre-pandemic levels – but remains in negative territory

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

  • Overall confidence of firms in Scotland rose 15 points in the past month to -2%
  • Optimism grew in all UK nations and regions for a second consecutive month after roadmap for ending lockdown restrictions was laid out
  • Overall UK business confidence surged to its highest level since February 2020

Business confidence in Scotland rose 15 points during March to -2%, the highest reading since March 2020, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

The data has been released just a week after the one-year anniversary of the first COVID-19 lockdown.

Companies reported higher confidence in their own business prospects month-on-month, up 6 points at -5%.  When taken alongside their optimism in the economy, which was up 24 points to 2%, the increases give a headline confidence reading of -2%. Despite the increase, Scotland was the only area of the UK to give a net pessimistic reading during March.

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 20% of firms in Scotland expect to reduce staff levels over the next year, up 16 points on last month.

The UK picture

Overall UK business confidence rose for a second consecutive month in March. Firms’ confidence increased by 13 points to 15%, the highest reading since February 2020, before coronavirus was confirmed as a pandemic by the World Health Organisation. 

UK firms’ economic optimism also increased by 15 points to 17%, while confidence in their own business prospects jumped 10 points to 12%.

In fact, every UK region and nation reported an increase in overall confidence during March, with most reporting a double-digit rise month-on-month. The North East (1% to 26%), West Midlands (3% to 27%) and East of England (-8% to 12%) reported the largest increases.

Fraser Sime, regional director for Bank of Scotland Commercial Banking, said: “Scottish business confidence has increased for a second consecutive month and is the highest since March 2020. Despite it remaining in negative territory, there is hope that the end of a challenging year is now in sight. 

“We’ll remain by the side of businesses in Scotland as restrictions are eased in the coming weeks and months, helping them on the road to recovery and as they seek new growth opportunities.”

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “We have completed a full circle since lockdown began in March 2020 and it is uplifting to see businesses portraying confidence for the months ahead. The regions have reported a tremendous result in confidence, especially England which is positive across the board.

“In the sectors, the uptick in confidence for manufacturing is driven by strong trading prospects, while in retail, there is an anticipation that pent-up demand will drive consumption when restrictions are lifted. The months ahead will play a pivotal role in charting the course for the UK’s recovery and we remain by the side of businesses as they go along on this journey.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “It’s been a year since the first lockdown and the surge in confidence this month tells us firms are increasingly confident about economic recovery.

“The broadly positive outlook is driven by steady vaccine deployment, the roadmap out of lockdown and the extension of government support measures. It will be interesting to see whether the momentum for stronger business optimism is sustained in the months ahead.”