Tag: Resilience

Business confidence dips for Scottish firms in January

Bank of Scotland Business Barometer for January 2023 shows: 

  • Business confidence in Scotland fell five points during January to 10% 
  • As National Apprenticeship Week approaches 27% of businesses in Scotland say investing in training and development presents the biggest opportunity for growth in the next six months 
  • Overall UK business confidence reaches six-month high at 22% with twice as many businesses optimistic about the economy than in December   

Business confidence in Scotland fell five points during January to 10%, according to the latest Business Barometer from Bank of Scotland Commercial Banking. 

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 17 points at 8%.  When taken alongside their optimism in the economy, up six points to 12%, this gives a headline confidence reading of 10%.  

Scottish businesses identified their top target areas for growth in the next six months as evolving their product and service offer (42%), investing in sustainability (29%) and investing in their teams (27%).  
 
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. 
 
A net balance of 14% of businesses in the region expect to increase staff levels over the next year. This is up from December when a net balance of 11% of businesses reported plans to make new hires.  

Overall UK business confidence climbed in January, with firms reporting their highest confidence levels since July last year.  

Business confidence increased by five points to 22% and the net balance of businesses feeling optimistic about the economy doubled on December’s reading to 16%. 

Ahead of National Apprenticeship Week (6-12th February) 30% of businesses across the UK reported that they are looking at opportunities to grow by investing in staff development and training. A net balance of 17% of firms reported plans to create new jobs in the next twelve months. 

Chris Lawrie, area director for Scotland for Bank of Scotland Commercial Banking, said: “Ongoing pressures from wider economic challenges are clearly continuing to impact Scottish businesses, but confidence remains in positive territory and firms’ resilience shines on.  

“Over the next few months as concerns such as rising costs continue, it is important firms keep a close eye on cash flow. Having reserves ready for when challenges hit makes managing turbulent periods easier. We’ll remain by the side of Scottish firms to help them successfully navigate the months and years ahead.”    

For the second month in a row, confidence in the manufacturing and service sectors increased, with manufacturing rising to 28% (up 15 points) and services up to 25% (up seven points). 

Business confidence in construction was down two points to 27%, while retail confidence fell for the second month in a row to 7% (from 13%), the lowest level since February 2021. 

Paul Gordon, Managing Director for Relationship Management, Lloyds Bank Business & Commercial Banking, said: “After a challenging 2022, it’s heartening to see confidence rising for the second consecutive month.

“This is the first back to back increase since September 2021. There is no doubt that the business environment remains challenging and uncertainty still remains, but this improvement in optimism is very welcome as we start 2023.  

“With pay expectations tempering, trade expectations set to improve, and a clearer way forward on energy price support, this may give businesses a bit more certainty and the confidence they need to inspire investment and promote growth.” 

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Business confidence continues to improve following the December boost. Firms are clearly more optimistic about the wider economy and this is driving the increase, helped by precursory signs that wage and other cost pressures may be easing. 

“It is still a tough environment for businesses, with high energy bills remaining a concern during the winter months, but there are grounds for optimism for 2023 if inflation starts to trend lower.” 

Scottish businesses back a better 2023 as turnover prospects shine brighter

Bank of Scotland survey shows:

1.   Almost two-thirds of Scottish businesses (63%) are confident they’ll have more success in 2023 than in 2022, with 58% expecting a higher turnover

2.   91% of country’s firms are planning to invest in their business in the next 12 months

3.   Top of Scotland businesses’ New Year’s resolutions are retaining current staff (42%), improving productivity (39%), and upskilling existing staff (35%)


The majority of Scottish businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.

Almost two-thirds of the country’s firms (63%) said they are confident they would have greater success in the coming 12 months, compared to the past year. A fifth (20%) were not confident about being more successful in 2023, and one in seven (14%) expected their business to perform at the same level in the next year. The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.

Firms in Scotland projected a more upbeat outlook for 2023, with more than half (58%) expecting a higher turnover than in 2022. A quarter (25%) of businesses expect turnover to increase by between 5% and 19%, and almost a fifth (18%) anticipate turnover to increase by more than 20%.

When businesses were asked what they would do to fuel growth, 91% said they were planning an investment drive. Businesses reported that funding would be used to generally grow their business (43%), invest in energy efficiency measures (42%), develop their company (41%), and increase wages for employees (29%).

Alongside investment, Scottish businesses plan on making several New Year’s resolutions. These include retaining current staff (42%), improving productivity (39%) and upskilling existing staff (35%). 14% said they are set to invest in paying bonuses and short-term incentives. A quarter (26%) are intending to target growth from their existing customer base.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “It’s certainly been another year of constant challenges for Scottish firms, but that so many are preparing for greater success and further growth as we approach 2023 is yet another sign of their unwavering resilience.

“As well as growth, businesses must also ready themselves for further challenges ahead, including by effectively managing cashflow and reviewing overheads and expenditure to check whether any changes or cuts can be made.

“Whatever their New Year’s resolutions or goals, we will remain by their side to help them to realise their ambitions and overcome any obstacles ahead.”

Emergency funding for culture

Small movie theater

Creative Scotland has published details of the Independent Cinema Recovery and Resilience Fund, the first of five emergency funds to be delivered over the coming weeks. 

The Independent Cinema Recovery and Resilience Fund is a £3.5million fund from the Scottish Government. The aim of the Fund is to help secure the survival of Scotland’s independent cinemas, enabling them to re-establish and adjust their business models in response to Covid-19.

The fund addresses the critical financial need faced by Scotland’s independent cinemas to enable them to return to full-time operation, significantly reducing the risk of wide-spread redundancies and closure of vital community assets.  

Guidelines for applying to the Fund have now been published ahead opening for applications on Monday 14 September.  

Sambrooke Scott, Head of Audience Development at Screen Scotland said: “We very much welcome the First Minister’s recent announcement of £31.5m in emergency funding for culture in Scotland and are pleased, as part of that, to be able to quickly offer £3.5m of that funding to support Scotland’s independent cinemas.  

“These cinemas not only present a broad range of high-quality creative programming to a varied audience, but they also serve as community hubs in geographically diverse parts of Scotland, including some of our more remote places.  

“This fund will offer a vital lifeline to those independent cinemas which have been impacted by the Covid-19 pandemic, helping them to return to full-time operation and protect jobs.” 

The Independent Cinema Recovery and Resilience Fund is the first of five new emergency funds to be delivered by Creative Scotland over the coming weeks as follows: 

  • The £15m Culture Organisations and Venues Recovery Fund will support organisations that provide opportunities for cultural engagement and who have been unable to trade due to the impact of Covid-19. It includes both organisations who provide opportunities for audience engagement (such as galleries, performing arts spaces, commercial theatres, comedy clubs and nightclubs) as well as those that enable and deliver cultural activity (such as production facilities, music and dance companies). Eligibility criteria and guidelines for applying are currently in development and will be published on Thursday 10 September. The fund will open for applications on Thursday 17 September and awards will be made by the first week in November.  
  • The £5m Creative Freelancer Hardship Fund will address the current financial hardship being felt by creative freelancers who normally work in the culture sector, but whose work has been impacted by Covid-19. We are currently working to appoint partners to ensure a wide spread of coverage of this fund and we anticipate opening for applications from early October. 
  • The £5m Sustaining Creative Practice Fund will support artists to continue developing new creative work that will make a significant contribution to Scotland’s recovery from COVID-19. This includes £1.5 million for the Culture Collective programme, mentioned in the Scottish Government’s Programme for Government, supporting organisations employing freelance artists to work in and with communities across Scotland. The remaining £3.5m will be added to Creative Scotland’s existing open fund which is open for applications from individuals now.  
  • The £3m Youth Arts Fund will ensure creative opportunities for children and young people continue to exist across Scotland despite the Covid-19 pandemic. The fund will include targeted and open funding to youth music and wider youth arts organisations, a scheme to devolve grants locally to artists who work with young people and small grants delivered directly to young people to support them fulfil their creative ambitions. 

Details of all funds will be published on the Creative Scotland website and publicised through media and social media communications. 

Coronavirus: Mass gathering guidance takes effect today

Guidance advising that gatherings of 500 people or more should not take place in Scotland has been published.

First Minister Nicola Sturgeon announced the action last week to protect the resilience of public services – especially emergency services and the NHS – until the impact of COVID-19 (coronavirus) has lessened substantially.

The guidance now asks organisers of all large events – indoors or outdoors – to cancel or postpone.

The Scottish government does not currently have powers to cancel events, but is encouraging and advising organisers to act responsibly to support the efforts of emergency services and the wider public sector to prepare for increased numbers of cases of COVID-19 (coronovirus).

The guidance applies across the board to ensure clarity for event organisers.

The First Minister said: “At a time when there is severe pressure on our fantastic emergency and public services as a result of the virus, it is only right that we seek to remove unnecessary burdens on frontline workers.

“By advising organisers not to hold large gatherings of 500 people or more in Scotland we are enabling services to prioritise their resources to where they are needed most.

“This is just one of the ways that life will change in the coming weeks and months and while this will cause some disruption it will help us all to prepare for the virus and to protect ourselves and each other in the long run.

“As the amount of work required to fight COVID-19 increases over the next few days and weeks it is vital that people continue to follow the health advice such as handwashing and staying at home if you have any mild symptoms.”

‘Coronavirus (COVID-19): advice to organisers on mass events’ is available on the Scottish Government website.