Highland businesses 'not in a good place' as Bank of England announces shrinking of UK economy
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The Federation of Small Businesses (FSB) in Scotland has reacted to the announcement from the Bank of England that the UK’s GDP contracted by 0.1 per cent in May.
FSB’s Highlands and Islands development manager David Richardson said the "alarming" announcement was nonetheless no surprise given it was in line with predictions – and May had included three public holidays.
But he added: "However, the truth is that many Highland and Islands businesses are not in a good place. For while our recent Big Small Business Survey found that 46 per cent of businesses here saw their turnovers grow in 2022, for over half of these (56 per cent) it was by less than 10 per cent, ie inflation.
"Add this to the 41 per cent that saw turnovers decrease and the 13 per cent that saw no change, and the picture was far from bright.
“And as for this year, we are getting mixed reports, many tourism businesses saying that while overseas numbers have shot back up following the pandemic’s end, they are no busier than last year and some are less busy.
"And inflation is again cutting deeply into what were already wafer-thin margins.
“We want decision-makers at all levels to do all that they can to ensure that Scotland’s smaller operators are given the best possible chance to trade their way back to growth. For small businesses really are vital to the future of the country, and especially to the Highlands and Islands, supporting jobs, economies and communities."
He added: “More robust support on energy bills from the UK government would help enormously, as would progressing plans to tackle late payment without delay. And the Scottish Government can help too by implementing the recommendations of the New Deal for Business Group as soon as possible to ensure that the needs of small businesses are listened to and met."
