THE latest research from the Federation of Small Businesses makes worrying reading. It reveals not only a plunge in confidence among small businesses in Scotland in the third quarter, but also a decline in revenues, profits and employment.
In particular, the research flags pressure on consumer-facing businesses, with the FSB highlighting a sustained squeeze on household finances. This pressure is a UK-wide phenomenon, and results in large part from the Conservatives’ relentless austerity programme.
The FSB underlines its view that fears over Brexit have played a key part in the plunge in confidence among small businesses. Fears of a no-deal Brexit have mounted since the start of the summer. And, whether a deal is struck or not, the March 29, 2019 Brexit date is looming ever-larger.
Small businesses are flagging a reduction in their investment, as they take a cautious approach ahead of Brexit. And the FSB’s latest research also shows that 56% of small-business owners in Scotland believe that a no-deal Brexit, without any transition period, would have a negative impact on their enterprises. Only 5% see a positive effect.
At least there was some good news on the Scottish economic front yesterday, with official figures showing growth north of the Border was ahead of that in the UK as a whole for a second consecutive quarter in the three months to June.
It is heartening to see a better performance by the Scottish economy, which has been hit in recent years by oil sector woes. These woes now appear to be easing. Sadly, the damage from the UK’s Brexit folly is only building.
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