UKHospitality Scotland has renewed calls for government support following the release of new business data highlighting ongoing cost pressures across the Scottish economy. The latest findings from the Fraser of Allander Institute underscore the challenges facing hospitality operators as they navigate rising operational expenses.
The comments come as new economic data reveals widespread business concerns across Scotland. The Scottish Chambers of Commerce Quarterly Economic Indicator, produced in partnership with the Fraser of Allander Institute, surveyed 440 businesses and found significant cost pressures affecting multiple sectors.
Key findings show that 78% experienced higher costs this quarter, with 80% expect further cost increases. The survey also found that 72% of firms report increased concern around tax and 77% of businesses said that labour costs remain significant.
Leon Thompson, Executive Director of UKHospitality Scotland, responded to the data with a clear message to policymakers ahead of the upcoming UK and Scottish budgets. He said, “This latest data encapsulates many of the challenges facing Scottish hospitality businesses, particularly the unsustainable costs that continue to stifle growth, threaten jobs and business viability.
“Businesses feel there is no end in sight to the rising costs and, from these findings, appear to have little faith in the Scottish Government to deliver solutions that will help.
“We need to see the UK Government tackle business costs in the Budget in November. UKHospitality continues to raise this directly with the Chancellor and her team, as well as through our #TaxedOut campaign.
“The Scottish Government must then follow up with its Budget in January that puts the needs of business at the heart of its plan. Support on business rates, followed by rapid reform of the current system, is key in order to help provide economic stability and certainty.”