Most Scots firms forecast 2023 being more successful than 2022, despite economic stormclouds, says Lloyds Bank

Most Scottish businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to new data from Lloyds Bank, which owns Edinburgh-headquartered Bank of Scotland.

Almost two-thirds of such firms said they are confident they would have greater success in the coming 12 months than in the past year. However, a fifth were not optimistic, and 14 per cent said they expected their business to perform at the same level over the same timeframe. The research was carried out between December 1 and December 14, encompassing 100 Scottish firms with annual turnover exceeding £250,000, as part of additional polling for the monthly Lloyds Bank Business Barometer, which recently revealed that Scotland saw business confidence drop in the run-up to Christmas – despite the UK as a whole showing an “encouraging” boost.

The latest data has revealed that nearly three in five firms north of the Border are expecting a higher turnover in the coming year than in 2022. A quarter expect this to increase by between 5 per cent and 19 per cent, and 18 per cent believe it will jump by more than a fifth. When businesses were asked what they would do to fuel growth, 91 per cent said they were planning an investment drive, and said funding would be used to generally grow their business (43 per cent), invest in energy efficiency measures (42 per cent), develop their company (41 per cent), and increase wages (29 per cent).

Additionally, alongside investment, Scottish businesses plan on making several New Year’s resolutions. These include retaining workers (42 per cent), improving productivity (39 per cent) and upskilling existing staff (35 per cent). About one in seven said they are set to invest in paying bonuses and short-term incentives, and just over a quarter 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.”