Scots firms among the most bullish on prospects

BUSINESSES in Scotland are among the most confident in the UK about long-term economic prospects over the next decade, according to research by Barclays Corporate.

A survey as part of the Business in 2021’report found that two-thirds of firms north of the Border believed the UK would become a better place to do business over the next ten years with steady growth and an increase in real GDP.

Both the technology and hospitality and tourism sectors were identified by almost all Scottish respondents as areas that will fuel much of the country’s economic growth in the long term. Most also predicted there will be a continuing rise in foreign ownership of UK companies and assets.

Ally Scott, managing director for Barclays Corporate in Scotland, said the findings “underlined the temporary nature of the challenges we are currently experiencing”.

“To see so many businesses anticipating steady and sustained economic growth over the next decade should also be welcome news for a government that is focused on developing a growth strategy,” he said.

Scott said the next decade would see more international investment in the UK which would stimulate economic development and job creation but cautioned that could also mean that “decision making, research and development and tax generation may be located elsewhere”.”

While Scottish businesses – along with those from the East Midlands and Northern Ireland – were among the most positive about future prospects for the UK economy, less than half of respondents in London were optimistic.

Retailers were the least positive with technology sector businesses among the most bullish.

The survey also revealed a lack of ambition around exporting, with 74 per cent of UK businesses saying they did not export and had no plans to start in the next ten years. Small businesses were the least enthusiastic, although even 60 per cent of companies with turnover of £100-£500 million had no plans to export. The‘Business 2021 report is due to be published tomorrow