The latest data from the Fraser of Allander Institute reinforces the need for Government action to support Scottish hospitality.
The results:
- 1
Government relations
Only 12% of respondents said the Scottish Government understood the business environment.
- 2
Cost pressures
Nearly 78% of respondents reported higher total business costs this quarter.
Looking ahead, cost pressures are expected to persist, with 80.1 percent expecting total business costs to increase in the next 6 months.
- 3
Employee costs
Total employee costs remain the most significant component cost pressure in Q3, and energy costs are expected to become a rising cost pressure over the next two quarters.
Our response
Leon Thompson, Executive Director of UKHospitality Scotland, 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.”
