Most small and medium-sized businesses in Scotland say there has been no improvement to sales, cashflow or investment in the first quarter of 2023.

The latest Scottish Chambers of Commerce quarterly economic indicator showed some signs of increased confidence, although this came from a “very weak base”.

Many businesses are still struggling in the face of rising cost pressures and high inflation, as well as continuing to face challenges regarding access to the labour market.

The chambers has been running the quarterly economic indicator since 1990 – with 320 businesses responding in 2023.

Concern over inflation remains high among all firms and has seen little movement over the quarter, with 82% reporting increased concern from it.

Stephen Leckie, president of the Scottish Chambers of Commerce, said: “The beginning of 2023 has seen improvement in the prospects of some sectors of the Scottish economy, in line with recent economic data that has been more positive than previously expected.

“One of the most consistent themes in the survey results is the high number of firms antidotally highlighting increased concern from current and or future regulatory burdens.

“These include the deposit return scheme; short-term lets; alcohol advertising; tourism visitor levy; rent controls; to name but a few, and that’s why we pressed all the SNP leader candidates in their leadership contest to commit to reducing business regulation which is adding to the cost of doing business in Scotland.”

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