Scottish businesses are warning of record-high hiring costs as concerns mount over increased labour taxes and economic uncertainty ahead of the UK Budget.
A new survey by the Scottish Chambers of Commerce, in partnership with the Fraser of Allander Institute, shows more than 70% of firms feel under pressure from rising costs, with labour expenses topping the list.
The Quarterly Economic Indicator, based on responses from 440 businesses across key sectors, found that over three-quarters of firms cited rising National Insurance Contributions as a major strain on their margins.
Many are now bracing for potential further tax increases in next month’s UK Budget.
Kenneth Gibson MSP said the figures highlight the damaging impact of what he called “Labour’s tax on jobs.”
“The consequences of the Chancellor’s decision to hike National Insurance contributions are becoming clearer by the day,” said Gibson.
“Recruitment is stalling, wages are under pressure, and economic growth is being held back.
“Businesses fear they’ll once again be asked to shoulder the burden of fixing public finances.”
He added that unemployment has reached a four-year high under the current UK government, while the cost of living crisis continues to bite.
“The SNP Government will continue to support families and businesses, but Westminster policies are actively harming Scotland’s interests,” he said.
“Only with the fresh start of independence can we escape the decline of Brexit Britain.”
The report paints a sobering picture of Scotland’s post-pandemic recovery, with businesses urging clarity and stability from Westminster ahead of the budget.
