Just 9% of Scottish firms agree that the Scottish Government understands the business environment in Scotland, compared to 64% of businesses that disagree according to the latest Fraser of Allander Institute Scottish Business Monitor (SBM) report.

Produced in partnership with Addleshaw Goddard, the report on the second quarter of 2023 surveyed over 400 firms from across the Scottish economy in July and August.

Against the backdrop of the Scottish Government’s ‘New Deal for Business’, the Institute asked a series of questions relating to firms’ views of their relationship with the Scottish Government.

The report finds that just 8% of businesses agreed that the Scottish Government engages effectively with their sector, with 67% of firms disagreeing.

A slightly better 19% of surveyed firms agreed that if they wish, they know an effective route to influence Scottish Government policy, while 39% of firms disagreed.

The latest analysis also finds that larger firms typically disagree more strongly than smaller firms when it comes to whether the Scottish Government understands the business environment in Scotland or engages effectively with their sector.

Strathclyde University’s Fraser of Allander Institute has introduced these questions to allow the Scottish Government and the business community in Scotland to understand how the relationship between the sectors is changing. This could help assess the effectiveness of the “New Deal for Business”.

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