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SCOTTISH BUSINESS DIGEST

Economy in significant downturn, says Chambers of Commerce

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Greig Cameron
, Scottish Business Editor
The Times

Hello and welcome to our daily digest of business, financial and economic news from around Scotland.

Stephen Leckie, the president of the Scottish Chambers of Commerce, says the economy will be hit in the long term
Stephen Leckie, the president of the Scottish Chambers of Commerce, says the economy will be hit in the long term
CRIEFF HYDRO

1. There has been a “significant downturn” in cashflow and profits across the Scottish economy, according to research from the Scottish Chambers of Commerce.

Its quarterly review, published on Thursday, also found an expectation of further price rises as input cost pressures remained high in the first three months of the year.

Alongside that, many businesses are finding it difficult to recruit staff, while more than half of companies have frozen investment because of the uncertain conditions.

Mairi Spowage, director of the Fraser of Allander Institute, says any growth in the economy is “fragile”
Mairi Spowage, director of the Fraser of Allander Institute, says any growth in the economy is “fragile”
TERRY MURDEN/ALAMY

Many respondents also cited concern about Scottish government tax policy including income tax divergence compared with the rest of the UK, as well as proposed charges such as a visitor levy.

Stephen