17-07-2025
- Business
- The Herald Scotland
Scottish region tops the UK in job loss expectations
The latest North-east Quarterly Economic Survey conducted by the British Chambers of Commerce (BCC) found that 24% of firms surveyed expect to reduce their workforce in the coming three months. Among those who expect to do so, two-thirds do not work directly in the energy industry.
Read more:
A third of those surveyed in the north-east expect their turnover to decline, compared to 20% across the rest of the UK - again, the worst figures recorded since the pandemic.
'These figures show the economic consequences of poor policy decisions being made in Westminster," said Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce.
'Our members are not calling for special treatment – they are simply asking for fairness and a stable environment in which to plan, invest and grow. The UK economy cannot afford to turn its back on the North Sea – nor on the thousands of businesses in this region that depend on it.'
Nearly four in ten firms (38%) reported falling sales in the last quarter, while forward orders dropped to levels not seen since early 2021.
Read more:
Business confidence also fell with only 30% of respondents expecting turnover to improve in the year ahead, while 49% anticipate a fall in profitability. This contrasts sharply with UK-wide averages of 49% and 28% respectively.
Taxation was cited as the most significant barrier to growth by 73% of those surveyed in the north-east, compared to the UK average of 56%.
The findings have prompted the chamber to renew its call for the Energy Profits Levy to be removed "as soon as possible to prevent further damage". Findlay Anderson of legal firm Gilson Gray, partner in the chamber's quarterly survey, described the situation as one of "deepening economic malaise" exacerbated by "short-term policymaking".
'Businesses are delaying investment decisions not because of a lack of ambition, but because the conditions for growth simply don't exist right now," Mr Anderson said. 'What we're seeing is a loss of confidence – not just in the energy sector, but across the supply chain and wider economy.
'The Energy Profits Levy, coupled with increased employment costs and policy volatility, is creating an environment where firms feel unable to plan ahead. Unless we see a shift in direction soon, the risk is long-term damage to the competitiveness of this region.'
