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business in scotland One survey suggested they are often unprepared for net zero and are “pessimistic” about the economic outlook.
The Fraser of Allander Institute’s quarterly Scottish Business Monitor found that companies are also misunderstood Government,
More than 200 businesses across Scotland were surveyed in the third quarter of 2025.
It found that the economic outlook has worsened, with four in five businesses expecting weak or very weak growth in the economy over the next 12 months.
Such a view was expressed by three-quarters of businesses in the second quarter of the year.
More than two-fifths of businesses did not report any financial, operational or strategic preparations for net zero.
About 12% of businesses said so scottish government Understands the business environment, which has shown slight improvement compared to the same time last year.
Only 14% said they knew how to influence policy.
joao sousaFraser of Allander Institute, deputy director, said: “Businesses are still relatively pessimistic about the economic outlook, with cost pressures remaining high and uncertainty surrounding the Chancellor’s upcoming Budget.
“In evidence of business resilience, sales and employment data improved slightly.”
Josh Hampson, assistant economist at the institute, said: “The Scottish Government’s efforts to improve its relationship with businesses have paid off.
“But there is still a way to go to change this perception, with a significant majority of our respondents still feeling that the Scottish Government does not understand the business environment.”
A UK government The spokesperson said: “As part of the transformation plan the UK Government’s mission is to make Britain a clean energy superpower to deliver growth, lower bills and good jobs.
“We have made the largest investment ever in offshore wind and carbon capture to revitalize our industrial sectors.
“We are working closely with business to promote decarbonization across the economy, including through our Net Zero Council.”
Deputy First Minister Kate Forbes said: “I am well aware of the challenges facing businesses – from the current global economic uncertainty to issues created by the UK Government such as Brexit and the increase in employers’ National Insurance contributions.
“I am encouraged that this survey indicates that more businesses believe the Scottish Government understands and is listening to these concerns.
“I am also excited that Scotland’s growth forecast has been upgraded by the Fraser of Ellender Institute.
“This Government is standing behind Scottish business and we will continue to work across a range of sectors to maximize our economic strength to drive growth, create jobs and put more money in people’s pockets.”