The poll, drawing on feedback from finance professionals working with or in SMEs, reveals overwhelming concerns with a fiscal plan that is widely seen by the business community as prioritising welfare spending over economic growth.

The survey findings reveal a clear picture of business sentiment: 

• damaging growth: 80% of businesses believe the Budget’s measures will have a “negative” or “very negative” impact on the UK economy.
• stalled investment: expectations of future investment have plummeted, with almost two thirds (64%) stating they are now “less likely to invest” in the next year.
• recruitment freezes: the labour market is set to suffer, as 66% of businesses indicate they are “less likely to recruit” new staff following the rise in the national minimum wage and freeze on tax thresholds.

Susan Love, strategic engagement lead for ACCA Scotland, said; “While businesses in Scotland will have to wait until January for tax plans, the UK Budget was an opportunity to send a message of stability and certainty in how to get the economy moving again.

“Instead, we saw yet more tax complexity through the continued use of ‘tweaks’, rising wage costs and greater regulatory burdens – with firms reporting they are less likely to employ and invest.”  

ACCA urges the government to present a coherent, long-term economic strategy that prioritises private sector investment and provides the stability needed for sustainable growth, moving beyond ad-hoc policy shifts.

Ms Love added; “It’s now imperative that the Scottish Government avoids piling any more pressure on businesses. Indeed, given the increase in employment costs, especially the cost of employing younger workers, it’s crucial that the Scottish Government considers what more it can do to improve funding for apprenticeships and flexible training options for SMEs.”