SCOTTISH businesses are “crying out for the return of some sanity” to ease the burden of Brexit, the Scottish Chambers of Commerce has said.
In its latest Quarterly Economic Indicator survey, it said the economy was close to “running on fumes”.
It said firms faced problems because of “prolonged uncertainty” around the UK’s relationship with Europe, discouraging them from investing or expanding in Scotland.
While businesses were “resilient” and getting on with the day job, all were also “desperate for some kind of resolution to Brexit before the October 31 deadline,” it said.
In the second quarter of 2019, every sector surveyed raised wages apart from retail, showing firms having to pay more to retain talent as the supply of skilled workers dries up as inward migration from the EU declines.
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The majority of sectors also reported rising costs pressures from raw material prices and from overheads related to Brexit preparations, with 64 per cent of manufacturing firms and 52% of construction firms listed rising raw material prices as their top cost pressure.
Chambers President Tim Allan, Chairman of the Scottish Business Advisory Group and President of Scottish Chambers of Commerce, said: “Businesses are weighing the costs of the chaos caused by more dithering over Brexit and the burden is severe. Our members are crying out for the return of some sanity as they undertake the important role of creating jobs and paying taxes.
“Whoever the next Prime Minister will be, they must take brisk action to unlock investment and instil confidence back into the UK economy.
“Scottish businesses need to see steps being taken to avoid a disorderly Brexit and a responsible consensus reached as soon as possible on the Brexit process with the European Union.”
“A future government must be quick out of the blocks to work with the business community in tackling some of the most pressing problems holding back investment, growth and productivity.
“We must pull out all the stops to make the most of Scotland’s future exporting potential and attract investment from abroad, helping to limit any impact of Brexit and maximise Scotland’s economic output.”
Meanwhile, MSPs have urged the construction industry to “take ownership” of the challenges facing it, and improve the diversity and skills of its ageing workforce.
An inquiry by Holyrood’s Economy and Fair Work Committee found women accounted for just 12% of the 147,000 people employed in the construction industry in Scotland.
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The committee also found the industry failed to focus on “long-term value” rather than simply producing things as cheaply as possible.
Convener Gordon Lindhurst said: “The construction industry in Scotland is valued and plays a significant role in the economy, but there are also longstanding challenges.
“A failure to focus on long-term value rather than simply on lowest cost, and a lack of finance are some of the barriers to productivity in the industry. While we saw pockets of good practice, there was a lack of overall necessary change evident.”
Labour MSP Jackie Baillie said: “The SNP have failed to get to grips with the problems surrounding procurement right across the sector, leaving Scottish firms to miss out on vital contracts and the jobs that come with them.”
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