Chamber News
Quarterly Economic Indicator - Results: Q2 2025
15 July 2025 • Sarah Medcraf
The latest Scottish Chambers of Commerce Quarterly Economic Indicator, produced in partnership with the Fraser of Allander Institute, reveals the swift and widespread impact of April’s National Insurance hike with businesses across all sectors feeling the strain.
The survey of more than 400 Scottish businesses found that while confidence and sales have improved over the quarter, ongoing cost pressures and concerns continue to subdue growth and investment.
Key findings
• Concern from taxation has risen by 40% in one year, with 70% of all firms citing increased concern from taxation, compared to 50% in Q2 2024.
• Significant challenges around cashflow and profits, despite positive sales trends across the board. On balance, both cashflow and profits have seen contraction over the quarter.
• The number of firms expecting to raise their prices next quarter has risen to 65%, compared to 50% in Q2 2024.
• Pressure from labour costs has risen by 15% in one year. Nearly 9 in 10 (86%) firms were experiencing increased pressure from labour costs, compared to 75% for the same
quarter last year.
• Staff hiring stalled as over half of all firms (55%) reported no changes to staff levels and 65% expect no change next quarter.
Read the full report HERE
Sarah Medcraf, CE of Moray Chamber said:
“This report confirms what we’re hearing daily from our members. We know that rising labour costs and tax burdens are squeezing businesses at every turn. Employers are doing all they can to protect local jobs and support growth, but the impact of increased National Insurance contributions and ongoing uncertainty is holding many back. We need urgent action to reduce cost pressures, address the growing skills gap, and give businesses the confidence to invest in the future.” |