“The four Highland Chambers of Commerce – Cairngorm Business Partnership, Caithness Chamber, Inverness Chamber and Lochaber Chamber of Commerce – share the deep concerns expressed by the Scottish Tourism Alliance (STA) regarding the introduction of a visitor levy scheme in the Highlands.
Collectively we believe that implementing a visitor levy at this time would have significant negative consequences for tourism in the Highlands, which is already facing numerous challenges. These include:
- Economic Impact: The current economic climate is fragile. A visitor levy would further increase the cost of tourism, potentially deterring visitors and harming businesses that rely on tourism for their livelihoods.
- Administrative Burden: The proposed percentage-based charging model is complex and costly to administer for businesses. A simpler, fixed-fee model would be more manageable and equitable.
- Funding Uncertainty: There is a lack of clarity on how the revenue generated from the levy will be used. We urge that funds be specifically and transparently allocated to enhancing the visitor experience and supporting sustainable tourism development in the Highlands.
- Competitive Disadvantage: The Highlands already face challenges in attracting visitors due to factors like travel costs and remoteness. A visitor levy would further increase the cost of visiting the region, making us less competitive compared to other destinations.
- Inadequate Consultation: Many businesses and residents in the Highlands remain unaware of the implications of the visitor levy (for example that Highland residents will pay the levy if staying in accommodation for business or a hospital appointment) and have not been adequately consulted on its potential impact.
- Operating Costs: With the UK’s VAT rate among the highest in Europe, applying VAT to this levy effectively creates a double tax, driving up prices for consumers. For numerous small businesses, this added burden could push them over the VAT threshold, forcing them to take on unsustainable financial and administrative pressures. This scenario risks leading to business closures or shorter operating seasons, further weakening the sector’s stability
We urge the Scottish Government and The Highland Council to:
- Pause and Review: Take time to carefully consider the potential impacts of a visitor levy on the Highland economy and tourism sector.
- Re-evaluate the Charging Model: Explore a simpler, fixed-fee model that is more manageable for businesses and less burdensome for visitors.
- Ensure Transparent Funding: Guarantee that the revenue generated from the levy will be used to directly benefit the Highland tourism industry and support sustainable tourism development equally across the region.
- The Highland Council needs to confirm how many staff it will need to employ to administer the scheme and how much the employer costs will be including full salary, on-costs, office costs, IT costs etc. Furthermore, the council needs to appoint an industry led forum to lead on decision making for the levy.
- Conduct Thorough Consultation: Engage in meaningful balanced consultation with businesses and communities across the Highlands to understand their concerns and ensure their voices are heard.
The Highland tourism industry is vital to the region’s economy and provides significant employment opportunities. We understand that change is needed for the tourism industry and are very happy to explore all options with relevant stakeholders. We believe that a well-considered and carefully implemented approach to tourism development is crucial for the long-term success of the Highlands. Therefore, we urge caution and a thorough review of the proposed visitor levy before any decisions are made. Collectively, as the largest tourism business member organisation in the Highlands, we would urge Highland Council to open meaningful dialogue before proceeding.”
Issued on behalf of the Highland Chambers of Commerce by:
- Trudy Morris, CEO, Caithness Chamber of Commerce
- Craig Mills, CEO, Cairngorm Business Partnership
- Colin Marr, CEO, Inverness Chamber of Commerce
- Frazer Coupland, CEO, Lochaber Chamber of Commerce
Trudy Morris, CEO, Caithness Chamber of Commerce: Find the Perfect Fit for your Firm.
As the year draws to a close, with Christmas fast approaching and the holidays in sight, it’s incredible to see the 2025 calendar already filling up fast. We’re delighted to kick off the new year with Caithness Jobs and How to Get Them—the county’s premier jobs, training, and recruitment event. Mark your calendars for Saturday, 8th February 2025, when this exciting event returns to UHI ETEC, Thurso.
People truly are a business’s greatest asset, and attracting top talent is crucial to building a resilient and dynamic workforce. This event provides a fantastic platform for employers to connect with potential candidates and highlight the breadth of opportunities available in our region. It also offers attendees valuable insights into the skills and qualifications businesses need now and in the future. Open to all, the event is ideal for school leavers, career changers, those returning to work, or anyone seeking inspiration to find their dream job.
As the hosts of DYW North Highland, Caithness Chamber of Commerce is dedicated to helping young people realise their full potential. The saying “You can’t be what you can’t see” highlights the importance of role models in expanding horizons and inspiring the next generation. Caithness Jobs and How to Get Them is the perfect platform for this, helping young people and job seekers connect with the opportunities that shape their futures.
Our region is on the brink of transformative opportunities, and we are entering an exciting new era of employment generation. Expanding the local pool of skilled workers remains a top priority for the Chamber and our partners at Focus North. One way we’re driving this forward is through the Caithness Business Fund apprenticeship grant scheme and the FutureSkills initiative – which launched in February with thanks to significant support from NRS Dounreay, the NDA, and the West of Orkney Windfarm. Since January 2024, the Fund has helped 11 local businesses create 12 new apprenticeship opportunities—an outstanding achievement that highlights the commitment of local employers to invest in their people and the region’s future.
Apprenticeships play a vital role in creating opportunities for individuals from diverse backgrounds, equipping them with lifelong skills and supporting their career growth. Every apprenticeship opportunity available in the North Highlands represents a tangible and meaningful pathway for a young person to live, learn, and work in our region and stay part of their own community.
If your business is considering hiring an apprentice or looking to grow and invest in your workforce, the Chamber is here to help. Reach out to our team to explore how we can support your goals.
We wish all our members and the wider business community a blessed Christmas and look forward to welcoming everyone to Caithness Jobs and How to Get Them in the new year!
Ryan Pollard, Managing Director, RDI Renewables
Business Insight, Ryan Pollard, Managing Director, RDI Renewables
From utilising sustainable business practices to providing local employment opportunities, RDI Renewables is spearheading the growth of the green energy sector in North Scotland.
At RDI Renewables, we genuinely believe that innovation and teamwork are essential for creating a better future for generations to come. The UK must meet European targets to reduce our carbon footprint, and as a country, we have an international obligation to lead the way. Sustainable energy solutions and renewable technologies, such as heat pumps, play a significant role in this transition, but it requires skilled workers to bring these solutions to life.
Our business began ten years ago in Thurso with just a couple of vans and a small team. However, as the industry expanded and our business grew, we faced challenges in recruiting enough staff.
To address this issue, we decided to invest in apprentices who work alongside our more experienced employees. Our first apprentice, Ryan Simpson, has been with me for ten years and has become the strongest member of my team. We now employ 13 people, with each department comprising both seasoned professionals and capable trainees at various stages of their apprenticeships.
When we take on a young person—often fresh out of school—we train and mentor them, investing four years into their development. Ultimately, this results in a highly skilled tradesperson. Our hope is that by investing in youth and attracting established tradespeople, we will not only nurture local talent but also strengthen the community and pave the way for a brighter, greener future for the North of Scotland.
Our newest apprentice, 17-year-old Alex, is in his first year at UHI and started his apprenticeship in February. He alternates between classroom instruction and practical experience. This opportunity has allowed Alex to begin a career in the renewable energy sector and secure a meaningful, well-paying job in a community he loves.
We are incredibly grateful to the Caithness Business Fund for supporting our new apprentices through the FutureSkills initiative. This Fund provides business support and financial assistance, helping to improve access to apprenticeships for small and medium enterprises, ensuring that businesses of all sizes are equipped with the necessary skills for now and the future.
Supporting an apprenticeship represents a sustained investment in the future of our region. We have built a fantastic team at RDI Renewables, and we take enormous pride in offering these opportunities in our local area.
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Castletown Mill Project Team Photograph
To celebrate the completion of the Caithness and Welsh slate roofs at Castletown Mill on 11th December 2024, Dunnet Bay Distillers Ltd will be holding a ‘Topping Out’ ceremony. ‘Topping Out’ is a rite traditionally held when the roof of a building is completed. Because Castletown Mill is one of the largest and most imposing 19th century grain mills in the North Highlands of Scotland, Historic Environment Scotland funded the reinstatement of the Caithness slate roof and conservation of the stonework on the circa 1818 wing of the building.
The Grade B listed, north-south wing of Castletown Mill with its iconic Caithness slate roof was originally built as a water-powered grain mill circa 1818 by James Traill (1758–1843) pioneer of the Caithness flagstone industry and Agricultural Improver as a starter enterprise for his heir George Traill (1788–1871). The mill ground grain grown on James Traill’s Castlehill Estate into flour to cater for the growing number of workers employed at his nearby Castlehill Pavement Works. In the late 19th century Castletown Mill was extended, with the addition to the south of a large 3-storey range which had a Welsh slate roof.
In 1991 Castletown Mill was added to the Buildings at Risk Register for Scotland maintained by Historic Environment Scotland where it was classified as ‘derelict’. However, in November 2020, Dunnet Bay Distillers Ltd purchased Castletown Mill and are giving it a new lease of life through a £4 million project to conserve and revitalise this important Grade B listed building. Due to open to the public in Summer 2025 Castletown Mill will be a state-of-the-art craft whisky distillery and world class visitor experience. Dunnet Bay Distillers Ltd was established in 2014 and is owned and operated by Caithness born and bred husband-and-wife team Claire and Martin Murray. It is exceedingly rare that a new distillery opens which is owned and operated locally by a family firm rather than by a big corporation. Dr Susan O’Connor, Head of Grants at Historic Environment Scotland, said, “We are delighted to have supported conservation of this nationally important water-powered grain mill through our Historic Environment Repair Grants Programme. By repairing and reusing Castletown Mill’s historic structure, including use of distinctive Caithness slate, we not only celebrate its industrial past but also safeguard its future for generations to come”.
Martin Murray co-owner and founder of Dunnet Bay Distillers Ltd said that “Castletown Mill, an iconic vernacular building is very much anchored into the landscape of the Dunnet Bay area with its thick Caithness stone walls, and Caithness and Welsh slate roofs. We are grateful to Historic Environment Scotland for awarding us grant funding that has enabled us to preserve the rich history and unique character of Castletown Mill and revitalise it to become the home of Stannergill Whisky”. Producing whisky is an energy intensive process and Castletown Mill will be using a 100% renewable electricity supply complemented with on-site solar electricity generation, battery storage, and an air source heat pump for all the distillery’s heating requirements. Claire Murray co-owner and founder of Dunnet Bay Distillers Ltd stated that “Based on visitors to our gin, vodka, and rum distillery we anticipate that Stannergill Whisky at Castletown Mill will attract circa 25,000 visitors in its first year of operation and will create twelve new full-time equivalent jobs in addition to the people we already employ at Dunnet Bay Distillery”.
The practice of ‘Topping Out’ comes from an ancient Scandinavian religious rite of placing a tree atop a new building to appease the tree-dwelling spirits displaced in its construction. This is a fitting tradition as Castletown Mill is going to be the brand home of Stannergill Whisky. The water to power the large water wheel which was once located on the east gable of Castletown Mill came from the nearby Stannergill Burn. The name Stannergill comprises the Old Norse words: steinn garðr gil – which translates into English as a stone-enclosed gorge (or ravine). The natural Caithness environment, that was once settled by newcomers from Scandinavia, with its fresh sea-air from Dunnet Bay which surrounds Castletown Mill, and the pure Highland water Dunnet Bay Distillers will use to make its whisky will help to create a uniquely smooth and mellow spirit. Stannergill Whisky will use barley grown in the fields surrounding Castletown Mill whilst pot ale and spent lees left over from the distillation process will fertilise the barley used to make more Stannergill Whisky. The flavour of Stannergill Whisky will honour the Caithness whiskies of the past but also present opportunities for new flavours, and new Caithness whisky making traditions.
AIDAsol in Scrabster harbour during an 11-night voyage earlier this year. Picture: Barry Scollay
Each year, the North Highlands beckon to those in search of adventure, new experiences, and escapism. Our region boasts a rich, diverse culture, defined by dramatic coastlines, untamed landscapes, sweeping panoramas, and abundant wildlife. Renowned for our deep- rooted history and famed ‘Highland Hospitality’, it’s not difficult to see why the North Highlands is a popular tourist destination.
With around 792,000 visitors annually, tourism in the North Highlands has a significant economic impact, supporting over 3,000 jobs and contributing £194.94 million to the local economy.1
In October, I was pleased to join peers and colleagues from across the wider Highland region for a roundtable discussion hosted by the Royal Bank of Scotland. The session gathered businesses and industry stakeholders to share reflections on the 2024 season and discuss opportunities and challenges facing the industry.
A primary concern raised was the anticipated visitor levy in the Highlands, which many fear could reduce spending per visitor. Concerns were also voiced about rising costs affecting
both businesses and consumers, potentially rendering the Highlands an expensive destination and threatening the viability of some operators.
Economic outlook surveys indicate consumer spending remains subdued. Although disposable incomes have risen, many are choosing to save rather than spend, reflecting ongoing caution since the pandemic and uncertainty about the future.
The hospitality sector in our region is made up of a rich tapestry of small to medium-sized enterprises (SMEs), which play a pivotal role in shaping the region’s unique visitor experience. These businesses—spanning small independent hotels, bed and breakfasts, self-catering cottages, and boutique guesthouses—are often family-owned and deeply embedded in our communities. It is concerning to read the results of a survey published in October by the Association of Scotland’s Self-Caterers2. The survey revealed that over two- thirds of self-catering operators in Scotland (68%) reported experiencing a ‘negative’ or ‘extremely negative’ impact on their mental health and wellbeing due to recent regulatory changes regarding short-term let regulations. There is a strong sentiment that these regulations have caused financial strain, as well as increased anxiety and uncertainty, highlighting a clear sense of discontent within the sector.
Trudy Morris, Caithness Chamber of Commerce
1 Based on 2022 STEAM data
Tourism and hospitality businesses in North Highlands have indeed faced significant challenges in recent years, including rising costs and the effects of a cooling of a post-Covid boom. The recent Autumn Budget adds further pressures, with tax increases, rising operational costs, and fragile consumer confidence all impacting growth prospects.
Looking to 2025, we anticipate a challenging year and are calling on the Scottish Government to introduce much-needed reforms to business rates, aligning the hard-pressed hospitality sector with the rest of the UK to provide essential relief.
There are, however, new opportunities on the horizon and reasons to be hopeful. A major highlight of the year was the designation of the Flow Country as a World Heritage Site in July. The 10,000-year-old blanket bog, now recognised alongside sites such as the Serengeti and Great Barrier Reef, will undoubtedly elevate the global profile of Caithness and Sutherland, fostering international collaborations and potential economic growth while safeguarding our unique natural heritage.
Scrabster Harbour reported a successful year, welcoming 13 cruise ships, including the 71,304-tonne AIDAsol, which is the largest vessel to ever dock at the port. It was wonderful to see the excitement in Thurso’s town centre as local businesses and volunteers went above and beyond to welcome travellers. It is clear the North Highlands has much to offer to visitors.
The businesses in our region deserve recognition for their resilience as they adapt to the challenges of a constantly changing industry. Moving forward, Caithness Chamber and Venture North are dedicated to supporting our members in navigating an increasingly complex economic environment.
2 https://www.assc.co.uk/industry-news/new-survey-government-regulations-causing-spike-in-mental-health-problems-in-scottish-tourism-sector
View from the Board, Andrew Mackay, Proprietor, The Caithness Collection.
Andrew Mackay, The Caithness Collection
In rural areas such as the North Highlands, where communities can be fragile and employment opportunities limited, the hospitality industry plays a crucial role in retaining local talent and reducing out-migration. It offers a wide range of jobs, from entry-level to managerial roles, with flexible hours that suit individuals such as parents, older workers, and students who need to balance other commitments.
However, changes to employer National Insurance Contributions (NICs) set out in the Autumn Budget will have a disproportionate impact on the hospitality sector, creating significant challenges. The newly lowered threshold will bring thousands of part-time staff into Employer NICs for the first time.
According to UK Hospitality, the sector’s trade body, this change could cost the industry up to four times more than the new headline rate3. Sadly, these changes put an undue burden
on hospitality businesses, which are vital for providing local employment, while favouring businesses that have reduced their workforce through automation or use of technology. These changes to NICs are simply unsustainable for our businesses. With no ability to pass these costs onto customers, the burden will fall directly on us. The Government must urgently consider measures to protect businesses that rely on employing large, diverse workforces.
The human element is what sets hospitality apart. Our teams are essential for understanding and meeting the needs of our guests, building relationships, and creating memorable
experiences. From weddings and graduations to birthdays and funerals, we are entrusted with some of the most significant moments in our customers’ lives—a responsibility our team takes seriously. Hospitality businesses in the North Highlands are at the heart of our local communities.
disproportionately%20affecting%20hospitality
We are excited to announce that Caithness’s largest and most influential jobs, careers, training, and recruitment event is returning to Thurso at the UHI ETEC building on Saturday, 8th February 2025.
This is a fantastic opportunity to connect with local talent, showcase career pathways, and share insights into job opportunities within your organisation.
Interactive activities have proved popular in our previous events – those seeking employment or identifying future career options get a real understanding of how businesses function and the skills required to be part of that workforce.
Some examples of interactive activities and demonstrations provided by companies have included:
• Simulators, Virtual Reality & Demonstrators
• Hair & Beauty, Cookery, Hospitality, Woodwork and Engineering Demonstrations
• Police Riot Gear & Safety Equipment
If you would like to find out more information or register as an exhibitor at the event, please contact tom@dywnh.scot
Louise Sinclair, vice chair of Caithness Chamber of Commerce and general manager at Sinclair Bay Subsea, reflects on the change at John O’Groats
Earlier this month, we were joined by our members for the seventeenth Annual General Meeting of Caithness Chamber of Commerce. This year, our AGM was held in John O’Groats, a village that has undergone an extraordinary transformation over the past 15 years. From being cruelly labeled ‘Carbuncle of the Year’ to becoming a thriving visitor destination, the village’s development has been nothing short of remarkable. The enhancement of local facilities and visitor experiences has worked in synergy with the iconic status and dramatic coastline of John O’Groats, while successfully preserving its local identity and supporting businesses in the area.
We were warmly welcomed at 8 Doors Distillery by founder Kerry Campbell, one of the outstanding local enterprises that has contributed to this dynamic transformation. Established in 2022, 8 Doors Distillery proudly holds the title of mainland Scotland’s most northerly distillery. With a contemporary interior and panoramic views across the Pentland Firth, this modern, forward-looking distillery has turned a neglected site into a flourishing local business, celebrating both heritage and innovation.
Growth, investment, and innovation were key themes in the establishment of the distillery and are indeed vital to the future of our region. However, many businesses in our area continue to grapple with rising costs, labour and skills shortages, and regulatory pressures. At both a local level and as part of the wider Scottish Chambers Network, Caithness Chamber has played a pivotal role in holding governments and policymakers to account on economic and business policies, ensuring that the voice of the North Highlands is heard as part of the national conversation. This work is ongoing, and we remain committed to holding key decision-makers in Inverness, Holyrood, and the newly elected UK Parliament to account, ensuring our region’s priorities remain high on the agenda.
Our commitment to creating a narrative of opportunity for our region’s young people is also fortified by our work with Developing the Young Workforce North Highland, delivering over 400 events and activities for young people from primary school through to S6 this year alone. A special thank you goes out to the business leaders and industry experts who have acted as role models, and generously given their time and expertise to show our young people that anything is possible.
This year’s AGM celebrated the remarkable achievements and dedication of the team at Caithness Chamber. We continue to provide practical advice and support to our members through informative events, business-to-business connections, and mentoring initiatives, strengthening our community and local economy.
Each year, we strive to elevate our impact, and with the ongoing support of our members, partners, and stakeholders, we are confident that together, we will build a more resilient, entrepreneurial, prosperous, and sustainable economy for the future.
Trudy Morris, Chief Executive of Caithness Chamber of Commerce.
This year, our AGM was held against the backdrop of having just celebrated 50 years since the first chamber of commerce was established in Caithness. At the 50th Annual Dinner, we reflected on how far the Chamber has come since 1974 and indeed since the ‘new’ chamber was established some sixteen years ago. With a staff of eleven, it has become the foremost business organisation in the North Highlands, punching above its weight and delivering value for our members, the community and the region as a whole.
Our Chamber has had a successful year, welcoming new members and actively engaging with businesses through a variety of events. We launched a new series of business networking events, offering invaluable opportunities for members to establish connections and raise their business profiles. We’ve also been overwhelmed by the enthusiasm and support shown for our new Members’ Insight initiative, where members have generously shared their knowledge and expertise with their peers.
Talent attraction and access to skilled labour remain critical challenges for businesses across all sectors in our region. In a proactive response, we are pleased to have welcomed Lindsay Matthews as our Talent Attraction Specialist for the Recruit North Highlands initiative, in partnership with the Focus North collaboration. Working closely with local businesses to identify skills gaps, Recruit North Highlands will elevate the North Highlands as a premier destination to live, work, study, and invest. Lindsay will provide tailored support and guidance to prospective candidates considering a move to our region.
We are also thrilled that the Caithness Business Fund is playing a vital role in nurturing young talent in the North Highlands through both the FutureSkills and Caithness Business Fund Apprenticeship Grant Schemes. Throughout the 2023/24 year, the Caithness Business Fund provided support for thirteen businesses with grants towards the employment of an apprentice within their team, with three of these awarded through the new FutureSkills initiative, launched in February 2024 with thanks to a significant investment boost from NRS Dounreay, the NDA and West of Orkney Windfarm. It’s fantastic to see the impact of this investment on our local community as these young people take their first steps into the world of work.
Caithness Chamber is a testament to the dedication and collective efforts of our members, staff, and supporters. We remain committed to fostering a dynamic and resilient business environment. By continuing to support one another and advocating for the unique strengths of our region, we can ensure the North Highlands thrives for generations to come.
Overall, it has been a rewarding year and once again it has been a great privilege to work with our members, who consistently demonstrate the value of community and proven that in both life and business, we are stronger together.
TAX FEARS GROW IN SCOTTISH ECONOMY
Fears over increased taxes and uncertainty over the impact of the Autumn Budget are hitting Scotland’s businesses.
The Scottish Chambers of Commerce’s survey flagged taxation concerns among 55% of businesses – up from 35% last year. Anxiety, particularly around Labour’s Autumn Budget, saw both the tourism and retail sectors reach five-year survey highs of 77% and 70% for taxation respectively.
The survey of hundreds of Scottish businesses, carried out in partnership with the Fraser of Allander Institute, also shows that pressures on cashflow and profit margins are limiting and squeezing growth.
Four out of the five business sectors surveyed reported a fall in profits, with only the services sector showing an increase but still significantly down on the same quarter last year.
Douglas Smith, Vice-President of the Scottish Chambers of Commerce said: “General business confidence is uncertain given recent government rhetoric on how painful this budget will be and taxation is a significant concern.
“How this will impact business and employees is a huge worry and the lack of clarity has stalled investment and undermined confidence.
“In addition, employees worry about personal taxation with fuel duty, pension tax relief and the impact of fiscal drag all taking cash from their pockets. That will lead to increased wage demands as 7 in 10 firms now cite labour costs as their top cost pressure.
Mr Smith added: “Businesses understand that the fiscal backdrop for the Chancellor is challenging. We are willing to work in partnership to overcome these challenges and help grow the economy. However, any changes made must not be at the expense of investment and growth.”
The report also warned that cashflow remains a considerable challenge for firms with three out of five sectors seeing a contraction with only services and tourism reporting growth on balance.
Mr Smith added: “The widespread cashflow issues which are impacting most sectors are concerning.
“Many are about to come out of longer-term energy deals and are looking at hefty increases, with some gas bills alone set to rise 50% this month.
“We will also be looking for help in the forthcoming Scottish Budget to address costs, particularly in business rates which remains a major pressure on almost two thirds of retail firms surveyed.
“Businesses, particularly in the leisure, hospitality and tourism sectors simply cannot endure any further tax burdens.”
The report also highlighted continuing issues on recruitment with difficulties being experienced by half of businesses.
Dr Liz Cameron CBE, Chief Executive of the SCC, said: “We are now 100 days into the new UK government, and we have still not had positive action on the many issues we face.
“One of those is employment and businesses are still being held back by the inability to recruit experienced and skilled staff and the expense of securing and retaining them in a highly competitive, under supplied marketplace.
“We need the Chancellor to help ease that pressure by unlocking targeted investment in training with skills aligned to business demand and a clear international workforce strategy to help fill skill gaps.”
Commenting on the new Employment Rights Bill, Fiona McKee, founder of The HR Practice said: “There is no doubt that good employment practices benefit both employers and employees, and should be encouraged, but there needs to be balance and perspective.
“We welcome the consultation on the introduction of statutory probationary periods to ensuring employees and companies can properly assess suitability in the role, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers.”
Concern around escalating energy costs remain significant for just over half of firms surveyed although inflation worries have fallen from last year’s 75%.
Dale Harris, Chief Executive of ATL Turbine Services said: “It’s difficult to make investment decisions when there is confusion and ambiguity about the direction of taxation, particularly around the energy sector.
“We can’t move forward until we know what the tax burdens and fuel duties will be and how any changes will impact our business and also on our employees where skilled jobs are at a premium.”
Dr Cameron said: “The Autumn Budget is a chance to reset the relationship with business and work in partnership to create jobs and stimulate growth. We have put forward many realistic solutions to encourage investment and ease business pressures, but the test is whether the new government is truly listening as they promised pre-election.”
Professor Mairi Spowage, Director of the Fraser of Allander Institute, said:
“Following a positive start to 2024, economic growth in the summer months has been more hesitant for the UK and Scotland. After a strong start to the year, with growth rates reaching 0.6% in the first quarter and 0.5% in the second quarter, Scotland seemed poised for a sustained recovery.
“However, growth faltered in May and June, reflecting broader economic trends, with only a slight recovery in July at 0.3%. Despite the dip, these figures still reflect a more consistent growth pattern compared to the volatile year of 2023, although Scotland remains just behind the UK in terms of overall performance for 2024 to date.
“The changing pathway for interest rates, for example, is likely to be weighing on business expectations for growth: the latest decision by the Bank of England is likely to yet again temper expectations of the trajectory for interest rates coming down over the next year. These expectations have been continually redrawn as we have moved through 2024.
“The news about the probable increases in energy bills is also likely to impinge on consumer confidence about the Autumn. Overall, though it does feel like many consumers, and certainly many businesses, are holding their breath to see what is announced in the UK Budget at the end of October.”
Get ready to celebrate your business’s achievements with the Inverness Chamber of Commerce Highland Business Awards. These Awards are open to businesses of all sizes and types across the Highland region. Whether you’re a new business or have been established for a while, there’s a category for you. Winning or being shortlisted for an award gives you recognition and a reason to be proud for the entire year!
Caithness Chamber of Commerce is proud to once again sponsor the Highland Business Award for Resilience, designed for a business that has successfully adapted its operations to overcome a short-term challenge and continued to thrive.
Trudy Morris, Chief Executive, Caithness Chamber of Commerce commented:
The Oxford English Dictionary defines resilience as “the ability of a substance to return to its usual shape after being bent, stretched, or pressed”. I find this definition particularly fitting when considering the strength and adaptability of our Highland business community, which withstands and recovers from challenges, facing adversity head-on. However, I would argue that the most resilient businesses are not those that return to their original form, but those that harness the power of challenge to grow, adapt, and thrive, finding new ways of working and opportunities for success.
Our mission remains to nurture a successful, sustainable, and diverse North Highland economy. Our motto, “Stronger Together,” embodies our commitment to this goal, and these awards are a fantastic example of the power of community and the strength that comes from uniting to uplift and support one another. They provide an excellent opportunity to celebrate the very best of Highland businesses and showcase the innovation, ambition, and unique skills of our region.”
Nominations are open until 5.00pm on 9 August.
The Highland Business Awards is one of the flagship events of Inverness Chamber of Commerce that celebrates the achievements of businesses throughout the region. This year there are ten diverse categories to choose from, so enter or nominate now to recognise the businesses and individuals that are integral to sustaining a strong Highland economy.
See all of the categories and download an application pack online at: Highland Business Awards 2024 – Inverness Chamber of Commerce (inverness-chamber.co.uk)
RECRUITMENT AND TAX CONCERNS THREATEN TO UNDERMINE GROWTH IN SCOTTISH ECONOMY
CASHFLOW & PROFITS IMPROVE: Q2 saw significant improvement in terms of cashflow and profits for firms – particularly profits – with growth on balance recorded for both trends.
RECRUITMENT CHALLENGES: Recruitment difficulties increased from 47% to 55% compared to the last quarter, largely driven by challenges across the retail and tourism sectors.
TAXATION INCREASES: Taxation overtook inflation as the leading concern, while fears over competition saw the largest increase (40%) compared to the previous quarter (30%).
LABOUR COSTS: Labour costs are impacting three quarters of firms.
INVESTMENT EASES SLIGHTLY: The report highlighted that although around four in 10 firms are still holding back on investment, that number was slightly down on the previous quarter.
Stephen Leckie, President of the Scottish Chambers of Commerce said:
“Taxation continues to concern firms, to the extent that the issue has overtaken inflation as the leading concern.
“This is having a major impact in attracting and retaining talent in Scotland, contributing to the significant labour challenges many businesses are already experiencing. Divergence on personal taxation has exacerbated the issue.
“Businesses will be looking to both the Scottish and UK government to set out long-term plans to address the current state of taxation which is impacting growth, investment and talent.”
Mr Leckie added:
“Our report shows that over half of Scottish businesses are continuing to experience significant costs and challenges with attracting and retaining the talent they need.
“More restrictive changes to the immigration system made earlier this year, the increase in the national minimum wage, and skills shortages, are all adding pressure on employers.
“The UK Government should address this by introducing a skilled migration strategy which is tailored to the needs of the Scottish economy and restore our reputation as a welcoming and open destination for international students to study, live and work.”
Mr Leckie warned:
“Our latest survey indicates generally improving business conditions across the economy, albeit significant challenges continue to persist which are limiting the ceiling on potential growth and investment.
“The impetus to deliver a credible plan for sustainable growth lies with both the Scottish and UK Government. Now must be the moment to focus on long-term solutions to tackle poor productivity and create an environment for business investment to accelerate.
“The first step is engaging with businesses in Scotland and across the UK, to instil confidence in a new partnership between government and the private sector which is ready to propel our economy to growth and identify how initiatives such as the National Wealth Fund will support Scottish business.”
Mr Leckie commented:
“It’s positive that the survey results are beginning to see a reversal in the consistent trend of frozen investment. Without unlocking investment, firms cannot power the growth the economy needs and which government is relying on to grow the public finances.
“Significant cost pressures, trade barriers and skills shortages, are critical factors to address if we are to see investment across growth sectors such as AI and green technologies.
“To support a just transition, the oil and gas sector urgently needs action and a plan that will give them the confidence to unlock investment worth hundreds of millions which is currently on hold due to uncertainty over the UK Government’s commitment to the sector.”