Scottish business confidence crashed in the final days of 2020 before further coronavirus restrictions and another lockdown were even on the horizon, according to new research.
The Federation of Small Businesses’ (FSB) UK-wide small business confidence index fell to minus 49.3 points between 14 and 21 December last year, the second-lowest ever recorded by the research series.
However, the equivalent Scottish figure – based on whether businesses believe trading conditions are going to improve or deteriorate – plunged to minus 69 points from minus 26.3 points in the autumn.
Andrew McRae, FSB Scotland policy chairman, said: “This is likely due to our proportionally larger tourism and hospitality sector, as well as the restrictions Scottish firms faced when this survey was conducted.
“The average Scottish business owner has grave fears about the future… worries are founded upon firms facing weeks or months of restrictions after likely draining their cash reserves and