By Dr Liz Cameron CBE, Chief Executive of the Scottish Chambers of Commerce
As we reflect on a roller coaster year for Scottish businesses, there are grounds for optimism in 2025.
Many of our 12,000 members have faced tough challenges, from rising costs to skills shortages and falling consumer demand. However, what has impressed me most is their incredible resilience in the face of adversity.
Businesses have always found inspiration in adversity, seizing opportunities and demonstrating the entrepreneurial spirit and resolve that has been the bedrock of Scotland’s many success stories over the years.
Difficult challenges remain, with both the recent UK and Scottish Budgets impacting business confidence as we move into 2025. Measures to support growth and investment are positive but there are still major concerns about the impact of taxation, rates relief, and public spending. We need greater targeted support and policy clarity.
This year Scotland’s economy demonstrated remarkable tenacity, with steady GDP growth, driven mainly by renewable energy, technology, life sciences, and tourism. And business confidence has steadily recovered, despite global market volatility and inflationary pressures.
Looking ahead to 2025, I believe the enduring spirit of Scottish entrepreneurship will ensure we are well-placed to seize opportunities, particularly across the digital economy where Scotland’s thriving tech ecosystem is positioning the nation as a hub for fintech, artificial intelligence, and data-driven innovation.
Digital adoption is no longer a “nice to have” but a commercial necessity and with strategic government support to help businesses embrace digitalisation, we can improve our productivity and competitiveness.
In international trade, Scotland’s exporters have found new routes to global markets, despite the lasting impact of Brexit. Demand for Scottish goods, from whisky to sustainable textiles, remains strong.
Global economic conditions, particularly in the Eurozone and key export markets, will continue to have a direct impact on Scottish exports in 2025 and we welcome both the Scottish and UK governments’ continued support in helping promote overseas trade.
The USA is Scotland’s top international export destination and our largest inward investor. With its vast consumer base and strong demand for quality products, Scotland’s whisky, seafood, textiles, and tech solutions are well-positioned to thrive in 2025.
However, changing trade policies and threats of tariffs on specific Scottish exports under a new President Trump administration will create unpredictability and Scotland’s businesses will need government on its side to negotiate competitive trade terms and minimise trade barriers.
Huge opportunities lie in the transition to a net-zero economy and Scotland’s position as a global leader in renewable energy offers a substantial competitive advantage, if leveraged effectively. Our wealth of natural resources—offshore wind, hydrogen, and tidal energy—gives us a transformative edge.
With the right investment climate, Scotland can be a a global leader in green technologies, attracting international investment and creating thousands of high-quality jobs. However, none of these opportunities will be realised without a concerted effort from government and business. 2025 must be a year of bold leadership and policy alignment.
At the start of 2024, inflation was our biggest cause for concern but that began to stabilise in the second half of the year and while energy prices and supply chain issues presented significant obstacles, Scotland’s businesses responded with agility.
I have been encouraged by how quickly our members adapted. That resilience and entrepreneurial creativity has shone through.
Even staffing and skills issues have seen signs of improvement. Unemployment rates remained low, and businesses continued to invest in upskilling and retraining the workforce to close the skills gap.
Young people in Scotland are benefitting from apprenticeships and skills development programmes but to remain competitive on a global stage, we need to continue to upskill our future workforce. The Scottish government must deliver a long overdue review of the Apprenticeship Levy which is clearly not fit for purpose.
Labour shortages obstacles remain in critical sectors such as construction, hospitality, and manufacturing and tackling this requires collaboration between educational institutions, industry and government to align skills provision with market needs.
Fostering an entrepreneurial culture across Scotland’s educational system, from primary schools to universities, is crucial to embedding innovative thinking and a business mindset. I would love to see support networks, accelerators, and mentorship programmes be accessible to all—particularly women, young people, and underrepresented groups.
The cost of doing business remains a significant concern for 2025. Inflationary pressures may not fully ease and uncertainty over interest rates could influence business investment. We need targeted support measures to ease the pressures of rising energy bills, higher raw material costs and burdensome regulations.
Despite some positive changes in the Scottish budget, sustained rates relief continues to be a pressing issue for the hospitality and leisure sector. To that end, the SCC has joined forces with the Scottish Passenger Agents Association to raise these concerns directly to the Deputy First Minister.
Without parity of support, the risk of closures and job losses could escalate, particularly for smaller operators facing reduced footfall and higher operating costs. As we celebrate the festive period and many of those businesses enjoy a busier time, it is only masking the difficulties they face come the quiet months after the New Year.
Scotland’s economy stands at a pivotal moment. Our performance in 2024 reflects a story of resilience, adaptability, and unyielding determination. If we embrace a growth mindset, nurture entrepreneurial spirit, and lead with purpose, Scotland can emerge stronger and greener.
The SCC Network is the leading voice of business in Scotland. We believe in the economic opportunities that lie ahead for our businesses and our country and we would urge government to recognise, encourage and support that ambition.
Businesses need clarity and consistency in regulation and a positive plan for investment and growth that will create the confidence and financial foundations for a thriving economy.
It’s about taking the lessons of 2024 and leading in 2025, where the world recognises Scotland as a place where quality and innovation are the cornerstones of every product and service, and entrepreneurship is rewarded and celebrated.
There have been so many remarkable business achievements this year and there is every reason for optimism that we will continue to advance Scotland’s position on the world stage in 2025.
Originally published in The Herald on December 27th 2024.
