‘Damaging policies hit hard in Highlands’ as 8% fewer SMEs in Far North

The Scottish Liberal Democrats are calling on the Scottish Government to urgently boost support for small businesses as he revealed significant drops in the number of small or medium sized enterprises (SMEs) across Scotland.

In response to parliamentary questions from the party’s economy spokesperson Jamie Greene MSP, it was revealed the number of SMEs in Scotland has fallen from 177,020 to 171,660 - a decline of 5,360 - since 2020.

The data shows a notable decline in rural communities. Across Caithness, Sutherland and Ross, the number of small and medium enterprises (SMEs) registered for VAT or PAYE had fallen from 3965 in 2015 to 3625 in 2024.

The Scottish Liberal Democrats budget negotiations have put a priority on supporting business. They have secured tens of millions in support for business in this year’s draft Scottish Budget, including a new £2.5 package backing young entrepreneurs and an initial £36 million for business rates relief.

Jamie Greene MSP said: “These figures show concerning drops in the number of small and medium sized businesses across Scotland.

“I’ve spoken to lots of skilled and entrepreneurial people who feel there are too many barriers to starting their own business, from the SNP’s economic incompetence to the crushing burden of red tape.

“I am pleased that Scottish Liberal Democrats secured some support for businesses in the draft budget, but we think the Scottish Government can go further. That’s why, in the coming weeks, we will be squeezing the Scottish Budget for every penny to deliver for businesses.

“From more help on business rates to a real skills agenda, only the Scottish Liberal Democrats are offering a realistic plan for delivering a high-skilled, high-wage economy. In May, you can vote for that by backing us on your second, peach-coloured ballot paper.”

The party’s candidate for Caithness, Sutherland and Ross, David Green, said that businesses were the “backbone” of the Highland economy. "They are facing real pressures: rising energy costs, the impact of the UK government’s National Insurance hike, skills and workforce shortages unique to the Highlands, and the urgent need for better transport and connectivity.

He added: "I am clear that without tackling these challenges, no government will be able to meet its commitments on health, social care, transport or education. Scottish Liberal Democrats will therefore continue to engage constructively with the Scottish Government to ensure we see a budget that will deliver more for the Highlands."

ENDS.