CHARANDEEP SINGH: Scotland's in the grip of relentless squeeze ... but 15 minutes away across the Border the story is very different

Published: 19:49, 6 April 2026 | Updated: 19:49, 6 April 2026 It takes just 15 minutes to drive from Eyemouth to Berwick-upon- Tweed.  But on crossing the Border, you will move from one of the highest cost environments in the UK to a far more competitive one. That short trip underscores the greatest economic challenge facing our nation today. Across Scotland, businesses are in the grip of a relentless squeeze.  Costs are rising, margins are tightening, and confidence remains low.  In that environment, it is no surprise that businesses are holding back on investment or, in some cases, contemplating relocation across the Border. This worrying trend is borne out in the data.  Our latest Quarterly Economic Indicator shows demand remains weak and revenues under pressure. Investment remains stuck, with four in five firms holding back or reducing spend. Charandeep Singh, chief executive of the Scottish Chambers of Commerce, has warned that Scots businesses are in the grip of a 'relentless squeeze' The tax burden is combining with rising labour and energy costs to force businesses to scale back rather than grow. With costs up across the board, firms have no option but to pass this pressure onto increasingly cautious customers. Indeed, almost three-quarters of businesses expect to raise prices in the coming months, a sign of just how entrenched this problem has become. Scotland is becoming the higher-cost option within the UK, and businesses are responding accordingly.  From non-domestic rates to wider divergence in tax, the gap is no longer insignificant. Measures to mitigate the impact, such as the Small Business Bonus Scheme, have provided some relief for firms. But for those operating on tight margins, a tipping point is always just around the corner.  This kind of environment is not sustainable for Scotland’s economy.  That is why we are setting out a different approach.  Backing Scotland’s Businesses: A Plan for Growth is a credible vision for our economic future, focused on a core priority – creating a competitive economy that attracts investment to Scotland. C ompared with the last Holyrood election in 2021, we are now competing in a far more fragmented global economy.  Many shops have fled the High Street amid increasing costs of doing business The post-pandemic bounce faded quickly, and by 2022 the conversation had already shifted from how businesses grow, to how they survive. Since then, firms have been tested relentlessly. Soaring energy bills – among the highest in Europe – place a ceiling on our ability to scale up key industries, like aerospace and advanced manufacturing. Policy determined at Westminster has often only compounded the challenges, including increases to employer National Insurance contributions, which have made hiring new talent more costly, dampening opportunity in the labour market.  Then there is the Energy Profits Levy, which is stifling investment in the North Sea at a time when energy security is essential. Despite the pressures, Scotland’s attributes ensure the nation continues to attract more foreign direct investment than anywhere in the UK outside London.  Proof of this can be found in recent commitments, from Ryanair’s new hangar at Prestwick, to the Center Parcs resort in the Borders. But just imagine how many more of these investments could be made if the next Scottish Government restored a competitive tax system, reformed business rates, and delivered multi-year fiscal planning, allowing businesses to plan further ahead. Businesses are not asking for money to be thrown at their problems – they just need smarter decisions.  Too many Scottish businesses feel like they are trying to compete with one arm tied behind their back. The priority now must be to remove those barriers and restore a level playing field. The next Scottish Government must make Scotland competitive again. ■ Charandeep Singh is Chief Executive of Scottish Chambers of Commerce. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.