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.”
Aspiring entrepreneurs and emerging businesses in Caithness and Sutherland are encouraged to participate in the prestigious Caithness Chamber of Commerce business awards. The awards offer a prime opportunity for businesses to enhance their visibility and receive well-deserved recognition for their outstanding accomplishments.
Winner of the Young Business Award in the Micro category, Mandy Boydell and Ged Boydell of CC Chocolatier with award sponsor Rob Heaton, West of Orkney Windfarm
The upcoming glittering awards ceremony, scheduled for September, will be the focal point of the Caithness Chamber’s annual dinner. This highly anticipated event is a major highlight in the local business calendar. This year’s dinner holds extra significance as it commemorates the 50th anniversary of the establishment of the first Chamber of Commerce in Caithness. This milestone celebrates fifty years of dedicated service to the North Highland business community while also showcasing the innovation and resilience of the region.
Trudy Morris, Chief Executive, Caithness Chamber of Commerce commented:
“Our awards provide a fantastic opportunity for young companies and entrepreneurs to shine, showcasing their successes and allowing us to acknowledge and celebrate their achievements. As a vital part of the business community in North Highland, Caithness Chamber of Commerce is dedicated to supporting businesses at all stages of their development.
It is a great privilege to witness the progress of past award recipients and to support their businesses as they thrive and adapt to the exciting opportunities and challenges ahead.
In the North Highlands, we are fortunate to have an exceptionally supportive business community, and it is wonderful to come together and celebrate the entrepreneurial spirit of our region.”
The Young Business Award is open to enterprises that have been operating in Caithness or Sutherland for no more than five years, and the Young Entrepreneur Award is for trailblazing individuals aged between 18 and 30 living in Caithness or Sutherland.
Coll Murchison-MacDonald, Partner at Saffery Champness, commented: ““As a firm, Saffery want to support opportunity and enable success. What better way to do that than to champion the next generation of local entrepreneurs. We are very pleased to be able to sponsor the Young Entrepreneur Awards and I look forward to meeting those shortlisted at the awards dinner.”
Entries for the awards are open until 5 pm on July 30, 2024, download application forms and entry criteria below:
Young Entrepreneur Entry Form 2024 AM
Young Business Entry Form 2024 AM
Trudy Morris, Chief Executive, Caithness Chamber of Commerce:
The latest Cyber Security Breaches Survey by the UK government paints a troubling picture for businesses, revealing a significant uptick in cyber-attacks over the past year. The survey highlighted half of businesses had fallen prey to these attacks, an alarming 18% increase compared to the previous year. In small and medium businesses, the impact is expected to be much higher and could be as much as 80%. What’s more concerning is that only three in ten businesses have taken the crucial step of conducting cyber security risk assessments.
The financial impact of cyber-crime is significant. However, costs are just one aspect of the problem and the disruption caused can be devastating. National news reports are continually highlighting how major organisations such as the NHS are plagued by attacks. Only earlier this month several London hospitals declared a critical incident after an attack which is expected to cause several weeks’ worth of disruption. It’s safe to say, cyber-crime has cast its net over every aspect of society.
The evolution of communication methods over the last two decades has made us more susceptible to phishing, a deceptive tactic where scammers attempt to trick individuals into revealing personal information or clicking on malicious links. Our devices constantly notify us, updating us about everything from package deliveries to bank updates.
I think back several years ago when I received an email which I thought was from the bank. It had their logo and all the things you would expect. I wasn’t interested in what the email was about, but it reminded me I needed to check the bank. So, I absentmindedly clicked on the link in the email as I was in the middle of something else thinking it would save time. I got to the bank page and started to input the login details and thankfully stopped as I realised this page wasn’t genuine. Scammers take advantage of sensitive timings and create urgency to act, urging users to update passwords, follow malicious links or as in my case trigger a response because of something else going on or needing attention.
Furthermore, with the assistance of artificial intelligence, phishing attacks are becoming more severe, and we can anticipate an increase in both the quality, sophistication, and quantity of phishing in the future.
There is a saying “by failing to prepare, you are preparing to fail” and we are fortunate to welcome Dr Keith Nicholson, founder of Cyber Security Scotland to our upcoming Members’ Insight session on July 17th. Cyber Security Scotland is a non-profit organisation providing advice, assurance, and risk assessments along with cyber security training. Keith will share practical insights on how to safeguard your business from cyber-attacks and will also discuss common cyber threats, vulnerable times for firms, and how to handle such situations. Keith will also walk through essential planning steps to prepare businesses before a cyber-attack occurs.
Business Insight, Dr Keith Nicholson, Founder of Cyber Security Scotland.
As we become increasingly dependent on the internet for doing business, it is essential that firms know how to protect themselves from cyber-attacks and the loss of crucial data. Rarely a week passes without news of a ransomware attack on a company or public body. Usually, these make the news because they are large organisations, but don’t be misled into thinking “I’m OK, we’re too small to be targeted by cyber criminals”. Even micro and small businesses can fall victim to a cyber-attack. All it takes is a click on a link in an email, paying a bogus invoice or completing an online form to “update your banking details”.
And it is so easy to be fooled. Some emails (and increasingly text messages) can mimic the appearance of genuine organisations, such as your bank, HMRC, DVLA or a parcel delivery company and trick you into giving the criminals financial information to enable them to rob you or take out credit cards in your name. Or they simply encourage you to click on a link and then the virus downloads into your computer system and locks up your critical business data. These emails or texts may not be specifically targeted to your businesses but randomly sent out to tens of thousands of email addresses or phone numbers hoping someone will be fooled.
National Cyber Security Centre (NCSC) research shows that 85% of cyber-attacks occur like this; they also indicate that only 15% of businesses across the UK have any plans or know what to do if they fall victim to these attacks.
So, what can you do to protect your business? The good news is that the basic protection is easy and inexpensive.
Through delivering cyber assurance checks and compliance reviews, we have helped organisations of all sizes from large public bodies and multinational firms to small businesses to improve their cyber security and resilience from cyber-attacks. Through this work we have produced a 5-Step guide for firms of any size that covers the common risk areas:
- Have quality security software installed on all PCs, laptops, tablets and mobile phones.
- Make staff aware of common cyber-attack methods and what to look out for.
- Decide what data is critical to keeping your business running.
- Check this data backed up regularly and can be recovered.
- Have a plan on what to do if you are attacked and practice this plan.
These basic prevention measures will reduce the risk of cyber threats.
Staff training and awareness is especially important as we are all vulnerable to making mistakes. We deliver non-technical training and awareness sessions in plain-English to help company staff and directors, but before commissioning sessions such as these, you should look at the free material available on the NCSC website. This offers a useful starting point.
If you are unfortunate to fall victim to an attack, don’t be embarrassed. Contact the NCSC first, they are world-class specialists and can help, then call the police to have the crime recorded, they may be able to help too.
It’s often said that it’s a matter of “When not If” a business will have a cyber-attack – be prepared!
Dr Keith Nicholson is founder of Cyber Security Scotland, a non-profit business offering advice, assurance and risk assessments with training in cyber security. Register for the upcomming Members Insight Session Members the 17th July, where Keith will share more insights to help ensure your business is prepared. Register Now on Eventbrite or Contact the Chamber Team to find out more!
The Highland Business Awards is one of the flagship events of Inverness Chamber of Commerce that celebrates the achievements of businesses throughout the region.
The Awards recognise the success of organisations large and small, new and well established, and across all sectors, while offering our business community the chance to socialise with colleagues, rekindle old connections and make new business relationships.
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.
Nominations are open until 5.00pm on Friday 9 August. Please note there will be no extension to this deadline.
Principal Sponsor – The Highland Council
Highland Business Award for Innovation
A business that has implemented new ideas, products or processes which have contributed to its success, whether in terms of profitability, new customers and/or new markets.
Download nomination form
Highland Business Award for Resilience
sponsored by Caithness Chamber of Commerce
A business that has adapted its operations to overcome a short-term difficulty or challenge, enabling it to deliver on its objectives and continue to prosper.
Download nomination form
Highland Business Award for Positive Environmental Impact
sponsored by Ri Cruden
A business that takes responsible decisions to reduce its negative impact on the environment, actively promoting the benefits and bringing about efficiencies in its operations.
Download nomination form
Highland Business Award for Global Growth
A business that is achieving commercial success by developing its activity in overseas markets, whether for the first time or as part of ongoing international expansion plans.
Download nomination form
Highland Business Award for Digital Initiative
A business that has introduced new digital activity to drive growth in its operation and change how it delivers value to its customers.
Download nomination form
*NEW* Highland Business Award for Best Marketing Campaign
A business that has engaged in standout marketing activity to support a clear business objective. Whether via social media, traditional platforms or an integrated campaign, entries must demonstrate creativity, alongside communications results and impact on the business such as increased sales, a drive in footfall, increased engagement or new business referrals.
Download nomination form
Highland Business Award for Community Engagement
sponsored by Vattenfall Wind Power
A business that demonstrates ongoing commitment to and support for its local community through its activities, helping to improve the lives of others and making the community a better place in which to live.
Download nomination form
Highland Business Award for Employer of the Year
An organisation that demonstrates dedication to its workforce, by continually investing in upskilling and training and putting staff wellbeing at the heart of its activity, resulting in a collaborative and inclusive culture and a stimulating and supportive work environment.
Download nomination form
Highland Business Award for Young Employee of the Year
sponsored by The Springfield Group
A young person who makes a positive impact in the workplace thanks to their dedication, talent and can-do attitude.
Download nomination form
Highland Business Award for Business Leader of the Year
sponsored by Saffery
Someone with a track record of leading and inspiring others, who makes a difference to the Highland business economy through their commitment and passion for the area as well as the industry in which they operate.
Download nomination form
Plus one business selected from the category winners will also be announced overall Highland Business of the Year.
The winners will be announced at the Highland Business Awards Ceremony and Lunch which takes place on Friday 27 September at the Kingsmills Hotel, Inverness. Tickets cost £67.50 + VAT per person and may be booked individually or for tables of 10. Ticket price includes welcome drink and three course lunch with tea/coffee. Click here to reserve tickets.
Caithness Chamber of Commerce calls on the next UK Government to fully recognise the critical importance of the North Highlands, given its significant national assets.
Ahead of the General Election taking place on Thursday 4 July 2024, Caithness Chamber of Commerce highlights key priorities it believes the region’s next MP and UK Government must tackle.
Whoever forms the next UK Government must partner with business to tackle the challenges and grow the economy. The country succeeds when business succeeds. We are asking the next UK Government to work closely with the business community to help deliver the most pro-growth policies to turbo-charge investment, innovation and job creation.
The economy ranks among the top three issues for UK voters. As a chamber network, the companies we represent are pivotal in driving economic growth and employing millions of people. Our members and employees demand confidence in the Government’s support for businesses.
The North Highland region is fundamental to the nation’s transition to renewable power and is at the cusp of transformational developments and opportunities. National assets such as Space, Offshore Wind and significant electricity transmission infrastructure are being developed and planned in our region and off our shores. It is imperative that the next UK Government acknowledges the unique needs of the North Highlands, considering the significant national assets it houses.
A comprehensive action plan by the new UK ministers is necessary to foster rural employment, provide suitable housing, enhance transport connectivity, and support communities. It is crucial to ensure true progress and levelling up in collaboration with businesses, communities, and stakeholders. Whilst some of these are devolved issues, we believe UK Government still has a duty and responsibility given this region’s national importance in the UK’s transition to net zero.
Political parties and both the UK and Scottish Governments must urgently set aside their differences and prioritise delivering for the people, rather than focusing on party politics. This novel approach is desperately needed to realise significant opportunities for empowering and transforming communities like the North Highlands, ensuring they are not left behind.
Scottish EDGE is a large competitive fund to support home-grown entrepreneurial talent comprising a Dragon’s Den style pitching competition for ambitious entrepreneurs who wish to grow their business. Round 24 will launch on 14 August and close on 11 September 2024.
The competition is open to limited companies, social enterprises and charities in Scotland who have been trading for up to five years who wish to apply for up to £100,00 (max £30,000 grant, max £70,000 loan) to accelerate growth of their business. To date there have been 46 Highlands and Islands winners gaining combined monies in excess of £2.1m.
This webinar is open to HIE staff and Highlands and Islands businesses and social enterprises. Alistair Murray and Mike Muir of M2 Procurement and Commercial Services Ltd (who facilitate the programme on behalf of HIE), and a previous Scottish Edge winner will explain the methodology and benefits so that you can potentially explore if you would be suited to and may benefit from entering the competition.
Register for the GoTo webinar: https://attendee.gotowebinar.com/register/2313201380997131351
Celebrating the North Highlands’ Entrepreneurial Spirit
We are thrilled to announce that the prestigious Young Entrepreneur of the Year and Young Business of the Year Awards are now open for entries! These awards are a remarkable opportunity to celebrate and honor the entrepreneurial spirit that drives the North Highlands forward.
Whether you’re a rising young entrepreneur or a dynamic young business, this is your chance to shine, boost your profile, and gain well-deserved recognition for your hard work and achievements.
Awards Details
Entries are open until 5pm on 30 July 2024, and winners will receive the following exclusive benefits:
Young Business of the Year (Less than five years old)
- 2 FREE places worth £160 at the Chamber’s annual dinner for the award presentation.
- 1 year’s FREE membership of Caithness Chamber of Commerce.
- Media coverage through press and the Chamber’s digital and social channels.
- Highlighted profile on the Chamber’s website.
- Young Business of the Year 2024 Trophy.
Young Entrepreneur of the Year (Younger than 30)
- £500 cash prize, generously sponsored by Saffery Champness.
- 2 FREE places worth £160 at the Chamber’s annual dinner for the award presentation.
- 1 year’s FREE membership of Caithness Chamber of Commerce.
- Media coverage through press and the Chamber’s digital and social channels.
- Highlighted profile on the Chamber’s website.
- Young Entrepreneur of the Year 2024 Trophy.
Download an application pack below:
Young Business Entry Form 2024 AM
Young Entrepreneur Entry Form 2024 AM
For more information or a friendly chat before applying please contact us at info@caithnesschamber.com or call 01847 890076.
Businesses and apprentices in the north Highlands can look forward to developing new skills for a greener future, thanks to additional support from the West of Orkney Windfarm.
The windfarm developer – which is planning a major offshore windfarm 25km off the Sutherland coast – has donated £50,000 to support a new apprenticeship programme.
The funds will go to FutureSkills, an apprenticeship grant scheme designed to tackle skills shortages and drive investment in new opportunities for businesses and young people in Caithness and north Sutherland.
The initiative is being led by the Caithness Business Fund and will offer eligible businesses the opportunity to access grant support of up to £24,500 over a maximum period of three years, towards employment and associated training costs of an apprentice.
It was established in March this year with initial funding from NRS Dounreay and the Nuclear Decommissioning Authority.
The announcement was made last week (May 22) as members of the West of Orkney Windfarm team visited Caithness for a series of meetings including Scrabster Harbour Trust, Caithness Chamber of Commerce, Wick John O’Groats Airport and JGC Engineering and Technical Services.
Stuart McAuley, Project Director, West of Orkney Windfarm, said:
“The West of Orkney Windfarm has an ambition to deliver a world-leading energy project which will create long term social and economic benefits for businesses and communities in the north of Scotland.
“This will include employment opportunities through the construction phase and for many years of operation, and we would like as many of these jobs as possible to go to local firms. It is terrific to see local businesses already embracing this exciting new world.
“This donation is an investment in this future and will help up-skill young workers so they can participate in Scotland’s offshore wind energy industry – which will become a major force in the years ahead.”
In addition to the apprentice scheme support, West of Orkney Windfarm has kick-started a number of other initiatives in Caithness, Sutherland and Orkney including a £1 million research and innovation programme at EMEC, a £900,000 pan-industry programme to support ten new STEM coordinators across the UHI partnership, and £125,000 to enable up to seven local companies to take part in the rigorous 12-18 month Fit For Offshore Renewables (F4OR) development programme.
Trudy Morris, Executive Director of the Caithness Business Fund and CEO of Caithness Chamber of Commerce, managing agent of the Fund, said:
“Caithness Chamber has been engaged with the West of Orkney Windfarm for a number of years now and we are delighted they are able to support this excellent apprenticeship scheme.
“It’s open to businesses that can demonstrate a strong commitment to hosting a modern apprenticeship and targets SMEs with the aim of facilitating new apprenticeship opportunities to stimulate business growth and overcome potential financial barriers.
“I’d encourage local firms to apply.”
For more details, please visit the fund’s website here: www.caithnessbusinessfund.com
Farr North Community Development Trust and Caithness Chamber of Commerce have teamed up to reach out to businesses in the northern Highlands to raise awareness of opportunities for receiving support when hiring apprentices.
The Farr North Apprenticeship Scheme is managed by the Trust and is supported by a grant of around £100,000 from the SSE Renewables Strathy North Community Fund. The scheme offers eligible businesses up to £15,000 over a three-year period towards the costs associated with employing and training an apprentice. In some cases this can be combined with the Caithness Business Fund to bring the overall level of support to over £24,000.
Apprenticeships provide a cost-effective way to upskill and expand the workforce. Taking on an apprentice can be a smart investment, benefiting both the business and the local skills base. But as a business in the north, where do you begin?
A good place to start would be Caithness Chamber of Commerce. The Chamber offers a huge range of help and advice to businesses across the north (not just in Caithness!) and they have links and contacts with agencies that could help you. Through this network the Chamber can help you to decide if an apprenticeship would be right for your business, help to identify suitable training opportunities for your apprentice and help you find the right person for your company.
Find out more on about The Farr North Apprenticeship Scheme on the Caithness Business Fund website.
David Shearer, SSE Renewables Community Investment Manager commented:
“Investing in young people is a particular focus for our community funds and we have a number of apprenticeship programmes available in Sutherland. The apprenticeship programmes ensure that there are viable employment opportunities to retain young people in the local area and also helps to ensure that the local economy benefits from thriving local businesses.”
Simon Lee, Manager of Farr North Community Development Trust commented:
“Farr North is working to develop vibrant and resilient communities. We are delighted to be able to work with the other SSE apprenticeship programmes in Sutherland and working with Caithness Chamber of Commerce brings even more opportunities to support local businesses, develop workforce skills, and encourage our young people to stay in the area.”
CASE STUDY
GMG Energy and Finlay Mackay Modern Engineering Apprentice.
Nestling in the Strath of the river Halladale, GMG Energy is an ambitious timber processing company established by Malcolm Morrison in 2016.
Finlay began his apprenticeship with the company in 2022 whilst studying at the Engineering Maintenance framework at UHI. He is now working towards his SVQ3 work-based qualification. Malcolm is delighted with his apprentice:
“He’s a bright kid, learns quickly and is a great asset to the company.” He enthused recently.
Finlay is equally enthusiastic about the experience:
“I feel I’ve really landed on my feet. GMG Energy has given me a huge range of opportunities to apply the knowledge I get from college. I’m gaining experience, I’m learning and I’m earning! What could be better?”
Businesses in the region have opportunities to thrive by investing wisely, upskilling their workforce, and embracing apprenticeships. It’s heartening to see the positive impact on both businesses and individuals