New survey highlights growth fears among Moray businesses

Ministers urged to act on transport, red tape and business taxes

5 December 2011

Moray businesses expect a better year ahead, but many still face an uncertain future, with almost one in five expecting a weaker performance in 2012, a new business survey has revealed.

And the results send a clear message to Ministers at Holyrood and Westminster that they must do more to support business growth, according to Moray Chamber of Commerce chief executive Lesley Ann Parker.

Moray Chamber commissioned the survey ahead of a major business summit in Forres today.

The ‘Ambitions for 2012’ conference is the region’s largest business gathering and will bring together business leaders and economic policy experts to discuss the challenges facing Moray businesses, and the prospects for growth in 2012.

In a year of mixed performances for Moray businesses, 40% said they had enjoyed a ‘good’ or ‘excellent’ year. However, 45% described their performance as ‘fair’ and 15% said their business had had a ‘poor’ or ‘very poor’ year.

Almost half of all businesses (49%) said 2011 had been in line with expectations, while 26% said their performance was better than expected. However, 25% said 2011 was worse than they had anticipated. Low consumer confidence was cited as the main reason for a weaker than expected performance.

Similarly, there was a mixed response regarding growth prospects in 2012. Around 42% said they expected a better performance in 2012 than in 2011, but 40% were still unsure, and 18% expected a worse year ahead.

Asked to rate the strength of the Moray economy, more than a fifth said ‘poor’ or ‘very poor’.

Rising inflation, increasing costs and higher taxes, including VAT, were cited as the biggest challenges facing local businesses, resulting in lower consumer spend in the local economy.

There were also calls from businesses for Ministers at Holyrood and Westminster to improve road and rail links, cut red tape, reduce business rates, speed up the planning process, revitalise empty town centre shops and improve access to bank lending in order to boost business growth.

There were also demands for the UK Government to take action to protect regional access to Heathrow, following the loss of services from Inverness and Glasgow to Heathrow, and the possible sale of bmi – which owns almost 10% of slots at Heathrow – to rival British Airways. Around 59% felt the UK should act to guarantee regional access to the UK’s only hub airport.

However, there was a more upbeat response from businesses when asked if the decision to retain RAF Lossiemouth gave them more confidence for the future, with 59% suggesting they were more confident. In recent weeks, the UK Government has also confirmed plans to relocate 930 army personnel to the former RAF Kinloss site earlier than expected, in a further boost for business.

And there was strong support from the business community for Moray to become a centre of space exploration and research, with over 60% of businesses in favour of Moray playing a more prominent role in the fast growing UK space industry.

Lesley Ann Parker, chief executive of Moray Chamber of Commerce, said: “The decision to retain RAF Lossiemouth and relocate army personnel to the RAF Kinloss site was a major boost for local businesses but it clearly masks an underlying concern about the future of the regional and national economy. While the majority of businesses felt 2011 was in line with expectations or better than expected, a significant number experienced a downturn this year, and a similar proportion expect a worsening of their performance in 2012. That is a cause for concern, at a time when the Scottish and UK Governments look to the private sector to fuel the recovery.

“We will be presenting the results of this survey to Ministers at Holyrood and Westminster. It is important that they understand the very real pressures facing businesses in Moray. There are still too many barriers to growth, from planning red tape to the VAT increase, inadequate transport links and access to lending.”

-ENDS-

More information:

Lesley Ann Parker, Moray Chamber of Commerce, 01340 881226 / 07887 846495

Donald Morrison, New Horizon Media, 07915 853129