The chief executive of Scottish Chambers of Commerce has renewed calls for a reduction in business rates to support the fragile economic recovery.
Liz Cameron was speaking as British Chambers revealed the results of its latest quarterly economic survey, which warned of “significant challenges” ahead despite an estimated growth spurt of around 1% in UK output in the three months to the end of September.
The report, which is made up of responses from more than 7,400 businesses, found improvements in both the manufacturing and services sector UK-wide compared with the second quarter.
However, there was also a fall in confidence about the prospects for the year ahead, which Ms Cameron said needed to be addressed.
“All the key indicators show an improvement on the second quarter, with some improving by a significant margin,” she said. “The strength of the domestic market is particularly encouraging.
“In Q2 many of the indicators were in negative territory, but in the third quarter most returned to positive. For services the figures are +8% for domestic sales and +20% for domestic orders.
“However, the survey also shows a fall in confidence about the next 12 months in both the manufacturing and service sectors.
“More must be done to help business growth. Action on reducing the burden of business rates would be particularly welcome.”
The continued improvement in manufacturing means that six measures of performance in the survey are now at all-time highs, while overall business confidence in turnover and profitability have risen above pre-recession levels.
BCC director general John Longworth said there were signs of progress, but the country could not afford to be lulled into a false sense of security.
He said levels of investment were still a concern and more support was needed for exporters through increased trade promotion and better access to finance.
Mr Longworth said: “The Government mustn’t get distracted, and has to put growth first at all times.
“We will be looking ahead to the Autumn Statement in the hope that the Chancellor uses this opportunity to make a real difference and go all out in the name of growth.”
BCC chief economist David Kern added: “The Government must switch policy priorities towards measures to boost growth, such as infrastructure investment, cutting business rates and taxes, promoting exports, and boosting the flow of lending to growing businesses through a fully funded business bank.”