The latest Understanding Business survey found support for further local devolution in Scotland
Almost three in five Scottish businesses believe establishing metro mayors north of the border would promote economic growth, a new survey had found.
The latest quarterly Understanding Business survey found there is an appetite for further local devolution in Scotland, mirroring structures seen in England.
Elsewhere, it registered a “notable improvement” in the outlook of firms across the county.
More than a third (35 per cent) believe economic conditions are better now than they were a year ago, an uptick of 11 points since the last survey in June and the highest level recorded since the tracker began in June 2023.
The survey of more than 500 Scottish firms is conducted by research consultancy Diffley Partnership and communications firm Charlotte Street Partners.
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Scott Edgar, head of analysis and insights at Diffley Partnership, said: “This wave of Understanding Business points to a notable improvement in sentiment among Scottish businesses.
“While firms continue to identify significant challenges around costs, taxation and economic uncertainty, they are more likely than they were earlier this year to say that economic conditions are improving rather than deteriorating.
“The findings also point to more positive perceptions of both the Scottish and UK governments.
“Taken together, the results suggest businesses remain alert to the challenges they face but are taking a more positive outlook than they were just a few months ago."
Malcolm Robertson, founding partner at Charlotte Street Partners, said: “These numbers suggest that businesses are encouraged by what are essentially two new governments.
“John Swinney has talked much more about economic growth, and Andy Burnham is indicating that he will take on some of the big challenges facing the country.
“However, politicians – like the rest of us – will be judged on whether these early signs of support and action are converted into good policy and the economic growth that is the key to bringing down the cost of living for people up and down the country.”
The survey, conducted during September, found 43 per cent of firms believe economic conditions have worsened in the last year, while 22 per cent believe they are about the same.
However, many appear to be encouraged by the action taken by the UK and Scottish governments to address their concerns. A total of 56 per cent feel the Scottish government is concerned with industry needs (+6 from June), while 43 per cent say the same of the UK government (+8).
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When asked to evaluate the new Scottish government’s first 100 days in power, more than half (56 per cent) of leaders are confident ministers are focused on business growth in Scotland.
There is also support among Scottish businesses for some of Mr Burnham’s early policy announcements as Prime Minister, including his move to cut business rates for pubs, clubs and live music venues, with more than three-quarters (77 per cent) saying the 20 per cent reduction should be adopted in Scotland.
Meanwhile, businesses are supportive of further devolution of decision-making within Scotland, with 58 per cent agreeing metro mayors in Scotland’s largest cities could support economic growth. One in six (17 per cent) neither agree nor disagree.
Mr Burnham is the former mayor of Greater Manchester and has backed further local devolution.