Businesses in Scotland are calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement on Wednesday.
Bank of Scotland's latest Business Barometer survey, conducted with 1,200 companies - including 100 in Scotland - earlier this month, showed that 55% said that direct help with energy bills and rising costs tops their wish list.
This was followed closely by calls for a reduction in VAT, cited by 40%, while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills.
Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and 14% stated that inflation is reducing profitability.
Almost one in 10 said rising prices had caused them to worry about having to make staff redundant and a further 9% were concerned about not being able to pay their bills.
To help specifically with rising prices, Scottish businesses are asking Rishi Sunak for a VAT reduction (46%), while around a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures.
The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).
Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.”
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