'Everyone's struggling': Businesses and communities react to Budget

Businesses battling soaring costs have called on the government to help “steady the ship”.

Traders say rising energy bills, employer National Insurance contributions and other running costs continue to squeeze margins amid global uncertainty.

While the Chancellor announced that 70,000 businesses in England will be removed from business rates altogether by raising the relief threshold from £12,000 to £18,000, the measures do not apply in Scotland.

Deputy first minister Jenny Gilruth said Scotland’s budget would be cut by around £650m in 2027-28 in real terms and warned it would reduce the money available for public services and support with the cost of living.

She welcomed the £100 energy bill support payment announced by the Chancellor, but said the measures “fall far short of the action which is required”.

Businesses are hoping some of the funding can be used to deliver similar support in Scotland.

Forever Spaces based in East Lothian STV News

Roderick Williams turned his back on a lucrative career as an oil and gas economist 11 years ago to launch Forever Spaces, a storage company based in East Lothian.

The firm has grown to 15 employees and is now expanding into a new larger venue at Fenton Barns, near North Berwick.

But despite its success, Roderick says the economy does not inspire much confidence.

“We’ve seen a lot of our costs increase,” he told STV News

“We have to find a way making a fair profit, so we’ve had to increase our prices to go with that and that’s a struggle having to sell something that’s more expensive.

“We’re still going okay and we’re still as busy as last year, but I’d say there’s a bit too much hesitation in the market.

“If you’re looking at a lovely bathroom that costs £10,000 to £12,000, you’ve got the option of asking: do I buy now or wait six months and buy then?”

Roderick says he is currently paying nearly a third more in employers’ National Insurance. He’s keen to grow his team, but is wary of how demand may impact his business over the next year.

“I’ve got to have confidence in my decision to recruit designers and believe we’re going to have customers coming through the door.

“If the (UK) Government could just steady the ship, that would be really helpful. They can make it easier or enable employers to hire more people.

“There’s a lot of risk at the moment.”

‘The bills go up and the money stays the same’

Stephen attends the community centre in Pollokshields. STV News

The pressure is also being felt at community centres supporting vulnerable residents.

Many locals come to the Nan McKay Community Hall in Glasgow’s Pollokshields for a cup of tea, a hot meal and to take part in activities.

Stephen says he’s noticed a big difference.

“The bills are all going up and the money is staying the same. I stay in a two bedroom and you’d think it was a mansion I was living in. It’s a joke.

“The rich are getting richer and the poor staying poor.”

Bill, who volunteers at the centre, doubts the support will go far enough to help those struggling with the cost of living.

“Since I left school, every politician, no matter what party, says that they’re going to do to change things. They’re in power, they’re there to serve, but they don’t change things for people.

“No one has faith in that anymore.

“You just have to hope you have enough money to pay the electricity bill and buy food.”

Helen’s mum is 104 and helped open the community centre nearly 50 years ago.

“My mum is managing alright, but she’s of a generation where you spend the minimum possible to do things.

“She’s not living on the breadline, she does have enough money, but she doesn’t like spending money on herself.

“She doesn’t skimp on heating because she can’t move about very much. That is the one bill she doesn’t worry about. If it costs what it costs, it costs what it costs.”

Political and market reaction

Adam Drummond, Glasgow office head at Rathbones said:”For Scotland, today’s Budget was a damp squib. There was some positive news in the founders relief for those in Scotland trying to move their business from start up to scale up but little of further significance; of course, the headlines around devolution are less novel north of the border.

“The real moment for Scottish taxpayers – and indeed, the Scottish economy – is still to come, with the Scottish Budget determining what happens on income tax. So while Westminster has had its say, Scottish households still don’t have the full picture.”

Gilruth said: “The Prime Minister has previously claimed that he would respect devolution and the Scottish Government – but his actions do not match his words. Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought.

“The Scottish Government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required.

“Furthermore, this support does not come close to meeting the promises on which the UK Government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK Government has failed to meet the moment and has failed to keep its promise.

“It is also unacceptable that there was no announcement about ending wider austerity policies which are pushing families into poverty like the bedroom tax, the benefit cap and “young parent penalty” in Universal Credit which would make a significant difference to tackling poverty.

“The Chancellor had the opportunity to lift thousands more families out of poverty, and he has chosen not to.

“We will now take the time to assess the full implications for Scotland of today’s statement. I will be announcing further details as part of the Scottish Budget on 3 December.”