The latest national Business Confidence Monitor (BCM) shows that business sentiment was on course to move into positive territory in Q1 2026, but the outbreak of the Iran war had a dramatic impact in the final weeks of the survey period, with confidence deteriorating sharply. While businesses reported improved annual domestic sales and exports growth and easing input price inflation compared with Q4 2025, the war introduced significant downside risks to the outlook for the coming year.

ICAEW Scotland has sent a list of recommendations to Scotland’s parliament in its Scottish Manifesto, outlining the major steps needed to improve conditions for businesses. Its suggestions have relevancy beyond the region.

Mirroring the rest of the country, business confidence in Scotland has dropped to its lowest level since 2022, with ongoing uncertainty and low economic growth, a survey of business leaders has found.