Scottish finance directors predict 'flat growth'

ICAS said the skills gap was "a red flag" across almost every sector in the UK

Scottish finance directors are more pessimistic about the prospects of economic growth than counterparts south of the border, according to a survey.

The CA magazine found that half of the Scotland-based directors polled thought growth would be "flat" or "negligible" over the next 12 months.

Only 42% expected to see "strong" or "modest" growth, compared with 82% of those who were polled last year.

Skills shortages and the low oil price were cited as major barriers to growth.

Weak confidence among consumers and in the business sector was seen as another significant barrier.

The survey suggested Scottish finance directors were more pessimistic about the economy than those based elsewhere in the UK, where one in three (37%) of finance directors think growth will be flat or negligible and 58% expect strong or modest growth.

The CA, which is the journal of chartered accountancy body ICAS, found 37% of respondents thought growth would be flat or negligible, while 58% expected strong or modest growth over the next year.

More than one in four (28%) said they anticipated redundancies in their organisations over the course of the rest of the year, compared with just 19% of those asked last year.

'Skills gap'

Controlling costs, growing revenues and staff recruitment and retention were once again highlighted as the top three priorities facing finance directors.

The survey elicited responses from a total of 108 members of ICAS, of whom 55 were based in Scotland. It was carried out in partnership with law firm DLA Piper.

ICAS chief executive Anton Colella said: "The new number one at the top of Britain's risk registers is the difficulty of recruiting the right staff with the right skills to grow our economy.

"The skills gap is not just a problem in construction, manufacturing and technology but a red flag across almost every sector in the UK.

"If we are to ensure sustained growth in the UK economy then this must be addressed and it requires a concerted effort by business, government, education, and the workforce."