Borders businesses risk being left behind unless the UK Government places rural needs at the heart of next week’s Budget, according to the Scottish Borders Chamber of Commerce (SBCC).
Speaking at the SBCC AGM at Tweed Horizons Conference Centre on Tuesday, Chamber Chair Trevor Jackson praised the resilience and innovation shown by Borders businesses in the years since the Covid pandemic. From small enterprises to major employers such as Plexus and Eildon Housing Association, he said the region has demonstrated remarkable determination to grow and adapt.
That momentum, he added, has strengthened the Borders’ voice in both Holyrood and Westminster, and comes at a critical time as Chancellor Rachel Reeves prepares to deliver what is already being billed as a controversial Budget next Wednesday.
”“We have seen real growth across the Borders, which is very encouraging, but the landscape is still challenging for business.”
Trevor JacksonSBCC Chair
Rural Businesses Facing “Real Challenges” Despite Growth
Mr Jackson highlighted that while the region has made significant progress, challenges remain, particularly rising utility and transport costs, issues that hit rural economies disproportionately hard.
He noted the growing irony that the Borders now produces more renewable energy than it consumes, with rapid expansion in wind and solar across the landscape, yet local businesses still face disproportionately high energy costs.
“We have seen real growth across the Borders, which is very encouraging, but the landscape is still challenging for business,” he said.
“The Chamber has continued to grow, and our ambition is to reach 300 members in the next couple of years. That growth reflects the way Borders businesses are increasingly working together, sharing opportunities, and supporting each other.”
However, he expressed concern that Scotland remains “not the easiest place to have confidence in doing business”, due largely to the perception that business needs are overlooked in policy formation.
A Budget That Understands Rural Realities
Mr Jackson urged the Chancellor to demonstrate a clear understanding of rural economic needs and deliver policies that provide stability and confidence.
“In a rural area where you’re so reliant on transport connections and the cost of utilities is so high, despite producing more energy than we consume, it feels inequitable,” he said. “I’m hoping this Budget shows that these challenges are understood.”
He warned that uncertainty around taxation, inflation, and recruitment costs is holding back investment. One example he cited is the recent National Insurance threshold changes, which have paused hiring across businesses of all sizes.
“We need to understand our costs over the next few years so businesses can plan. Investment decisions have been deferred for some time because of uncertainties, but you can’t do that forever.”
He also emphasised the importance of clarity around migration policies, which are critical for many Borders employers who rely on attracting people to live and work in the region.
”“The Chamber has continued to grow, and our ambition is to reach 300 members in the next couple of years.”
Trevor JacksonSBCC Chair
Falling Business Confidence Underscores the Need for Action
Mr Jackson’s call for a supportive Budget comes as the British Chambers of Commerce’s latest Quarterly Economic Survey shows business sentiment slipping back to 2022 levels. Only 48% of surveyed firms expect turnover to grow in the next year – down from 58% at the start of 2024.
Supporting rural areas like the Borders, he said, would bring immediate economic and social benefits: greater confidence to invest, expand, and hire.
Support Needed from All Levels of Government
While the Chancellor’s Budget is important, Mr Jackson stressed that responsibility for supporting business does not rest solely with Westminster.
“There is much for the Scottish Government to consider through the Barnett consequentials, and for local authorities and agencies to translate into local support,” he said. That includes more consistent regulation and clearer pathways for growth.
He concluded with a message of confidence in the region, and a call for governments to match that ambition.
“There is so much strength and resilience in the Borders business community. We now need the UK and Scottish Governments to recognise that and work with us, as a strong and growing Chamber, to create a longer-term vision that provides a steady platform for growth.”
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