FRP: Slow decisions costing Scottish economy more than £500m a year

Michelle Elliot

The findings form part of FRP’s Decision Economy report, produced in partnership with Development Economics, which examines the contribution of mid-market firms – those employing between 50 and 499 people – to the UK economy and how effectively they reach decisions.

Scottish mid-market firms generate around £79 billion in annual turnover and support approximately 359,000 jobs, making them a significant force in the national economy.

The report estimates that faster decision-making could unlock around £545m in additional annual output north of the border. Across the UK as a whole, sluggish decision-making is said to be costing the mid-market up to £13.7bn in growth, equivalent to roughly 0.6 per cent of GDP.

However, Scottish firms are also feeling supply chain disruption more sharply than any other region, with 37 per cent citing it as a major pressure on decision-making compared with 24 per cent nationally. At the same time, energy costs continue to weigh heavily, with 55 per cent of leaders saying rising bills have been a major factor affecting their business, well above the UK average of 43 per cent.

Firms are also being held back by the time needed to appraise options in detail, cited by 33 per cent of Scottish leaders as the biggest factor affecting the speed and quality of decisions. This was followed by risks or uncertainty around available options (31 per cent) and competing business priorities (27 per cent).

Businesses say improved data and evidence gathering (31 per cent), clearer signals from government on future policy (22 per cent), and access to the right management talent (22 per cent) would do most to improve the speed and quality of decision-making, with respondents estimating that faster decisions could improve revenue outcomes by around 9 per cent and cost efficiency by 9 per cent too.

Michelle Elliot, partner at FRP, said: “Scotland’s mid-market is a vital driver of growth, supporting jobs, investment and economic activity across the country.

“This research shows there is a real opportunity to build on that strength. While firms are navigating supply chain disruption and rising energy costs, faster and more confident decision-making could help unlock further growth.

“Scottish businesses have shown real resilience, and with the right clarity and support, they are well placed to invest, adapt and capitalise on new opportunities.”