I’ve spent the last few weeks reflecting on 2024 and what it’s meant for Scottish business. It’s safe to say there’s been a lot of uncertainty and change.
Within politics, we’ve seen a shift both within the Scottish and UK Parliaments. First Humza Yousaf resigned as First Minister and leader of the SNP party in April, with John Swinney taking the reins, and we also saw Labour win the UK General Election in July.
And, whatever your political persuasion, these changes have brought with it new challenges for businesses to navigate. Afterall, we’re only just getting to know what the landscape will look like under these two new leaders, with both the Autumn budget and the Scottish budget providing the first real glimpse at what might be in store.
So much so, we end the year in a place of economic instability. In November, the Office for National Statistics announced UK inflation had risen to 2.3 percent, the highest level in six months. The Autumn budget brought £40 billion in tax rises, which has certainly left many industries fearful of the impact rising costs will have, with the retail and hospitality sectors particularly vocal on the potential damage it might cause.
It has no doubt been a tough few years for Scottish individuals and businesses alike, and perhaps more in blind optimism, many felt 2024 would see a step change. However, a variety of factors have meant progress has been slow, with issues such as the war in Ukraine and Brexit still causing large reverberations for many – ensuring this year isn’t quite the light at the end of the tunnel.
A report published in January this year from Cambridge Econometrics commissioned by City Hall, stated that the average Briton was almost £2,000 worse off in 2023, so I will be curious to see just how 2024 compares.
Perhaps it’s not all doom and gloom though. The recent Scottish Budget was more positive despite previous talk of tough decisions and austerity.
Billions of pounds were earmarked for net zero and climate policies including tripling the Scottish Government’s investment in offshore wind, which of course followed the UK Government’s decision in September to base the HQ of GB Energy in Aberdeen – a city which has been positioning itself this year as Scotland’s green energy capital.
The once lucrative oil and gas sector is in decline, with Scotland’s only oil refinery, Ineos Grangemouth, confirmed it is set to close next year with the loss of 400 jobs, but the continued shift to green energy is changing the landscape of Scotland’s economy, and I believe we will be OK.
It also wasn’t a great year for property with the Scottish Government declared a national housing emergency in May.
This was in part due to the Scottish Government making £196m in cuts to its affordable housing budget for 2024/25. The most recent Scottish Budget has attempted to reverse this with £768 million allocated for affordable housing. I just wonder whether this recent budget allocation will help to turn the tide.
Looking back another hot topic that I’ve touched on a few times here is Artificial Intelligence (AI).
I’ve talked about the need for a strong government as AI takes over the workforce, although perhaps this is a little ironic now, following the political changes we’ve seen this year.
There has been a lot of hype, speculation, and trepidation about the increasing use of AI in the workplace and how it could improve productivity and potentially in some cases replace workers.
In reality, has it really had such a big impact in the last year? I would argue that most businesses have only really started to dip their toe into the world of AI in 2024.
So, looking back at all these moments this year, what’s my key takeaway for Scottish business?
Uncertainty and change are part of the course for business, and we shouldn’t worry about what’s outside of our control. Instead, we must focus on how we respond to the challenges and remain agile. The businesses that have done so in 2024 will be much better prepared for 2025. Are you?
Hospitality Needs Heat – and Help
The Scottish Hospitality Group (SHG) has done exceptional work this year, fighting for reform and representing their sector. Its efforts to secure a review of the Non-Domestic Rates (NDR) system are commendable and long overdue. Yet it is the Scottish Government that must now show it understands the value of this industry—not just in economic terms, but as part of Scotland’s cultural fabric.
Scotland’s often dour climate demands warm hospitality, but the strain of recent years has seen businesses adapt in creative ways, from transforming spaces into hybrid venues to leaning into local sourcing and sustainable practices. These innovations have kept many afloat, but more help is needed.
It’s somewhat our collective responsibility to preserve the institutions that define our communities. Pubs, restaurants, and hotels are more than businesses – they’re where life happens.
The energy-intensive nature of keeping spaces welcoming and warm during long winters, coupled with the rising costs of living and doing business, creates extreme pressures. Yet, hospitality remains a huge contributor to Scotland’s economy and tourism industry.
The government must recognise that this isn’t just about balance sheets—it’s about ensuring future generations inherit the vibrant hospitality landscape that defines Scotland. SHG has proven they can lead the charge, but it’s time for policymakers to match their commitment with action and cash. Warmth, after all, isn’t just a product of heaters—it’s the spirit of a nation. A badge we wear with honour.
It Made Me Laugh
Willy’s Chocolate Catastrophe
This year’s funniest—and most embarrassing—business story unfolded in Glasgow, where the much-hyped “Willy’s Chocolate Experience” melted under the spotlight. Sold as a magical, chocolate-fueled wonderland, the £35-per-ticket event turned out to be a sad, empty warehouse with a bouncy castle and a smattering of jellybeans.
The debacle, “masterminded” by a one-man company, highlighted how AI-driven marketing can easily dupe consumers. Glitzy ads and clever language painted a dream that reality couldn’t match.
While police were called, refunds demanded, and parents fumed, this fiasco serves as a sweet (or bitter) reminder: in the age of AI, don’t believe everything you click. Glasgow’s chocolate “dream” was the PR flop of the year!
It Made Me Weep
Young Enterprise Shrinks Under Pressure
There was no shortage of weeps this year. For me, the story that has depressed me most came from Young Enterprise (YE) Scotland in recent weeks. The organisation, which has inspired and educated young minds for over 30 years, faced near-closure after being left out of a key government funding round. Emergency support came too late for 17 staff members, who lost their jobs just before Christmas.
Like a plant denied sunlight, the charity has been forced to retract, risking long-term damage to its mission and people. If we neglect to nurture future generations, we risk stunting not just their growth—but our own economy.
