More than half of respondents to a key business survey have raised fears of increased taxation.
The quarterly economic indicator report from the Scottish Chambers of Commerce (SCC), along with the Fraser of Allander Institute think tank, heard from 450 businesses, which employ more than 50,000 people in Scotland.
Of the respondents, 55% said they had concerns over taxation, with just over two weeks to go before the UK Government lays out its tax and spending plans for the coming year.
The tourism and retail sectors returned the highest level of anxiety about tax, with 77% and 70% respectively.
Financial issues are likely to make both the Scottish and UK budgets difficult for their respective Governments, with in-year cuts having already been made north and south of the border.
Douglas Smith, the vice president of the SCC, said: “General business confidence is uncertain given recent government rhetoric on how painful this budget will be and taxation is a significant concern.
“How this will impact business and employees is a huge worry and the lack of clarity has stalled investment and undermined confidence.”
He added: “Businesses understand that the fiscal backdrop for the Chancellor is challenging. We are willing to work in partnership to overcome these challenges and help grow the economy.
“However, any changes made must not be at the expense of investment and growth.”
The chamber also has one eye on the Scottish budget, a draft of which will be published on December 4, with Mr Smith saying: “We will also be looking for help in the forthcoming Scottish Budget to address costs, particularly in business rates which remains a major pressure on almost two thirds of retail firms surveyed.
“Businesses, particularly in the leisure, hospitality and tourism sectors simply cannot endure any further tax burdens.”
Dr Liz Cameron, the chief executive of the SCC, said there had not been “positive action on the many issues we face” by the new UK Government.
“One of those is employment and businesses are still being held back by the inability to recruit experienced and skilled staff and the expense of securing and retaining them in a highly competitive, under supplied marketplace,” she said.
“We need the Chancellor to help ease that pressure by unlocking targeted investment in training with skills aligned to business demand and a clear international workforce strategy to help fill skill gaps.”
Finance Secretary Shona Robison said: “We carefully monitor the impacts of our policy decisions on taxpayers, businesses, and the economy.
“Scottish Income Tax policy for 2025-26 will be announced during the annual Budget process.
“Driving economic growth is a key priority and Ministers will work closely with businesses to maximise the huge economic opportunities ahead.
“Recent HMRC research has shown that thousands more taxpayers moved to Scotland than left between 2017-18 and 2021-22, and the recent publication of new mid-year population estimates by National Records of Scotland, for the year to June 2023, showed Scotland’s population rising faster than any time period since the 1940s.”
