Nine in 10 firms say Scottish Government doesn't understand business, Fraser of Allander reports

Only nine per cent of Scottish firms agree the Scottish Government "understands the business environment in Scotland", according to a report by the Fraser of Allander Institute.

The independent research unit found 64 per cent disagree that the Holyrood administration understands the landscape, according to its latest Scottish Business Monitor report.

More than 400 companies were surveyed for the paper in July and August. They were asked a series of questions about their relationship with the Scottish Government.

As many as 80 per cent of hospitality organisations and 92 per cent of "other service" businesses disagreed that the administration 'gets' what is going on.

Overall, just eight per cent felt it engages effectively with their sector, while 67 per cent disagreed with this.

Typically, larger operators disagreed more strongly than smaller outfits on whether the Scottish Government understands the business environment.

The questions aim to help the administration and business community understand how the relationship between them is changing and Fraser of Allander believes the work could help assess the effectiveness of the government's New Deal for Business.

The questions will be monitored annually to report on progress.

Professor Mairi Spowage, director of the unit, said: "These results are obviously pretty disappointing for the government, with the vast majority of businesses not feeling that the government understands business or that they engage effectively.

"However, they underline the importance of the Scottish Government resetting their relationship with business. It is therefore more important than ever that the New Deal for Business leads to changes in approach in the future.

"These indicators can help us track progress over time, and hopefully see improvements in the relationship."

The report was produced in partnership with Addleshaw Goddard.