LABOUR have suffered a steep decline in support from businesses as firms now see the SNP as the best for growth and investment, according to a survey.
The Understanding Business Survey polled more than 500 businesses across Scotland and 29% believe the SNP have the best policies to support growth and investment.
In contrast, Scottish Labour saw their support drop from 31% to 24% over the same period.
The survey, conducted by the public affairs consultancy 56° North and the research firm Diffley Partnership, also found Reform UK gaining support among Scottish firms with 9% of businesses considering it the best party for growth and investment, overtaking the Scottish LibDems who attracted 8%.
The Scottish Conservatives remain in third place among the major parties, but their support has also declined.
Labour’s decline mirrors broader struggles in general public polls, which have been linked to unpopular decisions by the UK Labour Government.
In January, the SNP posted a major lead over Labour in a survey run for Holyrood Sources by Survation. It found 33% of Scots would back the SNP if last July’s elections were re-run, while 24% would vote Labour.
Last week, more Survation research predicted Holyrood would have a pro-independence majority of MSPs after next year’s election.
The research conducted for public affairs agency Quantum Communications predicted that the SNP would win 34% of the constituency share and 29% on the regional vote, while Scottish Labour came second on 23% and 20% respectively.
On the Understanding Business Survey, John Penman, the managing partner of 56° North, said: “Scottish Labour had been successfully building support among business over the last couple of years, but it now looks as if decisions made by the Labour Government in Westminster are creating difficulties north of the Border.
“This survey comes before measures such as the NI increase take effect, which may have a further impact on its standing. The Scottish Government will be buoyed by the figures showing it remains in a strong and dominant position when it comes to representing the needs of Scottish business.
“However, Scottish Labour will be encouraged at being just two points behind on whose policies were best for Scotland.”
The survey also revealed a stark difference in perception between the Scottish and UK Governments. Nearly half of respondents believe the Scottish Government is concerned with the needs of businesses in Scotland, compared with just 33% who feel the same about the UK Government.
Scott Edgar, the senior research manager at The Diffley Partnership, said: “These results show that the SNP is seen as the party best placed to support business growth and investment in Scotland, albeit by a small margin.
“The drop in support for Scottish Labour suggests business has grown more cautious about their approach over the last 12 months.”
