Council Support to Businesses
Perth and Kinross Council · 27 August 2025
Back to Economy and Infrastructure Committee — 27 August 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Economy and Infrastructure Committee Date of Meeting: 27 August 2025 Report Title: Council Support to Businesses Report Number: 25/211 Report Author: Steve MacDonald, Economic Development Manager (Business, Place and Investment) Organisational Lead: Serge Merone, Strategic Lead – Economy, Development and Planning ___________________________________________________________________ 1. Purpose 1.1 The purpose of this report is to provide a series of actions and recommendations which enhance interactions between the Council and businesses. They aim to build on and improve our business-friendly approach and create a supportive environment with our partners to improve our strong business start-up and growth performance. 1.2 Sections 1. Purpose 2. Recommendations 3. Background/Context 4. Main Issues 5. Proposals 6. Conclusion 7. Impact and Value Assessment 8. Appendices 2. Recommendations 2.1 It is recommended that the Committee considers and comments on the contents of the report. 2.2 It is recommended that the Committee approves the following recommendations as set out in the proposals: (i) it is recommended that a ‘Business-friendly’ Cross-Service Officer Group is established chaired by the Strategic Lead (Economy, Development and Planning).
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(ii) it is recommended that the Council review its interactions with the Local Employability Partnership (LEP) to improve employability support services including impact tracking and continue to facilitate synergies between LEP and Perth and Kinross Economic Partnership. (iii) it is recommended that the Business, Place and Investment team carries out a full review of the Business Gateway contract arrangements with a full delivery options appraisal and report back to the Economy and Infrastructure Committee in August 2026. (iv) it is recommended that an update on the Commercial Property Investment Programme (CPIP) is provided to the Economy and Infrastructure Committee in Spring 2026. 3. Background/Context 3.1 At its meeting on 5 February 2025, the Economy and Infrastructure Committee noted the ‘Scotland National Strategy for Economic Transformation’, ‘Tay Cities Prospectus for Regional Growth (2025-2035)’ and endorsed the ‘Perth and Kinross Economic Action Plan (2025-2030)’. These provide national, regional and local context and direction for economic growth. 3.2 The Action Plan sets out the approach the Perth and Kinross Economic Partnership will take over the next five years (2025-2030) to grow a stronger, greener, fairer and more sustainable economy for Perth and Kinross. The Action Plan was developed using strong evidence base and through engagement with partners as well as public consultation. 3.3 The key objectives of the plan include: • Supporting our local businesses to grow, attract jobs and investment. • Tackling inequalities. • Supporting the transition to net zero. 3.4 Ensuring that we have the right business support offering in Perth and Kinross, through both our contracted programmes and general interactions, is one of the key actions and critical to achieve our objectives. 3.5 Perth and Kinross has 6,630 private sector registered businesses, employing 57,430 people. We experienced a net increase of 55 registered businesses in 2024 indicating good start-ups trend and are ranked 10th out of 32 local authority areas in Scotland. 3.6 The largest number of registered businesses in Perth and Kinross are Small and Medium Sized Enterprises (SME’s). Overall, SME’s employed 33,330 people in 2024. Of these, 6,105 registered businesses employ less than 50 people (23,370 employed); 195 businesses employ between 50-249 people (7,960 people employed). The remaining 24,100 people were employed in 330 businesses that employ 250 plus people. 3.7 It is important to recognise that Perth and Kinross has a relatively diverse economy with no one sector dominating.
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3.8 The 5-year survival rate of 49.5% (2017-2022) for businesses in Perth and Kinross has been a long-term strength and is the third highest in Scotland. 3.9 Perth and Kinross was recently rated the highest in the UK for the number of businesses likely to grow by 20% or more over the next year (Growth Flag Annual Report 2025), highlighting our strong growth potential. 3.10 Overall, Perth and Kinross business economic performance is strong. By building on and improving our business-friendly approach and creating a supportive environment with our partners we can further improve the number of start-ups and growth businesses in our region. 3.11 Several enhancements were identified by the Scrutiny and Performance Committee in the ‘Review of Interactions between Businesses and the Council including Business Support activities’ report approved on 23 April 2025 (Report 25/92). This report recognises these and provides recommendations for improvement. 4. Main Issues 4.1 There are multiple interactions between the Council and businesses. The diagram below provides some examples of these. It is important to note that business support activities represent only a small proportion of the interactions between businesses and the Council. Several of the other areas are operational and linked to specific services.
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5. Proposals 5.1 ‘Business-friendly’ Cross-Service Officer Group 5.1.1 As previously mentioned, the Councils activities cut across several services which provide information, guidance and support to businesses. 5.1.2 There is a need to create a mechanism to respond to any emergency issues and identify areas of improvement to strengthen our business-friendly approach. 5.1.3 To support this, it is proposed to establish a ‘Business-friendly’ Cross-Service Officer Group, chaired by the Strategy Lead (Economy, Development and Planning). The group will include officers who interface with businesses with a flexible and agile membership to focus on the Council priorities and business needs. The group could also be mobilised to deal with emergencies. They will liaise with other established business-related groups such as the Climate Change Business and Industry Group to avoid duplication and maximise synergies. Regular update briefings will be produced when needed, and an annual update will be provided to this committee. 5.2 Business Intelligence and Customer Relationship Management (CRM) System 5.2.1 In January 2025, the Business, Place and Investment Team launched a bespoke Customer Relationship Management (CRM) system – produced by Bank Search – as a business engagement management tool. The CRM allows the team to effectively track all interactions with businesses, focussing on key growth companies. The Top 100 growth companies are identified using several measures which helps the team manage interactions with businesses. This includes significant turnover or employment, and direct support to those with key growth potential, including the creation of jobs. 5.2.2 We will continue to develop our CRM system and maximise integration opportunities with the Master Customer Record (MCR) developed by the Business Support Partnership at national level as part of our business support services (see section 5.8.4 below). 5.3 Business Lead Officer 5.3.1 The Business, Place and Investment Team has overall responsibility for business engagement. 5.3.2 In addition to the ‘Business-friendly’ Cross-Service Officer Group, individual members of the Business, Place and Investment team will act as a ‘Business Lead Officer’ for each of those companies identified in our Top 100 and growth businesses list. This will include being a key point of contact and liaising with other services as well as supporting Elected Members, Executive Leadership Team and Strategic Leads in their interactions with businesses through briefings, meetings or site visits. This would also be in place for inward investment enquiries of scale, assessed and determined by the Lead
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Officer. These interactions are essential to understand individual business needs and priorities and how the Council can respond effectively. 5.4 Business Promotion and Support (Invest in Perth) 5.4.1 The Business, Place and Investment Team has overall responsibility for business promotion and support. The team is working closely with local and national partners such as the Scottish Cities Alliance (SCA) to promote investment opportunities. 5.4.2 The team leads business and investment promotion via Invest in Perth brand and digital platforms. This includes: - Investment Prospectus – highlighting key opportunities (Appendix 1). The £530 million investment prospectus was launched at the UK’s Real Estate Investment and Infrastructure Forum in April 2025, in partnership with the Scottish Cities Alliance. - Inward Investment and Land Opportunities – including Perth Eco- Innovation Park at Perth West / Northfield Business Park / other land and property enquiries (including working with private sector agents). - Management of grant and investment programmes, including Green Capital Development, Beyond Scotland Market Development, Adapt Your Property and Angel Share. - Our monthly Business and Economy Bulletin and Invest in Perth social media are key communication channels between the Council and businesses. This could be further developed through bespoke meetings or visits by Elected Members, Executive Leadership team or Strategic Leads supported by Business Lead Officers as described above in the report. 5.4.3 Outcomes from the grant programmes will be reported back annually to the Economy and Infrastructure Committee and through regular briefing notes including impact tracking and long-term sustainability. 5.4.4 Bespoke promotional opportunities will continue to be identified which showcase individual businesses successes and achievements. 5.5 Business networks 5.5.1 In addition to direct engagement with individual business, the Council is also engaging with several business networks. These include Perthshire Chamber of Commerce, Federation of Small Businesses, Perth and Kinross Business Partnership, sector-specific networks (Perth and Kinross Tourism Partnership) or roundtable discussions such as the one organised in January 2025 with the agricultural sector. These interactions are essential to understand collective business needs and priorities and how the Council can respond. 5.5.2 In addition to individual interactions with each business network, it is beneficial to bring business networks together to understand collective business needs and priorities. Perthshire Chamber of Commerce, Federation of Small Businesses, Perth and Kinross Business Partnership and Perth and Kinross Tourism Partnership are all members of Perth and Kinross Economic
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Partnership. They have co-developed Perth and Kinross Economic Action Plan which aligns business needs and priorities to our shared economic objectives. 5.5.3 The Council will continue to support the Perth and Kinross Economic Partnership as a strategic engagement platform with business networks and collectively with the whole business community in Perth and Kinross. One possible action that the Partnership would explore as part of its communication and marketing plan is the organisation of an annual business and economic summit or conference. This event could be complemented by a series of smaller events for business leaders or sector-specific roundtable discussions. 5.6 Skills and Employability Support Services 5.6.1 One key area of engagement with businesses and business networks are the alignment of skills with economic needs. The Perth and Kinross Economic Partnership leads on this when the Perth and Kinross Local Employability Partnership (LEP) leads on employability support activities. The Perth and Kinross Local Employability Strategy and Action Plan provides a framework for providing employment support bringing economically inactive and unemployed people back to the job market. Business engagement is essential to both. The Council, through its skills and employment support, engage with and support businesses in several ways, including recruitment assistance, skills support, financial assistance and incentives. 5.6.2 It is proposed that the Council review its interactions with the LEP to improve employability support services including impact tracking and continue to facilitate synergies between LEP and Perth and Kinross Economic Partnership. This could be done in close liaison with UHI Perth which is a member of both partnerships and has a key role to play in this area. 5.7 Business Support Non-Departmental Public Bodies 5.7.1 The Council is interacting with business support Non-Departmental Public Bodies, namely Scottish Enterprise (including Scottish Development International), Skills Development Scotland and Visit Scotland. The Council has regular meetings with each to deliver on local and national priorities as well as supporting business individually or collectively. All are members of the Perth and Kinross Economic Partnership and/or LEP. 5.7.2 We will continue to strengthen our interactions with them individually and develop synergies collectively through the Perth and Kinross Economic Partnership and LEP to maximise impact of business support. 5.8 Business Support Services 5.8.1 Business support services provided by the Council sit within the context of a variety of organisations involved in business support in Scotland, co-ordinated through the national Business Support Partnership.
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5.8.2 Almost all the organisations work at a national level, with local delivery delegated to regions and local authority areas, principally through the Business Gateway contract. 5.8.3 One of the challenges of co-ordinating business support across Scotland is that each agency uses different Customer Relationship Management (CRM) systems to record interactions with businesses. This can result in duplication and inefficiency. 5.8.4 The Business Support Partnership has started work on a Master Customer Record (MCR) for all of Scotland. This will deliver efficiencies and help to inform and target support better. 5.8.5 We will continue to support the creation of MCR and contribute towards its development while maximising integration opportunities with our own CRM system. This will be led by the Business, Place and Investment Team. 5.8.6 The Council, as part of the wider Tay Cities Region, commissions Elevator to deliver the Business Gateway contract on our behalf. This is covered by a Service Level Agreement as part of a nationally funded contract managed by Dundee City Council. The total award is £1,512,666 across the Tay Cities Region. Funding is distributed at a regional level across Scotland, based on population. The contract covered the period April 2023 to March 2025 with the option to extend for up to three additional single years until March 2028. The contract is in its first additional year (25/26). 5.8.7 Business Gateway has 12 staff across Tayside with a team of 5 focussing on Perth and Kinross located at the Creative Exchange. The Business Gateway team works closely with the Business, Place and Investment Team to co- ordinate individual or collective business support activities. 5.8.8 Performance is monitored by the Business, Place and Investment team through quarterly meetings and has remained strong throughout the contract. Targets against both business start-ups and growth were achieved in 2024-25 and remain on track for 2025-26. A Business Gateway Board meets quarterly, providing strategic direction and ensuring delivery against set targets. The Convener of the Enterprise and Infrastructure Committee, or an alternate, attend the Board on behalf of the Council. 5.8.9 Whilst performance is strong, we should continue to review performance, value for money and how the support aligns and contributes to our growth aspirations at a local level, including alignment with key sectors. At the last meeting on 31 May 2025, the Board discussed a process to review the contract arrangements for further extension. The process would start in October with the Board considering one additional year extension in November and the contractor informed in January. This would run from April 26 – March 27. 5.8.10 It is proposed that the Business, Place and Investment Team will carry out a full review of the Business Gateway contract arrangements with a full delivery options appraisal and report back to the Economy and Infrastructure Committee in August 2026. The agreed delivery options could then be in
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place from April 2027 (for third extension year) or from April 2028 (outwith existing contract) if agreed. 5.8.11 The Council financially supports GrowBiz to deliver business support services in rural Perth and Kinross via a team of self-employed Enterprise Facilitators. GrowBiz also has an accredited mentoring programme which trains volunteer mentors, runs peer-to-peer and training events and specialised groups via Perthshire Artisans. 5.8.12 The Council is providing £140k to deliver outputs and outputs agreed through a Service Level Agreement (SLA) monitored by the Business, Place and Investment Team. Key areas include: - 1-2-1 business support - Learning and networking sessions - Social enterprise support and development - Specialist creative sector support - Specialist care and wellbeing sector support - Young entrepreneurship - Net zero awareness and learning. 5.8.13 Whilst performance is strong, the Business, Place and Investment Team will continue to review, through the SLA, performance, value for money, qualitative information on outcomes such as jobs, business turnover and social inclusion and how the support contributes to our growth aspirations at a local level, including alignment with key sectors. 5.9 Provision of Employment Land and Commercial Properties 5.9.1 The private sector is usually the primary provider of employment land and commercial properties, but the market conditions must be supportive. Market conditions include land availability and costs, development costs, sufficient demand and level of rents or sales to ensure a return on investment. However, when market conditions are not supportive, public-sector can intervene and stimulate development and demand. 5.9.2 The Perth and Kinross Employment Land and Property Market Analysis Report (December 2022) recognised that while the employment land market benefits from a generous planning allocation, the majority of allocated employment land supply is constrained to some extent and is unlikely to be developed in the short-medium term without public sector intervention. 5.9.3 A survey of local businesses found that 43% of occupiers have, or will shortly have, a requirement to expand or relocate. 5.9.4 The Council’s Commercial Property Investment Programme (CPIP) includes projects to deliver new small business units and serviced employment land. Following initial capital investment, the CPIP is using sale receipts to fund itself. Demonstrating a commitment to supporting local businesses, the Council, at its budget on 26 February 2025, agreed additional borrowing of £7m over the next 3 years in addition to £2m the previous year. This will allow the development of new employment land and small business units across the
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area, supporting new business start-ups and growth. The CPIP is being delivered and managed by the Estates and Commercial Investment Team. A Board has been established to support delivery. 5.9.5 An update will be provided to the Economy and Infrastructure Committee in Spring 2026. 6. Conclusion 6.1 Perth and Kinross has a strong economy both in terms of number of businesses, sectoral mix, survival rate and growth potential. This is evidenced by our rating from Growth Flag as having the strongest growth potential (likely to grow by at least 20%) amongst businesses in the UK for the year ahead. 6.2 The Council has many interactions with businesses individually or collectively. By fostering collaborative working across services and partners, the recommendations contained within this report will help to build on and improve the ‘Business-friendly’ approach adopted by the Council, improving our economic performance and the opportunities for our businesses and residents. 7. Impact and Value Assessment 7.1 Not applicable. 8. Appendices 8.1 Appendix 1 – Perth and Kinross Investment Prospectus