These three Scottish business growth hotspots are in the UK’s top ten

Perth and Kinross, Aberdeen and Moray all ranked within the top ten local authorities for high-growth potential, the study by Growth Flag reveals.

The firm’s Growth Outlook 26 assessed more than 4.3 million UK businesses and identified a shrinking pool of firms expected to achieve rapid growth next year. Just 9 per cent of companies across the UK are forecast to grow by 20 per cent or more during 2026 - a fall of 16 points year-on-year. Meanwhile, the number of firms showing early distress signals has risen sharply.

On the growth front, Perth and Kinross topped the UK ranking for the second year running, with more than 11 per cent of businesses predicted to achieve high growth in 2026. Strong performance across food and drink, tourism, energy transition and advanced manufacturing puts the region well ahead of the national picture.

Aberdeen recorded 11 per cent of businesses with a high-growth score, with companies said to be benefitting from the city’s accelerating shift away from oil and gas dependency and towards renewables, clean tech and wider innovation-led industries.

Moray rounds out Scotland’s trio of top performers, thanks to an economy driven by “world-class” food and drink producers, whisky and a growing engineering and services supply chain.

Elsewhere, the report paints a mixed picture. Major cities such as Edinburgh and Glasgow sit behind the national leaders, reflecting “ongoing challenges” around skills, productivity and support for early and mid-stage firms, Growth Flag noted.

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Richard Jeffery, co-founder of Growth Flag, said: “Scotland is home to some of the UK’s most exciting growth stories, and the performance of Perth and Kinross, Aberdeen and Moray shows what happens when innovation, investment and strong local support come together.

“What’s equally clear is that growth is not universal, and some areas risk being left behind unless investment and resources are deployed more strategically,” he added. “We have businesses in Scotland with incredible potential, many of which are also facing financial headwinds.

“With the right support, they can lead a new phase of economic growth. Without it, we risk losing firms that could be at the forefront of the UK’s future economy.”

Councillor Eric Drysdale of Perth and Kinross Council said: “This is the second year in a row Perth and Kinross has been recognised as the best place in the UK for business growth potential.

“This tremendous success is a result of the hard work, resilience and innovation of our business community, and the underlying strength and diversity of our local economy.”

Growth Flag said the divergence within Scotland mirrored the picture across the UK and reinforced the importance of local support models in determining which areas are able to turn potential into real-world outcomes.

The latest data also shows rising financial pressure on firms across the UK, with 47,600 “high-potential” companies displaying early distress signals and more than 726,000 businesses showing signs of strain.