Rising business costs, higher levels of debt and a shortage of management skills mean that Scottish managers believe 2008 is going to be a tough year for business.

A survey published today by the Chartered Management Institute shows that only 45 per cent are 'optimistic' about 2008. Those who are 'uncertain' about what next year will bring has risen from 7 to 23 per cent in this year's survey.

Fifty-two per cent said the rising cost of energy will impact negatively on their business, while more than one in three identified the credit squeeze in financial markets sa a key concern.

Thirty-four per cent reported they will be hit by the extension of maternity and paternity leave next year.

Eighty-two per cent predict a rise in household debt and 38 per cent saying that personal debt will increase. Only 32 per cent think that consumer spending will rise and, indicating pessimism over the economy as a whole, a similar proportion (38 per cent) also say that house prices will go up in the New Year.

The majority (70 per cent) predict a rise in inflation in 2008.

Half of employers in Scotland also said that a shortage of management skills will have a negative impact on their performance in the New Year. However, this does not seem to have prompted a greater focus on skills development with 20 per cent of employers predicting a decrease in training and development, up 4 per cent from last year.

Jo Causon, director of marketing and corporate affairs for the Chartered Management Institute, said: "In the current climate, it is natural for employers to feel some degree of uncertainty. However, the decline in organisations developing their managers is a great concern.

"If employers fail to invest in the skills needed for long-term success, the UK will find it difficult to compete on a global scale in the future. It is encouraging that some individuals are taking the initiative and planning to develop themselves through qualifications and higher education in the New Year."

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