If the UK and Scottish governments are serious about tackling the cost of living, they must turn their attention to tackling the cost of doing business.

The connection between the two can sometimes get lost in the political debate. Ahead of the upcoming UK and Scottish budgets, calls from business for lower costs, tax reform or regulatory change are easily characterised as companies asking government for a handout.

It is a fair challenge, but one worth putting into context. As with households, businesses cannot absorb rising costs indefinitely. Eventually, the consequences appear elsewhere: in lower investment, fewer jobs or, increasingly, higher prices for customers.

This should come as no surprise. For years, Scotland’s business community has warned about the cumulative burden of rising costs, with energy bills, business rates and the increasing cost of employment all putting pressure on firms across Scotland.

Three in four Scottish firms expect prices to rise

Our latest Quarterly Economic Indicator makes the link between business costs and household bills explicit. Over the next three months, almost three quarters of Scottish businesses expect to raise their prices.

For governments in both Edinburgh and Westminster which have made easing the cost of living a political priority, these findings should be a cause of significant concern.

Both governments have in recent months acted directly to reduce household bills and increase disposable incomes. But if, at the same time, the cost of producing goods and providing services continues to rise,........

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