Ayrshire businesses have warned that soaring costs could render their future "unsustainable" without additional support.

The Ayrshire Chamber of Commerce says riising costs of labour, materials and overheads, along with high energy and tax bills, combined with hiring complications, have dealt a harsh blow to small and medium-sized businesses across the county.

The Scottish Chambers of Commerce’s Quarterly Economic Indicator revealed this bleak outlook in which half of all Ayrshire companies consulted said they would have to raise their prices this quarter.

Claire Baird, chief executive of the Ayrshire Chamber, said: “Companies in all sectors are facing massive cost pressures, and the message we’re getting from our members is clear – we need both the Scottish and UK governments to reduce the tax burden.

Ayr Advertiser: Ayrshire Chamber of Commerce CEO Claire Baird

"Ayrshire businesses are resilient, but not invincible. More support is needed.”

In addition, 55 per cent of companies in Ayrshire reported growing concerns over taxation while 80 percent cited labour costs as pressure on their business.

Ms Baird added: "The national minimum wage increase is good news for workers, but piles even more pressure on employers, particularly as many of them were already struggling to recruit.

"The rise in the salary threshold for a skilled worker visa doesn’t help with this.

"The threshold to bring in staff from abroad is far higher than the average wage here, so companies are prevented from hiring people they want to recruit.

"We need a more business-friendly approach to immigration that lines up better with what our businesses need."

One Ayrshire retail firm that surveyed for the report said the public expects prices to remain constant despite rising business costs.

This meant “the cost of doing business and having sustainable growth in more deprived areas is unattainable, especially in bricks-and-mortar retail, when no support is being given to subsidise the survival of the high-street shops, trades and crafts”.

Meanwhile, an oil and gas services company said increased competition from companies outside the UK had made the last two quarters “really difficult”.

The firm said it is up against low-cost manufacturers and we cannot match these costs due to high overheads and tax.

They said: "I believe we are on an unsustainable path given the overhead burden we have to endure.”

The report also highlighted an Ayrshire construction firm’s claim that construction consultancy lay-offs and Scottish Government healthcare project cancellations had resulted in “a loss of confidence in the Scottish construction market”.