Business News Round Up (24/04/2026)
UK faces sharpest worker tax increase among world’s wealthiest nations
Taxes on UK workers increased at the fastest rate among the world’s wealthiest economies last year, according to the Organisation for Economic Cooperation and Development (OECD). The Paris-based organisation’s annual study of taxes across the developed world found that Britain’s “tax wedge”, which measures total taxes paid by both employees and employers, minus cash benefits received by working households, increased by 2.45% in 2025, the largest rise among its 38 member nations. The OECD attributed the surge primarily to Chancellor Rachel Reeves’ autumn 2024 Budget, which raised the rate of employer national insurance contributions, compounded by fiscal drag. The next largest increase was recorded in Estonia, at 1.95%, with Germany and Israel the only other countries to exceed a one-percentage-point rise. Despite this rapid increase, the UK’s overall tax wedge of 32.4% remains below the OECD average of 35.1%, which ranges from 0% in Colombia to 52.5% in Belgium.
Manchester office sector achieves solid start with 51 deals in first three months
Manchester’s office market has made a solid start to the year, with first quarter data showing take-up reached 286,000 sq ft, in line with the five-year average, across a total of 51 deals. The Manchester Office Agents Forum (MOAF) figures for the period reveal that notable transactions included the Government Property Agency’s acquisition of 114,000 sq ft at Havelock, X & Why securing 25,000 sq ft at The Hive, Jacobs taking 9,000 sq ft of expansion space at The Lincoln, and Sheppard Robson moving into 9,000 sq ft within their own scheme at Pall Mall. These figures demonstrate the continued appetite for Grade A office space in Manchester, alongside strong demand across core city centre districts, including the Northern Quarter. Activity was particularly driven by smaller requirements, with 42 deals completed at sub-5,000 sq ft, largely transacted by SME occupiers who continue to underpin a significant proportion of the market.
UK tech industry grows despite geopolitical uncertainty
The number of new technology companies incorporated in the first quarter of 2026 surged to a record high, despite geopolitical tensions and uncertainty, according to leading audit, tax and consulting firm RSM UK. RSM’s analysis shows there were 16,887 new tech incorporations in Q1 2026, up 39% from 12,184 the same quarter last year, and increasing 15% from 14,699 in Q4 2025. All UK regions were up on the previous year, with London accounting for the highest number of new tech incorporations at 8,236. “The UK’s tech industry continues to show promising growth despite current geopolitical uncertainty, while other sectors pull back on investment,” Ben Bilsland, partner and head of technology industry at RSM UK, said. Scotland saw a 70% year-on-year increase in tech incorporations in the first quarter of 2026, with 687 compared to 405 in 2025, the largest year-on-year increase.
https://www.digit.fyi/uk-tech-industry-grows-despite-geopolitical-uncertainty
Two-fifths of Scottish SMEs hit by bad debt in the past 12 months
Bad debt and late payments are hammering Scottish SMEs’ cashflow and profitability, according to new data from SME funder Bibby Financial Services (BFS). BFS’s latest SME Confidence Tracker revealed that 39% of Scottish SMEs, equating to around 139,000 businesses, experienced bad debt in the past 12 months. For those affected, the average amount written off due to customer insolvency or payment default was £27,500 in the past year. The findings come as the UK Government moves to take a stronger stance on late payment. Scottish SMEs are currently owed an average of £60,000 in unpaid invoices, with 69% reporting that customers are taking longer to pay than a year ago. The knock-on effect is significant – nearly one in five SMEs (19%) have been forced to delay payments to their own suppliers to protect their cash flow, spreading the strain across the supply chain.