Business News Round Up (01/07/2025)
Confidence in short supply among bosses as tax hikes shake business outlook
Business leaders’ confidence in the UK economy has fallen sharply, as the full impact of government tax increases and rising cost pressures begins to take hold, according to new data from the Institute of Directors. The Directors’ Economic Confidence Index dropped to -53 in June 2025, down from -35 in May, marking a significant deterioration in optimism among company directors. The survey found that investment intentions had suffered one of the steepest declines, with the net balance falling to -10 from 0 last month. Employers also cut back their hiring plans, with headcount expectations slipping from -1 to -10. The IoD’s findings align with those of the British Chambers of Commerce, which recently reported that more than a third of its members were planning to reduce staffing levels in response to cost pressures. The data signals growing anxiety among business leaders over rising input costs, regulatory uncertainty, and tax burdens.
https://bmmagazine.co.uk/news/business-confidence-uk-iod-june-2025-tax-impact
Report says R&D can unlock regional growth and close productivity gap
The Northern Powerhouse Partnership (NPP) is calling for a fundamental tilt in government innovation funding, backed by a £6bn-a-year boost for the North as part of the UK’s industrial strategy. New economic modelling underpinning Innovation in the North – a major new report published in collaboration with Durham University Business School – shows that targeted public and private R&D investment into the region’s high-potential sectors and clusters could help close the North-South productivity gap and unlock up to £206bn in additional economic output over the next decade. The report presents the most comprehensive assessment to date of the north’s innovation ecosystem. It maps strengths across 71 subsectors and evaluates each region’s performance on skills, technology, infrastructure and capacity to absorb and adopt innovation. The publication follows the Government’s Spending Review announcement of a record £22.5bn per year in R&D funding by 2029/30, including limited devolved investment for regional leaders.
Scottish Gov Ecosystem Fund set to deliver 28 new initiatives
A pipeline of programmes to build entrepreneurial ambition, capability and networks for Scotland’s current and future entrepreneurs will be delivered with investment from the Scottish Government’s Ecosystem Fund. A total of 28 projects will deliver initiatives in 2025/26. They range from inspiring school pupils to helping businesses realise international growth. The projects include a 10-week programme from Women’s Enterprise Scotland, designed to support women entrepreneurs by tackling the persistent barriers they face in accessing finance. In the Scottish Borders, Galashiels Soup will host community micro-grant events to back local initiatives. Further, the SGDA Games Accelerator — Scotland’s first dedicated accelerator for the games sector — aims to help games companies overcome the distinct challenges they face around product development, funding, and marketing.
https://www.digit.fyi/scotland-startup-funding
Quarterly survey of Greater Manchester businesses highlights volatile economic environment
The results of Greater Manchester Chamber of Commerce’s (GMCC) latest Quarterly Economic Survey (QES) has revealed how global factors and rising costs are impacting local businesses. The survey found businesses in the city-region were dealing with issues including US tariffs and increasing costs in the form of rising Employer National Insurance contributions. The QES also raised concerns that growth is being driven more by increases in public spending than business investment. The GM Index (a composite economic indicator created from QES data) was down 2.5 points to 16 (in the previous quarter the Index had fallen nine points to 18.5), although the services sector was performing better than manufacturing. The QES showed the service sector was performing well with growth in the business to consumer and business to business sectors, but hospitality was struggling.