Business News Round Up (01/09/2026)
Business optimism rises, but not due to change in political leadership
The IoD Directors’ Economic Confidence Index, which measures business leader optimism over prospects for the UK economy, rose to -49 in August, from -63 in July 2026. Conversely, business leaders became slightly less optimistic about the prospects for their own organisations, with confidence falling to -5, from -2 in July. Most of the survey’s underlying indicators showed modest improvements during the month: Revenue expectations increased to +12 in August, from +9 in July; Headcount expectations were little changed at -6, from -7; Investment intentions improved to -9, from -13; Export expectations remained stable at +4, from +3, and; Cost expectations remained elevated and unchanged at +83. Despite improved level of confidence, the impact of the new Prime Minister and Cabinet on business leaders’ optimism was in negative territory, at -21 for the UK economy and -23 for their own organisations.
UK capital gains tax receipts hit record £24.2bn
The UK collected a record £24.2 billion in capital gains tax in 2024/25, according to new data, following Rachel Reeves’ decision to raise the rate in her first Budget. HM Revenue & Customs revealed an 89% increase in capital gains tax receipts compared with the previous year, the highest annual capital gains receipt since 1987. HMRC said that 584,000 people paid capital gains tax, which was a 45% increase compared with the previous year, highlighting the impact of Labour’s policies to plug gaps in the public finances by raising the tax rate. The then-Chancellor of the Exchequer Rachel Reeves raised the rates of capital gains tax in her 2024 Budget to between 18% and 32%, an increase from the previous rate which was between 10% and 28%. The annual CGT allowance was cut from £6,000 to £3,000 in 2024/25 bringing more smaller investors into scope.
https://www.scottishfinancialnews.com/articles/uk-capital-gains-tax-receipts-hit-record-ps242bn
Scotland holds its place as energy projects fall
Foreign investment projects in the UK’s energy sector fell last year to the lowest number for 13 years as investors took stock amid geopolitical tensions and rising costs. Scotland remained the UK’s leading destination for energy investment, securing 15 projects – 55% of the UK total of 27 which fell from 55 in 2024. This was lowest annual total since 2013 (14 projects) and followed a 42% fall between 2023 and 2024. A similar decline has occurred across Europe. According to the EY 2026 UK Attractiveness Survey, France remained the most favoured location with 50 projects, despite this being a fall of 32% from 74 projects. The UK’s 27 was second ahead of Germany with 16 and fourth place Spain with 12. Oil and gas projects in the UK fell 81% year-on-year (from 16 in 2024 to three in 2025), while utility supply projects dropped 39% (from 39 to 24).
Business confidence in Scotland rises as trading outlook climbs
Business confidence in Scotland rose 13 points during August to 55%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported higher confidence in their own trading outlook month-on-month, up 14 points at 65%. When taken alongside their optimism in the economy, up 11 points to 45%, this gives a headline confidence reading of 55% (vs. 42% in July 2026). Scottish firms’ confidence in their own trading outlook was driven by stronger customer demand (71%) and increased investment in technology (50%), while confidence in the economy was driven by rising market demand (63%). A net balance of 44% of businesses in the country also expect to increase staff levels over the next year, up seven points on last month. Business confidence in Scotland still sits above the 12-month average of 46%, with its highest figure of 52% in October 2026.