Business News Round Up (02/04/2026)
Soaring business rates among top concerns for Scottish firms ahead of election – SCC
New data from the Scottish Chambers of Commerce (SCC) shows nearly half of firms (48%) are concerned about business rates – the highest level in the last five years. The findings from SCC’s Q1 2026 survey highlight growing pressure on businesses from rising fixed costs, with business rates rapidly climbing the list of concerns across the Scottish economy, now second only to tax. With the Scottish Parliament election campaign firmly underway, SCC says the sharp rise in concern over business rates should focus minds across the political spectrum: if the next parliament is serious about growth, it must start by tackling the cost of doing business. Businesses continue to show resilience, with confidence, revenue and profits stabilising compared to Q4 2025. However, entrepreneurs continue to warn that Scotland’s operating environment is becoming less competitive, with structural cost pressures holding back investment and growth.
UK economy set to be hit hard by crisis in Middle East
The Organisation for Economic Co-operation and Development has warned that the UK could be the hardest hit among G20 economies by the war in Iran. Joe Nellis, economic adviser at professional services firm MHA, explains that the conflict underlines how vulnerable the country’s fiscal position remains to global shocks – especially those that drive energy prices higher. The immediate risk is to growth. A spike in oil and gas prices would squeeze household incomes and raise costs for businesses. Consumers are likely to cut back, while firms delay or scale down investment, slowing activity across the economy. Higher energy prices will push inflation back up, just as it appeared to be stabilising. This places the Bank of England in a difficult position: support growth and risk fuelling inflation; or keep interest rates higher for longer and deepen the slowdown.
https://www.consultancy.uk/news/43628/uk-economy-set-to-be-hit-hard-by-crisis-in-middle-east
Office lettings ‘on hold’ amid Iran war uncertainty
Office lettings have been put on hold by many potential occupiers as they await developments in the Iran War. The conflict may affect the flow of deals following an “encouraging” start to the year in Edinburgh’s office market. Lettings were up 39% in the first quarter to 128,000 sq ft, compared with 92,000 sq ft in the corresponding period last year, though this was partly a result of the leasing cycle, according to Knight Frank. Last year Edinburgh saw its lowest level of annual office take-up since 2020, with just under 500,000 sq. ft. of deals. However, Knight Frank said this could be put down, at least partially, to timing, with lease events tending to work in five-year cycles. This year was on track for a more positive outcome, but the Middle East conflict has filtered into all sectors of the economy.
UK faces ‘AI Skills Crisis’ with 40% of workforce receiving no training
New research reveals a widening gap between AI adoption and employee confidence, with many workers using AI tools, but lacking the skills and support to apply them effectively. A survey of 2,000 UK employees, incorporated with learner data and real-world training outcomes, from Strive Training has highlighted how prepared, or unprepared, the UK workforce is for AI. Despite rapid uptake of AI tools, 40% of employees have received no training, and only 25% say they fully understand how to use AI effectively in their role, raising concerns that organisations are embedding technology without equipping their people to use it properly. The findings point to a growing “AI confidence gap”, where enthusiasm for AI is high, but practical skills and guidance are lacking, risking productivity, widening inequality, and creating a two-speed workforce.
https://www.digit.fyi/uk-faces-ai-skills-crisis-with-40-of-workforce-receiving-no-training