Business News Round Up (02/10/2026)
Six in ten businesses say customers are taking longer to pay than a year ago
UK SMEs are facing growing cash flow pressure, with 40% saying they have been forced to cut customer payment terms to protect their own finances, according to the latest SME Confidence Tracker by the UK’s largest independent invoice financier, Bibby Financial Services (BFS). With the Commercial Payments Bill yet to be passed, and Prime Minister Andy Burnham and Chancellor John Healey’s first Autumn Budget due in October, the data paints a picture of a stressed small business population. 60% of SMEs say customers are taking longer to pay than a year ago, and businesses are now owed an average of £72,000 in outstanding invoices, rising to £143,000 amongst mid-size businesses. The data also reflects pressure on supply chains. Average bad debt has edged above £30,000, while the proportion of SMEs suffering losses has also increased since the start of the year.
Scottish firms maintain hiring intentions despite confidence fall
Business confidence in Scotland fell 19 points during September to 36%, according to the latest Business Barometer from Bank of Scotland. Scottish companies reported lower confidence in their own trading outlook month-on-month, down 15 points at 50%. When taken alongside their economic optimism, down 24 points to 21%, this gives a headline confidence reading of 36% (vs. 55% in August 2026). But Scottish firms remain committed to growth, with a net balance of 46% expecting to increase staff levels over the next year, up two points on last month. Businesses are also looking to invest for the future. Over the next six months, 47% of Scottish firms plan to evolve their offering through new products or services, while 45% intend to invest in their teams through training. More than a third (39%) are targeting investment in sustainability – the highest proportion of any UK nation or region.
UK tech skills gaps cost businesses hundreds of thousands
Technology skills development company Pluralsight has launched its annual Tech Skills Report, revealing a growing gap between organisations’ investment in technology and their ability to build and verify the workforce skills needed to make the most of it – with significant financial consequences. The survey of 500 UK tech executives, IT professionals and L&D leaders, found that skills shortages are no longer solely a workforce challenge, but a significant financial liability. For businesses generating £73 million or more in revenue, 57% say skills gaps have cost them at least £380,000, and 15% report costs of £760,000 or more. The impact is particularly acute amongst cybersecurity professionals, where 41% estimate skills gaps to have cost their organisations at least £380,000 over the past year, compared with 35% of respondents overall.
https://www.digit.fyi/uk-tech-skills-gaps-cost-businesses-hundreds-of-thousands
Scottish Government commits £141m to offshore wind scheme
A Scottish Government plan to boost the offshore wind supply chain, the five-year Offshore Wind Investment Programme (OWIP), set up in 2023, is making slow progress and faces multiple risks. The programme aims to spend £500 million of public money to speed up building of the port infrastructure and manufacturing facilities needed to support Scotland’s offshore wind development projects. So far, only £141 million has been committed across 17 projects. Reasons for the slow progress include reduced investor confidence and wider regulatory issues. The government had put in place a collaborative investment approach with its delivery partners to make the best use of public money, but this was significantly weakened after an early data breach. Wider governance issues, including funding, project monitoring, and risk management, have also hampered efficient delivery of the project.