Business News Round Up (04/07/2025)
Scotland strengthens grip as European Finance Hub
Scotland has strengthened its position as a European financial and professional services hub, with these sectors now a critical driver for both jobs and economic growth across the nation, according to research from TheCityUK. Detailed analysis of the latest available data shows that financial and related professional services contributed £17.7 billion to the national economy in 2023, more than 10% of Scotland’s GVA, with the sector employing over 150,000 people. TheCityUK’s Enabling Growth Across the UK 2025 report found that Edinburgh and Glasgow are still the main centres for Scottish financial services, with more than 94,000 people employed in the industry across the two cities, representing over 60% of all employment in the field. Banking, life insurance and investment management have a strong presence in both cities, with the insurance and banking sectors accounting for 67% of industry real GVA in Edinburgh and more than 50% in Glasgow.
https://www.digit.fyi/scotland-strengthens-grip-as-european-finance-hub
Early 2025 optimism fades as economists downgrade growth forecasts for Scottish economy
The outlook for the Scottish and UK economies has weakened, with growth now expected to remain sluggish through the rest of 2025. In its latest quarterly Economic Commentary, the Institute has downgraded its forecasts for Scottish economic growth to 0.8% in 2025 and 1% in 2026. This comes despite more upbeat projections from both the Scottish Fiscal Commission (SFC) and the Office for Budget Responsibility (OBR), which have recently upgraded their expectations for 2026 whilst similarly revising down their GDP forecasts for 2025. Economic growth is now slowing compared to the start of the year and inflation has also edged up to 3.4%, after staying below 3% throughout 2024. The business environment is also showing signs of strain, with companies reporting cutting back on activities in the first quarter compared to last year, plagued by rises in National Insurance Contributions, alongside uncertainty surrounding President Trump’s trade tariffs.
60% of Scottish business leaders would go back in time to prioritise workforce skills
In a nod to Back to the Future’s 40th birthday, Bank of Scotland’s Business Barometer shows 60% of Scotland’s bosses would go back in time to boost skills in their workforce. Nearly half (46%) would launch new products or services. Look ahead to the future and the skills race is still on. The same proportion (60%) say upskilling is key to growth, with developing communication and collaboration (47%), sustainability-related skills (43%) and AI-related competencies (37%) top of their lists. Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “In Scotland, companies are drawing on past experience to shape their future plans, and putting a strong focus on building the right skills to drive new growth. “Alongside ‘hard’ skills in areas like sustainability and AI, softer skills, like communication and collaboration, are seen as critical for long-term success.”
Glasgow Semiconductor hub to create 300 jobs and £800 million revenue boost
National Advanced Semiconductor Packaging and Integration Centre expected to support 300 jobs and generate £800 million in additional revenue for businesses Plans for a national hub for the development of advanced semiconductor packaging are now underway, following the announcement of a £160 million investment from the UK Government in Glasgow City Region Innovation Zone (GCRIZ) projects. Led by the National Manufacturing Institute Scotland (NMIS), the new centre will form part of the University of Strathclyde’s Advanced Net Zero Innovation Centre (ANZIC) in Renfrewshire. It will support UK and international customers with lab-to-scale packaging of semiconductor components for critical applications. The National Advanced Semiconductor Packaging and Integration Centre (NASPIC) builds on a previous £8 million grant from Innovate UK for advanced packaging in power electronics. It responds to the accelerating need for semiconductor innovation to support next-generation technologies, from AI to photonics, as packaging capabilities struggle to keep pace with demand.