Business News Round Up (05/09/2025)
Scottish hospitality sector hits crisis point
The Scottish hospitality sector is facing exceptionally severe financial pressure, with business leaders reporting that customers are sharing food and drink to save money and businesses struggling to stay afloat. Industry representatives have described the first half of the year as “brutal,” citing a dramatic drop in domestic tourism and only partial relief from American visitors, who are spending less time but still contributing to the local economy. Many pubs and restaurants are desperate, and the bottom line for most businesses is unhealthy, with some reporting minimal profit or significant cash losses. The upcoming Center Parcs development in the Scottish Borders, expected to transform local communities and create 1,200 jobs with a £400m investment, faces workforce challenges. Without increased investment in skills and staff training, jobs may have to be filled by workers from England due to local shortages, especially after the decline in the textiles industry.
Over half of UK businesses delaying investment decisions until after the budget
New research from the Barclays Business Prosperity Index reveals that while two in five (43 per cent) UK businesses surveyed are expecting to increase investment once the Autumn Budget measures are announced, over half (55 per cent) are opting to delay investment decisions until the Chancellor’s statement has been made so that any implications can be assessed. Research among 1,000 UK business decision makers shows that 43 per cent expect to increase investment following the Budget, rising to 58 per cent among large businesses and 53 per cent among medium-sized firms. Among the 55 per cent that currently have investment plans on hold, the top four decisions being postponed include:
- Facility upgrades or expansions: 37 per cent
- Research or development of new or improved products: 36 per cent
- New equipment, machinery or vehicles: 35 per cent
- Staff training plans: 34 per cent
Japan trade focus bearing fruit – attracted more than £117m of investment in Greater Manchester in last year
Japanese companies have invested more than £117m in Greater Manchester in the last 12 months, setting the stage for a Japan Week Business Programme. The multimillion-pound investment surge includes major commitments from Astemo (£100m, creating 200 jobs) Mizkan (£17m) and Daikin (£900,000, new training centre), demonstrating Greater Manchester’s position as the UK’s leading destination for Japanese business expansion outside London. The Japan Week Business Programme will feature a Greater Manchester Japan Business Seminar – celebrating recent investments, exploring future trade opportunities and showcasing Greater Manchester’s success in attracting Japanese investment. The investment achievements follow a successful Greater Manchester delegation mission to Japan in June 2025, which strengthened existing partnerships and opened new channels for Japanese investment across the city region’s key sectors. The delegation mission saw Greater Manchester business and civic leaders engage with political figures, trade officials and major Japanese corporations across Tokyo and Osaka.
Investment in British AI companies hits record levels as Tech Sec pitches UK as global magnet
Investors and regulators are being urged to go further and faster to deliver new growth for the UK’s AI sector as part of the government’s modern industrial strategy, as new figures show backing for British AI firms hit record levels last year. A total of £2.9 billion in private support and average deals worth £5.9 million has set the stage for further investment and new opportunities for both AI companies and financial backers alike. It means British AI companies alone now contribute £11.8 billion to the UK economy – double the amount in 2023 – while AI employment tops 86,000 across the country. This record investment is unlocking new growth which will benefit communities – helping fuel further development. The figures also show at least double the number of AI companies are now based in the Midlands, Yorkshire, Wales and North West compared to just 3 years ago.