Business News Round Up (06/05/2025)
Private capital investment into UK business jumps 44 per cent
The volume of private equity and venture capital cash flowing into UK businesses jumped by 44% last year as investors increasingly look outside of London for opportunities. Private capital firms invested £29.4bn into UK businesses over 2024, compared to £20.4bn in 2023, research from the British Private Equity and Venture Capital Association revealed. Private capital now makes an annual economic contribution of almost £200bn to the wider British economy, equating to 7% of GDP, up from 6% in the previous year. SMEs represented nine-in-ten of the 1,600 businesses which received private capital investment throughout last year. There are now over 2.5m jobs supported by private capital, up from 2.2m in 2023, with 69% of these working outside London. While 42% of the businesses invested in were inside London, that proportion is slowly decreasing.
https://uk.finance.yahoo.com/news/private-capital-investment-uk-business-133559449.html
Density of new start-ups soars in Northern Powerhouse regions
The North of England has recorded rapid growth in the number of small businesses being launched, according to new research. Analysis by GoDaddy UK and Ireland shows that 40% of the areas with the fastest growth in the density of start-ups and small business were in the North. Andrew Gradon, head of GoDaddy UK and Ireland, said it highlighted that investment through the Northern Powerhouse initiative appears to have boosted regional growth. The Northern Powerhouse was an initiative started by the coalition Government from 2010, using local enterprise partnerships across the regions to help drive growth. Of the 50 constituencies with the fastest growing number of small businesses, 20 came from “Northern Powerhouse” areas, according to the Venture Forward report. This compared with nine in the south of England and was twice the figure across the region last year.
No more cost increases before elections, Scottish Government urged
The Programme for Government should not add to the cost or regulation burdens facing hospitality businesses, UKHospitality Scotland has said. In a letter to the First Minister, the trade body called for policies like the incoming single-use cup tax and alcohol marketing proposals to be indefinitely paused, to reflect the challenges facing both businesses and consumers. The cumulative impact of increasing costs, looming visitor levies and a raft of proposed red tape is already forcing businesses to reduce employment levels, cut investment and increase prices. UKHospitality Scotland said the Programme for Government should be an opportunity to “offer stability and certainty” for hospitality. Immediate financial challenges should be addressed through an extension of business rates relief to all hospitality businesses. The Scottish Government should build on the positive engagement of the New Deal for Business and set out its plan of how it will work with businesses to drive growth.
Scottish firms receive King’s Awards for Enterprise
Recipients of The King’s Awards for Enterprise have been announced today, celebrating the achievements of 197 businesses from across the UK and Channel Islands. Eleven Scottish firms have been recognised, covering a variety of sectors including biotech, technology and the spirits industry. Three Scottish companies were awarded for their innovative practices, seven for their achievements in international trade and one for promoting opportunity through social mobility. Gareth Thomas, Minister for Services, Small Businesses and Exports, said: “I wish the winners every success as they continue to grow, innovate and prosper, and commend the invaluable contributions they have already made to communities at home in Scotland and abroad, helping to boost the UK economy.” The Award programme, now in its 59th year, has recognised more than 8,000 companies since its inception in 1965. The awards are valid for five years.
https://dailybusinessgroup.co.uk/2025/05/scottish-firms-receive-kings-awards-for-enterprise