Business News Round Up (06/08/2026)
Scotland leads UK for new business formations as spinout and grants surge – Barclays
Scotland recorded the fastest rate of new business incorporation growth of any UK nation or region in the first half of 2026, according to new analysis from the Barclays Regional Investment Map, which tracks company funding and growth across the UK. The country saw 20,872 new companies incorporated during the period, a 3.8 per cent rise on the second half of 2025. That growth rate outpaced every other UK region, reinforcing a trend seen across recent Barclays and Beauhurst datasets, which have repeatedly placed Scotland among the strongest performers for startup activity over the past two years. Grant funding to Scottish businesses also rose sharply, with £40.7m secured in the first half of 2026, up 33.5 per cent on the previous six months. The increase places Scotland among the UK’s stronger grant funding markets, with the money going toward innovation, commercialisation and growth projects.
UK services sector returns to growth as consumer spending rebounds
UK service sector returned to growth in July as stronger consumer spending and robust demand for technology services helped lift business activity, offering fresh evidence that the economy regained some momentum after a subdued start to the summer. The latest S&P Global UK Services Purchasing Managers’ Index (PMI) rose to 52.1 in July from 48.8 in June, comfortably above the 50-point threshold that separates expansion from contraction. The reading also exceeded economists’ expectations of 51.8 and marked the strongest performance since April. The rebound suggests Britain’s dominant services sector, which accounts for around four-fifths of economic output, has proved more resilient than many analysts had anticipated despite persistent geopolitical uncertainty and elevated borrowing costs.
Digital and tech lead the way as North West’s £1.2m H1 haul places it second for investment after London – Barclays
The North West has taken second spot after London for investment, with a £1.19bn haul in H1 2026, according to the latest research from Barclays. The Barclays Regional Investment Map reveals that the North West attracted the bumper near-£1.2bn during the half, eclipsing its H2 2025 total with an 89% jump. The stand out here was an £814m raise for Ineffable Intelligence, an Altrincham-based AI firm developing reinforcement learning software to train AI through trial and error. The North West also led the way in terms of company population growth (+2.41%), closely followed by the North East and Scotland (both up +2.39%). That’s more investment coming into the North West than any UK region outside London, underlining the strength of its economy and investor confidence in northern growth businesses.
Services exports held back by red tape, says institute
Regulatory barriers continue to hold back Scotland’s potential to export services, according to a new report from the Fraser of Allander Institute. The report, delivered in partnership with Prosper and commissioned by the Scottish Government, finds that Scottish services exports were worth about £16 billion in 2023, around twice their nominal value in 2008. However, the research finds that non-tariff barriers remain a significant constraint on further growth. These include the recognition of professional qualifications, licensing and certification requirements, restrictions on short-term business mobility, local establishment requirements, differences in standards, and data-related regulation. Businesses also face less visible “soft” barriers, including client preferences for locally-based providers, familiarity with domestic standards and the importance of established in-market relationships. The report finds that these commercial expectations can sometimes be as restrictive as formal regulation.