Business News Round Up (06/10/2025)
How much do cyber attacks really cost UK businesses?
Cyber attacks are costing UK businesses more than £10,000 on average per incident, according to Uswitch Broadband. Online threats are evidently becoming worse as more people work from home or use public Wi-Fi. The risks have grown since remote and hybrid working took off in 2020, with hackers targeting less secure connections. Even the government had reported that 43% of UK businesses and 30% of charities were hit by cyber attacks in the past year. The rise in attacks has been linked to the increase in hybrid working. The Office for National Statistics reports that 28% of working adults in the UK worked hybrid between January and March 2025, often connecting from places like cafés or co-working spaces. Uswitch Broadband said this change in working habits has created a serious problem for security.
£20m local innovation fund launched by UK gov
Local leaders across the country can now bid for support of up to £20 million each in a new competition, as the UK government launches a new regional funding initiative to boost research and jobs. UK Research and Innovation (UKRI) is inviting a broad range of local and regional partnerships to bid for government funding to support research and innovation projects in their area through the Local Innovation Partnerships Fund. The competition will back partnerships that can turn existing research breakthroughs into practical solutions that create jobs and improve people’s lives, supporting the government’s Plan for Change. The fund is designed to help regions across the UK build on their existing strengths – whether that is developing technology that helps doctors diagnose diseases faster, creating cleaner transport solutions, or discovering innovations that spawn entirely new industries.
https://www.digit.fyi/20m-local-innovation-fund-launched-by-uk-gov
EY: Financial services firms race to hire tech-savvy board members in the face of AI disruption
The latest EY European Financial Services Boardroom Monitor charts the profile, experience and skillsets of board directors across the MSCI European Financials Index. The results demonstrate a significantly higher adoption rate of technology expertise to UK financial services boards compared to those across Europe; the 52% of new appointments with technology experience in the UK compares to just 35% in Europe. In addition, 94% of UK boards now include at least two directors with tech expertise, and 50% of boards have at least four, compared to 71% and 35% respectively across Europe. Breaking down the types of technology expertise UK directors bring to financial services boards, 28% of appointees in the last year have experience leading a technology-focused team or have held a senior role delivering technology. The same percentage (28%) bring FinTech experience, 8% have IT systems and operations experience, and 4% have previously worked in cybersecurity.
Scotland’s retail sector faces £457 million annual loss from Tourist Tax-free shopping ban
Scotland’s tourism and retail industry is losing £457 million annually in potential spending from international visitors due to the UK government’s decision to scrap tax-free shopping for tourists, according to new research presented to business leaders in Edinburgh this week. The findings, released by the Association of International Retail (AIR), reveal that restoring VAT rebates for overseas visitors would generate an 11% projected rise in spending, creating 9,140 jobs across Scotland’s tourism economy, including retailers, hotels, restaurants, tourist attractions, museums, galleries, taxis and transport services. Over 500 business leaders, representing leading Scottish brands including Hamilton & Inches, the Scottish Whisky Association and Laings, are now calling for Chancellor Rachel Reeves to conduct a full-scale review of the previous government’s 2021 decision to end the VAT retail export scheme.