Business News Round Up (06/10/2026)
Scottish Budget offers opportunity to back business ambition with action
Business rates reforms come top of the list of priorities for businesses ahead of the Scottish Budget, according to the latest Scottish Business Monitor. The report covering Q3 of 2026, produced by the Fraser of Allander Institute, surveyed 200 firms across all sectors of Scotland’s economy and asked them which areas they would most like to see prioritised in the Budget. Business rates were the clear first choice, with a 34% selecting them as the main business priority – more than twice the share choosing any other area. Skills and training (14%) and income tax (12%) were the next most common choices. The Monitor also revisited its annual questions on businesses’ relationship with the Scottish Government. The findings point to a more negative picture than last year, with 69% of firms saying the Scottish Government does not understand the business environment or engage effectively with businesses on policy (71%).
UK fiscal headroom halves to £11bn and may fall to a £7bn deficit
The UK Government’s fiscal headroom has narrowed from £23.6bn in March to £11.3bn and may fall further to a £7bn deficit if the conflict in the Middle East continues to restrict energy supply, drive up inflation and weigh on growth, according to the EY UK Pre-Budget Fiscal Outlook. The £11.3bn estimate draws on the EY UK Economic Outlook’s baseline forecast, which assumes the Strait of Hormuz reopens around the end of Q3 2026, albeit with subdued tanker traffic. However, under EY’s adverse scenario – where the Strait remains closed into early or mid-2027 and UK inflation reaches 6% by the end of 2026 – weaker growth, rising unemployment, elevated borrowing costs and falling equity prices would reduce headroom by a further £18bn, turning the £11.3bn surplus into a deficit of around £7bn.
https://www.ey.com/en_uk/newsroom/2026/10/uk-fiscal-headroom-could-fall-to-7bn-deficit
Loan fund launches for west of Scotland businesses
Social Investment Scotland has launched a £3.5m loan fund for small businesses across the west of Scotland. The pilot is the first phase of the responsible finance provider’s accreditation under the British Business Bank’s Community Enable Funding programme. It also marks the first time SIS has been able to lend to limited companies, sole traders and partnerships. The pilot will run until December 2026 and is open to eligible businesses in Glasgow, Argyll and Bute, West Dunbartonshire, North Ayrshire, South Ayrshire, East Ayrshire and Inverclyde. SIS plans to expand the fund across Scotland after testing its approach through the pilot. SIS is the eighth Community Development Finance Institution accredited under the programme and the first focused specifically on Scotland. Community Enable Funding aims to support up to £150m of lending to smaller businesses across the UK in its first two years.
https://tfn.scot/news/loan-fund-launches-for-west-of-scotland-businesses
Knight Frank doubles down on Scotland’s central belt with new Glasgow office
Knight Frank has relocated its Glasgow commercial property team to a new city centre office, marking its second long-term lease commitment in Scotland’s central belt this year. The independent commercial property consultancy has taken a first-floor suite at 101 St Vincent Street in Glasgow, moving after a decade at 25 Bothwell Street. The new premises are situated on the corner of St Vincent Street and Renfield Street. Knight Frank’s building consultancy team managed the delivery of the new office’s fit-out. The B-listed 101 St Vincent Street building has recently undergone an extensive refurbishment by its owner, Dunaskin Properties. Sustainability enhancements include the building operating all-electric on a 100% renewable tariff and achieving an EPC ‘A’ rating, with end-of-journey facilities added to the basement.