Business News Round Up (06/11/2026)
Scotland’s financial services sector ‘scarred’ by financial crash, says Douglas Alexander
The Secretary of State for Scotland Douglas Alexander has claimed Scotland’s financial services remains “scarred” by the financial crash, as he called for renewed confidence in the industry and greater collaboration between government and business to drive economic growth. Mr Alexander told investors during a fireside chat at The Investment Association’s Scotland conference that Scotland had lost confidence in its financial services sector following the collapse and restructuring of major institutions during the financial crisis. He pointed to the rise of RBS under Fred Goodwin, whose aggressive expansion culminated in the ill-fated £49bn takeover of ABN Amro shortly before the financial crash. RBS subsequently required a £45.5bn taxpayer bailout, an episode Alexander said left Scotland’s financial services sector confidence in the industry damaged. The Secretary of State for Scotland argued that the country retained significant strengths in asset management and fintech.
Making Tax Digital drive is failing to convince SMEs, says tax tech body
HM Revenue & Customs’ Making Tax Digital drive is proving problematic for small businesses, new research shows. In one of the biggest administrative shake-ups affecting SMEs in years, sole traders and landlords earning more than £50,000 from their self-employment and property had to send their first Making Tax Digital (MTD) for Income Tax quarterly update by August 7, 2026. MTD will extend to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028. HMRC said no penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax, although penalties do still apply for late self-assessment returns and late payments. From the second year of MTD for Income Tax onwards, points-based penalties will apply where taxpayers miss a quarterly deadline.
Interest rate increased in battle to control inflation
The Bank of England has raised the cost of borrowing, as forecast, by 0.25 percentage points to 4%, the first rise in three years. The nine-member monetary policy committee voted by 8-1 for an increase and financial markets are still pricing in three further rate hikes by the end of next year. One member, Catherine Mann, voted to increase Bank Rate by 0.5 percentage points, to 4.25%. This is the first rise since 3 August 2023 when Bank Rate was raised to 5.25% and had been strongly signalled. Consumer price inflation jumped to 3.5% in September, up from a mid-year low of 2.6% in June, taking it well above the official 2% target. In its minutes, the Bank said: “Global energy prices have continued to rise from an already elevated level. UK CPI inflation increased to 3.5% in September.
Construction skills investment needed to unlock Scottish net-zero goals
Construction skills in Scotland need investment if they are to deliver a potential over £100bn pipeline of energy and infrastructure projects in the Highlands and Islands, according to new analysis from the Construction Industry Training Board. The latest Local Skills Scotland 2026 report shows that while Scotland is expected to have sufficient construction workforce capacity overall between 2026 and 2030, workers and skills are not evenly distributed across the country. Additionally, some areas face significant recruitment challenges, while major future investment could create demand on an unprecedented scale. The report highlights that proposed energy infrastructure projects in the Highlands and Islands, including offshore wind, transmission networks, pumped storage hydro and green hydrogen developments, could more than double demand for construction workers in the area if they proceed as planned. This would increase demand for construction workers across Scotland by around 12%.