Business News Round Up (06/12/2024)
Scottish Budget: key highlights, implications for businesses and key industry comments
The Scottish Government has unveiled its budget for 2025-2026, with Finance Secretary Shona Robison outlining a comprehensive plan aimed at addressing economic challenges while fostering growth and social equity. The budget emphasizes investments in public services, economic development, and measures to combat climate change, reflecting Scotland’s commitment to sustainable growth and social welfare. A significant highlight of the budget is the allocation of £2 billion for the NHS, focusing on reducing waiting times and improving access to healthcare services. Additionally, £768 million has been earmarked for affordable housing projects, aiming to tackle housing shortages and provide more Scots with secure homes. The budget also includes a substantial increase in social security spending by £800 million, underscoring the government’s commitment to reducing child poverty. This includes plans to eliminate the two-child benefit cap, which is expected to lift 15,000 children out of poverty.
40% of Scots expect more small business closures due to NI hike
Two fifths of Scots expect to see an increase in the number of small and medium-sized enterprises (SMEs) closing in their local areas because of the National Insurance contribution hike. New polling commissioned by the Liberal Democrats has revealed that more than half (55%) of Scots think that costs will increase at local SMEs, with almost one in five (17%) expecting them to increase a lot. A further 37% of Scots also expect the number of jobs available at local SMEs to fall too. A quarter said that they thought the tax hike would affect their spending habits at SMEs. Of these people, more than half (53%) said that they would be cutting back on their Christmas shopping as a result, while 45% said that they would visit their local high streets less and more than a third (34%) said that they would shop at larger stores.
https://www.insider.co.uk/news/40-scots-expect-more-small-34259968
Innovation sector welcomes £321 million government spending commitment to support emerging tech including robotics and AI
Two of Scotland’s technology and innovation centres have welcomed a £321 million government spending commitment to support emerging technology, including robotics and artificial intelligence. The National Robotarium, based at Heriot-Watt University in Edinburgh, and The Data Lab – the innovation centre for data and AI – have responded positively to yesterday’s Budget allocation for enterprise agency funding by the Scottish Government. Shona Robison, cabinet secretary for finance and local government, referred to the spending commitment as part of government plans to create a ‘thriving economy’. She then confirmed that her government will support emerging tech, including AI and robotics, and programmes like “our ambitious Techscaler initiative”.
Scottish Growth Summit offers innovative grant to boost female-led businesses
There is just a week left for female-led Scottish businesses to apply for an innovative growth grant being offered by the Scottish Growth Summit. Five businesses are set to receive the package of support, which is designed to help them deliver successful, growth-generating events, from new business gatherings and creative workshops to community events. Applications for the innovative grant must be submitted by Friday 13 December. The grant winners will receive support with finances, promotion and organisation for their event, all delivered by the team behind The Scottish Growth Summit – an enterprise led by female entrepreneurs, for female entrepreneurs. The Scottish Growth Summit was founded in 2023 by three west of Scotland entrepreneurs, Laura Maginess, Heather Offord and Claire Baillie who have joined forces to create a movement that supports and empowers female business owners and entrepreneurs across Scotland.