Business News Round Up (07/04/2026)
Scottish Financial Enterprise calls for business figures in government roles
Scotland’s financial services body has called for business people to be brought into government roles as part of a package of measures to grow the economy. In its election manifesto, Scottish Financial Enterprise (SFE) wants all parties to commit to a binding annual growth target and a presumption against more income tax divergence with the rest of the UK. However, the demand for no divergence with the UK is ambiguous as it could be interpreted as a commitment not to reduce income taxes, which leaves it opposed to Reform UK’s plans to cut 1p off the three main bands. Its manifesto is published amid speculation of a new Holyrood partnership between the SNP and the Green Party which has listed a range of new tax demands, including higher taxes on the highest earners.
Knight Frank: Edinburgh office market bounces back with 39% rise in take-up
Edinburgh’s office market had an ‘encouraging’ start to the year, rebounding from a subdued 2025 despite the uncertainty caused by geopolitical issues, according to new research from Knight Frank. The independent commercial property consultancy found that there was 128,000 sq ft of city centre off take-up in the first quarter, up 39% compared to the 92,000 sq ft during the same period last year. That saw the Grade A vacancy rate remain steady below 4%. There were 37 deals – up 12% compared to 33 last year – with the banking & finance and professional services sectors the most active. Energy occupiers also continued to be buoyant, after several strong years of lease activity. Recent deals include EY securing more than 36,000 sq ft at 3 Haymarket Square, subletting the space from Baillie Gifford, and Apatura taking 5,806 sq ft at recently refurbished Rutland Court in the Exchange District.
Financial services enjoying ‘fast-paced’ growth
Business volumes in the financial services sector rebounded in the first quarter of 2026 at the fastest rate since December 1996, according to new UK-wide research. The improvement in activity supported a pick-up in sentiment for the first time since June 2024, alongside a recovery in profitability. While there was increased pressure on firms’ margins, the quarterly CBI Financial Services Survey found that firms expect volumes to continue growing at a fast pace next quarter. Headcount is anticipated to rise slightly, after being broadly flat since Q4 2025, but investment intentions for the year ahead remain mixed. Firms plan to increase spending on IT, while reducing capital expenditures on land & buildings and vehicles, plant & machinery. The survey was undertaken between 27 February and 18 March, a period which spans the onset of the Iran conflict (from 28 February).
Tech layoffs jump 40% in Q1 2026 as AI fever spikes
Tech layoffs have spiked by 40% year-on-year over Q1 2026, according to new industry figures, with signs that the worst may still be ahead. Focusing on US‑based firms, data from employment analysts Challenger, Gray & Christmas reveals that tech firms announced 18,720 job cuts over March, for a total of 52,050 so far in 2026, up from 37,097 in the same period last year. Among those wielding the axe recently are Dell, cutting 11,000 employees this year, as well as Meta, which laid off 700 staff from its Reality Labs division in March, and Oracle, which this week notified thousands of workers they were being immediately let go as the firm moves to bolster its investments in AI. Last month, tech sector layoffs were ahead of those across every other sector, including transportation (32,241), healthcare (23,520), and finance (9,397), with AI the leading cause of job loss across every industry.
https://www.digit.fyi/tech-layoffs-jump-40-in-q126-as-ai-fever-spikes