Business News Round Up (07/09/2026)
£150m Northern scale-up fund to back high-growth businesses
The British Business Bank will commit up to £150m capital to support a fund aimed at high-growth businesses across the North of England. The proposed Northern scale-up fund will provide larger scale investment to innovative scale-up businesses seeking capital to accelerate their growth and expansion. The fund is expected to back university spinouts and other innovative, high-growth companies across the North West, North East and Yorkshire and the Humber. The fund is expected to make investments of between £5m and £15m, complementing the bank’s existing programmes in the region, including the Northern Powerhouse Investment Fund II and Regional Angels Programme. The fund’s investment approach will reflect the sector strengths, including creative industries, clean energy and space and technology within the area it covers, supporting ambitious businesses with the potential to scale and contribute to regional growth.
https://www.prolificnorth.co.uk/news/150m-northern-scale-up-fund-to-back-high-growth-businesses
UK attracts £200bn in investment but loses ground in global race for capital
The UK attracted almost £200bn in new investment in 2025, underlining the continued scale of the country’s capital markets despite a weakening share of international investment flows. Total investment in UK assets reached £4.1tn last year, according to new figures from the City of London Corporation, an increase of 5% from £3.9tn in 2024. The figures point to a mixed picture for the British economy. Domestic investment assets expanded substantially, led by a sharp increase in public equity holdings and continued growth in business and infrastructure investment. But the UK lost ground in the increasingly competitive global battle for sovereign wealth and foreign direct investment. UK public equities recorded the largest increase in new capital, rising £222bn (23%) to almost £1.2tn. Business and infrastructure investment also increased significantly, while UK government bonds remained the single largest destination for investment, with holdings approaching £1.3tn.
Report highlights challenges in translating North’s economic success into long-term good growth
PwC’s Good Growth Barometer found every region of Northern England has lower household spending power (calculated after taxes and housing costs) than the UK average. Gross household income was 9.4% below the GB average in the North West and 9.8% below in the North East. Lower housing costs narrowed the spending-power gap to 6.4% (−£1,493 a year) and 6.6% (−£1,542) respectively. Yorkshire and the Humber had the lowest housing costs of any region covered by the analysis, but gross household income is 10.8% below average. As such, household spending power remains 8.2% below the UK average (−£1,917 a year), less than any other UK region or nation. The analysis also considered household spending power alongside about 50 social and environmental factors, including financial resilience, work, housing, health, safety, social connection, green space and environmental quality.
UK Government releases £52.1 million for Scottish growth plans
The UK Government has initiated the release of the first £52.1 million from its new Local Growth Fund for Scotland, marking a significant investment aimed at fostering economic development and improving living standards across five key regions. This initial sum is part of a broader £140 million commitment spanning three financial years, from 2026/27 to 2028/29. The funding is strategically directed towards Scottish Regional Partnerships encompassing areas identified with the lowest Gross Disposable Household Income (GDHI) per capita, a key indicator of residents’ available spending and saving power. This approach prioritises local insights, empowering regional leaders to devise bespoke three-year investment plans focused on enhancing physical infrastructure, developing high-growth commercial spaces, and addressing critical skills gaps. The targeted regions include communities such as West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire, and Fife, which have been identified as having lower GDHI than other parts of Scotland.