Business News Round Up (08/05/2025)
Britain close to agreeing US deal to reduce tariffs
Britain and the United States are close to announcing a trade deal that will lower the tariffs imposed by President Donald Trump last month. Mr Trump said in a social media post that he was preparing to announce a “major trade deal” and an announcement is expected from the White House this afternoon. Details were sketchy last night, but hopes were rising that it will ease cost pressures on key industries, including the food and drink sectors, cars, pharmaceuticals and steel. It is almost certain that the US will, in turn, be offered lower taxes on a range of products destined for the UK. Mr Trump used for he described as “Liberation Day” to impose a range of tariffs, the highest being inflicted on China. Britain was handed a 10% overall tariff, the minimum level, but still enough to cause some concern.
Rising energy costs threaten UK business growth as firms warn of competitive disadvantage
Many British companies say that rising and unstable energy costs are undermining their growth plans, with firms warning that soaring electricity prices are threatening profitability, competitiveness, and the UK’s industrial future. According to a new EY survey, three in five UK businesses reported that high energy prices are hampering their ability to expand. The warning follows an analysis by the International Energy Agency, which found that British industrial energy prices are the highest in the G7 — 46% above the IEA average. The findings reinforce growing alarm across energy-intensive industries that the UK risks falling behind global rivals unless the government takes urgent steps to reduce energy costs. The issue has sparked political debate, with Energy Secretary Ed Miliband blaming price volatility on “the rollercoaster of fossil-fuel markets we are subject to.” But critics of the government’s net-zero policies say green levies and carbon taxes are also pushing up costs.
Most workers returning to office as North West employers admit they ‘over-downsized’, new study shows
More than half of North West businesses say they “over-downsized” during the pandemic, a new study has shown – and many bosses say they plan to expand their offices as more hybrid workers are spending more time in the office. Law firm Irwin Mitchell’s latest Office Occupiers Report 2025 shows firms are more likely to reconfigure existing space than acquire new space as they look to welcome more employees back to their premises. The survey showed 49% of North West firms are looking to expand their office space in the next 12 to 18 months, with just 8% looking to reduce it. 56% of those polled said they had downsized their space too much following the pandemic. Of those planning to expand, 47% said they would prefer to reconfigure existing premises, with just 20% saying they would relocate. Meanwhile half of respondents said they would consider adding flexible workspace options.
https://www.business-live.co.uk/commercial-property/more-workers-returning-office-north-31589697
Scot’s Gov unveils blueprint to become innovation nation
The Scottish Government has published its latest Programme for Government, which, along with committing to 100,000 extra GP appointments and a ‘best in UK’ cost-of-living guarantee, lays out its plans to supercharge innovation across Scotland. Setting the tone for the year ahead, the Programme outlines the government’s intention to grow critical sectors that position Scotland as a modern, high-growth economy, particularly in tech and innovation. To meet the goal of supporting innovators and ramping up startup creation, the government said it will create an array of new programmes and initiatives. Among those will be the launch of AI Scotland, a new national transformation programme based on a partnership between business, academia, agencies and government, which will include a national AI adoption programme for SMEs.
https://www.digit.fyi/scots-gov-unveils-blueprint-to-become-innovation-nation