Business News Round Up (09/05/2025)
Holyrood Committee calls for second phase of Growth Deals
The Scottish Parliament’s Economy and Fair Work Committee has called for a second phase of growth deals, rooted in regional economic strategies that are less bureaucratic, more flexible and transparent, and have more private sector involvement. The recommendation follows the committee’s report on City and Regional Growth Deals. These are local funding deals agreed between the Scottish Government, the UK Government and local partners, designed to drive long-term economic growth across regions by attracting investment, creating jobs and improving infrastructure. There are currently 12 deals in Scotland, each at different stages of their lifecycles. During the inquiry, the committee took evidence from a mix of newer and more established deals about their outcomes and challenges. The committee welcomed the multi-year funding provided by growth deals and the pipeline of work that this creates – also providing confidence to private sector investors, allowing for better planning of major projects.
https://www.insider.co.uk/news/holyrood-committee-calls-second-phase-35192127
Calls for more talks to lift ‘barriers’ in UK-US deal
Scotland’s key salmon sector is among those feeling short-changed by the UK-US tariff agreement despite it being hailed as a breakthrough on both sides of the Atlantic. Salmon industry leader Tavish Scott led Scottish calls for more negotiations to improve the agreement that President Trump described as a “full and comprehensive deal”. Analysts saw it as creating more of a framework for a deal that will take months to negotiate. The tariff on car exporters was cut from 27.5% to 10% and removed entirely from steel and aluminium. The UK will import more US beef, but hormone-treated beef will not be allowed into Britain. Business Secretary Jonathan Reynolds said the deal saved thousands of jobs in the car industry which were days from being lost. However, most UK companies, including those in the salmon sector, still face the 10% levy imposed by President Trump last month.
Appetite for UK logistics market deals remains strong despite economic uncertainty -BDO
The appetite for deals remains strong in the logistics and supply chain management sector, despite ‘depressed’ M&A activity set against a challenging economic backdrop, according to a report from BDO. In the first quarter of 2025, overall deal activity in the sector fell marginally. Between January and March 2025, 18 transactions were completed, compared to 19 in the previous quarter. According to the latest report from accountancy and business advisory firm BDO LLP, the ‘UK M&A Update – Q1 2025’, in the first quarter of the year 94 per cent of deals in the sector were trade-related. These were executed by either independent or private equity-backed businesses with a focus on strategic consolidation. High profile transactions included: FreightForce Distribution’s acquisition of Norfolk-based MA & HV Medler; the sale of Scotland-based John Mitchell Haulage to Gregory Distribution; and OnPoint Group’s acquisition of Eric Elliot Transport.
Funding partners invest £1.7m in North West small firms during NPIF II first year
GC Business Finance and River Capital have provided more than £1.7m in support of SMEs in the first year of The Northern Powerhouse Investment Fund II. The funding comes from NPIF II-GC Business Finance & River Capital Smaller Loans, which is managed by the consortium as part of NPIF II. Since the launch of the fund in April 2024, the consortium has supported 32 businesses across the North West and is currently managing a strong pipeline of applications under review. As part of their role delivering NPIF II Smaller Loans up to £100,000, GC Business Finance and River Capital have played a key role in unlocking early-stage growth capital for small and medium-sized businesses across the North West. Given that NPIF II is sector-agnostic, this enables the consortium to support a wide variety of businesses, regardless of industry, showcasing the depth of innovation and ambition across the North.