Business News Round Up (09/09/2025)
New report reveals tariff turmoil stalling UK SME growth
UK small and medium-sized enterprises (SMEs) are being hit hard by shifting international trade tariffs, with new research revealing a sharp slowdown in investment, sales, and supply chain stability. According to the study, more than two-thirds (68%) of SME finance decision-makers (FDMs) say tariffs have had a significant impact on their short- and medium-term investment plans. Over half (56%) report sales pipeline reductions of up to 40%, while 70% highlight rising risks across their supply chains. As UK businesses grapple with changing tariffs in 2025, 70% of UK FDMs also report an increased risk across their supply chains since tariffs were introduced. The results are part of a new research report, International Tariff Turmoil: How Global trade policy is rewriting UK SME finance strategy, released by CPiO, one of the UK’s longest-standing Sage partners, providing software and services to UK SMEs.
https://www.themanufacturer.com/articles/new-report-reveals-tariff-turmoil-stalling-uk-sme-growth
UK manufacturing climbs to 11th in global output rankings
The UK manufacturing industry has improved one place to 11th in the latest world rankings according to the latest official figures available published by Make UK. This comes after the sector dropped out of the top ten for the first time in the previous data. The figures are contained in the latest annual ‘Manufacturing – The Facts,’ which contains a wide variety of data about the vital contribution of manufacturing to the UK economy including exports, sectoral breakdown, how UK industry compares to other nations, jobs and salary levels. The data shows that in 2023 UK manufacturing output was worth a revised $279bn (1). This is one place behind Brazil ($290bn) which has moved back into the top ten for the first time since 2012. China is by far the largest manufacturing nation, with output worth $4.8trn, followed by the US $2.8trn and Japan $840bn.
https://www.pesmedia.com/uk-manufacturing-now-11th-in-world-rankings
Growth vs green and inclusion goals: the balancing act for UK business leaders
A new survey from The Open University reveals a growing dilemma for UK businesses: almost all leaders (96%) see growth as central to their strategy, particularly in the context of the UK Government’s priority mission in achieving strong, secure, and sustainable economic growth by 2035. Yet nearly three in four admit it often comes at the expense of workforce diversity and inclusion goals (72%) and sustainability and net zero efforts (71%). The poll, based on responses from 500 UK business leaders shows that 78% expect growth to become an even greater priority in their strategy over the next three years, but many are grappling with the unintended consequences. Half of businesses (53%) expect diversity, equity and inclusion (DEI) to become more important in their strategies, yet two-thirds (64%) admit candidates from disadvantaged backgrounds may be overlooked, and the same proportion say workers needing adjustments are deprioritised during high-growth phases.
UK launches £250m Defence Growth Deal for Scotland
Scotland’s economy will be boosted by what the UK Government is calling a ‘pioneering defence programme’ – backed as part of a £250 million UK-wide investment – to improve collaboration, foster innovation and create jobs. Defence Growth Deals are being created as part of an initiative to support the growth potential of the defence industry, underpinned by the increase in defence spending to 2.6% of GDP by 2027 and the ambition to hit 3% in the next Parliament. Utilising a share of a £250 million of money for UK Defence Growth Deals, Scotland will forge a long-term partnership between the UK and Devolved Governments, uniting business and research institutions in the nation to harness local expertise and resources in support of the UK Armed Forces.
https://www.digit.fyi/scotland-defence-investment