Business News Round Up (10/07/2025)
Failure to apply solutions ‘holds back productivity’
Scotland’s weak productivity will remain a problem unless recommended solutions are properly applied, according to new research. A report Productivity – the Micro Dimension by the Royal Society of Edinburgh and the network group Prosper identifies persistent underlying issues among the “long-tail” of underperforming companies. These include a “narrow focus” on day-to-day operations with “limited strategic thinking”, a hesitancy to innovate, and a reluctance to adopt new digital technologies. Current financial pressures, such as the rise in National insurance contributions. are seen as another barrier. “The UK is distinctive in having a particularly long tail of low productivity companies which drags down the overall average,” says the report. “This morphs into the view that large British companies are excellent but are let down by their smaller counterparts, unlike in competitor countries like Germany.”
Burnham maps strategy for next decade based on economic growth
Greater Manchester Mayor Andy Burnham and his senior officers outlined their strategy for the next decade last night, built on what they believe will be an era of economic growth, including the appointment of high-profile personalities Steve Coogan and Sebastian Coe to lead new Mayoral Development Corporations. The key big ideas included in the ambitious strategy include new underground transport services and a flagship underground station at Manchester Piccadilly with a high-speed rail link to Liverpool and regeneration of the surrounding area – making it ‘the Kings Cross of the North’. Speaking to a packed room at Manchester’s new Campfield space next to the Science and Industry Museum in Castlefield, Burnham’s Greater Manchester Strategy 2025-2035 includes a Growth Plan, and a People Plan, which he says every person and every place in Greater Manchester will feel the benefits of economic growth.
UK secures £7.5bn Japanese investment
The UK government has secured a £7.5bn Japanese investment which it says will benefit key infrastructure and clean energy projects. Minister for Investment Baroness Poppy Gustafsson signed the partnership agreement with Sumitomo Corporation’s Energy Transformation Group CEO Mr Hajime Mori, Europe CEO Mr Hiroyuki Koike and the Energy Transformation Business Group in Tokyo. Sumitomo Corporation aims to facilitate £7.5bn of investment into these offshore wind and hydrogen projects by 2035, backing the government’s aim to significantly increase long-term business investment into key growth sectors following the publication of its Modern Industrial Strategy and the 10-Year Infrastructure Strategy. The Modern Industrial Strategy aims to make it quicker and easier for businesses to invest in the UK, providing investors the certainty and stability they need to make long-term decisions.
https://businesscloud.co.uk/news/uk-secures-7-5bn-japanese-investment
Investment Fund for Scotland hits £25 million milestone
The British Business Bank’s Investment Fund for Scotland has delivered more than £25m to Scottish businesses since it launched 18 months ago, supporting 58 firms across the country. Alongside the significant investment from the bank, an additional £26m in private sector funding has also been committed, making the total investment into Scotland more than £52m so far. Launched in October 2023, the Investment Fund for Scotland was split between loans from £25,000 to £2m and equity investment up to £5m, delivered through fund managers DSL Business Finance, The FSE Group and Maven Capital Partners. Pets-Cetera, a pet accessories boutique in the west end of Glasgow, is among the latest businesses to receive funding via the smaller loans portion of the fund, managed by DSL.
https://www.insider.co.uk/news/investment-fund-scotland-hits-25-35531113