Business News Round Up (10/07/2026)
Interest rates may have to rise to combat inflation
Interest rates may have to increase in the coming year to help keep inflation in check, according to Bank of England chief economist Huw Pill. Although the Bank pinned borrowing costs at 3.75% last month, Mr Pill is wary of what lies ahead with concerns that demand in the economy had been running ahead of the UK’s productive capacity. When asked by BBC’s Walescast programme whether interest rates would need to increase over the next year, he admitted “the short answer is yes”. His viewpoint should not come as a surprise as he was one of two members of the Bank’s nine-member Monetary Policy Committee (MPC) to vote for an increase in Bank Rate at its most recent meeting, where the majority opted to leave rates unchanged at 3.75%.
https://www.scottishfinancialnews.com/articles/interest-rates-may-have-to-rise-to-combat-inflation
UK small business employment continues to rise as vacancies grow
UK small business hiring continued to edge upward in June, with job vacancies also climbing, according to the latest Intuit QuickBooks Small Business Index. Employment rose for the second consecutive month and hiring gains were more evenly distributed across sectors and regions, signalling resilience among the UK’s smallest employers. Based on anonymised payroll data from more than 26,000 UK small businesses with one to nine employees, the Index recorded a net increase of 1,400 jobs in June, bringing total small business employment to 4,155,600. Employment increased in seven of the 13 tracked sectors. Education saw the fastest growth, rising by 2.02% and adding 1,300 jobs. Professional services recorded the largest numerical increase, with 6,100 new roles (+1.13%). Construction experienced the biggest decline, losing 5,000 jobs, while administrative and support services posted the fastest rate of contraction at -0.98%.
Research shows backing female-led businesses is good for growth
Women entrepreneurs are driving some of the UK’s most exciting businesses, and the organisations backing them are continuing to outperform the wider market. For the sixth consecutive year, signatories of the Investing in Women Code have directed a greater proportion of funding to female-founded businesses than the wider market, reflecting a shared recognition that backing women is not only the right thing to do, but the most economically sound thing to do. The Code, a government-backed commitment to improve access to finance for women-led businesses, has grown from just 12 signatories in 2019 to more than 330 organisations today, including most major UK retail banks, venture capital firms, angel investors, and lenders. The findings come as Government works to unlock the UK’s full entrepreneurial potential by ensuring talented founders can access the finance they need to start and scale businesses, regardless of gender.
Retailers get a lift as Scots consumers hit the shops
Scottish shoppers came out in greater numbers than elsewhere in the UK last month to give retailers a welcome mid-summer lift. Footfall increased by 1.7% in June (YoY), up from 0.4% in May, while across the UK there was a 3.4% fall, (YoY), a further decline on the 2.6% fall in May. That was borne out by data which showed high streets suffered the sharpest declines, while air-conditioned shopping centres and retail parks proved more resilient. Scotland’s figures included a particularly strong showing from Glasgow which began to recover from the devastating fire at Union Corner in March. Edinburgh, meanwhile, is coming to terms with the blaze in Princes Street this week which has closed the main thoroughfare and neighbouring streets. The impact of the incident will show up in this month’s figures. The capital had seen zero change in June, while Glasgow saw a 6.1% rise.