Business News Round Up (11/04/2025)
Improved business growth in some UK regions in March but economic uncertainty continues
March’s Royal Bank of Scotland UK Regional Growth Tracker showed improved business growth in more regions of the UK at the end of Q1 – but the majority are still being affected by wider economic uncertainty. The Tracker showed London and the South West led business growth last month, with improvements seen in the South East and Yorkshire and Humber. As witnessed in January and February, most regions in March experienced a dip in business activity as inflationary pressures remained elevated, with Scotland and Northern Ireland the worst affected. The Regional Growth Tracker Business Activity Index is the first fact-based indicator of regional economic health published each month. A reading above 50 signals growth, and the further above the 50 level the faster the expansion signalled. Of the 12 UK regions, only five posted above 50. The average across the UK for March was 51.5.
Corporate insolvencies and opportunistic M&A ‘set to take off’ amid tariff uncertainty
The number of companies in Scotland filing for administration during the first quarter stayed relatively steady year-on-year, but insolvencies could be set to rise as businesses grapple with the uncertainty surrounding US tariffs. Analysis of Companies House data by Interpath Advisory showed there were 14 administrations in Scotland during the first three months of the year, compared to 12 cases during the same period last year and 15 during the previous quarter. Alistair McAlinden, head of Interpath in Scotland, opined that economic protectionism means storm clouds are gathering. “The universal tariff imposed, and now paused, by the US has sent shockwaves round the globe and has knocked corporate confidence. Quite simply, businesses are unnerved – we’ve already seen that come through in volatility in the markets nationally and internationally. Together, this may mean that we see expansion plans put on ice and a reduction in capex and technology investment.”
https://www.insider.co.uk/news/corporate-insolvencies-opportunistic-ma-set-35035564
UK economy grew more than expected in February
The UK economy grew by more than expected in February, according to the latest official figures. The economy expanded by 0.5%, with the services sector having a strong month, the Office for National Statistics (ONS) said. Economists had predicted growth of just 0.1%, but the ONS said several factors contributed to the surprise rise which was driven by a boost in manufacturing and production. The better-than-expected figures come as the UK economy braces itself for the impact of tariffs imposed on goods being imported to the US, with analysts warning that growth could prove short-lived. The UK is subject to the blanket 10% tariff on nearly all of its goods being brought into the US, which is expected to hit British exporters and also affect economic growth. The government has made growing the UK economy its top priority in its effort to improve living standards.
https://www.bbc.co.uk/news/articles/cj0zz357532o
Scotland must ‘rewire’ economy for a fairer future, says report
Scotland needs to rewire its economy to become fairer, greener and more prosperous, a new economic and environmental report has said. The paper, published today by the Economic Development Association Scotland (EDAS) and Zero Waste Scotland, argues that the circular economy should be at the heart of government plans for growth, calling for ‘social provisioning’ to be a central part of public policy. The joint report, Circular Economy: Unlocking Scotland’s Economic Potential, emphasises the need for more alignment between Scotland’s economic development and the circular economy in the hope of moving toward an economy that benefits both the Scottish people and the planet. Arguing that the nation stands at an ‘inflexion point’ in the move away from fossil-fuelled economic growth, the report’s authors claim a circular, greener, and more universally generous model could help tackle unacceptable levels of poverty and inequality across Scotland.
https://www.digit.fyi/scotland-must-rewire-economy-for-a-fairer-future-says-report