Business News Round Up (12/01/2026)
Ministers face calls to expand business rate relief beyond pubs as U-turn looms
High street businesses have called on the Government to expand business rate relief plans beyond pubs following reports of an impending U-turn. The Treasury is understood to be preparing a support package for the pub industry, due to be announced in the coming days, following an outcry over the impact of a major hike in rates. But ministers now face pressure to expand that support to other businesses, with trade bodies saying “piecemeal responses” will not “save our high streets”. Opposition politicians have also urged the Government to go further. Kate Nicholls, chairwoman of UKHospitality, called for “a hospitality-wide solution”, saying the entire industry is affected by business rate hikes, not just pubs. Figures provided by UKHospitality suggest hotels in England face an average increase in business rates of 115 per cent by 2030, compared with a 76 per cent increase for pubs.
Economy ‘losing momentum’ as confidence dips
Scottish businesses are increasingly pessimistic with confidence dipping in Q4 of 2025 to its lowest point of the year. The survey of 550 businesses by the Scottish Chambers of Commerce and Fraser of Allander Institute found for the first time in three years more firms expect turnover to fall than to rise in the next quarter. Pressure from labour costs and taxation continued to dominate firms’ concerns. Only 15% of firms said they would increase investment, the lowest level recorded in 2025, while 77% reported increased pressure from labour costs. 65% are expecting to raise prices, up 10% over the quarter and the highest level recorded in 2025. This is also the highest figure since Q1 2023. The survey concurs with a British Chambers survey at the turn of the year which found 46% are expecting increased turnover over the next 12 months – the lowest level in three years.
https://dailybusinessgroup.co.uk/2026/01/economy-losing-momentum-as-confidence-dips
SCC: rates revaluations will push our members to the brink
The Scottish Chambers of Commerce has warned that sharp business rate increases due to take effect this April will push otherwise viable businesses “to the brink”. Businesses across every sector and region are facing rate bills several times higher than their current liabilities, following the latest revaluation. SCC is sounding the alarm amid an outcry from its membership, who are clear that the scale and speed of these increases leave businesses no time to plan, and no capacity to absorb additional costs. Members across the country have shared the real-world impact the projected rates would have on their operations. Dr Liz Cameron CBE, director and chief executive of SCC, said: “In the current business environment sudden increases of this scale are simply unaffordable. Many of our members are already struggling with tight margins, and dramatic jumps in rateable values will push otherwise viable businesses dangerously close to the brink.”
How tough choices will shape the Scottish Budget
Finance Secretary Shona Robison will this week present her final Budget before stepping down from her ministerial job and from the Scottish Parliament. She will also set out a review of spending until the end of the decade, and a revised list of priorities for capital spending on construction and other long-term projects. A difficult task made more difficult when an election follows soon after the legislation has to be passed. The Scottish Fiscal Commission says Holyrood spending projections are unsustainable. Audit Scotland has warned of a £4.7bn gap within three years. Looking at the budget for the year beginning this April, it doesn’t look as difficult as it did. Chancellor Rachel Reeves had to adjust her spending plans in the face of political pressure to increase welfare spending, and Holyrood sees a proportionate gain. A complex bit of annual budget arithmetic comes from forecast error.
https://www.bbc.co.uk/news/articles/cdjny0nn27mo