Business News Round Up (12/03/2026)
Glasgow needs recovery fund to support small businesses affected by Glasgow fire, says FSB
The Federation of Small Businesses (FSB) has called for Glasgow to establish a fire recovery fund to help small businesses get back on their feet following the devastating Union Street fire. Scores of small businesses have been affected by the huge blaze which has resulted in the closure of a large part of Glasgow city centre, including many which have suffered devastating damage. FSB is calling for a package of support, including hardship rates relief, like that offered to businesses affected by the Glasgow School of Art and Victoria’s nightclub fires in 2018. Small businesses in the area are facing several challenges. Around 20 have seen their property destroyed by the blaze, while scores more have been forced to close or are otherwise facing severe disruption as a result of the ongoing emergency and public safety response.
New modelling shows UK economy could gain more than £8.6 billion by plugging connectivity gaps
New modelling has shown that the UK economy could gain more than £8.6 billion in value if gigabit capable broadband was available to every home and business currently lacking access. Edinburgh digital infrastructure consultancy Farrpoint has produced a new analysis which suggests that widespread gigabit connectivity could also help create or sustain more than 156,000 jobs and support over 13,000 businesses. The biggest single benefit would be from a £4.8 billion uplift in land values, reflecting the significant impact that high quality digital infrastructure can have on property values and investment in both urban and rural communities. The findings come as the UK continues its rollout of next-generation broadband infrastructure through initiatives such as Project Gigabit, the UK Government’s £5 billion programme designed to expand gigabit-capable connectivity into rural and hard to reach areas where commercial investment alone is unlikely to deliver coverage.
Expectations for UK interest rate cuts have evaporated
Markets are now signalling that the Bank of England could hold borrowing costs at 3.75% throughout the year, with the possibility of a rise toward 4% next summer as geopolitical tensions drive oil prices higher and push bond yields upward. Only weeks ago, the outlook appeared very different. Traders had been positioning for the start of a rate-cut cycle, believing inflation pressures were easing and that policymakers would soon move to support growth. The eruption of conflict involving the US, Israel and Iran has changed the equation. Oil surged sharply, and government bond yields climbed as investors reassessed the risk of persistent inflation tied to energy markets. This sudden shift forces investors to reassess where opportunities and risks now sit. Energy is the most immediate beneficiary. Oil moving back toward $100 a barrel dramatically improves the earnings outlook for producers and service companies.
Half of Scottish tourism and hospitality businesses at risk due to lack of cash reserves
More than half of tourism and hospitality businesses in Scotland have no cash reserves or fewer than three months’ reserves, new research reveals. Highlighting a growing financial vulnerability across the sector, the report by the Scottish Tourism Alliance found cost inflation is the dominant pressure, with the majority of businesses reporting higher costs for suppliers, energy and staffing compared to 2024. Visitor numbers and spend is contributing to the financial issues. Visitor spend in Scotland fell by 15% during summer 2025, while profitability declined by 23%. Domestic visitor numbers also fell sharply, showing a net decrease of 26% year on year, contributing to an overall net decrease in visitor numbers of 18%. Only a quarter of businesses plan to invest and expand during 2026, the study said, with the recent Scottish Budget viewed negatively by 68% of respondents.