Business News Round Up (12/10/2026)
Mid-market businesses are ‘essential component of economy’ yet segment often feels overlooked – research
Scotland and the UK’s mid-market businesses feel they are often overlooked by support designed for smaller firms or large corporations, according to new research. The findings come from a new report from The Royal Bank of Scotland and NatWest Group titled The Middle Speaks: narrowing the mid-market conversion gap through technology, talent and trade. Analysis in the report by Scale Up Institute identified that more than 4,400 Scottish mid-market businesses – defined as those with turnover of £10m to £100m and/or 50 to 500 employees – collectively employ 644,000 people and have an annual turnover of £122bn, reflecting the significant contribution that the mid-market makes to the Scottish economy. However, despite creating jobs, driving innovation, strengthening supply chains and supporting local communities across Scotland, the segment remains relatively underserved.
Small businesses forecast worst growth since 2020
26% of small businesses say they are forecasting growth for the final three months of 2026, with 50% forecasting no change in trading outlook, and 23% of enterprises fearing they will either contract or struggle to survive the winter months. New research from Novuna Business Finance, for the period October to December 2026, come at a time of economic volatility, with the average price of diesel rising above £2 a litre for the first time and growing concern over the impact of government borrowing on inflation and interest rates. Add to this, many small businesses are also worried about what could be announced in the Budget later this month – with a new poll revealing that 53% of small businesses said further hikes to National Insurance would negatively impact the growth outlook and finances of their business – with 44% also worried about the impact of potential rises in Corporation Tax.
UK slips from seventh to 12th as Nordic rivals pull ahead according to new global capitalism index
The UK has fallen from seventh to 12th in a global capitalism index since 2009, with researchers pointing to modest declines in labour market openness, market competition and the free flow of goods and capital. Researchers at the University of Virginia spent three years developing the first Global Capitalism Index (GCI), which ranks 161 countries across eight measures of capitalism, including business formation, market competition and the flow of goods and capital. Switzerland topped the 2025 rankings, followed by the US, Hong Kong, Canada and Singapore. Luxembourg, Denmark, Australia, Sweden and Norway completed the top ten, while New Zealand ranked 11th ahead of the UK. The researchers said the UK had experienced a slight decline in its ranking in recent years, driven by modest regressions across three of the index’s subindices: the free flow of goods and capital, labour market openness and market competition.
New centre for Advanced Brewing and Distilling could add £53.4m a year to Scotland’s economy
A proposed £35m Centre for Advanced Brewing and Distilling at Heriot-Watt University could generate an additional £53.4m for the Scottish economy every year, according to a new independent report by BiGGAR Economics. The Economic Impact Assessment explores the potential benefits of creating a new state-of-the-art facility at the University’s Edinburgh campus, building on Heriot-Watt’s internationally recognised expertise in brewing and distilling education, research and innovation, which dates to 1903. The report estimates that, within ten years, the Centre for Advanced Brewing and Distilling, could support a total annual economic impact of £324.8m Gross Value Added and 1,570 jobs across Scotland. The proposed Centre would continue the success of Heriot-Watt’s International Centre for Brewing and Distilling, which has supported the brewing and distilling sector for nearly 40 years. In 2024/25 alone, BiGGAR Economics estimates that the ICBD generated £240.1m GVA for the Scottish economy and supported 1,180 jobs.