Business News Round Up (13/01/2026)
North’s recruitment market continues to decline, but pay growth renewed last month
Hiring activity across the North of England fell deeper into contraction territory at the end of the year, according to the latest KPMG and REC, UK Report on Jobs: North of England survey. Rates of decline gathered momentum for both permanent placements and temp billings, reaching nine- and eight-month highs, respectively. However, although demand for labour continued to fall, it did so at a slightly softer pace. Meanwhile, pay trends for both types of roles turned positive, following four months of reduction. The report is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England. It shows recruitment consultancies based in the North of England signalled a further drop in permanent staff appointments in December, thereby stretching the current trend of decline to two-and-a-half years.
All eyes on pre-election Scottish Budget
Shona Robison delivers tomorrow’s Scottish Budget in a challenging fiscal environment with limited room for manoeuvre, financial experts say. The pre-election budget comes later than usual because of the timing of the UK government’s Autumn statement in November and the time required to assess its implications for Scotland’s public finances. The additional £820 million in Barnett consequentials, including £510 million in resource funding and £310 million for capital funding, is “meaningful” but small in the context of a £60 billion budget, according to MHA partner Alan Stewart. “Independent analysis suggests that underlying spending pressures have continued to exceed recurring revenues, placing constraints on future fiscal flexibility,” Mr Stewart said. “This adds to the difficulties faced by the Finance Secretary who has to balance the budget every year although use can be made of the Scottish Government’s borrowing powers and non-recurring funding sources, such as reserves or one-off revenues.”
https://www.scottishfinancialnews.com/articles/all-eyes-on-pre-election-scottish-budget
UK lands number two spot in global Fintech investment
The UK has managed to reclaim its number two spot in the global fintech market, seeing investment in the UK fintech market up by 11% in the second half of 2025, according to data from Innovate Finance UK. Globally, fintech investment increased 21% in 2025 to $53bn, with the US claiming the top spot with $25.1bn in investment across 2,449 deals. The UK’s $3.6bn in investment put it in second place, with India following close behind with $3.4bn. The UK saw its funding allocated across 534 deals, while India amassed its funding through just 253 deals, reflecting a wider funding ecosystem in the UK. The UAE made big splashes in the fintech funding ecosystem with its £2bn Binance funding round, accounting for the vast majority of the UAE’s $2.5bn.
https://www.digit.fyi/uk-lands-number-two-spot-in-global-fintech-investment
JLL: Edinburgh office market primed for growth as activity gains momentum
Edinburgh’s office market is poised for greater activity through 2026, with improving confidence allowing many occupiers to actively plan their next moves, according to property services firm JLL. The city’s office market transacted just under half a million square feet (492,829sq ft) in 2025, according to data from JLL. This is below the 10-year average, with only four deals completed over 15,000 sq ft throughout the year, reflecting a challenging year of cyclical market conditions and broader economic uncertainty. Many businesses instead opted for short-term extensions to allow pipeline opportunities to reach the market, with 250,000 sq ft of regears taking place in addition to the new take-up reported. However, JLL expects this trend to shift in 2026, given the known pipeline of occupiers already actively seeking new space and the start of a new market cycle that will prompt more companies to make strategic relocation decisions.