Business News Round Up (13/06/25)
Elevate targets Scotland’s ‘growth gap’ with new SME survey
Elevator has launched a new nationwide survey targeting Scotland’s ‘missing middle’ in growth support, which the entrepreneurship and business support group believes is overlooking SMEs stuck between early-stage support and scale-up success. In a bid to uncover what growing Scottish businesses need to thrive, Elevator’s SME Scotland Survey 2025 questions firms around access to finance, government support, and community wealth building. The poll also asks Scots firms about their experience of technology investment and AI, their talent and skills strategies, and export plans, as well as their overall sentiment on the current economic environment. According to the Scottish Government’s Businesses in Scotland report from late last year, an estimated 355,805 SMEs were operating across the country, accounting for around 42% of employment in the private sector as a whole.
https://www.digit.fyi/elevator-targets-scotlands-growth-gap-with-new-sme-survey
City BIDs hit out at mayors’ tourist tariff plea
Business Improvement Districts in Manchester and Liverpool have raised concerns about calls for a visitor tax by combined authority mayors. Earlier this month, the mayors of Greater Manchester, Liverpool City Region, the North East, West Yorkshire, and the West Midlands made a joint plea to government for powers to introduce a tourist tax. They said the tax, like those in operation in many European destinations, would unlock funding for tourism and cultural infrastructure and drive regional growth. Currently, cities do not have the power to enforce a visitor tax. The mayors have asked for that to be changed. In response, the Manchester and Liverpool BIDs have sent an open letter to the government urging caution. The BIDs are concerned that moving to a “politically-led” tourist tax would raise uncertainty about how the proceeds are spent and potentially take vital funding away from a “beleaguered” sector.
UK economy suffers worst monthly contraction since 2023
The UK economy suffered its worst monthly contraction in April since 2023 as US President Trump’s trade war hit exports and tax increases held back the services sector, underlining chancellor Rachel Reeves’ challenge in delivering the growth needed to help finance the government’s spending plans. The 0.3% GDP decline was the steepest since October 2023 and weaker than the 0.1% contraction forecast by economists polled by Reuters. It followed growth of 0.2% in March. Output in the services sector fell 0.4%, with the end of a tax break on home purchases hurting estate agents and law firms. The value of goods exported to the US tumbled by the most on record, suggesting activity was brought forward in previous months ahead of the sweeping tariffs that took effect in April. UK companies have also faced an increase in national insurance contributions since April, while households are grappling with higher utility bills.
https://www.ft.com/content/b085d5d7-72a5-4a94-9a1b-1c7430285646
£86 billion innovation investment to power regional growth and future technologies
The UK government is set to inject a landmark £86 billion into the science, technology, and innovation sectors as part of a comprehensive economic renewal plan. This investment aims to supercharge Britain’s leadership in fields such as AI, life sciences, advanced manufacturing, and clean energy, while empowering local regions to drive innovation tailored to their strengths. Chancellor Rachel Reeves will unveil this transformative funding in next week’s Spending Review, announcing a commitment to £22.5 billion annually by 2029/30. The funding will support breakthroughs ranging from next-generation medicines and long-lasting batteries to cutting-edge AI technologies, expected to create thousands of high-skilled jobs and deliver billions in economic returns. A key feature of the plan is up to £500 million for local innovation across the UK. Through a new Local Innovation Partnerships Fund, regions will have the power to shape how R&D investment is spent based on local expertise and economic needs.