Business News Round Up (13/08/2026)
Scottish margins squeezed by wage growth and weak pricing power, but financial sector downturn slows
Scottish margins are being squeezed as rapid growth in employment and wages clashes with weakening pricing power, according to the latest Royal Bank of Scotland Growth Tracker. Scotland was the only nation in the UK outside of Northern Ireland to record payroll growth in July with employment rising at its fastest rate since September 2024 – reaching a nearly two-year high. The report found that job growth was driven almost entirely by service providers, who cited preparations for future projects, while goods producers saw a marked decline in payrolls. But many businesses reported operating expenses remained high, driven by payroll overhead growing significantly. At the same time, companies faced 22 consecutive months of falling new orders and weak client demand.
Business activity growth across North West resumes at start of third quarter
Business activity rose for the first time in three months across the North West private sector economy in July, the latest NatWest Growth Tracker showed. The upturn was seen alongside a marked improvement in business confidence and a noticeable easing of price pressures. The headline North West Business Activity Index came in at 51.2 in July, up from June’s 47.7 and registering above the 50.0 no-change mark for the first time since April. Where an increase in output was recorded, firms remarked on factors such as demand for new products and increased sales both at home and abroad. As for the year-ahead outlook, firms in the North West were much more optimistic about growth prospects than a month earlier. In fact, business confidence improved to the highest since October 2024. The latest data showed a further easing of cost pressures faced by firms in the North West.
Scotland’s public spending deficit falls as tax take rises
Scotland’s public spending deficit fell by £600m last year to £25.3bn after an increase in the amount raised in taxes, figures show. The annual Government Expenditure and Revenue Scotland (Gers) report compares the tax raised in Scotland with public spending for and on behalf of Scotland. It said that revenue had grown by £6.3bn to £98.3bn, an increase of 6.9%, while there was a slower growth in expenditure, which rose by £5.7bn to £123.6bn – an increase of 4.8%. The largest increases in revenue came from national insurance contributions, which were up by £2.4bn, and income tax receipts, up by £1.5bn. The expenditure of £123.6bn is the amount spent by the Scottish, UK and local governments north of the border – as well as a share of spending on shared provision such as defence and debt.
https://www.bbc.co.uk/news/articles/c99852n780ro
Most UK tech leaders say network outages are becoming a critical business problem
New research has lifted the lid on how small business tech leaders are finding it increasingly difficult to ensure technology can drive change, citing network issues, increased complexity, and a lack of buy-in from other departments. A survey by Zen Internet of 500 tech leaders are mid-market and above companies, the research paints a depressing picture. IT departments and infrastructure are integral aspects of running a business, but too often – as indicated here – their expertise and purpose are misunderstood or simply ignored. The result seems to be a mismatch of contracts, vendors, and platforms slowing change. Of particular concern is the suggestion that network modernization, while desirable, is unlikely for many businesses due to struggles with suppliers.