Business News Round Up (13/10/2026)
UK businesses ramp up borrowing as two-thirds plan to increase headcount
More than two-thirds of larger UK businesses expect to increase staff numbers over the next year as companies step up borrowing to finance technology, product development and expansion, according to a survey by HSBC UK. The findings suggest that business investment and recruitment ambitions remain resilient despite persistent cost pressures and uncertainty over the economic outlook, with companies increasingly turning to external finance to fund their growth plans. The survey of 1,029 UK business leaders found that 68% of companies with annual turnover above £3mn expected to increase headcount, most commonly by 6-15%. More than half of those businesses, 56%, had taken on new borrowing or credit lines in the previous 12 months, almost double the 28% recorded in 2025. Among companies planning to expand over the next year, 87% were confident they would achieve their growth targets, up from 80% a year earlier.
UK growth forecast upgraded by energy prices and rates to hit in 2027
The UK economy is forecast to grow by more than previously expected this year before higher energy prices and interest rates hit growth in 2027, the International Monetary Fund (IMF) has said. The organisation’s latest report, which is closely watched by the government, said the UK economy would expand by 1.3% in 2026, up from the 1% it predicted in July, before slowing in 2027. Economies across the world have proved more resilient to the energy price shock caused by the US-Iran war, the IMF said, but it warned the economic fallout from the conflict remained “highly uncertain”. Chancellor John Healey said the government would look to “provide some breathing space” for households in the Budget. Healey is making the final preparations to Andy Burnham’s new-look government’s tax and spending plans, which will be announced on 28 October.
https://www.bbc.co.uk/news/articles/cmglw0r21zexo
Eight-in-10 of medium and large UK businesses report cyber incidents in the last 12 months
Online fashion giant ASOS has become one of the latest targets in a wave of cyber incidents affecting UK businesses, after hackers hijacked its app to deliver an extortion demand directly to millions of customer phones. Cyber insurance could be a key part of the response businesses deploy to minimise potential damage – even as eight-in-10 medium or large entities face cyber-attacks. According to Check Point Research’s Global Threat Intelligence report, companies worldwide faced an average of 2,086 attempted attacks per organisation each week in February 2026, reflecting a 9.8% annual increase. And while UK organisations encountered a lower average of 1,504 weekly attacks, this still represented a steep 36% rise compared with the previous year. Industries such as education, energy and utilities, government, healthcare, and financial services were among the most targeted.
Optimism rises along with ministerial approval
Scottish businesses are showing new peaks of optimism as they believe economic conditions have improved over the past year and will continue to do so. The latest Understanding Business survey, produced by Diffley Partnership and Charlotte Street Partners, shows rising numbers of businesses expect both their profitability and turnover to increase over the next 12 months. It suggested a slight Burnham Bounce in Scotland. Perceptions that the UK and Scottish governments are concerned with business needs have reached their highest ever levels since the inception of Understanding Business in 2023. However, this contrasts with an RBS survey last month which found a continuing lack of faith in government understanding of business needs. Despite claims that Scottish ministers are out of touch with business, 30% of Understanding Business respondents say the SNP best represents Scottish business interests, down three percentage points since June.