Business News Round Up (14/08/2026)
Zero hours crackdown could cost firms up to £2.9bn a year
Businesses could face costs of up to £2.9bn a year because of a crackdown on zero hours contracts, according to government analysis. Labour’s employment reforms are set to cut the number of hours staff can work before they must be offered guaranteed time. Official analysis showed it could cost employers between £350m and £2.9bn, based on the eventual threshold of hours the policy impacts. Skills Minister Baroness Jacqui Smith said the reforms would ensure workers are “fairly paid”, but business groups said the cost to employers was “disproportionate” compared to how much it would help workers. Government analysis said there were “potential trade-offs” that include more administrative costs and less flexibility for companies, including making it “harder for employers to respond to changes in demand”. At the upper end of its estimate, about £1.2bn in costs would come from businesses who are forced to pay workers compensation for cancelled shifts.
https://www.bbc.co.uk/news/articles/c0l525k76d0o
UK economy grows but experts warn of challenging months ahead
Summer sun and sports fixtures helped the UK economy grow between April and June, according to official data, but some economists warned the outlook for the rest of the year was weaker. The economy expanded by 0.4%, in line with market expectations but below a 0.6% increase in the first three months of this year. The Office for National Statistics (ONS) said growth had “remained relatively robust”, with the UK ahead of other G7 countries for growth so far. Experts questioned whether this resilience would be maintained, however, given growth was fuelled by some temporary factors and energy prices could remain volatile if the Middle East conflict continues. The British economy is now 1.2% bigger than a year ago, the ONS said, despite fears that the Iran war, which started at the end of February, and politically uncertainty around Sir Keir Starmer’s resignation as prime minister would hold back growth.
https://www.bbc.co.uk/news/articles/cx2d1gpx2k0o
Scotland’s shops enjoy highest sales for three years
Shops in Scotland enjoyed their highest sales for three years last month as last-minute holiday shopping boosted store takings. Sales leapt by 8% in July compared with July 2025 when they rose by just 1.8% when there was also sunny weather and were 7.1% higher when adjusted for inflation. Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: “It was hard-pressed high-street lines which saw the best performance, with non-food sales up by over 12%. “Women’s clothing and footwear did well with summer lines selling well in response to the warm weather and last-minute holiday shopping. Health and beauty products such as sunscreen similarly performed well, as did jewellery and watches.” However, the SRC noted that categories for larger items such as furniture had underperformed last month, while computing and technology sales were weaker than earlier in the year.
AI bootcamp launched in North West to combat youth unemployment
Young people out of work or at risk of entering unemployment after school are set to benefit from a first of its kind AI summer bootcamp kicking off in the North West this week. The Government’s new TechFirst AI Apprenticeship Pathway will build on the Prime Minister’s mission to raise the profile of technical education and create opportunities in every postcode. Young recruits from communities including Wigan, Blackburn, Blackpool and towns right around the North West have now started their training. Delivered on the ground by IN4 Group, the scheme will work in partnership with businesses and public sector organisations across the North West, creating local career opportunities and trialling the best way to make AI training and career development work for young people today.