Business News Round Up (15/04/2025)
UK wage growth remains stubbornly high as unemployment steadies
UK pay growth remained elevated after recent public sector pay increases, official figures have revealed. The Office for National Statistics (ONS) said average weekly pay grew by 5.9% for the three months to February. This was the same as the previous quarter, which had been the highest level since April last year. Meanwhile, pay growth, including bonuses, was 5.6% for the period, in line with market expectations. Wages outstripped inflation by around 3% once inflation is considered, with this 2.8% above inflation including bonuses. Inflation surprisingly dipped to 2.8% in February after the prices of clothes and shoes fell for the first time in more than three years. Elevated levels of wage growth will be considered by Bank of England officials when they vote on whether to reduce interest rates from their current level, 4.5%, at their meeting next month. It came as the UK unemployment rate remained at 4.4%.
New government figures spark cybercrime warning for Northern businesses
North West businesses have been issued a warning to improve their cyber resilience by the North West Cyber Resilience Centre (NWCRC), following the release of new government statistics. The Cyber Security Breaches Survey 2025 estimated that UK businesses experienced 8.58 million cybercrimes over the past 12 months – up from 7.8 million. Phishing attacks remain the most prevalent and disruptive type of cyber breach, with 85% of businesses and 86% of charities experiencing a phishing attempt. There was positive news – 43% of all businesses reported a cyber security breach or attack in the past 12 months, which is less than last year’s 50%. For microbusinesses, the figures were 35% down from 40% last year and for small businesses it’s 42%, down from 49%. For larger businesses, cyber breaches remain high – 67% of medium-sized businesses reported experiencing a cyber breach (70% last year) and 74% of large businesses (75% last year).
Health Tech leads UK VC investment in 2025 Q1
UK health tech and life sciences startups raised $1.8 billion in venture capital investment in Q1 2025, the sector’s second strongest quarter on record, according to new analysis from HSBC Innovation Banking UK and Dealroom. Health was the UK’s most funded sector this quarter by a wide margin, attracting more than twice the investment of the next largest sector. Notably, half of the quarter’s mega rounds came from health, led by Isomorphic Labs ($600 million) and Verdiva Bio ($411 million). Nearly half of all VC investment in the sector went to AI-powered startups, underscoring the technology’s growing influence on healthcare innovation. Overall, UK innovation businesses raised $4.2 billion in Q1 2025, an 8% increase compared to the same period last year and the highest Q1 amount since 2022.
https://www.digit.fyi/health-tech-leads-uk-vc-investment-in-2025-q1
Scottish whisky and salmon exporters brace for ‘significant hit’ from Trump’s tariff war
Scottish whisky and salmon exporters are “bracing themselves” for the impact of Donald Trump’s tariffs. The United States is a huge market for the two iconic commodities. But Trump’s 10% ‘liberation day’ tax on all imports – which took effect 5 April – will put local businesses in a tricky position. America is the largest export market by value for Scotch whisky; in 2024, the country was worth £971m to the industry. The Scotch Whisky Association said it was “disappointed” by the Tariff announcement and welcomed the government’s efforts to secure a “mutually beneficial” resolution. Prime minister Keir Starmer has been lobbying for a reduction on the 10% tariff rate, which could wipe billions of the UK’s growth projections and decimate chancellor Rachel Reeves’ so-called “fiscal headroom”.