Business News Round Up (15/08/2025)
Take-up in UK office market hits highest level in three years – CBRE
Take-up of office space across the UK has reached its highest rolling 12-month level since the third quarter of 2022, according to new research from CBRE. The property consultancy found that take-up hit 20.3 million sq ft in Q2 2025, the highest figure since 20.6 million sq ft was recorded in Q3 2022.The 12-month rolling take-up across the UK was split between Central London (11.8 million sq ft), the South East (2.4 million sq ft) and the UK regions (6.5 million sq ft), representing an increase of 3 per cent when compared to the same period last year, and 2 per cent above the ten-year average. In Central London, five deals of more than 100,000 sq ft completed in the second quarter, the highest number of transactions of this scale in a quarter since Q3 2018.
Scotland’s fiscal deficit rises to £26.2 billion amid slowing revenue growth
Scotland’s public spending exceeded revenue by £26.2 billion in 2024–25, an increase of £5.1 billion on the previous year, according to the latest Government Expenditure and Revenue Scotland (GERS) report. The figures show the country’s net fiscal deficit equated to 11.6% of GDP—more than double the UK-wide deficit of 5.1%. Revenue rose by 1.5% to £91.4 billion, while public spending increased to £117.6 billion, driven in part by historically high expenditure levels. The Scottish Government attributed the widening deficit to falling North Sea revenues and slower growth in non-North Sea income compared to the UK as a whole. Spending, meanwhile, grew more quickly in Scotland than across the UK. Scottish Secretary Ian Murray said the figures underlined the “collective economic strength” of the United Kingdom, pointing to public spending in Scotland being £2,669 higher per person than the UK average.
Cash-rich SMEs ‘paralysed by fear’, says Azets chief
Many UK SMEs are “paralysed by fear” and holding back on investment, despite sitting on significant piles of cash. Peter Gallanagh, UK CEO at international accounting and advisory group Azets, says business owners have pent-up capital but are reluctant to spend because of geopolitical uncertainty and a lack of clear economic policy. The warning follows the results of the latest Azets Barometer Spring 2025 survey, which shows UK SMEs citing economic uncertainty, geopolitical instability and trade tariffs as their top concerns for the next 12 months. When asked about overall risks to their business, a volatile tax landscape and lack of long-term financial predictability were among the top three worries. Higher labour costs were the number one concern. Despite the challenging outlook, SMEs remain central to the UK economy. They make up 99.8% of all UK businesses, account for 60% of total employment and generate 52% of private sector turnover.
Scottish salmon exports surge on demand from US and China
Scottish salmon exports have risen by a quarter this year as surging demand from the US and China more than makes up for lower sales to the EU. Exports rose 23% to £528mn in the first six months of 2025, compared with a year earlier, according to analysis of customs data by industry body Salmon Scotland. In the year to June, exports were up 33% to £941mn. The industry is now gearing up for “new opportunities” in India, the world’s third-largest fish market, after the UK agreed a trade deal with the “untapped” country that currently imports “minimal” amounts. Exports to the US rose 110% by value to £190mn in the first half of 2025, according to the body’s analysis of HM Revenue & Customs data. Exports to China were up 75% at £74mn and Canada up 1,300% at £21mn, while EU imports fell 23% to £209mn.
https://www.ft.com/content/5c23792b-6b0d-4ea2-91ac-218733011fd7