Business News Round Up (15/10/2026)
Surprise uplift in UK economy is boost for Healey
Chancellor John Healey was handed some positive news ahead of the Budget with new figures showing the UK’s economy grew slightly in August. The Office for National Statistics said the economy expanded by 0.1% in the month, defying some expectations of no growth or a decline. Numerous economists were expecting it to fall between 0.1% and 0.3%. This latest rise in GDP follows growth of 0.4% in July, as well as positive upgrades to the outlook for Britain’s economy from global watchdog the International Monetary Fund (IMF). UK growth is even better on a three-month basis, as ONS figures show it rising 0.7%. Previously positive figures have also been revised upwards – the previous three month figure up to July was an even better 0.5%, the ONS said.
Investment Fund for Scotland improving access to finance for smaller firms, report finds
A new report has found that the British Business Bank’s Investment Fund for Scotland (IFS) is helping to improve access to finance for smaller businesses across the country, supporting ambitious firms to grow, innovate and scale. The ‘Early Assessment Report’ undertaken by an independent research company by SQW found that the fund had provided £31.6m of investment, across the three sub-funds (equity, debt and smaller loans), to 75 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses by September 2025. It found evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region. The fund has leveraged £33.3m of private sector investment, securing £1.05 of private sector leverage for every £1 invested.
UK VC fund strongest fundraising quarter on record
UK venture capital firms raised $6.9 billion across 31 new funds in the third quarter of 2026, the strongest fundraising quarter on record and more than four times the quarterly average of the past two years, according to new analysis from HSBC Innovation Banking UK and Dealroom. The record quarter comes as UK startups and scaleups attracted $6.1 billion in venture capital investment, maintaining the UK’s position as Europe’s leading venture market. Fundraising was driven by established venture managers across several major fund raises. Index Ventures closed three new funds worth a combined $3.5 billion across seed, venture and growth strategies. Highland Europe raised €1.1 billion for its sixth growth fund, and QuantumLight raised $500 million for its second fund, while Crane Venture Partners raised $484 million across four new funds.
https://www.digit.fyi/uk-vc-fund-strongest-fundraising-quarter-on-record
Scottish private sector employment increases but business confidence falls
A modest decline in private sector activity across Scotland was accompanied by a further reduction in new business in September, the latest Royal Bank of Scotland Growth Tracker showed. Nevertheless, companies continued to expand their payrolls and at a strong pace. The headline Royal Bank of Scotland Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of Scotland’s manufacturing and service sectors – printed 48.8 in September, little-changed from 48.9 in August, and thereby indicating a modest reduction in Scottish private sector output. That said, the headline index has now posted in contraction territory for six successive months. Anecdotal evidence linked the latest fall in activity to fewer new orders and the increased cost of living.