Business News Round Up (16/01/2026)
RBS: inflation continued to impact Scottish firms in December
Inflation continued to affect Scottish firms throughout December, according to new figures from Royal Bank of Scotland. The RBS Growth Tracker is a seasonally adjusted index that measures the month-on-month change in the combined output of Scotland’s manufacturing and service sectors. The latest PMI data for Scotland signalled further decreases in output and new orders in December. However, workforce numbers broadly stabilised after two consecutive months of decline, while business confidence regarding 2026 remained positive. The headline RBS Growth Tracker rose fractionally from 48.0 in November to 48.1 in December, to indicate a fourth successive monthly fall in overall business activity. Companies often attributed the latest decline to falling customer numbers and the rising cost of living.
UK VC investment rebounds in 2025
UK startups and scaleups raised $23.6 billion in venture capital funding in 2025, a 35% increase on 2024 and the first annual growth in UK VC investment in four years, according to new analysis from HSBC Innovation Banking UK and Dealroom. The rebound makes 2025 the third-highest year on record for UK startup funding, underpinned by renewed investor confidence, strong late-stage activity and a surge in AI investment. The UK innovation economy is now worth a combined $1.3 trillion in enterprise value, with more than half of this value (58%) generated by companies founded since 2010. This growth continues to translate into meaningful economic impact, with UK startups now employing over 1.8 million people. The recovery in UK VC investment during 2025 was fuelled by a resurgence in late-stage megarounds of $100 million or more (36 megarounds), coupled with investment growth across all life stages, from seed to breakout stage.
https://www.digit.fyi/uk-vc-investment-rebounds-in-2025
ACCA: small business confidence remains depressed, amid weak growth and intense cost pressures
Confidence among UK small and medium-sized enterprises (SMEs) dipped again in the fourth quarter, perpetuating a period of historically low morale, according to ACCA (the Association of Chartered Certified Accountants). The latest Global Economic Conditions Survey (GECS) from the ACCA and IMA reveals a sector besieged by weak growth and escalating costs, struggling to recover from the significant downturn observed earlier in the year. The capital expenditure and employment indices also speak to heightened caution among smaller businesses. Only a very small share of respondents reported that their businesses or clients increased investment in capital projects in response to changes to the economic environment over the past three months, but the proportion scaling back investment was elevated. Similarly, a significant proportion of respondents reported job cuts or a hiring freeze, with the share creating jobs or resuming hiring very low.
UK secures record supply of offshore wind projects
The UK has awarded contracts to build a record amount of offshore wind as part of its efforts to grow the country’s clean electricity. The projects span England, Scotland and Wales, including part of what could become the world’s largest offshore wind farm, off the coast of Scotland in the North Sea. But some analysts warn that despite the record haul of offshore wind, the government will still struggle to meet its 2030 “clean power” target. The government argues that wind projects are cheaper than new gas power stations and will “bring down bills for good”, but the Conservatives have accused its climate targets of raising energy prices. The offshore wind sector has been hit by rising costs in the past few years, and the Conservatives argue the contracts awarded in today’s auction risk locking in high prices for decades.
https://www.bbc.co.uk/news/articles/cn9zyx150xdo