Business News Round up (16/03/2026)
Firms to be paid to hire unemployed young people
Companies are to be paid grants to hire more young people under new government proposals to tackle youth unemployment. Ministers want to create 200,000 jobs and are pledging £1bn in funding for several initiatives. Businesses will receive £3,000 for every person between the ages 18 and 24 that they employ who has been searching for a job for six months or more, while small and medium firms will be paid £2,000 for every new apprentice they take on. Labour has faced criticism from the Conservatives over “disappearing” work opportunities. In the final quarter of last year, the number of young people not currently in education, employment or training – also known as Neets – neared one million. Work and Pensions Secretary Pat McFadden is set to announce the Youth Jobs Grant on Monday. Some 60,000 people are expected to be supported by the proposals.
https://www.bbc.co.uk/news/articles/cz9qdpzqnl2o
SRC: Flat February figures end seven months of growth for Scottish retailers
Scottish retail sales ground to a halt in February 2026, with total sales recording no growth, flat at 0.0% compared with a 0.4% decline in the same month last year, according to the latest SRC-KPMG Scottish Retail Sales Monitor. The result fell below both the three-month average rise of 1.2% and the 12-month average of 1.0%, and when adjusted for inflation, represented a real-terms fall of 1.1%. Food sales offered some encouragement, rising 1.2% year-on-year, ahead of last February’s 0.7% increase and above the 12-month average of 0.3%, though still shy of the three-month average of 1.4%. Valentine’s Day provided a further bright spot, with perfumes, cosmetics, watches, and jewellery all performing well. Non-food sales, however, continued to struggle, falling 1.0% against February 2025’s already weak 1.3% decline, and dropping further to minus 1.5% when adjusted for the effect of online sales. Clothing, footwear, and furniture all disappointed.
NW businesses adopting AI see strong gains in productivity and profitability
The increasing use of AI is benefiting North West firms, helping them work more efficiently and unlocking new opportunities for growth, new findings from the Lloyds Business Barometer show. North West businesses integrating AI into their operations are reporting significant financial benefits, with 89% seeing increased productivity and 56% reporting higher profits over the past 12 months. Of those who reported a profit boost from using AI, 54% recorded an uplift of 11% or more, with a further 32% saying profits increased by 6-10%, and 14% saying profits increased between 0-5%. The findings come as investment in AI accelerates, with 75% of North West businesses confirming they have invested in AI. The research from Lloyds found that most firms spent less than £25,000 (44%) to enhance their AI capabilities, followed by 18% of firms who spent between £25,000-£100,000, 6% spending between £100,000-£250,000 and seven per cent spending £250,000 or more.
Poor communication and stakeholder engagement are undermining major digital project delivery, says report
A new analysis of nearly 300 major Scottish Government digital projects has shown poor communications and stakeholder engagement are undermining project delivery. The findings, published by the Digital Assurance Office (DAO), which administers the Technology Assurance Framework (TAF), draw on lessons from 277 major digital project reviews carried out between 2017 and 2025. Across those reviews, 2,317 recommendations were made, and while communications and engagement accounted for just 4% of the total, the issue cropped up in nearly a third of all project reports, suggesting it is a persistent, systemic problem rather than an occasional oversight. The analysis, outlined in a new blog, identifies four recurring themes where projects are falling short.