Business News Round Up (17/02/2026)
UK unemployment hits highest rate for nearly five years
Unemployment in the UK rose to its highest rate in nearly five years at the end of 2025, official figures show. The unemployment rate climbed to 5.2% in the three months to December, from 5.1% in the three months to November, the Office for National Statistics (ONS) said. It came as annual wage growth slowed, dropping to its lowest level in almost four years. The UK’s economic growth has dampened, with a backdrop of slower hiring as businesses cut back due to higher costs. Chancellor Rachel Reeves’ 2024 Budget hiked employer National Insurance contributions and saw a rise in the minimum wage, leading some businesses to slow down hiring and replacing outgoing workers.
https://www.bbc.co.uk/news/articles/c1l7pedyzjeo
Manchester city centre office take-up surpasses five-year average
Manchester’s office market delivered another exceptionally strong performance with city centre take-up reaching 1.14 million sq-ft in 2025 – exceeding the five-year average of 1.10 million sq-ft and reinforcing the city’s position as one of the UK’s most resilient occupational markets. New data from the Manchester Office Agents Forum showed that the professional services and legal sector was the most active occupier in 2025, with more than 145,000 sq-ft let to firms within this group. Many of these businesses acquired significantly more space than they vacated. The guiding principle driving these relocations was the ability for companies to upgrade their working environments, contributing to a clear shift toward amenity rich, ESG‑aligned buildings. The financial and tech sectors closely followed as two of Manchester’s most active market participators yet again, with the latter’s demand for best-in-class space expected to accelerate in 2026 because of cheaper borrowing costs and greater access to capital.
Free tuition under threat without revenue boost, report warns
Free university tuition and more generous benefits in Scotland may have to be reconsidered as the country’s funding advantage relative to England narrows, a think tank has suggested. The Institute for Fiscal Studies (IFS) warned the government would struggle to pay for its flagship policies unless it finds ways to increase tax revenue and improve public service delivery. The think tank found higher funding relative to England was the main factor allowing Scotland to have more generous public services, including smaller class sizes and free personal care services. However, it said the funding advantage had decreased considerably in recent years. The economists found the Scottish government received 26% more per resident for devolved public services than was spent on comparable services in England in 2024-25. That is down from 32% in 2019–20, with the figure forecast to drop to 23% by 2028-29.
https://www.bbc.co.uk/news/articles/ckgz1wqpv0po
Techscaler expands international programme for startups
Some of Scotland’s leading start-up tech companies will have the chance to secure orders and build contacts in New York and New Jersey under an expansion of the Techscaler International programme. Deputy First Minister Kate Forbes announced that the Programme’s first visit to the east coast of the United States will take place this year, alongside trips to Asia and California’s Silicon Valley. Each will involve a small number of growth-stage companies which are best placed to secure contracts, investment and commercial traction. The Deputy First Minister announced the programme during a visit to the Edinburgh offices of Codebase, which manages the Techscaler initiative, to meet business founders who have benefitted from previous international trips. They included Tiny Air co-founder Cris Helson, who secured orders for his company’s pioneering surgical cleaning technology following a visit to Singapore as part of the 2025 programme.
https://www.digit.fyi/techscaler-expands-international-programme-for-startups