Business News Round Up (18/11/2025)
Scottish SMEs build savings buffers amid economic uncertainty, but firms remain confident
Data from the latest Barclays Business Prosperity Index shows a picture of cautious activity in Q3, particularly amongst small and medium-sized businesses (SMEs) who are building savings buffers. The anonymised data provided by the bank revealed that economic uncertainty is now the biggest challenge cited by business leaders across Scotland. However, 88% of survey respondents feel confident about their own business prosperity over the next 12 months. 41% of small businesses (10-49 employees) reported the level of certainty over future policy is having a negative impact on their business, while 61% of larger businesses (250+ employees) said the opposite, claiming a positive effect. Despite uncertainty in the external environment, Scottish leaders remain confident about the future of their own businesses. Of the 88% of survey respondents who feel confident about their prosperity over the next 12 months, with a 6-point lead for large firms (92%) compared to small businesses (86%).
UK businesses express optimism for 2026 as growth opportunities help to overcome economic headwinds
The October UK Business Outlook survey signalled a slight improvement in business confidence across the private sector compared to that seen in the summer, but the mood among firms remained distinctly cautious. The latest survey reveals that optimism is still below the long-term average and shadowed by a web of business risks that include global economic headwinds and policy uncertainty. However, qualitative evidence from our survey panellists shows that many businesses have detailed strategies and widespread opportunities to overcome risks. This note delves into the deep anecdotal evidence we receive from respondents to the Business Outlook survey, to highlight where they see key opportunities and risks to the UK economy in the forthcoming year. The headline measure of UK business activity sentiment ticked up to a net balance of +33% in October, just above +32% in June.
Reeves urged to cut business taxes to help SMEs
Rachel Reeves should cut corporation tax to 15% and increase the VAT registration threshold above £200,000, says accountancy and business advisory firm Azets. They are two of seven suggestions the firm has sent to the Chancellor ahead of next week’s Budget. Praveen Gupta, Azets’ UK head of tax, called for Ms Reeves to “encourage and enable SMEs to invest, innovate and grow, and, in turn, support the UK’s economic growth.” He added: “At present, local SMEs need a boost. After five years of rising costs, they need support to grow, evolve and innovate and to help support their local economies, supply chains and communities by doing so.” Research from the Federation of Small Businesses shows that SMEs account for around 60% of the UK’s total employment and generate around £2.8 trillion for the economy. But, said Mr Gupta, “the reality is that many are struggling in the current economic climate”.
https://dailybusinessgroup.co.uk/2025/11/reeves-urged-to-cut-business-taxes-to-help-smes
Scotland recognised as the UK’s leading hub for transferable skills
According to the 2022 Census, over 44% of adults in Scotland hold higher education qualifications such as degrees or HNC/HNDs, while only around 9.9% have low or no qualifications – giving the nation one of the most skilled labour pools in the UK. The Curriculum for Excellence and the country’s robust apprenticeship and retraining programmes, led by Skills Development Scotland, embed problem-solving, communication, and digital competencies that easily transfer across industries. Evidence from Universities Scotland shows that 84.5% of graduates say university helped them secure employment and 75% of employers agree that Scottish universities produce graduates with transferable skills. Citrus Connect, the UK’s leading direct sales recruitment experts, say that together, this blend of educational attainment and adaptable skill-building means Scotland’s workforce is not only highly qualified but also well positioned to shift careers, adapt to emerging sectors, and meet the evolving demands of the modern economy.