Business News Round Up (19/01/2026)
Real-term sales fall in Scotland despite ‘golden quarter’ efforts
Scotland’s shopkeepers found little cause for celebration this festive season, as trading figures revealed a stagnation in sales during the crucial Christmas period. Covering the five weeks to 3 January 2026, total retail sales in Scotland rose by a meagre 0.4% year-on-year, failing to match the previous year’s growth or the three-month average. When adjusted for inflation, the picture appears even starker, showing a real-term year-on-year decrease of 0.2%. The data indicates a clear divide in consumer priorities. Food sales managed to buck the negative trend, increasing by 1.1% as grocers engaged in fierce price competition on traditional Christmas staples. Conversely, non-food sales struggled, recording a decline of 0.1% compared to December 2024. Even when adjusted for the effect of online shopping, the non-food category remained in negative territory, highlighting a significant pullback in discretionary spending.
UK small businesses invest nearly £5bn a year in tax and accounting software as Monzo launches free HMRC-recognised tool, powered by Sage
New research from Monzo, the digital bank with over 800,000 business customers, reveals British small businesses invest £4.8 bn every year in tax and accounting software. With Making Tax Digital (MTD) for Income Tax changes coming in April, Monzo is helping make submitting quarterly updates and end of year tax return simpler and more accessible for Britain’s smallest businesses by launching a free, HMRC-recognised tax tool. The new MTD rules will require sole traders and landlords to use approved digital systems to submit quarterly income and expenses updates. While Monzo’s latest research shows 7 in 10 (70%) sole traders are aware of the upcoming MTD update, over 1 in 4 (28%) say they’re not confident they’ll be ready for April. Encouragingly, almost two thirds (61%) say simpler or more integrated tools would make tax filing easier, showing strong desire for solutions that bring banking and tax together in one place.
Growth firms targeted by changes to listing rules
Changes to the listings rules coming into effect today offering companies an easier and cheaper route to the stock market. Companies raising capital in the UK or considering an initial public offering (IPO) will benefit from stripped back paperwork. A three-year stamp duty holiday on shares for new issues is among measures that were announced in the Budget. The changes are aimed, not only at helping firms raise capital, but to encourage them to choose the London Stock Exchange rather than overseas markets. EY has reported a 170% increase in capital raised from IPOs in 2025 by companies such as Magnum, Canal+ and Shawbrook Bank. The UK Government says today’s announcement doubles down on this progress and the increased confidence in UK markets. Further steps have also been announced by the London Stock Exchange to strengthen London’s bond markets, widening access to capital and supporting long-term investment across the economy.
Scots Gov launches start up challenge for young entrepreneurs
Young entrepreneurs will be supported to turn their ideas into successful businesses through a new Scottish Government programme. The First Minister’s Start Up Challenge will empower young people aged 18-30 from disadvantaged or underrepresented backgrounds to start innovative businesses. Delivered in partnership with The King’s Trust and social enterprise Dechomai, around 20 participants will be selected for a six-month accelerated entrepreneurial apprenticeship. This will provide tailored support and access to masterclasses, workshops and hands-on experience. Participants will receive a £500 “Test Your Business” grant, with those ready to launch eligible to apply for a £5,000 startup grant. At the end of the programme, one winner will be awarded £30,000 to dedicate a full year to developing their business.
https://www.digit.fyi/scottish-startup-programme