Business News Round Up (19/02/2026)
UK inflation drops to 3% as rate cut hopes build for March
The latest figures from the Office for National Statistics show the Consumer Prices Index (CPI) rose by 3.0% in the 12 months to January 2026, down from 3.4% in December, while CPIH stood at 3.2%, down from 3.6%. On a monthly basis, CPIH fell by 0.3% in January, compared with little change a year earlier, highlighting a clear cooling in price pressures. The Retail Prices Index, which is no longer a National Statistic but is still tracked by markets, recorded annual inflation of 3.8% in January. With headline inflation now just one percentage point above the Bank of England’s 2% target, attention is turning to the timing and pace of interest rate cuts. Many analysts now believe the next Monetary Policy Committee meeting in March could deliver the first cut of 2026 if data remain benign.
British Business Bank backs Manchester’s NorthEdge with £60m to boost founder-led businesses
Manchester private equity firm NorthEdge Capital has secured a £60m cornerstone commitment from the British Business Bank, in a move designed to unlock more scale-up capital for smaller businesses across the UK. The investment comes under the Bank’s new Growth Equity strategy and will be deployed into NorthEdge IV, the firm’s latest regionally focused fund. For NorthEdge, which has long positioned itself as a champion of founder-led businesses outside London and the South East, the backing represents both capital and a signal of intent. The British Business Bank’s Growth Equity strategy will invest on a fully commercial basis across generalist and thematic strategies, with a focus on funds aligned to the Government’s modern Industrial Strategy and its eight priority growth sectors. In practice, that means more institutional capital flowing into lower mid-market private equity funds that back scaling businesses in areas such as technology, healthcare and business services.
Scottish insolvency rates edge upward despite January dip
The Scottish business landscape showed signs of marginal stabilisation in January 2026, with registered company insolvencies falling by one per cent compared to the previous year. A total of 74 insolvencies were recorded during the month, consisting of 42 creditors’ voluntary liquidations and 32 compulsory liquidations. There were no new administrations, company voluntary arrangements, or receivership appointments during this period. Despite the slight monthly dip, the long-term insolvency rate has edged upwards. In the 12 months leading to January 2026, the rate reached 52.1 per 10,000 companies, representing a small increase from the 51.3 recorded in the preceding year.
https://www.scottishlegal.com/articles/scottish-insolvency-rates-edge-upward-despite-january-dip
Aberdeen analysis reveals countries leading Europe’s reindustrialisation
After 75 years of globalised, export-led production, Europe is realigning its industrial base for resilience. Some have bigger mountains to climb than others, and it has been reported that the EU may launch the Industrial Acceleration Act (AAI) within the month.New analysis from Aberdeen Investments assessing fourteen European countries, reveals the real estate markets best positioned to lead Europe’s industrial reset, with industrial and logistics best placed to create resilience. Germany is the standout leader, followed by the Netherlands, UK, France and Spain, respectively. Aberdeen identified ten key factors that materially influence a country’s capacity to capture incremental demand arising from European reindustrialisation trends. The research, published today, comes as increased fiscal initiatives for defence and infrastructure spending are widely seen as critical for Europe’s economic resilience, security and growth.