Business News Round Up (19/03/2026)
Sage data shows UK SMEs grow profits but slash investment
UK small and medium-sized businesses recorded higher revenues and profits in the year to end-2025, although hiring and investment remained subdued, according to a new dataset drawn from Sage accounting and payroll records. The first Sage SME Pulse, based on anonymised data from more than 350,000 Sage customers, found real revenues rose 3.3% year on year in the fourth quarter of 2025. Profits increased 6.2% over the year, reaching their highest level since the first quarter of 2022. Headcount was largely unchanged, up 0.2% year on year in February 2026. The results suggest smaller firms stayed resilient despite weak confidence and economic uncertainty. Over the same period, the Office for National Statistics reported UK economic growth of 1.0% year on year, providing a lower benchmark than SME revenue growth. Domestic conditions have begun to stabilise, with interest rates falling and no new taxes announced in the Spring Statement.
https://itbrief.co.uk/story/sage-data-shows-uk-smes-grow-profits-but-slash-investment
£500m backing for Greater Manchester through National Wealth Fund partnership
In a boost for Greater Manchester, the National Wealth Fund is backing the city region’s Good Growth Fund with at least £500m of investment. The Leeds-based National Wealth Fund is operationally independent but wholly owned by HM Treasury. It has £27.8bn of core capitalisation to deploy in pursuit of its triple bottom line: supporting government’s growth and clean energy missions, crowding in significant private capital over time and generating a return for the taxpayer. The £500m investment, set as a core ambition for the National Wealth Fund’s Strategic Partnership with the Greater Manchester Combined Authority (GMCA), will help enable delivery of key clean energy and growth projects. The five-year ambition strongly supports the Fund’s drive to accelerate place-based investment, with a focus on the UK’s high growth Mayoral Strategic Authorities and City Regions.
Barclays and Sage announce strategic partnership to simplify business admin for UK small businesses
Barclays and Sage the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, announced a new strategic partnership designed to help businesses save time on business administration, gain clearer oversight of their finances and keep pace with evolving UK tax requirements. The partnership brings together Barclays’ business banking expertise with Sage’s accounting technology to address the everyday administration that underpins running a small business. Financial administration continues to consume a significant amount of small business owners’ time. Research from Sage shows the average small business loses 24 working days a year to financial administration, the equivalent of working 13 months in a 12-month year. By working together, Barclays and Sage will help businesses save time through modern digital management tools. The partnership will also help businesses navigate the expansion of Making Tax Digital for Income Tax, supporting clearer, more up-to-date financial oversight as regulatory requirements evolve.
UK Gov invests £800 million to develop ‘Europe’s Silicon Valley’
Reeves will double funding for the cities from £400 million to £800 million, supporting land acquisition and infrastructure development. New houses, high-spec research labs and workspaces are expected to drive growth. The funding will also be invested in transport to improve connectivity. These measures are expected to improve housing conditions, create jobs and ensure access for commuters. Prior to the announcement, a government source said: “Our plans for the Oxford-Cambridge corridor are ambitious. And the prize on offer is to have the Silicon Valley of Europe here in Britain – bringing more jobs and more vibrant places to live. We have the right economic plan and this week the Chancellor will set out how the regions are crucial to the next decade of growth.”
https://www.digit.fyi/uk-gov-invests-800-million-to-develop-europes-silicon-valley