Business News Round Up (19/05/2025)
UK and EU agree post-Brexit deal on fishing and trade
The UK and EU have reached a post-Brexit deal covering trade, fishing, and closer ties, including a 12-year agreement allowing EU boats access to UK waters in return for reduced trade barriers. The government is expected to argue it has secured improved trading rights for British food and agricultural products into the EU. The Conservatives and Reform UK have described news of the deal as a “surrender” to the EU, while the Liberal Democrats said the government had taken some “positive first steps” to rebuilding ties with Europe. A defence and security pact will be central to the agreement, which will be set out in a few hours at a UK-EU summit in London. Announcements around trade and security were expected to include British access to a €150bn (£125bn) EU defence fund, which could be a boost for UK defence companies.
https://www.bbc.co.uk/news/articles/ce9v28r7vlxo
Businesses urge Rachel Reeves to restore tax-free shopping as US tariffs hit UK exports
Britain’s leading retail, luxury, and fashion groups are calling on Chancellor Rachel Reeves to reinstate tax-free shopping for international visitors, warning that mounting pressure from US tariffs is eroding UK competitiveness and forcing businesses to scale back transatlantic operations. In a joint letter four major trade bodies — the British Retail Consortium, British Beauty Council, British Fashion Council, and Walpole, which represents UK luxury brands — urged the Treasury to act swiftly. Their message: restoring VAT-free shopping is not a luxury, but a “proven growth strategy” needed to help the UK economy weather worsening global trade disruption. The plea comes amid rising concern over the economic fallout from President Trump’s trade policies, which have seen tariffs imposed on a range of UK goods. British businesses in fashion, beauty and luxury sectors are reporting falling demand from American buyers, rising pressure to reduce wholesale prices, and order cancellations.
Scottish retail sales shone in April aided by sunnier weather
Scottish retail sales saw a significant upturn in April, with total sales increasing by 4.5% compared to the same period in 2024. This marks a considerable improvement from the 4.0% decrease experienced in April of the previous year. Adjusted for inflation, the year-on-year increase stood at 4.6%. The figures, covering the four weeks from 6th April to 3rd May 2025, also surpassed the 3-month average increase of 1.4% and the 12-month average decrease of 0.2%. On a like-for-like basis, which excludes changes in shop floor space, Scottish sales rose by 5.6% compared to April 2024, when they had fallen by 3.6%. This performance was notably above the 3-month average increase of 2.3% and the 12-month average increase of 0.3%. The growth was largely driven by non-food sales, which surged by 6.3% compared to a 4.9% decrease in April 2024.
UK government to ramp up R&D funding with 10-year plan
Vital R&D work exploring innovation in areas including human health and cutting-edge computing will be given long-term certainty under new criteria unveiled by Science Minister Lord Vallance. It will enable and support government departments and other public bodies to fund R&D over a 10-year period – giving certainty to research organisations that their work will continue over the long-term. This is in aid of helping those businesses to attract greater private investment and grow the UK economy. While specific funding will be determined in the coming weeks, it could potentially see research organisations tackling areas like antimicrobial resistance or developing quantum computers. It could also mean longer-term funding for infrastructure, such as large-scale research facilities and equipment, giving them certainty that the tools they need to drive progress are secured.
https://businesscloud.co.uk/news/uk-government-to-ramp-up-rd-funding-with-10-year-plan