Business News Round Up (19/06/2026)
Scottish Government delivers balanced £56bn budget with modest underspend
The Scottish Government has confirmed it delivered a balanced budget for the 2025–26 financial year, with total spending reaching £55.9 billion against an overall fiscal budget of £56.3 billion. Figures presented to Parliament show an underspend of £358 million, equivalent to 0.6% of the total budget. The funds will be carried forward into future financial years via the Scotland Reserve, ensuring no loss of spending power. The provisional outturn comes amid continued financial uncertainty, with much of Scotland’s funding framework remaining dependent on UK Government decisions that are often finalised late in the fiscal cycle. Public Finance Minister Hannah Mary Goodlad said the government had maintained stability despite these constraints, emphasising its focus on key national priorities.
UK inflation holds steady in May
The UK Consumer Price Index (CPI) held steady in May, rising by 0.2%, the same rate as in May 2025. According to the latest figures published by the Office for National Statistics (ONS), the CPI, including owner occupiers’ housing costs (CPIH) rose by 3.0% in the 12 months to May 2026, unchanged from the 12 months to April. CPI rose by 2.8% in the 12 months to May 2026, unchanged from the 12 months to April. Transport made the largest upward contribution to the monthly change in both CPIH and CPI annual rates; food and non-alcoholic beverages made the largest, partially offsetting, downward contribution. Core CPIH (excluding energy, food, alcohol and tobacco) rose by 2.8% in the 12 months to May 2026, unchanged from the 12 months to April; the CPIH goods annual rate slowed from 2.4% to 2.0%, while the CPIH services annual rate rose from 3.4% to 3.6%.
https://www.scottishfinancialnews.com/articles/uk-inflation-held-steady-in-may
Digital manufacturing technologies support productivity and job creation
North West SME manufacturers are investing £1.9 million in digital technologies to increase productivity, create jobs and support long-term growth, backed by the Made Smarter adoption programme. Thirty businesses have secured a combined £604,000 in Government-funded support to accelerate the introduction of new equipment, software and systems. The latest round of projects spans companies producing food, drink, skincare, furniture, playground equipment and workwear, as well as firms specialising in lithium battery materials, electrical equipment, industrial machinery and advanced engineering components. Investments include automation and robotics, digital inventory tools, production monitoring systems, cloud-based platforms and advanced manufacturing technologies. Collectively, the projects are expected to generate more than 90 new jobs and upskill over 170 existing workers. The £1.9 million investment is forecast to contribute to growth exceeding £16.4 million.
British Business Bank backs £40m fund supporting B2B startups
The British Business Bank has announced a cornerstone commitment of £40m to FPE Capital’s Fund IV, to support high growth smaller businesses across the UK. The Bank previously committed £20m to FPE’s Fund II in 2017 and this latest commitment to Fund IV forms part of a first close which surpasses the total size of the predecessor fund. This latest commitment is made under the Bank’s growth equity strategy. This expanded mandate enables the Bank to invest in lower-mid-market private equity funds backing smaller businesses that are aligned with the Government’s eight growth-driving Industrial Strategy sectors. Operating on a fully commercial basis, the growth equity strategy aims to crowd in additional private capital to unlock scale-up finance for UK companies and strengthen regional growth across key sectors of the economy.
https://businesscloud.co.uk/news/british-business-bank-backs-40m-fund-supporting-b2b-startups