Business News Round Up (20/01/2026)
Scottish businesses account for 4% of administrations in 2025
Business failures in Scotland reached 4% of all UK administrations in 2025, making it the ninth-highest region for corporate insolvencies, according to law firm Shakespeare Martineau. A total of 67 businesses in the region entered administration last year. Across the UK, 1,631 companies filed for administration in 2025 – a 5% decline compared to 2024 – data from The Gazette Official Public Record shows. Despite this slight easing, the figure remains 22% above 2022 levels, highlighting ongoing pressures on UK businesses amid a cautiously stabilising economic environment. Retail emerged as the hardest-hit sector, with filings jumping 24% from 237 in 2024 to 293 in 2025. Greater London continued to record the highest number of business failures, with 390 administrations last year, slightly down from 393 in 2024.
Wage growth slows as number of people employed falls
Wage growth in the UK eased to 4.5% between September and November, official figures suggest, following a sharp slowdown in private sector pay increases. The pace of pay growth for those employed by private businesses slowed to the lowest rate in five years, according to the Office for National Statistics (ONS). In contrast, public sector workers saw their wages jump but, the ONS said, this was likely due to pay rises being awarded earlier than in the previous year. Meanwhile, the number of people on company payrolls continued to fall – down 135,000 in the three months to November – with a particular decline in shops and hospitality. This was despite the economy heading for the key Christmas season when companies traditionally hire more pub and shop workers. Average wages, excluding bonuses, slowed from a 4.6% rise recorded between August and October.
https://www.bbc.co.uk/news/articles/cddgrg87ly5o
Current approach to AI in financial services risks serious harm to consumers and wider system
The Bank of England, the Financial Conduct Authority (FCA) and the Treasury are exposing the public and the financial system to potentially serious harm due to their current positions on the use of artificial intelligence in financial services, according to a new report by the Treasury Select Committee. By adopting a wait-and-see approach, the major public financial institutions, which are responsible for protecting consumers and maintaining stability in the UK economy, are not doing enough to manage the risks presented by the increased use of AI in the financial services sector. According to evidence received by the Committee, more than 75% of UK financial services firms are now using AI, with the largest take-up among insurers and international banks. AI is being used by businesses in a variety of ways, including to automate administrative functions and to deliver core services such as processing insurance claims and credit assessments.
Business Secretary back British scaleups with growth package and red tape review
British entrepreneurs, workers and communities will benefit from a sweeping package of growth measures delivering the Modern Industrial Strategy, as the Government acts to invest in key growth sectors, slash red tape and ensure UK companies can scale up at home rather than being forced overseas. Business Secretary Peter Kyle announced the new measures in a visit to Kraken Technologies’ London headquarters. It comes as The British Business Bank (BBB) will make its largest-ever direct investment to date using new flexibilities from the Business Secretary: £25 million into Kraken Technologies to help the company scale up and become a UK champion. Kraken uses AI to improve customer service and billing for energy companies. Today’s investment follows reforms to the Bank’s mandate so it can take bigger, higher risk stakes in the UK’s most important scale-ups in sectors prioritised for growth in the Modern Industrial Strategy ensuring the UK remains competitive.