Business News Round Up (20/10/2025)
Consumer belt-tightening takes toll on UK firms, report reveals
Nearly a fifth of UK-listed firms alerting over profits have flagged the impact of weak consumer confidence, reaching the highest level for three years, research has revealed. The latest EY-Parthenon report showed that of the 64 profit warnings between July and September, 19% cited falling consumer sentiment – up sharply from 6% a year earlier and the highest since 2022, at the height of the cost-of-living crisis. And it found that retailers are feeling the pinch the most from the tougher consumer backdrop, with warnings among listed retailers hitting their highest level for nearly two years and more than half (56%) referencing falling consumer sentiment. It comes as wider worries over the geopolitical and policy uncertainty continue to weigh on UK corporate plc as the report showed a new record proportion (47%) of firms alerting over earnings cited this as a leading factor, up from 17% a year ago.
Chancellor says Brexit deal caused long-term damage to economy
Rachel Reeves chose to stress the long-term damage done to the UK economy by the 2020 Brexit deal, in her remarks at a key international economic committee at the International Monetary Fund (IMF). In remarks published this weekend, the chancellor told the world’s leading finance ministers and central bankers: “The UK’s productivity challenge has been compounded by the way in which the UK left the European Union.” She quoted the Office for Budget Responsibility’s calculation of a 4% long-term hit relative to remaining in the EU and said the UK “acknowledges this” in seeking stronger trade ties. Labour had been reluctant to stress arguments about economic downsides from Brexit. However, since its conference last month, ministers have been increasingly strident in making such arguments.
https://www.bbc.co.uk/news/articles/cy0ypx859x8o
Glasgow set for £20m tech boost in regional innovation drive
Glasgow City Region, Greater Manchester, and the West Midlands will each receive a £20 million cash boost for new science and tech initiatives under government plans to kickstart local innovation. The UK Government is banking on the funding to spark ‘game-changing’ progress in diverse areas, in everything from robotics to drug discovery to the development of clean fuels, with local leaders across the three regions given access to a total funding package of £50 million each to invest in local projects. The government hopes this funding boost will fuel the rise of more regional tech stars like Glasgow’s Chemify, and nurture emerging hotspots like Greater Manchester’s fast-growing AI scene. Further bids of up to £20 million are also being invited from other high-potential innovation clusters across the UK, to support regional leaders in investing in local innovation strengths, and boost jobs in line with Labour’s new Industrial Strategy.
https://www.digit.fyi/glasgow-set-for-20m-tech-boost
OEUK shows how to boost UK economy by £137 billion and safeguard 160,000 jobs
Offshore Energies UK (OEUK) has set out plans to deliver a £137 billion economic boost and safeguard 160,000 jobs, calling on Chancellor Rachel Reeves to use next month’s Budget to reform the windfall tax. The leading trade body for the UK’s offshore energy sector has said it will accept Treasury proposals for a reformed permanent profits-based mechanism if the changes are delivered in 2026. OEUK wants the reform brought forward to 2026 to halt decline, protect jobs and restore investor confidence through a new blueprint shared with ministers. The organisation warns that time is running out to stem a slow erosion of industrial and supply chain capability, with companies saying that waiting until 2030 for reform would be too late to prevent lasting damage. Industry has proposed a plan which it says will unlock more spending, tax and jobs than current plans that could shut the North Sea down prematurely.