Business News Round Up (21/05/2026)
A positive outlook for economic growth in Scotland, despite warning signs for the labour market
The outlook for both Scottish and UK economies has improved and looks to remain positive through 2027, according to the Fraser of Allander Institute at the University of Strathclyde. In the latest quarterly Economic Commentary, the Institute has forecasted that the Scottish economy will end 2025 with 1.3% growth and will continue to grow by 1.1% across 2026. This improvement over last quarter’s forecast mirrors similarly upbeat predictions from the Scottish Fiscal Commission (SFC) and the Office for Budget Responsibility (OBR). At the same time, the number of payrolled employees in Scotland has fallen consistently since mid-2024, with job losses concentrated in hospitality, education, and retail sectors. In recent months, the number of people on unemployment-related benefits has also ticked up.
UK unemployment climbs to 5% as wage growth hits lowest level since 2020
UK unemployment has risen to 5% in a development that economists warn could mark the beginning of a more serious economic deterioration later this year.The increase from 4.9% to 5% in the three months to March comes despite promising growth figures in the first quarter and the IMF upgrading its forecast for UK growth for 2026 from 0.8% to 1%. Average earnings growth excluding bonuses has simultaneously eased to 3.4%, its lowest level since 2020, suggesting that the labour market is weakening from both directions: fewer jobs and weaker pay momentum. Businesses are now facing weaker demand, higher borrowing expenses and surging energy bills. Recruitment is slowing, expansion plans are being delayed, and in some sectors, job losses are beginning to emerge.
North West businesses press pause on investment plans to absorb latest global shock
More than half of North West businesses say a combination of supply chain pressures and higher energy and fuel costs are among their biggest challenges as they grapple with the impact of conflict in the Middle East, according to new research from accountancy and advisory firm BDO LLP. The bi-monthly survey of mid-sized businesses with revenues between £10m and £500m, has revealed that supply chain pressures including material delays and costs, stock shortages, and suppliers folding were a top concern for nearly a third of North West business leaders (30%) as they navigate this latest economic shock. Mid-market companies are a key segment of the regional and UK economy, contributing more than £1.8 trillion in revenues and accounting for one in three private sector jobs. However, the current geopolitical climate could impact future growth plans within the region.
Scottish company insolvencies edge 6% higher in April
Company insolvencies in Scotland rose by 6% year-on-year in April 2026, with 107 cases registered compared with the same month in 2025. The figure was made up of 53 creditors’ voluntary liquidations (CVLs), 49 compulsory liquidations and five administrations. There were no company voluntary arrangements (CVAs) or receivership appointments during the month. Over the longer term, the data also reflects the limited uptake of newer restructuring tools. Between 26 June 2020 and 30 April 2026, Scotland saw just three restructuring plans and two moratoriums, both procedures introduced under the Corporate Insolvency and Governance Act 2020. The total insolvency rate in Scotland in the 12 months to April 2026 stood at 52.4 per 10,000 companies on the effective register, up 1.2 from the equivalent period ending April 2025.
https://www.scottishfinancialnews.com/articles/scottish-company-insolvencies-edge-6-higher-in-april