Business News Round Up (21/08/2025)
Bounce back in UK start-up activity with North East and Scotland among fastest risers – NatWest
Ten UK regions recorded a rise in start-up activity in the first half of 2025, according to the latest New Start-up Index from NatWest and Beauhurst. The North East saw the fastest relative growth, with 10,400 new companies launched – up 19% on figures from the previous half-year. Also making strong gains were Scotland (up 17.9%), the West Midlands (16.9%) and the North West (16.5%), signalling a broad-based recovery in business formation outside the usual hotspots of London and the South East. In total, 426,000 new businesses were registered with Companies House in the first half of 2025. This follows a volatile 2024, which began with a record 468,000 incorporations in the first half but dipped to 378,000 in the second – the lowest quarterly level since 2021. Sector-wise, application software remains the UK’s most active start-up category, with 34,700 new companies formed – up 0.55% year-on-year.
Decline in North West M&A activity but region ‘continues to demonstrate resilience and appeal’ – report
The North West recorded a fall in deal volume and value in the first half of 2025 but the region “continues to demonstrate resilience and appeal”, according to a report from Experian Market IQ. The firm’s latest M&A review found that the North West recorded 419 deals in the first half of the year, with a combined value of £5.7bn. This reflected an 18% decline in volume and a modest 6% dip in value compared to the same period in 2024. However, the report said the region “continues to demonstrate resilience and appeal to both domestic and international investors”. Inward investment was a particular highlight, rising by 61% as European buyers increasingly targeted North West-based businesses. North West deal value was driven by two mega deals exceeding £2.7bn – a turnaround from the same period last year, when no comparable transactions were reported.
New UK Companies House rules risk locking directors out of businesses
Millions of UK company directors could soon find themselves locked out of essential business services as sweeping new identity verification rules come into force, and the majority are still unaware the change is coming. Under the Economic Crime and Corporate Transparency Act, every UK company director and Person of Significant Control (PSC) will be required to verify their identity before they can continue performing their legal duties. The new reform, part of the government’s drive to combat fraud, increase corporate transparency, and restore trust in the UK’s company registration system, is the most significant overhaul of Companies House in decades. Failure to comply could have severe consequences, including companies being struck off the register, directors facing disqualification, bans on filing statutory documents, and unlimited fines.
Scottish National Investment Bank reports £77 million ‘paper loss’
The Scottish National Investment Bank has seen its income rise by almost 80% over the last financial year, exceeding operating costs for the second year running. The Bank’s latest annual report for 2024/25 shows an income of £34.5 million, compared to operating costs of £16.2 million, with chairman Willie Watt hailing a year of ‘continued progress’ for the development bank’s investment portfolio. The figures show that the Bank’s portfolio grew to 42 businesses and projects up to 31 March this year, with £145 million committed and a further £324 million crowded in, well above its £181 million target. Since launching in November 2020, the Bank has committed more than £785 million and crowded in £1.4 billion, meaning the Bank has leveraged its capital to raise this additional investment for Scottish ventures.
https://www.digit.fyi/scottish-national-investment-bank-reports-77m-paper-loss