Business News Round Up (21/09/2026)
UK businesses are being told to grow – but the cost of doing business is holding them back
With the October Budget approaching, businesses are being urged to invest, hire and expand — but new figures suggest many are instead keeping their money in the bank as the cost of operating continues to rise. Recent research from the Association of Practising Accountants found that 68% of small business owners are unlikely to make significant capital investments over the next 12 months, up from 65% last year. The British Chambers of Commerce is also forecasting that business investment will contract by 0.2% in 2026. Smaller businesses are already facing financial pressure, high operating costs, and a lack of confidence amid economic uncertainty, which has paused investment needed to grow. It can mean putting off the next hire, delaying new equipment, holding off on expanding premises or deciding against investing in a new product or service.
Sustainability concerns present a serious barrier to AI adoption for UK small businesses
New research suggests three-in-10 UK small business owners (31%) use AI to support their enterprises, with 27% saying they have no plans to use it, and a further 21% saying they don’t regard AI as relevant to their business. According to Novuna Business Finance, among enterprises that have not embraced AI technology, sustainability issues emerged as a major concern, with 22% of small business owners worried about the energy and resources used by AI. These sustainability concerns were most strongly felt by small businesses in the West Midlands (36%), Scotland (31%), the East Midlands (28%), the North West (27%), Wales (22%) and Yorkshire and the Humber (20%). Concerns over AI’s sustainability impact come when UK small businesses remain fully committed to sustainability, perhaps marking a divergence from some governments and major businesses that have been seen to dial down their relative commitments to Net Zero in recent years.
South of Scotland Enterprise delivers record support
South of Scotland Enterprise delivered record support for businesses, communities and social enterprises in its latest financial year which saw work begin on the flagship Center Parcs development. It supported almost 2,300 organisations in 2025/26 – the highest number ever recorded by the region’s economic and community development agency. The milestone is revealed in SOSE’s latest annual report and accounts which show it engaged with 2,282 organisations in 2025/26 – up from 2,156 in 2024/25 – marking another record year for the agency. It approved £18.3 million for 648 projects, a significant increase on the £10.3m approved for 558 client-facing funded projects in the previous year. SOSE said the investment is translating into tangible benefits for the region. It helped create or safeguard 749 jobs- almost double the 377 recorded in 2024/25 – while investments generated £3.33 for every pound invested, contributing almost £61million to the South of Scotland economy.
Cyber Essentials certifications rise as SME uptake remains limited
The UK government’s Cyber Essentials scheme has recorded a 20% increase in certifications over the past year, although uptake remains limited relative to the country’s SME population. The UK government’s flagship cyber security certification scheme has recorded its highest annual number of certifications, with 61,430 certificates awarded between July 2025 and June 2026. The newly published figures represent a 20% increase compared with the previous year, although the number of businesses participating in the scheme remains relatively small compared with the UK’s wider SME population. Of the certificates awarded, 46,245 were at the basic Cyber Essentials (CE) level, which requires organisations to complete a self-assessment, while 15,185 were awarded at Cyber Essentials Plus (CE+), which involves an independent third-party audit. However, nearly three-quarters of the basic-level CE certifications were recertifications rather than new organisations joining the scheme.
https://www.digit.fyi/cyber-essentials-certifications-rise-as-sme-uptake-remains-limited