Business News Round Up (21/11/2025)
Scottish Financial Enterprise chief says too much spent on public sector
The UK is “simply spending too much” on the public sector, the chief executive of Scottish Financial Enterprise has said. Sandy Begbie CBE has called on Chancellor Rachel Reeves to prioritise economic growth in her Budget next week by backing Scottish businesses. The business leader says the lack of a coherent tax strategy and philosophy for the UK government is currently damaging investor confidence. He also stresses that moving from one budget to the next with a range of tactical tax changes, simply undermines the UK as a location for investment and drives considerable adverse behaviour change at an individual level. SFE represents around 120 member firms in the financial and professional services sector. The intervention follows Scotland’s Global Investment Summit, led by SFE and the City of London Corporation, which brought together business leaders and global investors to highlight the investment opportunities across three of Scotland’s key growth sectors.
UK economy stumbles in run-up to next week’s budget
Measures of Britain’s businesses, consumers and public finances are all showing signs of deterioration in the run-up to next week’s budget when finance minister Rachel Reeves is expected to raise taxes again. Data suggested that worries about the budget are weighing on the world’s sixth-biggest economy and underscored the scale of the challenge for Reeves as she tries to cut borrowing without further slowing already weak growth. The S&P Global Purchasing Managers’ Index preliminary survey for November showed companies were pausing their plans while they waited to see if their taxes will go up for a second-year running. Reeves is due to announce her budget on Wednesday next week. She is expected to raise tens of billions of pounds in taxes to avoid a selloff in the bond market, but possibly at the price of further upsetting voters who are already unhappy with Prime Minister Keir Starmer and his government.
https://www.reuters.com/world/uk/uk-economy-stumbles-run-up-next-weeks-budget-2025-11-21
techUK calls for bolder action to unlock regional tech growth
Technology trade association techUK’s new Local Digital Index shows that while the UK tech sector continues to outperform most of the economy, growth remains uneven. The sector contributes £101 billion in Gross Value Added (GVA) and employs 1.7 million people. Yet growth and investment remain too heavily concentrated in London, Oxford, and Cambridge, the research finds, despite world-class potential across the whole of the UK. Drawing on 23 economic, connectivity, and skills indicators, the Index provides local leaders, investors and policymakers with a clear picture of where and how the UK’s digital economy can grow faster and more inclusively. Despite highlighting progress since 2020 – including record gigabit rollout and the establishment of local innovation clusters – techUK is calling for urgent government action to ensure that regional economies can attract investment, connect businesses, and develop the skills that will define the UK’s digital future.
https://businesscloud.co.uk/news/techuk-calls-for-bolder-action-to-unlock-regional-tech-growth
Scottish Government launches life sciences strategy
A new plan to help Scotland’s life sciences companies form a £25bn industry by 2035 has been published by the Scottish Government. The Life Sciences Strategy sets out steps to build the infrastructure and skills needed, while harnessing new technologies such as AI. It will be kick-started with £1m of government investment to support the Industry Leadership Group to drive delivery, as well as a new pilot programme for Scottish-based SMEs to develop innovative products. Money will also go to NHS Regional Innovation Hubs to link business with opportunities within the health service, along with a Financial Health Innovation Lab to connect the life sciences sector with financial services. The government is launching a feasibility study into getting more laboratory space for start-up and growing companies. The 10-year strategy will be followed by a series of focused delivery plans to support the sector’s acceleration and positioning as a globally-competitive industry.