Business News Round Up (22/01/2026)
Sharp fall in government borrowing in December, figures show
UK government borrowing fell sharply last month, due to more income from taxes and higher National Insurance Contributions outweighing spending, figures show. In December government borrowing – the difference between public spending and tax income – was £11.6bn, the Office for National Statistics (ONS) said. It is down £7.1bn (38%) from the previous December, and lower than what many economists had predicted, but still higher than that borrowed in the same month in 2023. Despite the annual fall, the December 2025 figure was the tenth highest for the month since records began in 1993, without adjusting for inflation. And it remains higher than December 2023, when borrowing stood at £8.1bn. The figures show the government received £7.7bn more – an 8.9% rise – in taxes in December 2025 than it did in the same month in 2024.
https://www.bbc.co.uk/news/articles/clymd1pj887o
Scottish corporate insolvencies slightly up in 2025 as experts warn of ‘volatile norm’
Scottish businesses continued to navigate a hostile economic landscape in 2025, with the latest figures revealing a year-on-year rise in corporate insolvencies. Data from the Accountant in Bankruptcy (AiB) indicates that 1,272 corporate insolvencies were registered in 2025, a marginal increase from the previous year. However, the year concluded with a sharp spike, as December figures were up 35% compared to December 2024. Blair Milne, a corporate insolvency partner at Azets, described the trend as clear evidence of a “volatile and uncertain operating environment” that is becoming the norm. Compulsory liquidations rose by 13% over the year, suggesting that key creditors, particularly HMRC, are taking an increasingly aggressive stance on debt recovery. Mr Milne noted that increases in Employers’ National Insurance and the National Minimum Wage, combined with persistent inflation and the ripple effects of US tariffs, have acted as the final straw for many firms struggling to preserve margins.
UK Gov initiative to accelerate investment in Scotland
Business leaders joined representatives from the UK Government and Scottish local authorities at the launch of a new initiative to boost investment in Scotland’s eight cities and its regions. As part of Scottish Cities Week 2026, Scotland Office Minister Kirsty McNeill launched the Scotland Investment Acceleration Programme at an event bringing together Scottish city leaders, investors, finance sector stakeholders, and officials from the Scotland Office, Department for Business and Trade and the Office for Investment. A collaborative initiative between the UK Government, TheCityUK and the Scottish Cities Alliance (SCA), the Scotland Investment Acceleration Programme will provide structured support, technical guidance and market intelligence to enable local authorities and cities attract inward investment from around the globe.
https://www.digit.fyi/uk-gov-initiative-to-accelerate-investment-in-scotland
Scottish entrepreneurs unveil £20.2bn roadmap for economic growth
The country’s leading entrepreneurs have joined forces with the publication of an “Entrepreneurs Manifesto for Scotland”, setting out a practical programme to help grow the economy by up to £20.2 billion in five years and support the creation of more than 100,000 jobs. The manifesto calls for a RESET. A focus on key priorities that looks at Rates, Energy, Skills, the Entrepreneurial ecosystem, Tax, as well as a call to speed-up housing and planning decisions, cut the red tape that debilitates growth across the nation and harness the opportunities that AI can bring. The report follows on from last week’s budget and has been developed by The Hunter Foundation after listening to founders and scale up leaders from across Scotland through its multiple programmes as well as its annual Founder’s Conference at Gleneagles in November 2025.