Business News Round Up (22/05/2026)
Glasgow outperforming Manchester on key metrics
Glasgow is outperforming UK powerhouse Manchester on several economic measures, according to new data. The City Region’s average gross investment rate is now significantly higher than Greater Manchester and now comparable to that of the West of England. The figures from the council’s Intelligence Hub also show that Glasgow generates an equivalent economic output to Manchester in the energy and net zero sector – £8.6 billion – despite having a third fewer registered firms. The data was presented at this week’s UK’s Real Estate Investment & Infrastructure Forum (UKREiiF) in Leeds, a gathering of property and investment professionals. Glasgow is also outperforming Manchester on innovation intensity, with higher innovation activity (35% vs 31%), stronger UK Research and Innovation engagement (16% vs 12%), and more patenting firms (8% vs 6%), despite being smaller both in absolute terms (347 vs 760 firms) and as a share of the total business base (2.9% vs 3.3%).
UK borrowing hits its highest level amid Iran war concerns
Britain’s public finances recorded their biggest April shortfall since the COVID-19 pandemic, highlighting mounting fiscal pressures facing finance minister Rachel Reeves amid the economic fallout from the Iran war. Official figures released on Friday showed government borrowing during April rose 25% from the same month last year to 24.3 billion ($32.63 billion). It marked the second-highest borrowing figure for April on record. Economists surveyed by Reuters had forecast a smaller deficit of 20.9 billion pounds for the first month of the financial year. Analysts said the latest figures could signal deeper financial strain in the coming months as geopolitical tensions weigh on economic activity and government spending.
Glasgow entrepreneurs secure £10m in start up loans funding since 2012
Entrepreneurs in Glasgow have received over £10 million in funding since the launch of the British Business Bank’s Start Up Loans programme in 2012, with 1,086 loans delivered to smaller businesses in the city. Business founders received an average of £9,223 to help them get started as their own boss, alongside additional support from the programme in areas such as marketing, business development, and business plan writing. Of the loans awarded to Glasgow entrepreneurs, 38% have gone to female founders,11% to under 25s and a further 24% to those aged between 25 and 30, highlighting the programme’s role in widening access to enterprise opportunities across the city. Additionally, of those under 25s who received finance to start a business, 38% had previously been not in employment, education, or training (NEET).
Further £12m added to Investment Fund for Scotland Debt Fund
The FSE Group manages the Debt Fund on behalf of the British Business Bank and is responsible for deploying finance to ambitious Scottish businesses with strong growth potential. To date, the fund has provided more than £16.2m of funding to 28 businesses across Scotland, helping to leverage a further £6.4m of additional private sector investment. The Investment Fund for Scotland Debt Fund supports businesses across a wide range of sectors, backing innovation, job creation and sustainable growth. Companies already supported include Dundee-based Ecoanolytes, an environmentally focused cleaning products business using mineral-based, non-toxic solutions to reduce the use of harsh chemicals and single-use plastics.