Business News Round Up (23/01/2026)
UK private sector activity hits 21-month high in January
UK private sector business activity expanded at its fastest pace in 21 months in January, according to the latest S&P Global Flash UK PMI data. The headline S&P Global Flash UK PMI Composite Output Index rose to 53.9 in January from 51.4 in December, marking the ninth consecutive month above the 50.0 threshold that separates growth from contraction. Service providers led the upturn with activity growing at the fastest rate in 21 months. Many survey respondents indicated that post-Budget clarity had released new projects and boosted client investment spending. Manufacturing production also increased modestly, recording growth for the fourth consecutive month and reaching its fastest pace since October 2025. Some manufacturers reported improved export sales and increased customer restocking.
RSM: record number of new Scottish tech incorporations in 2025
A record number of new Scottish technology companies were incorporated in 2025, highlighting underlying confidence in the sector despite headwinds, according to RSM UK. RSM’s analysis shows there were 1,885 new Scottish tech incorporations in 2025, up 15% from 1,633 the previous year and in line with the UK average. Nationally, RSM’s analysis found a total of 56,615 new tech companies were incorporated in 2025, jumping 17% from 48,518 last year. Despite ongoing economic uncertainty throughout 2025, tech business leaders remain optimistic. RSM’s Technology Industry Outlook found over three-quarters (76%) said they feel confident their technology business will grow under the current government.
BDO posts surge in Scottish deals as activity rises
BDO Scotland’s deal advisory team saw a 29% increase in the number of completed transactions last year. Almost two-thirds (29) had private equity involvement, an increase of over 30% on the prior year, with a further 17 involving privately owned corporate/trade parties or publicly listed companies. The majority of completed deals centred around technology, real estate, industrial products and manufacturing, support services and healthcare. Craig Goold, head of M&A in Scotland, said: “We saw the 2025 deal market pick up pace in the second half of 2025. “The backdrop remains unpredictable, with geopolitical uncertainty and evolving investor priorities. However, going into 2026, our current activity levels are high and there’s cause for optimism on the back of strong activity in Scotland making it one of BDO’s standout markets in 2025.”
Projects in Liverpool City Region in line for £30m boost
A host of projects in the Liverpool City Region are in line to receive £30m from a new £500m national innovation fund. The projects are seeking funding from the government’s Local Innovation Partnership Fund but could leverage a further £360m from the private sector, bringing the total investment to around £400m. Led by UK Research and Innovation (UKRI), the fund is designed to support the development and scaling of high-potential existing and emerging innovation clusters across the UK. The combined authority is acting as Lead Bidder for the city region’s submission for funding. Following a call for projects, the Local Innovation Partnership Group has produced a portfolio of projects and will work to finalise the submission. Final funding figures are expected to be revealed this summer.