Business News Round Up (23/06/2025)
UK to cut green levies on businesses as part of 10-year industrial strategy
The UK government will slash green levies on thousands of businesses in a major bid to reduce energy costs and revive the country’s manufacturing base, marking a key pillar of its long-awaited 10-year industrial strategy. Announced on Monday by Prime Minister Keir Starmer, the policy aims to support more than 7,000 businesses by removing levies such as the renewables obligation, which helps fund historic renewable energy projects. The move is designed to ease financial pressure on manufacturers facing some of the highest electricity prices in the developed world, and to signal a more strategic, long-term approach to economic growth. A second measure, targeting the most electricity-intensive industries such as steel, aluminium, ceramics, and glass, will increase the discount on grid connection charges to 90%, up from the current 60%. The government estimates that around 500 firms across multiple sectors could benefit.
Glasgow investment zone to generate £300 million funding
Glasgow City Region’s Investment Zone is expected to generate £300m of private investment, while supporting up to 10,000 jobs in the area over the next decade. The Investment Zone (IZ) was formally confirmed in the UK Government’s Spending Review, with the site focusing on advanced manufacturing, targeting innovation in space, maritime and semiconductors. The region is already a world-leader in satellite manufacturing. After California, Glasgow City Region (GCR) is the largest supplier of small satellites in the world, with around 30 companies in the industry. It is hoped that IZ project funding will strengthen GCR’s space and aerospace sectors, enhance the capacity to manufacture satellites and boost the construction of new rockets.
https://www.insider.co.uk/news/glasgow-investment-zone-generate-300-35435589
British Business Bank commits £6.6bn to back UK innovation
The Secretary of State for the Department for Business and Trade has announced that £6.6bn of new capital is being committed by the British Business Bank to back UK innovation and entrepreneurs. A new £4bn initiative, British Business Bank Industrial Strategy Growth Capital, will be invested through the bank’s existing capabilities across eight growth-driving sectors. The sectors – advanced manufacturing, clean energy industries, creative industries, defence, digital & technologies, financial services, life sciences and professional & business services – are expected to bring in another £12bn of private capital. As part of the Spending Review settlement, the organisation will also commit £2.6bn of capital to support entrepreneurs to access funds in an attempt to drive the growth of smaller businesses across the UK.
https://businesscloud.co.uk/news/british-business-bank-commits-6-6bn-to-back-uk-innovation
Scots small business owners urged to act as tax gap hits £47 billion
Small business owners across Scotland have been urged to seek help after new figures showed that firms of a similar size make up the largest share of the UK’s £47 billion tax gap. Advice Direct Scotland, which runs the free advice service taxadvice.scot, said it was vital for entrepreneurs to understand their obligations and deal with tax debts promptly as HMRC steps up enforcement to recover £7.5bn more in unpaid tax. Official figures published today show the estimated tax gap for 2023 to 2024 at 5.3%, reflecting the difference between the tax expected and actually paid. A total of £46.8bn was unpaid, up from £46.4bn the previous year following revisions to earlier estimates. Smaller firms account for 60% of this shortfall, with errors and failure to take reasonable care cited as major causes. The majority of small businesses in Scotland (98.2%) are non-employing or microbusinesses with fewer than nine employees.