Business News Round Up (23/09/2025)
UK forecast to have highest inflation in G7
The UK is forecast to see the highest rate of inflation of the world’s seven richest nations this year, according to an influential global policy group. The Organization for Economic Co-operation and Development (OECD) raised its forecast for UK inflation – the rate at which prices rise – to 3.5% across 2025, the highest in the G7. It increased its forecast for UK growth slightly this year to 1.4%, but the economy is still expected to slow next year. The forecast comes as Chancellor Rachel Reeves is preparing November’s Budget in which she is expected to put up taxes or cut spending in order to stick to her own rules on government borrowing. Responding to the OECD’s forecast, Reeves said the figures “confirm that the British economy is stronger than forecast – it has been the fastest growing of any G7 economy in the first half of the year.”
https://www.bbc.co.uk/news/articles/cx2n4877j7lo
1-in-3 workers in Scotland say workplace conflict on the rise
Almost one-third of employees in Scotland say that workplace conflict is rising, according to a new survey by the Advisory, Conciliation and Arbitration Service (Acas). New Acas-commissioned YouGov polling found that 30% of Scotland workers who knew of conflict in their organisation over the last 3 years said it has increased, compared to just 7% who say it has decreased. The news comes ahead of major new employment law reforms, and with Acas experiencing increased demand for its services. Responding to these challenges, Acas has launched a transformative five-year strategy to modernise how disputes at work are handled across Britain. Niall Mackenzie, Acas Chief Executive, said: “Businesses in Scotland are doing much to promote productivity and economic growth, but our poll shows that there is more we can do to tackle conflict and help Scottish businesses grow and flourish.
Scottish Government unveils £5m of fresh innovation investment
A multi-million investment package is being rolled out this year to help drive the country’s high-growth, high-innovation industries. It will provide more than £2 million of support for key new market clusters set out in Scotland’s Innovation Strategy, including Space, Robotics and Critical Technologies like semiconductors and quantum systems. Around £2.4 million will be invested in supporting projects across Artificial Intelligence and Life Sciences. Individual funding elements will be announced in due course, with early investment including an additional £500,000 of funding for Fraunhofer Centre for Applied Photonics (FhCAP) in Glasgow – the only facility of its kind in the UK. Business Minister Richard Lochhead announced the funding during a visit to the National Robotarium at Heriot-Watt University in Edinburgh to mark the start of Scotland’s National Innovation Week.
https://www.digit.fyi/scotland-innovation-funding
KPMG: UK faces decade of tax rises amid slow growth
The UK government is faced with a future of difficult tax choices, with an increased likelihood of tax rises to combat mounting public spending pressures and sluggish economic growth, according to KPMG. In its latest UK Economic Outlook, the Big Four Firm projects that UK GDP will grow by a modest 1.2% in 2025 and 1.1% in 2026. While the economy had a resilient start to the year, the second half looks more uncertain. This subdued outlook is attributed to cautious consumer spending, weaker global trade, and ongoing uncertainty over trade policy hindering business investment. According to KPMG’s chief economist, Yael Selfin, Chancellor Rachel Reeves is faced with a “tough balancing act”. The UK government must manage significant spending pressures in health and defence, cover the cost of reversing planned cuts to welfare and winter fuel payments, and service higher debt costs.
https://www.scottishfinancialnews.com/articles/kpmg-uk-faces-decade-of-tax-rises-amid-slow-growth