Business News Round Up (23/10/2025)
UK inflation unexpectedly holds steady at 3.8%
The UK’s inflation rate remained unchanged at 3.8% in September, holding at the same level for the third consecutive month, according to official figures. The data from the Office for National Statistics (ONS) defied economists’ forecasts, which had predicted the rate would climb to 4%. A significant slowdown in the cost of food was the main factor behind the stability. Inflation for food and non-alcoholic drinks fell to 4.5% in the year to September, down from 5.1% in August, marking its slowest rate of increase in over a year. Grant Fitzner, the ONS chief economist, noted that the overall cost of food and non-alcoholic drinks fell “for the first time since May last year,” though he cautioned that prices for items such as red meat and chocolate have continued to rise. For shoppers, this means that while prices are still going up, they are doing so more slowly.
https://www.scottishfinancialnews.com/articles/uk-inflation-unexpectedly-holds-steady-at-38
Investment pipeline drying up warn Scottish business leaders
Scottish business leaders have warned that access to investment capital is drying up, according to MFMac’s biannual survey of Scottish business leaders. The study found that 48% rate the availability of investment capital in Scotland as scarce or very scarce. 8% describe investment as readily available, sparking fears that Scotland’s growth ambitions are being choked off. Consequently, firms are concentrating on ‘defensive’ strategies in the months ahead, such as increasing revenue (79%) and improving operational efficiencies (65%), with little headroom for growth strategies such as entering new export markets (6%) or product diversification (22%). A flat economic outlook is the primary barrier to growth, with 67% identifying the uncertain economy as their biggest challenge, with 38% calling conditions “weak”. Official data shows that GDP per-head in Scotland is estimated to have grown by 0.2% during Q1 2025, while annual real GDP per-head grew by 0.3% in the whole of 2024.
UK tech incorporations up in Q3, but Scotland falls
The number of new UK technology incorporations soared to another record high in Q3 2025, as the sector defies ongoing economic uncertainty, according to RSM UK. RSM’s analysis found a total of 15,470 new tech companies were incorporated in Q3 2025, jumping 36% from 11,368 in the same quarter last year. The number of tech incorporations also rose by 8% compared to Q2 this year, up from 14,262. All UK regions saw an increase in tech incorporations compared to last year, with London, the East of England, North West, South West, Wales and West Midlands recording the highest quarter since 2019. Scotland saw a year-on-year increase in tech incorporations of 26%, with 471 incorporations in Q3 2025, compared to 375 in 2024. However, it had a quarter-on-quarter change of -7%, falling from 507 incorporations in the second quarter of this year.
https://www.digit.fyi/uk-tech-incorporations-up-in-q3-but-scotland-falls
Scotland consults on circular economy strategy to 2045
The Scottish Government has launched a 12-week consultation on its draft Circular Economy Strategy, setting out a vision to 2045 for a net zero and nature positive nation supported by circular economy principles. The draft strategy, which closes for responses on 13 January 2026, identifies five priority sectors for action and establishes Scotland’s first national monitoring and indicator framework specifically for the circular economy. The final strategy is planned for publication in 2026. Acting Cabinet Secretary for Net Zero and Energy, Gillian Martin, said: “Reducing, reusing and recycling materials has a huge role to play in Scotland’s response to tackling the climate crisis. By supporting Scotland to move towards a culture where keeping materials and goods in use for as long as possible is the norm, we will also be able to drive economic growth by increasing the resilience of our supply-chains and encouraging innovation.”
https://resource.co/article/scotland-consults-circular-economy-strategy-2045