Business News Round Up (24/04/2025)
Made Smarter launched £1m fund to drive digital adoption in North West manufacturing
Made Smarter, the Government-backed programme helping manufacturers embrace digital technologies, has launched a new £1 million funding round aimed at accelerating digital transformation across the North West’s manufacturing sector. The initiative, now in its seventh year, is offering match-funded grants of up to £20,000 to help small and medium-sized manufacturers adopt cutting-edge technologies such as robotics, automation, artificial intelligence (AI), the Internet of Things (IoT), and additive manufacturing. Alongside the financial support, eligible businesses gain access to fully funded technology consultancy, strategic digital road mapping, leadership and skills training, and student placement opportunities—tools designed to help companies boost productivity, resilience, growth and sustainability. Since its inception in 2018, Made Smarter has supported 334 technology projects across the region. These investments are forecast to boost the North West’s gross value added (GVA) by £242 million, create 1,300 new jobs, and upskill 2,500 existing roles.
UK government borrows £14.6bn more than expected as economic headwinds mount
UK government borrowing has exceeded official forecasts in March and for the full 2024-2025 fiscal year, intensifying pressure on public finances amidst a challenging economic outlook compounded by US tariffs. Data released by the Office for National Statistics (ONS) revealed a shortfall between government income and spending of £16.4 billion in March 2025, which was £2.8bn higher than the same month last year and surpassed economists’ expectations of £16bn. For the complete fiscal year ending in March, borrowing totalled £151.9bn. This figure significantly overshot the £137.3bn forecast made by the Office for Budget Responsibility (OBR), the UK government’s fiscal watchdog, in its Spring Statement, representing a £14.6bn difference. The OBR had previously highlighted the limited budgetary room for manoeuvre, estimating the government’s “fiscal headroom” against its own rules at a historically low £9.9bn even before accounting for recent developments.
Scottish businesses ‘struggle against policy changes’
Scottish businesses are raising prices and hiring fewer staff in response to growing financial pressures, because of the increase in employer National Insurance Contributions (NICs). The Fraser of Allander Institute’s latest quarterly Scottish Business Monitor revealed that almost 90% of the 250 businesses surveyed in March anticipate higher business costs over the next six months, while 80% expect Scottish economic growth to remain “very weak to weak”. The report also found that eight-out-of-10 businesses report increased payroll costs because of rise in employer NICs with many adapting to this through a combination of strategies: cutting back on hiring or cancelling increases in their workforce, adding the extra costs on to prices and reducing employee benefits. Price increases in response to the rise in employer NICs have the potential to trigger higher-than-target inflation, something that has been flagged as a concern by the Bank of England policymakers as well.
https://www.insider.co.uk/news/scottish-businesses-struggle-against-policy-35103357
Only 1 in 10 UK employees are engaged at work, costing the UK economy £293bn
Gallup published its 2025 State of the Global Workforce report, showing that employee engagement levels in the UK are one of the lowest in the world. The report comes at a time of global trade talks, a cost-of-living crisis, and a world on the cusp of a seismic AI change, where technology is transforming every industry in its path. The data highlighted that employee engagement levels fell across the board, which cost the world economy $438bn in lost productivity. The primary cause for this was a drop in manager engagement. According to the survey, since the pandemic, managers have been asked to “square the circle” of new executive demands and employee expectations, and the workplace is beginning to see the toll. Manager engagement affects team engagement, which in turn impacts productivity.