Business News Round Up (24/08/2026)
Britain’s hidden productivity boom masked by ‘flawed’ ONS data
Britain’s economy has undergone a silent productivity boom over the past two years, according to new research which suggests that official statistics have masked a dramatic improvement in output. The Resolution Foundation, a think tank, said UK productivity has been expanding by 1.1% a year since late 2024, far above the official estimate of 0.2% from the Office for National Statistics. Productivity growth, based on a worker’s output per hour, is central to ensuring long-term prosperity and rising living standards, and acts as a stabilising force on a government’s public finances. The think tank said the UK’s productivity growth had been “respectable” and not as “dismal” as the “flawed” measurements from the ONS suggest. Its higher estimate comes from an analysis of payroll data from HMRC and tax returns from the self-employed, which it considers more reliable than official estimates.
https://bmmagazine.co.uk/finance/uk-productivity-growth-ons-data
Twice as many Scottish firms in distress as UK average
The number of companies in Scotland in “critical financial distress” is more than twice the national average, according to a new report. Second quarter figures from insolvency specialist BTG Consulting shows a 20.5% surge in firms falling into the category over the same period last year. That compares with a 9% rise across the UK. The Red Flag Alert said the surge came against a backdrop of macroeconomic uncertainty and increased operational, employment, tax and supply chain costs. Across the UK, all but one of the 22 sectors monitored by the report registered a year-on-year increase in ‘critical’ financial distress. Among the worst affected were consumer-facing industries, including Leisure and Cultural Activities (+27.1% YoY), Hotels and Accommodation (+26.6% YoY), Sports and Health Clubs (+21.0% YoY) and Food and Drug Retailers (+18.4% YoY). It found 53,756 businesses across the UK fell into the category from 49,309 a year before.
‘Painful’ losses at Scottish National Investment Bank
The chairman of taxpayer-owned Scottish National Investment Bank has admitted that rocketing losses on the back of more failed investments are “painful” and “not where we want to be”. New figures show the bank’s loss for the year to the end of March surged by 135% to £137.5 million from £58.4m, which has already prompted an internal review of its risk strategy. The Bank recorded realised losses of £65.1m and an unrealised loss of £84.7m. The realised losses include write-downs and investment losses, including insolvency. While there is widespread acknowledgement that risk will result in some projects failing, chairman Willie Watt admitted there was a need to tighten the bank’s investment processes.
Made Smarter expands team as manufacturers step up digital investment
Made Smarter has announced it has bolstered its North West team with four new specialists as SME manufacturers accelerate investment in technology and skills. Mike Richards-Brown and Tabs Khojani will help firms find practical ways to digitalise their operations, while Jane Duffy and Mike Connolly will help businesses prepare their people and develop the leadership needed to deliver change. Together they bring decades of experience from some of the region’s leading manufacturing, technology and business support organisations. Richards-Brown joins following roles at the Advanced Manufacturing Research Centre North West (AMRC NW) and the North of England Robotics Innovation Centre (NERIC). Khojani brings 20 years of experience in Greater Manchester’s innovation and business support sector and also joins from NERIC at the University of Salford.
https://pwemag.co.uk/made-smarter-expands-team-as-manufacturers-step-up-digital-investment