Business News Round Up (24/10/2025)
Government launches ‘Back British’ industry call to action to boost UK jobs, businesses, and skills
UK businesses, workers and communities are set to benefit under new Government plans to ‘Back British’ and ensure defence investment boosts jobs, skills and innovation. The Government is launching a significant consultation with industry on a ‘Back British’ offset approach to ensure that defence import contracts benefit British businesses, jobs and skills. The proposals mean that when the UK buys from international partners, the winning contractor would be required to create jobs, know-how and investment opportunities here in the UK – strengthening the UK economy. This could mean an international partner is required to base some manufacturing in the UK, use UK small firms in its supply chain or invest in UK skills as a condition of any deal.
R3: ‘continued strain’ on Scottish finances despite drop in insolvencies
New official statistics published by Accountant in Bankruptcy (AiB) for the second quarter of 2025 show a decrease in both corporate and personal insolvencies in Scotland. However, restructuring and insolvency body R3 has warned that the headline figures mask rising financial distress for businesses and individuals amid significant economic uncertainty. Corporate insolvencies fell to 298, a 5% decrease compared to the same period last year and a 10% drop from the previous quarter. Despite this, Emma Widdowson, chair of R3 in Scotland, noted that ongoing uncertainty surrounding the UK and Scottish budgets is causing businesses to hesitate on investment and expansion. She highlighted Office for National Statistics data showing that one in six trading businesses had no cash reserves in late September, leaving them highly vulnerable to financial shocks.
UK financial complaints rise in first half – FCA
The Financial Conduct Authority (FCA) has reported that financial services firms in the UK received 1.85 million complaints in the first half of 2025, marking a 4% rise from the 1.78 million recorded in the previous half-year. Complaint volumes have remained relatively stable since the first half of 2021, fluctuating between 1.7 million and 2.0 million. The total redress paid out by firms reached £283 million in 2025 H1, representing a 20% increase compared to £236 million in 2024 H2. The average compensation payment also rose, moving from £207 to £238. The proportion of complaints upheld by firms held steady at around 57% over the same period. Banking and credit cards saw a 7% increase in complaints, rising from 839,526 in 2024 H2 to 899,861 in 2025 H1. Within this category, current account complaints rose by 10%, from 491,172 to 541,493 cases.
Scottish investment capital ‘drying up’, warns business leaders
Scottish investment is running dry, with less than one in ten firms saying funding is ‘readily available’, according to the latest biannual survey from Morton Fraser MacRoberts (MFMac). Polling 117 Scottish business leaders, the legal firm found that almost half (48%) reported that investment funds are either ‘scarce or very scarce’, triggering a swathe of companies to take on more defensive strategies to bolster their position in the market. MFMac found that Scottish firms have gone into survival mode, with most tightening their margins (74%) and chasing operational efficiencies (65%), rather than growth. That’s a result of economic uncertainty still biting hard, with the latest official figures showing a measly 0.2% growth in Scotland’s GDP, a fall from the not much better figure of 0.4% in the previous quarter and lagging very slightly behind the UK as a whole at 0.3%.
https://www.digit.fyi/scottish-investment-capital-drying-up