Business News Round Up (26/03/2026)
CPI inflation holds at 3% but economists warn of sharp rise ahead
UK inflation held steady at 3% in February, but economists are warning that the relative calm is unlikely to last, as the ripple effects of the Middle East conflict begin to reshape the economic outlook. Matt Swannell, chief economic adviser to the EY ITEM Club, explained that the headline figure masked competing pressures. “The main source of upward pressure came from an unwinding of last year’s unusually weak outturn in the clothing sub-category,” he said. “Offsetting pressure came from weaker food price inflation, while there was also a 1.1% month-on-month fall in petrol prices between January and February, compared to a 1.5% increase between those months last year. Meanwhile, services inflation also edged slightly lower.” However, Mr Swannell cautioned that the picture is set to deteriorate rapidly.
Four in five Scottish SMEs concerned about survival, as optimism drops by a third
Edinburgh’s SMEs are the least confident of Scotland’s major cities, as business viability concerns remain high nationwide, according to new research from Aberdein Considine. The law firm commissioned Censuswide to survey 605 owners of Scottish businesses with fewer than 250 employees during January, finding that 81% reckon their viability is at risk; only a slight increase on the 80% recorded in last year’s poll. 84% of SME owners in Edinburgh and the Lothians reported concerns about their survival over the year ahead, compared with 82% in Aberdeen and the northeast and 75% in Greater Glasgow and Clyde. In addition to concerns about viability, the proportion of Scottish SMEs feeling optimistic about their own sector in the year ahead has fallen sharply, dropping from 83% in 2025 to 50% in 2026.
BDO: Scottish PE-backed mid-market businesses saw average 34% EBITDA growth over three years
Scotland-headquartered private equity-backed businesses achieved average annual EBITDA growth of 34% over the latest three-year-period, underlining the positive impact that private equity is having on the Scottish economy, according to a new report. The second Private Equity Value Report from Real Deals, developed in association with BDO, highlighted 12 qualifying businesses in Scotland. Ten of which have ranked in the top 245 private equity-backed companies across the UK. Nationally, qualifying PE portfolio companies achieved an average EBITDA growth of 50.8% while average revenues grew by 21.7% over the same period. The top 10 in Scotland showcased a range of sectors from technology to consumer markets and business services, and the most featured investor was BGF. Accountancy and business advisory firm BDO commissioned the research to understand the impact that private equity investment is having on the growth of the UK economy.
Tay Cities Region wins £20m funding for creative tech growth
The Tay Cities Region has won £20 million of UK Government investment to turbocharge its local creative tech sector. In a push to create jobs and boost the local economy, the funding, awarded as part of the competitive strand of the government’s Local Innovation Partnerships Fund, aims to give innovators across Angus, Dundee, Fife, and Perth & Kinross the chance to fast‑track their ideas and open up routes to further investment. The funding package is also designed to back collaborative R&D projects and pull expert talent into the Region’s gaming sector, supporting everything from cutting‑edge design to emerging technologies like immersive VR, potentially opening the door for a new wave of high‑growth businesses. The bid was led by Abertay University, which will now lead on delivering the programme, bringing expertise in gaming, virtual production and emerging technologies alongside industry partners, including 4J Studios, UK Games Talent and Finance, and CodeBase.
https://www.digit.fyi/tay-cities-region-wins-20m-for-creative-tech-growth