Business News Round Up (27/08/2026)
More than £700m to be cut from Scottish Budget next year
More than £700m is to be cut from the Scottish government’s Budget next year, the Scottish Fiscal Commission (SFC) has said. SFC said the reduction – to correct the difference between forecast and actual income tax revenues – would lead to a drop in funding for services. In its annual report the body found that Holyrood ministers had an extra £831m to spend in the current financial year compared with earlier forecasts, largely thanks to a one-off boost from education spending south of the border. However, the SFC warned there was “very little” new funding in 2027-28, coupled with a worsening economic outlook, higher inflation and weak household income growth. The Scottish Budget for the current financial year is about £70bn. The SFC noted that the overall change to that figure in 2027-28 would depend on the tax and spending decisions announced in the UK Government Budget on 28 October.
https://www.bbc.co.uk/news/articles/c62m4edrdvno
Greater Manchester Skill’s Development service extended
Businesses across Greater Manchester will continue to benefit from tailored workforce development support after the Employer Engagement for Essential Work Skills (EEEWS) contract was extended until June 2027. The extension will enable GM Business Growth Hub to continue delivering the programme beyond its initial term, helping more employers identify skills gaps, access training opportunities and invest in workforce development. The programme forms part of GM Business Growth Hub’s wider commitment to supporting business growth through skills development and workforce resilience. Delivered by GM Business Growth Hub, the programme helps employers and individuals access training that supports productivity, career development and long-term economic growth. A team of specialist Skills Development Specialists work closely with employers to understand workforce challenges, identify opportunities for development and connect businesses with suitable training providers.
https://businesscloud.co.uk/news/greater-manchesters-skills-development-service-extended
Scottish firms plan UK’s biggest investment increase – despite cashflow pressure
Scottish businesses are planning the strongest increase in investment anywhere in the UK, despite evidence of tougher trading conditions and pressure on cashflow. The latest Barclays Business Prosperity Index found Scottish firms expect investment to rise by 12% over the coming year; the highest of any UK nation or region and 7.9 percentage points above the UK average. The confidence comes despite clear signs of pressure on Scottish firms. The bank’s data shows cash coming into businesses fell by 6.3%, while international payments into Scotland were down 6.9%. Savings balances also dropped by 8.7%, suggesting some firms may have used reserves to help manage weaker cashflow. Even so, more than 90% of Scottish businesses are confident in their prospects – more likely than the UK average to be planning an increase in investment over the next year.
AI Scotland invests £1.8m into SMEs
A national programme helping Scottish companies capitalise on the benefits of AI has received funding for its second year. Backed by £1.8 million of continued funding, AI Scotland will help small-to-medium-sized businesses (SMEs) to develop new products and services, grow market share and attract new investment. The Programme offers support such as mentoring, workshops and grant funding to help businesses identify AI opportunities, plan AI implementation and develop and test AI solutions tailored to their needs. This funding builds on last year’s National AI Adoption Programme for SMEs which received funding of £1 million and helped more than 1,000 business. Scotland’s AI Strategy is the Government’s five-year plan to harness the potential of AI to drive responsible and inclusive growth across the economy and make a positive difference at every level of society.
https://www.digit.fyi/ai-scotland-invests-1-8m-into-smes