Business News Round Up (27/11/2025)
Scotland’s small businesses eye share of £5bn Christmas spend
Small businesses across Scotland are poised for a festive windfall, with new data suggesting that 21% of Scottish household Christmas budgets will be spent with independent firms this year. As the Small Business Saturday campaign launches its annual drive, research indicates a growing confidence among consumers. Despite economic pressures, 22% of Scottish households intend to spend more on celebrations this year than last. Notably, the hospitality sector may see a distinct advantage in Scotland; 51% of Scots are prioritising festive “nights out” – a figure significantly higher than the UK average of 46%. Other top spending priorities include food (75%), gifts (71%), and alcohol (53%). These figures arrive just ahead of Small Business Saturday on 6 December, a grassroots campaign encouraging consumers to “shop small” to support the local economy.
Mixed response to Rachel Reeves’ Budget amid £26bn of tax rises
Business leaders from across the North West have provided a mixed response to the measures unveiled in Rachel Reeves’ Budget. The Chancellor’s measures, including a freeze on income tax thresholds which will leave 1.7 million people paying more, take the tax burden to an all-time high according to the Office for Budget Responsibility (OBR). There was a mixed response from commentators. Professor Joe Nellis, economic adviser at MHA, the accountancy and advisory firm, said it was “a confident and bullish Budget from the Chancellor, aimed at satisfying Labour backbenchers, prioritising long-term investment, and reassuring the financial markets”. He added: “This has been termed a ‘cost-of-living’ Budget — those with ‘the broadest shoulders’ are certainly bearing the brunt. The surcharge on properties valued at more than £2mn, a two-percentage point tax increase on dividends, and restrictions to salary sacrifices in pensions will hit higher earners.
£1.5bn committed to youth employment and skills development
The UK government has pledged more than £1.5 billion over the spending review period to support youth employment and skills development, targeting the country’s persistently high numbers of young people not in education, employment or training (NEET). Central to the investment is the Youth Guarantee, which aims to ensure that all 16- to 24-year-olds have access to the guidance and opportunities they need to either earn or learn. This initiative will be backed with £820 million, focusing on high-quality training, apprenticeships, and support services designed to help young people transition successfully into the workforce. In parallel, the government is committing £725m to the Growth and Skills Levy, funding measures to support wider workforce development and upskilling. The levy is intended to encourage investment in training and improve the supply of skilled workers across key sectors, giving businesses the talent they need to grow.
New Bill needed to stop rates on empty business properties being refunded
Holyrood will have to pass new legislation after an error was discovered which means councils have had no legal basis to levy non-domestic rates on empty properties for more than two and a half years. A Bill could be passed by MSPs as early as Thursday this week to correct the situation – if the timetable at Holyrood allows. Public finance minister Ivan McKee said that Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill would allow for non-domestic rates to be charged on owners of unoccupied business properties – with this to be backdated to April 2023. Ministers had intended that the Non-Domestic Rates (Scotland) Act 2020 would give councils powers to charge rates on vacant non-domestic properties. This repealed previous legislation which states no rates were payable on empty business properties – but the Act failed to take account of previous laws dating back to 1956.
https://www.insider.co.uk/news/new-bill-needed-stop-rates-36303047