Business News Round Up (29/10/2026)
Scottish business leaders call for tax reform and energy action after Budget
Scottish business groups have called for greater certainty on tax, investment and the energy transition following Chancellor John Healey’s first Budget. The Budget introduced measures intended to ease pressure on households and businesses, including energy support, an extension to the fuel duty cut and additional assistance for retail, hospitality and leisure firms in England. Scotland will receive an additional £600 million through the Barnett formula between 2026-27 and 2029-30, covering revenue and capital funding. However, industry representatives warned that short-term support must be accompanied by a clearer long-term strategy for economic growth and reform of the UK tax system. The Budget provided an aggregate increase of £600 million for the Scottish Government, although the precise breakdown of the funding was not immediately available.
Mixed reaction to Chancellor’s cautious Budget – devolution focus welcomed
Business leaders in the North West have reacted to Chancellor John Healey’s Budget, including measures to accelerate devolution, take action on business rates and provide support for new entrepreneurs. The Chancellor said his Budget was for “the working people of Britain, for British businesses, big and small”, built on “fiscal discipline”. A key feature was to create “breathing space” amid soaring cost of living pressures. It was also announced the government will devolve business rates and some income tax revenue to allow regions to invest in large infrastructure projects as part of the “biggest wave of devolution in a generation”, with the Chancellor unveiling backing for a host of regional projects.
Commercial property market in Scotland ‘subdued’
Demand for commercial property in Scotland was “subdued” through the third quarter, though rents are expected to rise over the next three months, according to the latest survey. A majority of Scottish respondents to the Royal Institution of Chartered Surveyors (RICS) commercial property monitor, noted that overall occupier demand fell through Q3. Investor demand is relatively muted, with a rise in investor enquiries in all sectors, indicating a relatively flat picture. In terms of the short-term outlook, Scottish respondents are relatively optimistic about rental growth, with a majority expecting rents to rise over the next three months. Capital values are expected to fall broadly flat over the next three months. Industrial is the only sector expected to see a rise in capital values in the short-term.
£20 million Tay Create Innovation Partnership to accelerate innovation-led growth for Tay Cities creative technology sector
A new partnership designed to drive innovation, create jobs and support business growth in the Tay Cities creative technology, design and digital sectors has launched with the backing of £20 million funding from UK Research and Innovation (UKRI). Led by Abertay University, the Tay Create Innovation Partnership brings together the region’s three universities, industry leaders, public bodies and cultural organisations to build on internationally recognised strengths in creative technology, games, design and digital innovation. Tay Create is funded by the UK Government as part of UKRI’s £500m Local Innovation Partnerships programme to boost long-term economic growth potential in regions across the country. The core partnership organisations include Abertay University, the University of Dundee, the University of St Andrews, V&A Dundee, Creative Scotland, Techscaler, Interface, UK Games Talent and Finance CIC, 4J Studios, Chroma Developments and Biome Collective.