Business News Round Up (30/06/2025)
Foreign investment into UK falls 12% to new low
Foreign investment into the UK fell for the second year to its lowest since 2020, raising fresh concerns over the country’s international competitiveness. New figures from the Department for Business and Trade show a 12% year-on-year decline in the number of Foreign Direct Investment (FDI) projects, falling to 1,375 in 2024–2025 from 1,555 in 2023-24 and 1,654 in 2022-23. The latest figure is the lowest since 2007. The nations and north of England fared better than the south of England with Scotland, Wales, Northern Ireland and Yorkshire & Humberside the only areas to see an uplift. In Scotland’s case, the number of projects rose to 128 from 125 in the previous year. The overall picture will raise concerns in government amid current data showing the negative impact that higher taxes are having on the jobs market and business investment.
£750 million invested in Scottish commercial property during first half
Scotland’s commercial property market attracted £750m of investment in the first half of 2025, as investment markets paused amid geopolitical tensions and a changing policy backdrop. Knight Frank’s analysis of Real Capital Analytics data found the figure was down 20% on the £925m average for the previous five years, broadly in line with the picture across the UK. That, however, includes a particularly strong year in 2022 – if discounted, the average would be £769m. For the first time in recent years, hotels were the top-performing asset class, with £213m of investment. That was the second highest figure for the sector during the first six months of the year since 2020, behind only 2024’s £235m. Retail was second with £207m-worth of transactions, followed by offices with £152m. Private investors were the most active buyers accounting for 40% of investment – the highest share for the first half in recent years.
https://www.insider.co.uk/news/750-million-invested-scottish-commercial-35473215
UK businesses could be legally required to prioritise people and planet alongside profit under new law proposals
A proposed new law could dramatically reshape how UK businesses operate, by requiring company directors to consider the impact of their decisions on people and the planet, not just shareholders. The Company Directors (Duties) Bill, tabled in Parliament today by Liberal Democrat MP Martin Wrigley, seeks to amend Section 172 of the Companies Act 2006 to ensure directors balance the duty to promote their company’s success with new duties to protect the environment and safeguard employees. Currently, UK company law compels directors to act in a way that promotes the success of the business “for the benefit of its members as a whole” — meaning shareholders. Critics argue this short-term focus has contributed to scandals such as widespread environmental failings in the water sector. Under the new proposals, businesses would be required to embed a stakeholder-led model into their decision-making, considering the interests of employees, customers, communities and the natural environment.
UK disposable income falls as fastest rate since 2023
UK household disposable income fell at its fastest rate since 2023 in the first quarter while the proportion that people save declined for the first time in two years, potentially knocking one of Labour’s key economic targets off course. The Office for National Statistics confirmed on Monday that the UK economy grew at a brisk rate of 0.7 per cent in the first quarter, the fastest since the same period in 2024. However, the detailed figures showed that rising wages were offset by a rise in taxes and a jump in inflation. Real household disposable income per head — the inflation-adjusted amount of income available for a household after taxes and subsidies — decreased by 1 per cent in the first quarter from a 1.8 per cent expansion in the previous three months, marking the fastest decline since the first quarter of 2023.
https://www.ft.com/content/08a1004c-4378-4eb8-9b2f-87ca63b3873f