Scotland has become a thriving hub for start-ups, with a 15.1% increase in loans from the British Business Bank’s Start Up Loans programme in 2025. The average loan size in Scotland exceeded the UK average by £1,000, indicating potentially larger ventures. Notably, 43% of these loans went to female founders, surpassing the national average of 39%. Louise McCoy, managing director of Start Up Loans products at the British Business Bank, said: “Despite a mixed picture when it comes to business confidence data, we still see a picture of year-on-year demand holding up in Scotland.”

Reform UK leader Nigel Farage has unveiled a £3bn package aimed at supporting pubs and the wider hospitality sector. The plan includes cutting VAT on hospitality to 10%, reducing beer duty by 10%, scrapping the recent increase in employer national insurance contributions for hospitality firms, and introducing a phased abolition of business rates for pubs. Reform also proposes regulatory changes to give landlords more independence from pub companies. The measures would be funded by reinstating the two-child limit on universal credit for most families, reversing the Government’s decision to abolish the cap from April.

The National Institute of Economic and Social Research (NIESR) has warned that tax increases will hinder economic growth and affect low-paid and younger workers’ job prospects. The think-tank predicts GDP growth of 1.4% this year and 1.3% in 2027 but senior economist Benjamin Caswell has warned that a “gradual slowdown in economic activity” would follow from 2027/28 as a result of tax increase. Chancellor Rachel Reeves announced tax rises in the Budget – including a freeze in income tax thresholds and higher levies on dividends and rental payments but most of these do not take effect for at least another year. NIESR also noted that rising employment costs could make hiring low-paid workers more challenging. The cost of employing someone full-time has risen due to the minimum wage going up and an increase in National Insurance contributions paid by employers.

The National Institute of Economic and Social Research (NIESR) warns that achieving net zero migration could harm the UK economy. It predicts slower employment growth and a smaller workforce, leading to a £37bn funding gap. NIESR’s report states that without significant tax rises, net zero migration is not fiscally sustainable. Stephen Millard, NIESR’s deputy director for macroeconomics, said: “Our analysis clearly shows that net zero migration would put pressure on the public finances.”

One of London’s prominent private equity dealmakers, Kurt Bjorklund, recently relocated to Switzerland amidst a wave of wealthy individuals leaving the UK due to government tax changes. As the executive chair of Permira, Bjorklund’s move follows the Labour party’s commitment to abolishing the non-dom regime and imposing VAT on private school fees. He retains his role at Permira, which manages €85bn in assets and is known for investments in notable fashion brands. The exodus of high-net-worth individuals has been linked to the Government’s tax reforms, particularly the cancellation of the non-dom tax benefits, prompting several industry leaders to also move abroad.

The Bank of England has introduced its new Scale-Up Unit to support UK fintech firms, with OakNorth, Allica Bank, Clearbank, Zopa, Monument Bank, and Nottingham Building Society among the first cohort to be overseen by the regulatory initiative. This initiative, a collaboration between the Financial Conduct Authority and the Prudential Regulation Authority (PRA), aims to enhance growth in the fintech sector and address regulatory challenges faced by fintech firms. Richard Davies, CEO of Allica Bank, said: “Done well, the Scale-Up Unit can support the Government’s objective to make the UK the location of choice for financial services firms.” It is noted that fintech industry body Innovate Finance had raised concerns about regulation of the sector, accusing the PRA of issuing “logic defying” rules and saying “excessive” requirements had created an “uneven playing field for UK challenger banks, placing heavy burdens on them.”

Aston Martin plans to reduce its global workforce by up to 20% due to the ongoing impact of US tariffs. The luxury car manufacturer is reviewing its organisational structure, affecting back office and engineering roles. Unite, the union representing staff, is in discussions with the company to minimise job losses. Most affected employees are expected to leave by April.

The Bank of England should maintain interest rates at 3.75%, according to City AM‘s Shadow Monetary Policy Committee. The nine economists expressed caution over recent price growth data, suggesting it does not warrant a rate cut. Jonathan Haskel, a former rate-setter at the Bank, noted inflation remains “persistent.” While some economists, like Kallum Pickering from Peel Hunt, argue for a cut due to easing inflation, the majority voted to hold rates. Noting that the impact of recent cuts is “only just starting to be felt on the economy,” Jack Meaning, chief UK economist at Barclays, said: “I therefore think there is no need to accelerate the pace of easing and reduce rates again so soon after December’s cut.”

Chancellor Rachel Reeves has urged the UK and EU to “speak with one voice” in a call for co-operation on economic and security issues.