The European Central Bank (ECB) has warned that the ongoing conflict in the Middle East poses serious risks to financial stability. The ECB said: “While the full impact of the war is unclear, the repercussions for the global economy and financial stability are becoming graver the longer it lasts.” The report highlights rising energy prices and limited fiscal responses as key concerns, urging targeted support to avoid exacerbating inflation.

Scotland’s economy grew by just 0.1% in the first quarter of 2026, according to GDP data from the Scottish Government. This is significantly lower than the UK’s overall growth of 0.6% during the same period. The services sector increased by 0.2%, while construction rose by 0.4%. However, the production sector declined by 0.5%.

The energy price cap will increase by 13% from July, raising average annual bills by £221 to £1,862. Ofgem CEO Tim Jarvis said ongoing global market volatility, particularly due to the conflict in the Middle East, is driving price increases. Cornwall Insight analyst Dr Craig Lowrey has warned that the cap could climb again in October, taking the typical bill to £1,899.

Scottish businesses are grappling with significant challenges due to supply chain issues and rising energy costs amid the Middle East conflict. A survey by BDO shows that 76% of mid-sized companies plan to reduce or halt investments. Additionally, 30% are considering raising prices, while 32% may delay hiring.

A review led by Alan Milburn, the Government’s work tsar, has warned that one in six young people could be out of education, employment or training by 2031 unless the Government delivers reforms to the education, health and welfare systems. While there were 957,000 16 to 24-year-olds not in education, employment or training between October and December 2025, the report suggests the figure could hit to 1.25m in the next five years.

Amazon says it paid more than £1.3bn in UK taxes last year, up 20%, driven by higher employment taxes and revenue growth. The company did not disclose how much it had paid in corporation tax, National Insurance and digital services tax, but said that the amounts for each had increased. Dan Neidle, founder of Tax Policy Associates, questioned the transparency of Amazon’s tax claims, however, saying: “If they really want to be open they should publish a proper breakdown.”

Major retailers including Marks & Spencer, Primark, Next and Argos have urged ministers to close the £135 “de minimis” import tax loophole used by overseas rivals such as Shein and Temu. In a letter to Sir Keir Starmer and Rachel Reeves, they proposed a £2.60 levy on low-value parcels, claiming it could raise £1.7bn a year for the Treasury.

Stephen Burns, chief executive of Hollywood Bowl, says the bowling alley operator now prioritises experienced staff over inexperienced job-seekers following increases in National Insurance contributions and the minimum wage, saying the hikes have made entry-level positions less viable.

Nanoco Group, a small-cap semiconductor firm, is leaving the London Stock Exchange, citing high listing costs and weak liquidity, alongside volatile investor sentiment. Nanoco said the move will save £700,000 annually.

Standard Life chief executive Andy Briggs says a Pension Commission report due in 2027 must prompt significant reforms to prevent millions of people being left with inadequate retirement savings. Currently, 15m working-age individuals are projected to lack sufficient funds for retirement. Mr Briggs, who warns of a “highly fragmented defined contribution landscape,” argues in favour of increasing auto-enrolment contributions from 8% to 12%.