Economy

  UK inflation unexpectedly accelerated to an 18-month high of 3.8% in July, reducing the likelihood of further interest rate cuts from the Bank of England.

Scotland’s net fiscal balance has deteriorated, with the deficit growing to £22.7 billion, or 10.4% of GDP, in the 2023-24 financial year.

UK GDP grew faster than expected in the second quarter, expanding by 0.3%, but a slowdown from the start of the year has highlighted challenges facing the Chancellor ahead of the autumn budget. Figures from the Office for National Statistics (ONS) confirmed that growth had cooled from a strong 0.7%

Scotland’s onshore economy shrank by 0.2% in May 2025, reversing a revised growth of 0.1% in April, according to official figures.

A landmark trade deal signed today between Prime Minister Sir Keir Starmer and his Indian counterpart, Narendra Modi, is set to deliver a £190 million boost to the Scottish economy. The agreement will see tariffs on Scotch whisky exports to India halved from 150% to 75%, with the potential for

UK government borrowing has reached a higher-than-expected £20.7 billion in June, fuelled by soaring debt interest payments that place Chancellor Rachel Reeves under increasing pressure ahead of her Autumn Budget.

UK inflation unexpectedly rose to 3.6% in June, casting doubt on the likelihood of an interest rate cut in August. The figure, released by the Office for National Statistics, surpassed analysts' expectations that inflation would hold steady at May's rate of 3.4%. 

The UK's blue-chip stock index has smashed through the 9,000-point barrier for the first time, touching a new record high of 9,016.98 in early trading on Tuesday. The surge, which takes the FTSE 100’s gains for 2025 to over 10%, is being hailed as a significant achievement that is helping the

The UK economy experienced an unexpected contraction of 0.1% in May, according to official figures from the Office for National Statistics (ONS). This fall in gross domestic product (GDP) occurred despite a temporary pause in US tariffs, defying economists' forecasts of 0.1% growth.

The outlook for the Scottish and UK economies has weakened, with growth now expected to remain sluggish through the rest of 2025, according to the Fraser of Allander Institute at the University of Strathclyde. In its latest quarterly Economic Commentary, the Institute has downgraded its forecasts fo

The United Kingdom's economy grew by 0.7% in the first quarter of 2025, matching the initial estimate and marking the strongest expansion in a year. This welcome news for the UK government, which follows a modest 0.1% gain in the final quarter of 2024, positions the UK with the highest growth rate a

Scotland’s onshore GDP contracted by 0.2% in April 2025, according to statistics announced by the Chief Statistician, following contraction of 0.4% in March 2025 (revised from contraction of 0.2%). In the three months to April, GDP is estimated to have contracted by 0.2% compared to the previo

The value of goods and services produced in Edinburgh per head of population has surpassed London’s for the first time, according to economic data recently published by the Office for National Statistics (ONS).

UK CPI inflation has remained frozen at 3.4% in May, after the Office for National Statistics corrected April's 3.5% reading to 3.4%. Annual food inflation surged to 4.4% last month, a notable rise from 3.4% in April. This was spurred by the fastest-ever recorded increases in the price of sugar, jam

Scotland has secured 135 foreign direct investment (FDI) projects in 2024 and cemented its reputation as the top UK FDI location outside London after marking a decade in the position. Despite a drop of seven projects (-4.9%) on the year before, this is still the second highest annual number of proje