THE
ACCOUNT
The latest in finance and business
THE
ACCOUNT
The latest in finance and business
Net zero, gross value
While the drive towards a net zero economy is coming under increasing attack from various quarters, it is now a significant component of the UK’s industrial base, generating around £105bn in gross value added (GVA) while supporting 1.1 million jobs across the UK.
A report published last month by the Energy & Climate Intelligence Unit also showed that, of those figures, £36.7bn in GVA and 308,000 jobs are directly attributable to net zero companies, with the remainder supported through supply chains and wider economic activity.
The sector is overwhelmingly SME-led and entrepreneurial, with more than 96% of firms classified as small or medium-sized enterprises. Scotland enjoys the most significant boost, with the net zero economy contributing 4.9% of total GVA, more than in any other UK region.
Net zero, gross value
While the drive towards a net zero economy is coming under increasing attack from various quarters, it is now a significant component of the UK’s industrial base, generating around £105bn in gross value added (GVA) while supporting 1.1 million jobs across the UK.
A report published last month by the Energy & Climate Intelligence Unit also showed that, of those figures, £36.7bn in GVA and 308,000 jobs are directly attributable to net zero companies, with the remainder supported through supply chains and wider economic activity.
The sector is overwhelmingly SME-led and entrepreneurial, with more than 96% of firms classified as small or medium-sized enterprises. Scotland enjoys the most significant boost, with the net zero economy contributing 4.9% of total GVA, more than in any other UK region.
Bottoms up, tariffs down
India is the fifth-largest economy in the world and is projected to overtake Japan sometime in the next year.
This month, the UK’s new free trade deal with the most populous nation on Earth comes into effect, providing some much-needed good news for UK companies, especially those in the whisky trade.
Under the new deal, tariffs on whisky will be cut from 150% to 40% and on automotives from 100% to 10% for a set number of vehicles, while tariffs of up to 22% on cosmetics will be eliminated either from day one or after 10 years.
The agreement is worth an estimated £4.8bn to UK GDP.
There is, of course, a trade-off. The UK will cut tariffs on Indian imports, such as clothes, footwear and some food products.
“Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country,” said the government.
Businesses looking to benefit from the tariff reductions must register with HMRC. A government statement published on 17 June said: “We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.”
Learn more about the UK-India free trade agreement
Bottoms up, tariffs down
India is the fifth-largest economy in the world and is projected to overtake Japan sometime in the next year.
This month, the UK’s new free trade deal with the most populous nation on Earth comes into effect, providing some much-needed good news for UK companies, especially those in the whisky trade.
Under the new deal, tariffs on whisky will be cut from 150% to 40% and on automotives from 100% to 10% for a set number of vehicles, while tariffs of up to 22% on cosmetics will be eliminated either from day one or after 10 years.
The agreement is worth an estimated £4.8bn to UK GDP.
There is, of course, a trade-off. The UK will cut tariffs on Indian imports, such as clothes, footwear and some food products.
“Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country,” said the government.
Businesses looking to benefit from the tariff reductions must register with HMRC. A government statement published on 17 June said: “We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.”
Learn more about the UK-India free trade agreement
Caution sign
Consolidation and stability are likely to be the key objectives for most businesses in Scotland over the next year, according to The View, a biannual report published by Scottish law firm MFMac.
A quarter of Scottish business leaders said the past financial year had gone worse than predicted – almost identical to the proportion (24%) saying it had exceeded expectations.
A narrow majority (54%) say their operations are somewhat resilient to external shocks, while digital transformation is a top priority for 38.5% of respondents.
Meanwhile, only 4.8% of respondents said entering new markets is a priority, while two-thirds of business leaders say they don’t anticipate increasing employee numbers over the next six months.
The report also finds that 39% say they are not confident in the UK government’s plans to improve the Scottish economy. “With Holyrood elections now concluded, attention will turn to how the results will shape business confidence in the months ahead,” the report says. “For now, the mood remains cautious.”
Caution sign
Consolidation and stability are likely to be the key objectives for most businesses in Scotland over the next year, according to The View, a biannual report published by Scottish law firm MFMac.
A quarter of Scottish business leaders said the past financial year had gone worse than predicted – almost identical to the proportion (24%) saying it had exceeded expectations.
A narrow majority (54%) say their operations are somewhat resilient to external shocks, while digital transformation is a top priority for 38.5% of respondents.
Meanwhile, only 4.8% of respondents said entering new markets is a priority, while two-thirds of business leaders say they don’t anticipate increasing employee numbers over the next six months.
The report also finds that 39% say they are not confident in the UK government’s plans to improve the Scottish economy. “With Holyrood elections now concluded, attention will turn to how the results will shape business confidence in the months ahead,” the report says. “For now, the mood remains cautious.”
An unsure thing
Our cover story for this issue looks at the multitude of challenges coming down the road for the UK economy, starting this week with a 13% rise in the energy price cap. And yet, if you take a recent survey of more than 2,700 business leaders across Europe at face value, maybe, just maybe, the outlook for the UK is nowhere near as bleak as it may seem.
The Investor Index is an annual study, first carried out in 2020, to examine investor behaviour. Among those surveyed this year were 1,117 Britons with £10,000-plus in investments. So we’re not necessarily talking about high-net-worth individuals with huge reserves of funds. But it may surprise you to learn that the 2026 index proclaims that UK investor optimism has reached a “record high”. The report states that “confidence levels have jumped to 115, up from 103 in 2025 – and well above the pre-pandemic benchmark of 100”.
At this point, you may be wondering what is behind this surge of confidence, given the UK has endured a series of major aftershocks beginning with the global economic crisis in 2008, which led to austerity, followed by Brexit, the pandemic, the war in Ukraine, a surge in inflation, the 2022 ‘mini-Budget’, the war in Iran and rising energy prices.
The conclusion the report draws is that investors have adjusted to all this volatility, and now believe chronic instability to be little more than business as usual.
It states: “What’s particularly interesting is how normalised uncertainty appears to have become for investors. Confidence is no longer closely tied to calm market conditions. Investors seem increasingly comfortable making decisions in a world where disruption and volatility are part of the backdrop rather than temporary events.”
Encouragingly, UK investors are increasingly looking beyond the immediate horizon, with almost 70% saying “long-term investing is more important than ever”. Half increased their investments over the past year, while 40% held steady.
Maybe this is a reflection of the world we live in right now. How many of you have received a news notification about something that happened overnight – for example, a social post from a particular world leader – which in another era would have felt like a seismic announcement?
Many of us have now reached a point where we shrug it off and simply get on with our business. In 2026, it seems the extraordinary is – to return to a phrase much in use at the start of the decade – just the new normal.
Ryan Herman
An unsure thing
Our cover story for this issue looks at the multitude of challenges coming down the road for the UK economy, starting this week with a 13% rise in the energy price cap. And yet, if you take a recent survey of more than 2,700 business leaders across Europe at face value, maybe, just maybe, the outlook for the UK is nowhere near as bleak as it may seem.
The Investor Index is an annual study, first carried out in 2020, to examine investor behaviour. Among those surveyed this year were 1,117 Britons with £10,000-plus in investments. So we’re not necessarily talking about high-net-worth individuals with huge reserves of funds. But it may surprise you to learn that the 2026 index proclaims that UK investor optimism has reached a “record high”. The report states that “confidence levels have jumped to 115, up from 103 in 2025 – and well above the pre-pandemic benchmark of 100”.
At this point, you may be wondering what is behind this surge of confidence, given the UK has endured a series of major aftershocks beginning with the global economic crisis in 2008, which led to austerity, followed by Brexit, the pandemic, the war in Ukraine, a surge in inflation, the 2022 ‘mini-Budget’, the war in Iran and rising energy prices.
The conclusion the report draws is that investors have adjusted to all this volatility, and now believe chronic instability to be little more than business as usual.
It states: “What’s particularly interesting is how normalised uncertainty appears to have become for investors. Confidence is no longer closely tied to calm market conditions. Investors seem increasingly comfortable making decisions in a world where disruption and volatility are part of the backdrop rather than temporary events.”
Encouragingly, UK investors are increasingly looking beyond the immediate horizon, with almost 70% saying “long-term investing is more important than ever”. Half increased their investments over the past year, while 40% held steady.
Maybe this is a reflection of the world we live in right now. How many of you have received a news notification about something that happened overnight – for example, a social post from a particular world leader – which in another era would have felt like a seismic announcement?
Many of us have now reached a point where we shrug it off and simply get on with our business. In 2026, it seems the extraordinary is – to return to a phrase much in use at the start of the decade – just the new normal.
Ryan Herman
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