Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm.

The UK Government borrowed £24.3 billion in April, as fiscal strain continues to grow as we enter the new financial year.

Government spending continues to rise at a relentless pace while tax revenues are not growing at the necessary pace to match it. Health and welfare costs are climbing and weaker economic growth is limiting the Treasury’s ability to generate stronger revenues. The result is a fiscal position that looks increasingly stretched.

Another contributing factor is the persistently high cost of servicing the nation’s debt. Political instability risks unsettling business confidence and financial markets at a delicate moment for the economy. Markets dislike uncertainty, particularly when government borrowing is already elevated and fiscal credibility is under international scrutiny. Fears that the Prime Minister and Chancellor could be replaced by a pairing less committed to the current fiscal rules is sending bond yields even higher.

What is particularly worrying is that these pressures are emerging at a time when the global economic environment is becoming more unstable again.

The ongoing tensions in the Middle East is creating fresh risks for government finances. Rising oil and gas prices are feeding into inflation, increasing costs for businesses and households alike. Higher inflation pushes up the cost of servicing inflation-linked government debt, while slower economic activity risks weakening tax receipts.

None of this points to an immediate economic crisis. But it does reinforce the sense that the UK economy is entering a more fragile phase, in which economic weakness, geopolitical instability and political uncertainty are beginning to feed into each other.

Among its UK locations, accountancy and advisory firm MHA has offices in Edinburgh and Aberdeen.

Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm

The GfK Consumer Confidence Index continues to paint a worrying picture for the UK economy, despite rising from -25 to -23 in May. The figure remains low, indicating financial anxiety among households and that confidence in the economic outlook is struggling to recover, despite better-than-expected first-quarter GDP growth figures.

Consumer confidence is one of the strongest indicators of how secure people feel about their personal finances and future prospects. Today, many households remain deeply uneasy about the cost of living, job security, and the overall direction of the economy. This is not unfounded -inflationary pressures are set to return, unemployment has risen to 5%, and growth forecasts for the year remain low. Combined with concern around political instability, this situation will not be easy to reverse.

While the ramifications of conflict in the Middle East have significantly worsened the situation, the impact of domestic policy decisions should not be forgotten. Successive Budgets have hit businesses hard, increasing the burden on job-creating sections of society, while frozen income tax rates have squeezed the finances of many households. Mortgage costs remain significantly higher than many borrowers became accustomed to during the era of ultra-low interest rates. Rents continue to rise, and household bills remain elevated.

The unease is reflected in a persistently high household savings ratio. Hovering around 10%, this is the highest level (outside the pandemic) in the last decade.

The ’consumer is king’ in every economy. And consumer spending remains a key driver of UK economic activity. When confidence deteriorates, households tend to put off big purchases, cut discretionary spending, and become far more cautious with their finances. These decisions create negative knock-on effects for sectors such as retail, hospitality, leisure, and housing, all of which rely heavily on consumer demand.

Confidence is not merely an opinion poll – it has real economic consequences. Britain may still be avoiding an outright recession, but the latest figures suggest that for many households the recovery remains weak, fragile and yet to feed into their everyday life.

Among its UK locations, accountancy and advisory firm MHA has offices in Aberdeen and Edinburgh.

Responding to measures announced by the Chancellor this lunchtime, Kate Shoesmith, Director of Policy at the British Chambers of Commerce said: 

 

“It’s important to remember that the cost of living and the cost of business are two sides of the same coin.  

 

“While most of today’s statement was consumer focused, some additional government support for both the chemicals and ceramics sectors is welcome. Our members will be looking closely at the details, alongside recent changes to the British Industrial Competitiveness Scheme.  

 

“Yesterday’s announcement that there will be no fuel duty rise this year will offer some relief to firms across the UK. Almost two-thirds (61%) of transport firms told us in Q1 that fuel prices were a cost pressure.  

 

“While a temporary VAT cut is welcome, the usual rate for the UK hospitality and tourism sector is higher than in Ireland and other EU economies, hitting growth and competitiveness. Further action on this levy needs to be considered. 

 

“The reality is that ministers need to go further to help ease the costs businesses are facing right now. Our latest survey shows 73% citing labour costs and 52% citing energy costs as price drivers, even before the escalation in the Middle East.  Business confidence remains low and firms are struggling to invest. 

 

“Raising productivity must be the long-term pathway to tackling both the cost of living and the cost of doing business.”

This Foster care awareness week (11–24 May 2026), the Council is celebrating a significant restructuring of its foster care pay system which has meant an uplift in fees for foster carers across the city.

Over the last year, considerable work to review the structure and fees paid to foster carers has been carried out. This included significant engagement with current foster carers to listen and take on board their views. The new fostering fee structure and payment levels were agreed in the Council’s annual budget setting process for 2026/27.

Changes include moving to a single fee model and a move away from payment based on the age of the child. The carers fees for younger age groups has been uplifted in line with older age groups with a new single fee model rising to £307.50 per week. For those caring for under 12s this is an increase of around 60%.

Specialist fostering fees, including for those who care for a child with a disability, will rise to £490.06 per week and continuing care fees will increase to £307.50 per week.

Councillor James Dalgleish, Education, Children and Families Convener said:

It is important that those who choose to foster children in Edinburgh are properly supported in the vital work they do. I am pleased that we have agreed to put in place a new structure and to increase pay for foster carers – recognising the valuable role they play in our city.

“It is understandable that potential carers may hesitate because they worry about the financial impact on their household. We want fostering with Edinburgh to be financially sustainable, particularly in the current economic climate when we know that many households are facing cost of living pressures. I hope that this added financial support will help to encourage anyone who was considering becoming a foster carer to take the leap.

In addition to the professional fee, foster carers receive an age-related payment, the Scottish Recommended Allowance (SRA), towards the cost of caring for a child. An increase of 3.8% this year aligns with Scotland’s Promise, a national commitment to support foster carers and the children and young people living with them, to enable them to thrive. It is also part of a broader effort to reduce the financial pressure on families looking after vulnerable children.

Foster with Edinburgh carers can receive from £485.20 to £696.78 a week to foster a child under 16 depending on the placement type and needs and age of the child. Annually, that’s between £25,230.40 and £36,232.56 to foster one child.

Find more about fostering and fostering finances online, or by attending one of the regular Foster with Edinburgh virtual or face-to-face drop-in sessions.

A family-run property developer has broken ground on a new residential development in the West of Edinburgh, supported by a £20m funding package from Bank of Scotland.

The New Village, led by Edinburgh-based S1 Developments, will form part of real estate investment group Parabola’s wider multi-million-pound regeneration of Edinburgh Park, creating a new urban neighbourhood alongside commercial and leisure space.

Bank of Scotland’s funding has enabled the commencement of the first phase of properties at The New Village, comprising 146 private homes for sale. The all-electric homes include studio, one, two and three bedroom apartments and mews houses, with views across either a landscaped courtyard or the Pentland Hills.

Residents will have access to the wider amenities and cultural attractions planned for Edinburgh Park, including a multi-sport recreation area, a square with cafes, a children’s play area, offices, an art trail featuring works by Sir Eduardo Paolozzi, hotels and Edinburgh’s first indoor arena, the 8,500-capacity AEG Arena. The development is well connected to the city centre and airport by public transport, and is already home to leading independent bakery, Patina

Once complete, S1 Developments will deliver 397 new homes at The New Village, with a further 160 affordable units being delivered in tandem by social enterprise, Places for People. The development will supplement Edinburgh Park’s wider delivery of a further 864 rental properties, including more than 200 proposed mid-market rent homes.

Founded in 2007 by brothers Dan and Shane Teague, S1 Developments has led on several high-profile, mixed-use sites across Scotland’s central belt, including the Ropeworks, Ellersly Road and Temple Park Crescent in Edinburgh.

Dan Teague at S1 Developments, said: “The New Village will be a neighbourhood that places connectivity and quality of life at its heart. Every element, from the landscaped green spaces and access to amenities and cultrual attraction, has been carefully considered to create a place where people can feel part of a community. “Breaking ground on the first homes marks an exciting moment in our collaboration with Parabola to create a vibrant new future for Edinburgh Park.”

Graeme Steel, Relationship Director at Bank of Scotland, added: “This is an important milestone in the transformation of Edinburgh Park. The New Village is shaping a new era of residential-led regeneration, delivering quality, sustainable homes alongside the amenities and public spaces needed to support building a thriving community where people want to put down roots. We look forward to continuing our support for S1 Developments on a project that will unlock and deliver significant long-term economic and social value for the city, contributing towards much needed housing stock and cementing our ambitions to unlock scalable financial models for regeneration and housing delivery.”

The UK government announced today that the reduced 5%rate of VAT will apply from 25 June to 1 September 2026 on children’s meals, children’s and family tickets for cinema, theatre and shows and admission tickets for everyone to attractions such as amusement parks, theme parks, fairs, zoos, wildlife parks and museums. The cut will apply across the whole UK.

Sue Rathmell, VAT Partner at MHA said: “The government has made it clear that it expects businesses to pass the VAT saving on to customers by way of reduced prices. This is in contrast to the reduced rate of VAT that applied during covid when businesses tended to keep their prices the same and pocket the VAT difference.

“While at first sight this seems to be a win-win for both holiday makers and business in terms of greater footfall it is not without significant challenges for companies. It will be time consuming and costly for businesses to recalculate their prices and amend their menus, displays and websites. Where a retailer has already received payment for tickets supplied for the period 25 June – 1 September 2026, the government expects retailers to refund the additional VAT to their customer.

“This will potentially be a lengthy exercise for retail businesses who will have to work quickly to get their systems set up for the change. Undoubtedly businesses will be relying on the VAT reduction bringing in a whole lot more customers to offset their extra costs.”

Among its UK locations, accountancy and business advisory firm MHA has offices in Edinburgh and Aberdeen. For further information, visit www.mha.co.uk

The health of both Edinburgh’s residents and its economy continue to thrive, according to an annual statistical snapshot of the city.

Figures from the 19th yearly Edinburgh by Numbers show that people living in the Capital spend around 80% of their lives in good health – the largest proportion of any Scottish city – while Edinburgh has the highest employment rate (83.2%) of all major UK cities including London.

Edinburgh by Numbers is collated by the City of Edinburgh Council and is based on data from a variety of sources including the ONS, National Records of Scotland and the Scottish Household Survey.

Highlighting citizens’ wellbeing, the report reveals that Edinburgh has the highest life expectancy of all Scottish cities — 82 years for women and 78 for men – and that 86% of people participate in some kind of sport or fitness activity, including walking.

However, 17% of the city’s population continues to live in relative poverty, while property prices are rising – Edinburgh’s average property price is higher than the rest of the major UK cities outside London, except for Bristol.

Edinburgh’s population is growing, increasing by 9.4% in the decade leading up to 2024, compared to a national average of 4%. Overseas migration is attributed as the main driver behind the growth – with a net migratory effect over ten times greater than the net effect of births and deaths. Despite its growth, Edinburgh remains a relatively low-density city at 2,015 residents per km² which is well below comparable cities such as Manchester (5,099) and Sheffield (4,755).

Statistics published in Edinburgh by Numbers include: 

  • Edinburgh attracted 5 million overnight visits in 2024, generating £2.57 billion in total visitor spend — a 14.3% increase on 2023
  • Renewable electricity generation rose from 27.3 GWh in 2019 to a peak of 39.7 GWh in 2023, before dipping to 35.5 GWh in 2024 due to reduced bioenergy output
  • The Capital’s median hourly pay is £20.49 – more than any comparable city other than London and over 50% above the UK Real Living Wage
  • 17% of the city’s residents live in relative poverty (households whose income is below 60% of UK median income in the same year) though this is below the national average of 21%
  • Close to 23,000 new trees were planted in the council area as part of Edinburgh’s Million Tree City project
  • Around 60% of trips involve walking or public transport, 68% of short journeys under two miles are made on foot or by bike
  • 86% of residents are satisfied with public transport, more than 20 percentage points above the Scottish average
  • Edinburgh has the second highest number of higher education students per 1,000 residents (140) of all major UK cities, behind Manchester (148)
  • The Capital has 36 Green Flag parks – over twice as many as Sheffield, the city with the next highest number of parks with the award
  • 25% of people moving to Scotland from other countries outside the UK come to live in Edinburgh

Council Leader Jane Meagher said:

There’s always so much to learn from Edinburgh by Numbers and this year it shows us just what the city has to offer in terms of quality of life, employment opportunities and environment.

We have more outdoor space than other leading cities while sustainable transport is the norm, with two thirds of short journeys made by foot or bike and Scotland’s highest satisfaction rating for public transport.

Our economic output exceeds comparable cities, employees here receive fair pay and we have a booming higher education sector, all of which are amongst the reasons our population continues to grow at speed, with overseas migration driving the growth.

I am proud that so many people coming to Scotland choose to call the Capital home, demonstrating what an inclusive and welcoming place it is. We’ll be celebrating the positive contribution immigration makes to our city in our new campaign, ‘Edinburgh is our Home’.

Of course, with this popularity comes challenges – housing is in real demand, 17% of the city’s residents still live in relative poverty and the impacts of climate change loom large. As we plan for the future, data from Edinburgh by Numbers will be invaluable to our response to these pressures, from our Net Zero ambitions to the implementation of the Visitor Levy and our ambitious housebuilding programme.

BpH Wealth Management and Jane Smith Financial Planning join AAB as Assets Under Advice reach £2.5 Billion

AAB’s award-winning chartered financial planning team, AAB Wealth, continues to implement its strategic growth plan with the acquisition of two firms – BpH Wealth Management and Jane Smith Financial Planning.

The move will mean AAB Wealth serves over 2,500 families with Assets under Advice of £2.5 billion while expanding the team to more than 130 professionals across the UK. AAB Wealth’s growth strategy includes acquiring high-quality, client-centric advisory businesses that share its long-term vision for sustainable growth, technical excellence and outstanding client service.

Andrew Dines, Head of AAB Wealth, commented:

“Welcoming BpH and Jane Smith Financial Planning into AAB Wealth is another major milestone in our growth journey. Reaching £2.5 billion in assets under advice and expanding our team to over 130 talented professionals demonstrates the strength of our proposition and the demand for a modern, progressive personal financial planning business.

“Our strategy is focused on building scale without compromising the personal, trusted relationship that underpins great financial planning. These firms bring deep expertise, strong cultural alignment and a shared ambition to deliver exceptional outcomes for clients through our sustainable investment philosophy.”

BpH Wealth Management

BpH Wealth Management was founded in Hertfordshire in 1984 by Michael Freedman. The firm employs more than 20 people and is headquartered in Harpenden.

Michael Freedman, Founder of BpH Wealth Management commented:

“Joining AAB Wealth marks an exciting new chapter for our business. From day one, our focus has always been simple: to put our clients’ values, goals and families at the heart of every piece of advice we give.

That philosophy won’t change. If anything, becoming part of AAB Wealth strengthens our ability to deliver it. With the additional expertise, resources and support of the wider team, we can continue to offer thoughtful, personal advice while helping clients navigate an increasingly complex financial landscape.

Simon Brown, Partner at BpH Wealth Management added:

“Our guiding principle has always been to recommend only the strategies and solutions we would be comfortable giving to our own families. That standard remains the benchmark for everything we do, and it’s one we know AAB Wealth shares.

AAB Wealth’s vision, leadership and track record of successful integrations made it the natural choice. We’re excited about the opportunities ahead for both our clients and our people.”

Jane Smith Financial Planning

Jane Smith Financial Planning was founded in Buckinghamshire in 1994 by Jane Smith, the firm employs 5 people and is now led by her daughter, Nicola Watts, who is a Certified Financial Planner in the firm.

Nicola Watts, Director and Certified Financial Planner at Jane Smith Financial Planning said:

“Joining AAB Wealth gives us the opportunity to further develop the services we offer to clients while preserving the client-first ethos that defines our business. It was important for us to find a strong cultural fit with another Accredited Financial Planning firm that shares our commitment to true financial planning. The scale, infrastructure and continued investment in technology across AAB will enhance the service we provide, while allowing the team here in Olney to remain focused on delivering the high-quality financial planning that sits at the heart of what we do.”

BpH and Jane Smith Financial Planning will rebrand to AAB Wealth following regulatory approval of the deals.

Having now closed 7 growth deals since 2023, AAB Wealth continues to establish itself across the UK as an ambitious personal financial planning business, combining local advisory expertise with national scale and significant investment in its people and technology.

AAB Wealth is consistently recognised as a top-rated firm by VouchedFor, the UK’s leading review site for financial planners and advisers. AAB Wealth has been honoured with the VouchedFor Client Communication Award in 2026 and in previous years the PFS Financial Planning Firm of the Year award.

Further growth initiatives are expected as AAB Wealth continues to pursue its expansion plans.

The Scottish team from independent UK law firm Burges Salmon has advised on transactions with a combined value of more than £1.5bn over the past 12 months, highlighting the strength of its Edinburgh-based practice across the UK and internationally.

The work spans a broad range of practice areas including Banking & Finance, Corporate and M&A, Real Estate, Commercial and Technology, Pensions, Projects, Dispute Resolution, Employment, Funds and Construction, reflecting the team’s ability to support clients on complex, multi‑disciplinary matters.

Sixteen of the transactions completed during the year involved an international element, with Burges Salmon advising on matters spanning jurisdictions including the USA, Germany, Republic of Ireland, Norway, Zambia, Mauritius, Turkey, Bulgaria, Jersey and Luxembourg.

Corporate and M&A

The team in Edinburgh continued to advise on high‑profile corporate transactions in the energy and infrastructure sectors, including guiding EDF Power Solutions UK through a strategic solar portfolio acquisition, advising longstanding client ITM Power plc on a £40m strategic equity investment by Great British Energy, and acting for the National Wealth Fund on its £50m equity investment in AMP Clean Energy, a transaction that will accelerate the deployment of low-carbon energy infrastructure across the UK.

Real estate and the built environment

Burges Salmon advised Union JerseyCo Limited, part of pan‑European real estate group AroundTown, on the acquisition and subsequent asset management of three buildings at Prime Four in Aberdeen. The team also acted on the sale of a major site at Claverhouse East, Dundee, to Amazon, the global retailer’s new Scottish hub, providing planning, option agreement and sale support across multiple stakeholders.

The team also advised Tritax Big Box REIT Plc on the Scottish real estate aspects of its £1.03bn UK logistics acquisition from Blackstone, including the certificate of title relating to the acquisition of the £55m Rolls‑Royce site at Inchinnan Business Park.

Banking and finance

Instructions included acting on a £40m financing for AlphaReal to support the expansion of rural fibre broadband across Scotland, laying the groundwork for future innovation and growth. The team also advised the Facility for Energy Inclusion on a $7.5m transaction to accelerate clean energy deployment across Africa, along with guiding Aura Power on its third solar project financing with Rabobank resulted in a strong year for the team.

The continued volume and complexity of work highlights Burges Salmon’s Scottish team’s extensive experience in supporting clients across a multitude of key sectors including energy, infrastructure, technology, logistics and the built environment, while working seamlessly with colleagues across the firm and with international advisers where required.

Danny Lee, partner and head of the Edinburgh office at Burges Salmon, comments: “This has been another strong year for our Scottish team, both in terms of deal volume and the complexity of the work we are undertaking. The range of transactions reflects the depth of expertise we have in Scotland and the trust placed in us by clients operating across multiple sectors and jurisdictions. Our focus remains on delivering high‑quality, pragmatic advice while supporting investment and development in Scotland and beyond.”

Zelim has seen off strong competition from a raft of tech startups to be named Scotland’s Tech Innovator 2026 winner, as part of KPMG’s bid to crown the UK’s most exciting tech businesses.

The Edinburgh-based company, which builds AI-enabled maritime safety and security systems to save lives when people fall overboard at sea, will now progress to the national UK Tech Innovator final in London in June after coming out on top following a successful pitch alongside the best tech offerings in the region.

UK Tech Innovator, now in its 13th year, aims to find the best and brightest tech scale-ups that are lighting up the UK. The competition gives a platform for entrepreneurs to showcase their businesses and collectively champion the future of tech.

Andy Tipping, from Zelim, said: “2026 started off with a bang for Zelim, with major contract wins across the cruise, ferry and offshore energy sectors, as well as recently launching the world’s first Type Approved man overboard detection system. 

“The business is really building momentum now, and winning the Scotland heat of the UK Tech Innovator award alongside such high calibre tech companies is fantastic recognition for our team.

“It’s testament to the hard work and dedication that has gone into reaching these milestones. We look forward to the UK final and hope we can bring home the win for Scotland.”

The competition, which has been running since 2013, has celebrated some of the UK’s best pure technology and tech-enabled businesses including What3Words, VividQ and HiiROC who have all been crowned previous winners. 2022 winner HiiROC took it a step further by winning the global final at Web Summit.

Regional winners progress to the national final, with the overall UK champion then advancing to the world stage at the KPMG Global Tech Innovator Competition later in the year, where an international panel of judges will select the Global champion.

Commenting on the regional heat, Vishal Chopra, Scotland Senior Partner at KPMG UK, said: “Scotland’s tech ecosystem continues to go from strength to strength, with ambitious businesses developing innovative solutions to global challenges, and Zelim is a fantastic example of that momentum in action.

“The team delivered a confident and compelling pitch, backed by a product with genuine potential to make a difference in maritime safety and security. Their use of AI to help save lives at sea clearly resonated with the judges and demonstrated both strong technical expertise and commercial ambition.

“We’re proud to see a Scottish business flying the flag for the nation at the UK final in London, and I know there will be plenty of people cheering Zelim on from north of the border.”

Last year, Midlands-based Inicio AI beat hundreds of aspiring UK tech firms to win with its use of artificial intelligence to improve how organisations assess customer affordability, initially for those in financial difficulty but now expanding into wealth management.

Amy Burnett, Emerging Giants lead in Scotland at KPMG UK, said: “Every year the standard on show in UK Tech Innovator reaches new levels and it’s fantastic to see such a diverse range of exciting tech businesses emerging from across the UK.

“Businesses like Zelim are a brilliant example of the kind of innovation the programme is designed to celebrate – combining cutting-edge technology with real-world impact and global growth potential. Their success in the Scotland heat reflects both the strength of the team and the quality of the solution they are bringing to market.

“Now in its 13th year, UK Tech Innovator gives us the opportunity to shine a spotlight on companies making waves in their industries and helping position the UK as a leading hub for innovation and investment.

“It’s incredibly exciting to follow the journeys of businesses already making an impact while also uncovering some hidden gems with huge potential and we look forward to seeing Zelim represent Scotland at the UK final.”