Dr Anne Sammon, Partner and employment law specialist at Pinsent Masons

The government has confirmed it will extend “day one” employee bereavement and pregnancy loss rights from next April. The changes will give more people a legal right to take time off work after suffering a bereavement or pregnancy loss in another shake-up to employment rights.

Employees who lose a spouse, partner, parent, adult child or sibling will be entitled to take two weeks unpaid leave, calculated according to their normal working pattern. These will be statutory day one rights, applicable from the first day of employment, and extend to cover step and half relatives, as well as foster, kinship care and adoptive relationships.

Previously, only parents who had suffered the loss of a child under 18 or a stillbirth after 24 weeks of pregnancy had a legal right to bereavement leave.

The government confirmed that women and their partners who experience any type of pregnancy loss including miscarriage, terminations and unsuccessful IVF embryo transfers would also be entitled to up to two weeks of unpaid leave. Other biological parents, partners – both co-habiting and not co-habiting – and intended parents in a surrogacy arrangement will also now be entitled to pregnancy loss leave.

Employees affected by a stillbirth after 24 weeks may also qualify for statutory maternity, paternity or shared parental leave and pay.

The government says the aim of the new entitlements is to ensure employees have a protected period away from work during some of life’s most difficult circumstances, while also providing employers with a clearer framework for supporting staff.

In its response to a 12-week consultation, the government said that leave will be able to be taken within 56 weeks of the bereavement and in discontinuous, single days. The leave period will typically start from the date of death or pregnancy loss.

Employees may also be entitled to time off for dependants to deal with practical matters following a death, but this will not provide a right to take time off specifically to grieve. Bereaved employees may be entitled to statutory sick pay if their health is impacted by bereavement.

The government has also confirmed that notice requirements will be deliberately light-touch. Employees can provide notice to employers “as soon as reasonably practicable”. This may be the same day if taken within the first eight weeks of bereavement, or one week’s notice thereafter. Significantly, there will be no requirement for employees to provide evidence in order to take the leave.

The statutory scheme will provide unpaid leave, although employers will remain free to enhance the entitlement by offering paid bereavement leave should they wish to do so.

The government has sought to strike a balance between providing employees with a meaningful right to time away from work following a bereavement and limiting the burden on employers.

Many employers already provide paid compassionate leave. However, the new statutory regime will establish a minimum level of protection across the workforce and employers should review their bereavement, family leave and absence policies to ensure they are ready for the changes to ensure full alignment with the new framework.

Lothian Buses and Edinburgh Trams have been recognised among the UK’s very best public transport operators after both secured top honours at the National Transport Awards in London.

Lothian Buses was named ‘Bus Operator of the Year’ and Edinburgh Trams ‘Tram Operator of the Year’, while Chief Executive Sarah Boyd received the prestigious ‘Woman of the Year’ award in recognition of her leadership and contribution to the industry.

Representing public transport networks from across the UK, the National Transport Awards celebrate excellence, innovation and achievement across the transport industry.

Lothian Buses was named ‘Bus Operator of the Year’ after delivering strong passenger growth, with patronage increasing by 3% and more than one million additional journeys recorded during the busy summer period. Alongside operational excellence, judges recognised the company’s commitment to making a positive impact in the communities it serves through its charity partnerships with Age Scotland and Shelter Scotland.

Edinburgh Trams was awarded ‘Tram Operator of the Year’ following another record-breaking year. Passenger numbers increased by 3.3%, reaching 12.5 million customer journeys, while the operator continued to invest in industry-leading ticketing technology and maintain the highest standards of customer service, safety and reliability.

Sarah Boyd, Chief Executive of Lothian Buses and Edinburgh Trams, said:

“I am absolutely delighted that both Lothian and Edinburgh Trams have been recognised at the National Transport Awards.

“These awards are a tremendous honour and a testament to the people who work tirelessly every day to deliver safe, reliable and high-quality public transport for our customers.

“To be recognised as both Bus Operator and Tram Operator of the Year is a fantastic achievement and reflects the strength of Edinburgh’s integrated public transport network. I would like to thank every colleague across both businesses whose dedication, professionalism and commitment have made these successes possible.”

The awards evening also saw Sarah Boyd recognised with the Woman of the Year award, reflecting her leadership of two of Scotland’s most significant public transport organisations and her role in the integration of Lothian Buses and Edinburgh Trams.

Susan Deacon, Chair of Lothian Buses and Edinburgh Trams, said:

“These award wins for Lothian Buses and Edinburgh Trams are a testament to the dedication, professionalism and commitment shown by colleagues across both organisations.

“I would also like to congratulate Sarah on being named Woman of the Year, a thoroughly well-deserved recognition.

“The integration of Lothian Buses and Edinburgh Trams has been driven in no small part by Sarah’s vision, determination and collaborative approach. Her leadership has helped bring the two organisations closer together, creating a stronger, more joined-up public transport network and laying the foundations for an even better experience for our customers and colleagues.

“On behalf of the Board, I would like to thank Sarah and all our colleagues for their outstanding contribution to another exceptional year for public transport in Edinburgh.

“These achievements demonstrate what can be accomplished when talented people work together with a shared purpose, and they position us strongly for the opportunities and challenges ahead as we continue to build an integrated, customer-focused transport network for the city and region.”

Edinburgh College’s Waterfront Nursery has become the first non-local authority early years setting in Scotland to secure a national certification for serving fresh, local and sustainable food.

The nursery, which is operated by the College, gained the Food for Life Served Here (FFLSH) Bronze certification, for serving food that’s good for health, the environment and the local economy. The nursery serves 34,000 meals each year.

Nursery Manager Catherine Buchanan and Chef Lukasz Szyszka received the FFLSH Bronze certificate from Food for Life Scotland’s Business Development Manager – Scotland Sue McVey during a celebration event at the nursery. The Food for Life Scotland (FFLS) programme, led by Soil Association Scotland and funded by Scottish Government since 2009, provides a framework through which local authorities and public sector sites can ensure they are serving good food. This is done by meeting a set of standards to achieve the FFLSH certification at Bronze, Silver or Gold level.

Since 2024, Food for Life Scotland’s remit has expanded to support caterers to achieve the certification in the wider public sector. Waterfront Nursery has become the 26th Scottish public sector site to do so. Through the process of gaining the certification, Waterfront Nursery has increased the amount of scratch cooked food on the menu.

As part of the Food for Life Served Here Bronze certification, Waterfront Nursery also ensures that a minimum of 75 percent of dishes are cooked from scratch using unprocessed ingredients. Meals are also free from undesirable trans fats, sweeteners and additives, and use free range eggs, higher welfare meat and ingredients from sustainable and ethical sources.

Waterfront uses produce from a wide range of sustainable providers, including the likes of Bonaly Farms for milk, Blacketyside Fruits for strawberries, and East Lothian Produce for cabbage, potatoes and parsnips.

Catherine Buchanan, the Manager of Waterfront Nursery, said:

“We are absolutely thrilled to have received this recognition from Food for Life Scotland, which highlights our dedication to providing our early learners with the absolute best quality of food possible. Ensuring our children are well-fed with fresh, local and sustainable food is just part of our approach, which always has our learners at its very heart. This award is the culmination of months of hard work from so many people at Waterfront, and we’d like to thank every single person involved in getting us to this stage.”

Sarah Gowanlock, Programme Manager, Food for Life Scotland, said:

“We’re thrilled to welcome Waterfront Nursery to the Food for Life Scotland programme and congratulate them on being the first non-local authority early years setting to achieve the Food for Life Served Here Bronze certification for their meals service. The early years are a crucial period for developing healthy diets. We’re delighted that children at the nursery will be eating more scratch cooked and sustainable food every day. The Food for Life Scotland team can offer support to public sector caterers across Scotland, to follow in the footsteps of Waterfront Nursery and our other public sector certification holders in Scotland.”

The Broughton Townhouse, a boutique guesthouse in Edinburgh, has secured a loan from the Royal Bank of Scotland to support a major refurbishment of the property.

Located at 37 Broughton Place, in the Edinburgh New Town, the elegant Georgian townhouse offers seven individually furnished rooms, combining the character of period architecture with contemporary comfort. The room-only guesthouse employs two people on a part-time basis.

The business joined the Royal Bank of Scotland in April 2026, with the funding providing both the refinancing required to move from its previous lender and additional borrowing for the refurbishment programme.

Gary O’Connor, Relationship Manager at the Royal Bank of Scotland, said: “The Broughton Townhouse is a distinctive hospitality business in the heart of Edinburgh. Its blend of Georgian character and contemporary design gives guests an intimate experience in the city centre.

“We are pleased to support Chris with funding that will refinance the business and enable further investment in the guesthouse. We look forward to working with him as he delivers the refurbishment.”

Chris Reis, Director of The Broughton Townhouse, said: “The funding from the Royal Bank of Scotland gives us the opportunity to invest in upgrading the townhouse, while retaining the character and personal experience that make it special and are an antidote to the chain hotel experience.

“The lending process was quick and seamless and I look forward to working with Gary and Royal Bank of Scotland on future projects currently  in the pipeline.”

John Bryant, Head of Manufacturing at MHA, comments on today’s S&P manufacturing PMI data: 

“UK manufacturing activity remains broadly flat, with the sector struggling to turn its natural optimism into meaningful momentum. Activity appeared to peak in the spring and early summer, likely supported by a degree of stockpiling, but has since fallen back. While the sector remains in positive territory, there now needs to be decisive action from government to support growth. Manufacturers want to invest and move forward, but high energy prices, rising employment costs and the continued complexity of exporting to the EU are weighing heavily on confidence.

“There are encouraging signs, including the Chancellor’s recent announcement on the new age of reindustrialisation and major investment announcements from companies such as Rolls-Royce and McLaren. These commitments can create a valuable knock-on effect throughout the supply chain. However, they sit alongside a much more mixed picture across the wider sector, including recent cuts announced by JLR.

“The Government’s Industrial Strategy is a positive idea in theory, but manufacturers now need to see more detail and delivery. Without clear incentives to unlock investment, there is a risk that the strategy simply sits on the shelf gathering dust.

“The upcoming Budget is an opportunity to change that. Businesses need practical measures that encourage capital investment, tackle persistently high energy and fuel costs, and provide greater certainty around skills. The apprenticeship levy also requires further work to ensure it reflects the realities of training people in the workplace.

“Manufacturing cannot remain flat indefinitely. Two years on, the sector still feels as though it is waiting for the announcement that will provide a genuine catalyst for growth. The Budget must help convert ambition into action and give manufacturers the confidence to invest, expand and strengthen supply chains.”

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

For further information, visit www.mha.co.uk

Responding to the latest GDP data, published this morning by the Office for National Statistics, Stuart Morrison, Research Manager at the British Chambers of Commerce said: 

 

“Growth of 0.4% in the three months to July shows a more resilient economy than expected in the summer months.  

 

“The service sector continued to perform the strongest, particularly boosted by growth in computer programming, including AI and related technologies. However, the data shows a concerning 0.5% fall in both construction and production output.  

“While today’s headline growth data is welcome news, the warning lights of cost pressures and global uncertainty are still flashing for many of the businesses we represent.  

 

“Our Budget submission published earlier this week is clear about the immediate steps we’re recommending to help all businesses across the UK. We need to see a cut in employer NICs for all under 25s, cost relief on energy bills and business rates, and a fully resourced export support system.  

 

“The Chancellor is facing some difficult choices in the coming weeks as he prepares plans to further kickstart the economy. Our message is simple, we’re calling on him to ‘Back Business, Cut Costs and Deliver Growth.” 

Paul Hilton, CEO of ESPC, shares whether first-time buyers are having to leave the Capital to get onto the property ladder.

With rising house prices across the board, and especially in Edinburgh (ESPC’s latest House Price Report shows the city’s average selling prices rose again during August, by 1% to £317,070), it would be a safe assumption that first-time buyers might be exiting the Capital in order to take that crucial first step onto the property ladder. This especially feels like the case when we know that over the last few years, commuter-friendly suburban towns such as Musselburgh and Bonnyrigg, and the city of Dunfermline, have seen many buyers relocating there in order to afford that next step up on the ladder, sacrificing a central location for additional space.

But is it actually the case that first-time buyers are feeling the pinch in the same way? According to our recent research, perhaps not.

We examined the sales of one- and two-bedroom flats in Edinburgh’s traditionally prime first-time buyer hotspots, covering neighbourhoods such as Leith and its surrounding areas, Stockbridge, Abbeyhill, Bruntsfield, Newington and Portobello, and compared them to sales of similar properties in these popular commuter towns, to see if there really has been a shift in first-time buyers relocating outside of the city.

The results were surprising: headlines would have you believe that house prices are so unaffordable that first-time buyers would have no choice but to exit the city to secure a home of their own, but the figures tell a different story. In fact, the story I see is one where first-time buyers will sacrifice space, or save for longer if they need to, to make it possible to buy a home in their ideal location. They aren’t willing to compromise when it comes to where they live.

Sales of one- and two-bed flats in Abbeyhill rose 9% year-over-year, and in leafy Inverleith, there was a 19% increase in the number of starter homes sold. Those figures jump a lot higher when you shift eastwards to Leith: sales around Leith Walk rose 61%, while around Leith Links, it was 64%, indicating that first-time buyers were still hunting for flats in these neighbourhoods in their droves.

Some areas did see a stark dip in sales volumes, such as around Easter Road, where sales were down by 18% annually, or in Stockbridge, where the figure lay at 27%.

By comparison, sales of one- and two-bedroom flats in Musselburgh declined 21% over the same period. However, Bonnyrigg saw sales volumes rise by a healthy 10% for the same type of property, so this area may well be seeing increasing interest from buyers looking to get a bit more for their money. Overall, it doesn’t appear that affordability pressure has skipped these out-of-town locations, as prices have continued to rise there too, meaning that buyers face the choice of buying a slightly cheaper property with a more expensive commute (Bonnyrigg hovers around £170,000 on average) or paying a higher purchase price for a more centrally located home. Of course, you may get more for your money outside of the city in terms of a property’s proportions and overall condition, or added bonuses like gardens or parking spaces, but perhaps that isn’t as important to many young buyers as being in their favourite neighbourhoods in and around the city centre.

Interestingly, Dunfermline is considerably more affordable than any of the other areas in consideration, with an average selling price of £134,240 for a starter home (almost £100,000 cheaper than the equivalent property in Abbeyhill or Leith, and significantly cheaper than homes in Stockbridge, Inverleith and Bruntsfield, where properties can cost double this for a flat of the same size), but sales volumes have barely shifted, with a rise of less than 1% (0.6%) over the past three years.

So, wherever buyers are buying, it doesn’t appear that they are currently relocating outside of Edinburgh in particularly large numbers – especially not when sales volumes in ‘rising star’ neighbourhoods such as Gorgie and Dalry are up 4% over the same period (unsurprisingly, average selling prices here sit much lower than their more established counterparts, at £190,086 – although still considerably more expensive than Bonnyrigg, and Dunfermline at least). It seems as though, for the time being at least, it remains all about ‘location, location, location’ for buyers starting out, with Edinburgh remaining the goal for many about to take the property plunge.

Dales Marine Services, a specialist in dry dock and ship repair, fabrication and conversion, has become a founding member of the Clyde Maritime Alliance, aiming to strengthen the region’s maritime future and unlock its full economic potential.

The Clyde Maritime Alliance, bringing together leading maritime, engineering, education and public-sector organisations, was officially launched at an event last week, attended by Stephen Flynn, Cabinet Secretary for Economy, Tourism and Transport, who was present for the signing of a Memorandum of Understanding, setting out the group’s shared ambition.

Dales Marine joins BAE Systems, Babcock Marine (Clyde), Dales Marine Services, Ferguson Marine (Port Glasgow), Malin Group, Peel Ports Clydeport and JFD Limited (part of James Fisher & Sons) in the Alliance, alongside its key partners the Glasgow City Region, Skills Development Scotland and Glasgow Chamber of Commerce.

Kevin Paterson, chief executive officer at Dales Marine Services, said: “We are proud to be a founding member of the Clyde Maritime Alliance. Dales Marine is deeply committed to the future of our industry and this collaboration will do much to strengthen the position of the Clyde as a vital hub for the UK’s maritime sector.

“We look forward to working with the other members to build on the area’s maritime heritage and support continued growth, skills development and an effective transition of skills to the next generation. This Alliance represents a significant opportunity to attract investment and drive economic growth for the Clyde and beyond, and it is a testament to the hard work and dedication of everyone who has come together to make it happen.”

The Clyde Maritime Alliance’s first priorities will be to promote skills and workforce development, alongside inward investment, collaborative funding bids and the creation and delivery of major strategic opportunities that have the potential to transform the area’s maritime economy.

Bryn Reyolds, Partner and tax specialist at Pinsent Masons

Construction companies that excavate rock, gravel or sand as a necessary part of laying foundations for houses or other building projects in Scotland do not need to pay Scottish aggregates tax on any subsequent commercial exploitation, Revenue Scotland has confirmed.

Activity falls within an exemption to the tax where aggregate is extracted as a necessary part of construction work, according to the authority.

Since 1 April 2026, companies commercially exploiting aggregate in Scotland have been liable for Scottish aggregates tax, subject to certain exemptions. The tax has replaced the UK aggregates levy in Scotland.

The term “aggregate” includes any rock, gravel, or sand, along with substances naturally occurring together with them or incorporated in them. It also applies to materials mixed with rock, gravel, or sand at the time of extraction.

Revenue Scotland is responsible for collecting and managing the tax and businesses that commercially exploit aggregate in Scotland must register for the tax with the authority.

Before the Scottish aggregates tax came into force, Revenue Scotland issued guidance on the various exemptions to the regime. It explained that aggregate extracted as a necessary part of constructing a structure or infrastructure project may be exempt where the extraction is unavoidable and is not undertaken for the purpose of obtaining aggregate.

However, the guidance also included an example suggesting that material excavated from test foundation holes would lose the benefit of the exemption if it was subsequently used in construction.

The example created uncertainty as to whether entitlement to the exemption depended solely on the reason for extraction or whether the subsequent use of the material could also affect the exemption’s availability.

Pinsent Masons made those points to Revenue Scotland, which has now issued revised guidance, replacing the earlier example.

According to the revised guidance, aggregate extracted as a necessary consequence of excavating land to lay foundations can qualify for the exemption, whilst aggregate extracted from an area that does not require excavation for the purposes of the construction works remains taxable if commercially exploited.

The revised guidance is a significant clarification for businesses involved in construction and infrastructure projects in Scotland. The change makes clear that the availability of the exemption turns on the purpose and necessity of the extraction, rather than the subsequent use of the aggregate.

The previous example gave rise to uncertainty because it could be interpreted as bringing otherwise exempt aggregate within the scope of the tax simply because the material was subsequently used in the project.

For many construction projects, excavation is an unavoidable part of the works and can generate substantial quantities of aggregate. Revenue Scotland’s revised example provides greater clarity on when that material may fall within the exemption and when extraction is instead undertaken for the purpose of obtaining aggregate that should be subject to tax.

Given that Scottish aggregates tax is still a relatively new tax, certainty around the application of key exemptions is particularly important. The revised guidance should therefore be welcomed by taxpayers and advisers alike as it provides a clearer framework for assessing the tax treatment of aggregate arising from construction and infrastructure projects.

Emeritus Professor Joe Nellis is Head of Economic Research at MHA, the accountancy and advisory firm

Against expectations, the UK economy is continuing to grow, with GDP up by 0.4% in July following a strong 0.3% increase in June.

The first half of 2026 has given cause for optimism. Consequently, the new Chancellor, John Healey, seized the opportunity earlier this week to suggest that the economy is beginning to ‘turn the corner’ based on a growth in economic output of 0.6% in the first quarter, followed by 0.4% growth in the second quarter.

With the Autumn Budget on the horizon, it is important now that the Chancellor refrains from any significant tax increases on businesses that would counteract these recent gains and put the brakes on growth.

A slowdown in growth would have implications for tax revenues and put more pressure on government finances at a time when UK bond yields have continued to rise and are the highest amongst the G7 countries. John Healey will have to deal with an increasingly difficult balancing act as he strives to maintain the fiscal rules and fiscal credibility – while at the same time avoiding changes to taxes which could damage business confidence.

The economy has displayed resilience in recent months, and there is a ray of hope that the worst may be over. But it is vital that the government converts a short-term boost into long-term, sustainable growth.

It is crucial that the next Budget gives businesses a compelling reason to invest in the future and for the economy to really ‘turn the corner’.