NatWest softened its fossil fuel lending rules amid profit growth, sparking activist backlash. UK’s major bank based in Edinburgh.
The UK government and NatWest have announced new initiatives to expand affordable housing, with NatWest setting a £10bn funding goal for social housing by 2028. Scotland plans to establish a new housing agency, while Dunkirk port regeneration includes a potential ferry route to Scotland, reflecting broader regional development efforts.
Major UK banks, including Lloyds and Santander, report strong 2025 profits despite costs from scandals and economic pressures. They are raising profit targets for 2026, citing higher interest rates, fee income, and strategic growth, signaling confidence in sustained profitability amid economic uncertainties.
NatWest has relaxed its fossil fuel financing restrictions, removing bans on renewing oil and gas loans and dealings with non-transition aligned companies. The move reflects shifting priorities amid energy security concerns, despite criticism from sustainability advocates. The bank aims to halve its climate impact by 2030.
On February 6-7, 2026, the US and India announced a trade framework reducing US tariffs on Indian goods from 50% to 18%, contingent on India halting Russian oil imports. India agreed to lower tariffs on US industrial and agricultural products and commit to $500 billion in US purchases over five years. The deal faces domestic opposition in India, especially from farmers and unions concerned about agricultural exposure.
Inverness and Stornoway are among nine towns on the UK longlist for the 2028 Town of Culture and 2029 City of Culture titles, respectively. Each will receive funding to develop their bids, with winners receiving £3m for cultural programs. The competitions aim to showcase local heritage and foster community pride.
Since mid-April, Scottish dealmaking has shown signs of recovery with high-profile transactions like NatWest's acquisition of Evelyn Partners and AG Barr's acquisitions. However, deal completion remains challenging due to longer processes, deeper due diligence, and cautious buyers, especially outside top-tier assets. Market activity is more selective and competitive.