Here are the business stories making the headlines across Scotland and the UK this morning.

Food and drink prices forecast to rise faster as costs soar

Food and drink prices are to rise faster than expected, according to the industry’s trade body, which has raised its inflation forecast for the end of 2025 to 5.7%.

The Food and Drink Federation (FDF) has warned that soaring commodity costs and new government levies are piling pressure on manufacturers.

The trade association for food and drink manufacturers had previously predicted that the rate of price rises would reach 4.8% by the end of this year.

Read the full story in The Times.

Stellantis UK braces itself for £37m hit from car finance scandal

The carmaker behind Vauxhall and Peugeot has set aside £37million as it braces itself for a hit from the mis-selling scandal engulfing the motor loans industry.

The move by the British finance arm of Stellantis, which has its headquarters in the Netherlands and also owns the Citroën, Fiat and Jeep brands, comes as players across the car finance market prepare for the City regulator to set out its plan for a consumer compensation scheme.

The redress programme, which could cost firms as much as £18 billion, will be the biggest since the £50 billion payment protection insurance affair and is expected to result in millions of people receiving payouts amounting to hundreds of pounds each.

Read more in The Times.

Scotland's housing emergency 'getting worse', expert warns

Scotland's housing emergency is getting worse and the system is "broken", a senior local authority official has warned.

John Mills, head of housing at Fife Council, said demand had soared since the Covid pandemic due to the number of relationship breakdowns.

And he told BBC Scotland's The Sunday Show the government needs to build at scale, buy more homes and reduce the number of empty properties in the public and private sector.

Get the full story on the BBC website.

US-China trade talks set for day two as TikTok deadline looms

US and Chinese officials will hold a second day of trade talks in Spain on Monday as the deadline for the Chinese owner of TikTok to find a buyer or face a ban in America looms.

The negotiations, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are the latest attempt to end a trade war between the world's two biggest economies.

Top level trade delegations from Beijing and Washington last met in July, when they struck a deal to extend their tariffs truce by another 90 days until 10 November.

Read more on the BBC website.

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