Business News Round Up (06/07/2026)
British businesses battle the certainty of uncertainty in international trade
Trump’s tariffs, Strait of Hormuz strife and the long tail of Brexit are just a few of the macroeconomic issues causing headaches for British businesses trying to trade with the world. While the latest HM Revenue and Customs figures for April suggest relative stability – total goods exports up 4.3% year-on-year to £36.4bn, alongside total goods imports up 8.9% £63.6bn – things differ greatly by sector. The Food and Drink Federation’s latest snapshot showed that during Q1, food and drink exports fell by 4.8% to £5.7bn, while in volume terms, exports declined 8.9% year-on-year – the lowest first quarter export volume in the past decade; excluding the pandemic. Export decline was driven primarily by a drop in exports beyond the European Union, which fell by 11.5% compared to Q1 2025. Notably, UK exports to the US were down 28% in value terms, showing the impact of the additional tariffs imposed last April.
Financial services activity dips in second quarter
Business volumes in the financial services sector dropped at a rapid pace in the three months to June, following a temporary recovery in Q1, according to the latest CBI survey on the sector. The quarterly poll also found that sentiment among FS firms fell, as profitability contracted at a steep rate over the period. Despite the weakness in business conditions, headcount in the sector rose for the first time since June 2024. Looking ahead, FS firms expect business volumes to decline at a slower, but still firm, pace next quarter. Over the year ahead investment in IT is expected to improve to their strongest in nearly five years, but over half of firms cited inadequate net return as a likely factor to limit overall capex plans – the highest proportion since September 2022.
AI firms take record 44% of UK small business funding
The British Business Bank has published its 2026 Small Business Equity Tracker, which shows that AI companies took a record 44% share of UK smaller-business equity investment in 2025. Overall equity investment in smaller UK businesses fell 4% to £12.3 billion in 2025, even as investors continued to back larger transactions. The top 10 fundraisings accounted for 23% of all investment, the highest level since 2020, pointing to a market increasingly shaped by a small number of sizeable deals. AI was at the centre of that shift. The sector accounted for 26% of all deals in 2025, almost double its share in 2022, while investment in AI-related transactions rose 48% year-on-year. The findings suggest investors are concentrating capital in businesses seen as having stronger growth prospects, while funding conditions remain more difficult for smaller and earlier-stage companies. Seed-stage deals fell 27% in 2025, and venture-stage deals were down 13%.
https://itbrief.co.uk/story/ai-firms-take-record-44-of-uk-small-business-funding
Scotland’s built environment sector focuses on resilience amid change
Leaders from across Scotland’s built environment sector gathered at the RICS Scotland Conference 2026 to examine how the profession can respond to ongoing political, economic and technological change through collaboration, innovation and resilience. Held at a packed Technology and Innovation Centre at the University of Strathclyde, this year’s event was centred on the theme Navigating Surveying in a Changing Landscape: Building Resilience Through Innovation. The conference brought together surveyors, policymakers, academics, infrastructure leaders and industry partners to explore the challenges and opportunities shaping Scotland’s built and natural environment. A key message throughout the day was the critical importance of collaboration across the sector. Speakers emphasised the need for closer working between government, industry, professional bodies and education providers to address shared challenges, including skills shortages, housing delivery and the transition to a more sustainable built environment.