Business News Round Up (10/03/2026)
Economic growth subdued following Iran war, according to British Chambers of Commerce
The latest British Chambers of Commerce (BCC) economic forecast suggests subdued growth in 2026, higher inflation due to the Middle East crisis, and rising unemployment as the labour market softens. It also forecasts that interest rates will remain the same rather than falling, as previously forecast.
The BCC forecast is the first economic assessment by a business organisation since last week’s Spring Statement and renewed conflict in the Middle East. While the current geopolitical situation remains highly uncertain, and could change the economic outlook considerably, the key points in the forecast are that GDP in 2026 has been revised down to 1.0% (from 1.2% in the previous forecast), with growth forecast of 1.3% in 2027, and 1.1% in 2028. Global uncertainty is expected to push UK inflation higher than expected, reaching 2.7%, before easing to 1.9% in 2027.
£2bn investment fund unveiled by Liverpool City Region
A £2bn Liverpool City Region Investment Fund – the largest of its kind announced for the region – is to be unveiled at MIPIM. Initial investments will focus on bringing forward high-quality office space in Liverpool city centre alongside new lab space and tight industrial units across the wider city region. The fund will bring together new and existing public funding into a single investment pot, helping unlock stalled sites, accelerate regeneration and attract billions more in private and institutional investment. It forms a central part of the City Region’s long-term plan to grow the economy by £10bn over the next decade, the combined authority said. The fund will also help fast-track housebuilding across the City Region, supporting a £2bn development pipeline expected to deliver up to 64,000 new homes and the infrastructure needed to support growing communities.
https://www.insidermedia.com/news/north-west/2bn-investment-fund-unveiled-by-liverpool-city-region
Scottish business landscape faces headwinds amidst key collapses
February marked a challenging period for several sectors across Scotland, with a series of significant company collapses resulting in notable job losses. These insolvencies affected industries ranging from cutting-edge space technology and cancer research to traditional shipbuilding and professional services. Conversely, the month also brought positive news for the shipbuilding industry with BAE Systems announcing a substantial international defence contract. One of the most prominent casualties was Orbex, the Forres-based rocket company, which entered administration in February 2026, leading to the redundancy of 163 employees. FRP Advisory was appointed as joint administrator for Orbital Express Launch Ltd. The company had accumulated £138.5 million in funding, comprising £33.3 million in grants and £105.1 million in equity. Public investment in Orbex totalled £76.7 million, with £26 million from the UK Government in 2025 and £29 million from the Scottish National Investment Bank.
UK job vacancies fall at slower pace as service sector picks up
The decline in UK hiring may be beginning to stabilise after new data showed a slowdown in falling job vacancies and a rebound in activity across the services sector. An index tracking permanent hiring by the Recruitment and Employment Confederation and KPMG, rose to 49.2 in February, up from 46.9 in January. Although the reading remains just below the 50-point threshold that separates expansion from contraction, it marks the strongest result since March 2023 and indicates that the pace of decline in recruitment is easing. The figures suggest the UK labour market may be approaching a turning point after a prolonged slowdown triggered by rising employment costs and economic uncertainty. Vacancies for full-time roles continued to fall during February, but the pace of decline moderated noticeably compared with previous months. Nevertheless, the labour market remains under pressure, with job vacancies declining for 28 consecutive months, highlighting persistent caution among employers.
https://bmmagazine.co.uk/news/uk-job-vacancies-slow-decline-services-sector-growth-hiring-outlook