Business News Round Up (11/06/2026)
UK ‘risks losing dynamism as growth continues to falter’
The latest Economic Forecast from the Confederation of British Industry has revised down its expectations for UK growth, warning that geopolitical tensions in the Middle East and higher energy costs are set to weigh on households and businesses through 2027. The CBI now forecasts UK GDP growth of 1.1% in 2026 and 0.9% in 2027, down from its previous projections of 1.3% and 1.5%. The downgrade primarily reflects the economic fallout from the Iran conflict, which has driven up global energy prices, disrupted supply chains, and added to uncertainty for businesses and consumers. Despite strong GDP growth in the first quarter of 2026, CBI business surveys report that underlying momentum remains subdued across much of the private sector as global shocks compound domestic headwinds.
North West business activity ticks down slightly in May, despite rise in new work
Firms in the North West recorded a slight decrease in business activity in May, against a backdrop of strong inflationary pressures and heightened uncertainty, the latest NatWest Growth Tracker showed. The headline North West Business Activity Index registered 49.8 in May, coming in just below the 50.0 no-change mark that separates growth from contraction. The latest reading was down from April’s 50.5. More positively, the latest survey results showed stronger demand for goods and services across the North West private sector in May. This was underlined by a rise in inflows of new business received by companies, the first such increase since August last year. The rate of cost inflation remained historically elevated, despite ticking down slightly since April. Average prices charged for goods and services were once again raised sharply during May to compensate for soaring input costs. Output price inflation was unchanged from April’s 38-month high.
87% of UK businesses ‘invisible’ in AI search results
UK businesses risk being overlooked in AI-generated search results, according to new research which found that 87% of companies are effectively invisible across major AI platforms. The study, conducted by AI visibility agency LLM Listed, analysed 500 UK business websites across sectors including legal services, financial services, software, healthcare, professional services and ecommerce. Researchers tested whether companies appeared in responses generated by ChatGPT, Claude, Gemini and Perplexity when users asked commercially relevant questions within their industry. The findings suggest that, while many companies continue to rank in traditional search engines, they are failing to appear in the AI-generated answers that an increasing number of consumers and business buyers now rely upon when discovering products, services and information online. According to the research, 87% of companies failed to appear in AI-generated recommendations for their primary commercial search terms, while only 8% appeared consistently across all major AI platforms.
https://www.digit.fyi/ai-search-visibility
Scotland’s councils face budget shortfalls
Scotland’s councils are facing a collective budget shortfall of about £530m in 2026-27, a spending watchdog has warned. The Accounts Commission has warned that local authorities will have to “stop, reduce, or significantly redesign” services. It reported that a small rise in funding for day-to-day spending was not enough to keep pace with rising costs and demand, particularly on social care. The commission found that with government cuts forecast in the coming years, councils risked “becoming financially unsustainable”. A Scottish government spokesperson said it recognised the pressures facing councils, and it would continue to work with local authorities to ensure people get high quality public services.
https://www.bbc.co.uk/news/articles/cn0vd92kyllo