Business News Round Up (12/06/2026)
Scottish business activity falls for 20 months in a row
Business activity in Scotland’s private sector has fallen for 20 consecutive months with the pace of contraction at its fastest since January 2023. Of the 12 monitored UK regions and nations, only Northern Ireland recorded a steeper fall in new orders than that seen in Scotland. The headline Royal Bank of Scotland Business Activity Index – which measures the month-on-month change in the combined output of Scotland’s manufacturing and service sectors – edged down to 47.1 in May, from 48 in April. Activity also fell across the UK as a whole, to 49.7. The data coincides with more positive ONS figures showing the UK economy shrank by 0.1% in April, though it grew by 0.7% in the three months to April 2026, with services expanding by 0.8% and construction also showing signs of recovery, up by 1.6%, while production output fell by 0.1%.
Greater Manchester businesses can apply for free support to grow overseas
Greater Manchester businesses looking to expand into international markets can now apply for a fully funded support programme offering expert export advice, practical workshops and grants of up to £2,500. The International Scale Up Programme has opened applications for its third cohort, giving ambitious local companies access to up to 12 months of tailored support to help them grow globally. Delivered by GM Business Growth Hub in partnership with the Department for Business and Trade, Greater Manchester Chamber of Commerce and Greater Manchester Combined Authority, the programme is designed to help businesses take the next step into overseas markets with confidence. The support includes expert-led workshops, one-to-one guidance, international market access opportunities and practical advice on areas including market entry, compliance, logistics, pricing and intellectual property.
IR35 crackdown leaves UK freelancers reject work in droves
Britain’s freelance economy is showing fresh signs of strain as contractors increasingly turn down work in protest at tax rules that can slash take-home pay by as much as 30%. New research suggests the Government’s IR35 regime is continuing to reshape the UK labour market, driving friction between clients and highly skilled contractors while reducing access to flexible talent. A survey of 505 contractors, conducted by IPSE and insurance provider Qdos, found that 63% had rejected an offer of work in the past year solely because it was deemed “inside IR35” by the client. That figure marks a sharp rise on the previous year, when 52% reported turning down similar engagements, underlining growing resistance within parts of the freelance sector. Under IR35 rules, contractors classified as “inside” are treated as employees for tax purposes, despite lacking many of the rights and protections associated with permanent staff.
UK Finance charts phased path to deeper UK-EU financial services ties
A decade on from the Brexit referendum, UK Finance has published a report, produced with law firm Freshfields, setting out its vision for the future relationship between the UK and EU in financial services. The report, Unlocking Growth Through a Stronger UK-EU Financial Services Partnership, urges both sides to place the sector on the agenda for the forthcoming Leaders’ Summit and within the wider political reset. It argues that financial services are a critical enabler of growth, investment and economic resilience for businesses and consumers across both the UK and the EU. Drawing on interviews with banks from the UK, EU and beyond, alongside embassy representatives, think tanks and trade associations, the report proposes a three-stage roadmap that begins with practical steps achievable now.