Business News Round Up (16/04/2026)
IMF cuts UK growth forecast to 0.8% as Iran conflict takes its toll
The United Kingdom faces the steepest economic hit from the Iran war among the world’s advanced economies, according to the International Monetary Fund’s (IMF) latest World Economic Outlook. The IMF has revised its forecast for UK growth this year down to 0.8%, from the 1.3% predicted in January before hostilities began – a downgrade of half a percentage point and the largest of any advanced economy. The fund attributed the cut to the war itself, fewer anticipated interest rate reductions, and the expectation that elevated energy prices will persist into next year. The IMF also cautioned that a prolonged conflict risks derailing the global economy, warning it could throw growth “off course” and potentially trigger a worldwide recession. Central banks, the IMF advised, should resist the temptation to raise interest rates too swiftly in response to rising inflation.
https://www.scottishfinancialnews.com/articles/uks-2026-growth-forecast-revised-down-to-08
UK VC investment gathers pace in Q1 2026
UK startups and scaleups raised $7.8 billion in venture capital in Q1 2026, a 60% increase on the same period last year and the strongest first quarter since 2022, according to new analysis from HSBC Innovation Banking UK and Dealroom. Growth was driven by a surge in late-stage investment and record levels of AI funding, highlighting renewed investor conviction in scaling UK businesses and reinforcing the UK’s leadership in venture capital investment across Europe. AI was the defining theme of the quarter, with UK AI startups raising a record $5.8 billion – nearly three quarters (74%) of all venture capital raised. This represents a fivefold increase in AI’s share of UK VC since 2022, reflecting rapid acceleration in the sector. More than 100 AI funding rounds were completed in the quarter, with late-stage deals driving the bulk of funding.
https://www.digit.fyi/uk-vc-investment-gathers-pace-in-q1-2026
ACCA: SMEs warning lights flashing over corporate stress indicators increasing
Rising costs, late payment problems and concerns over supply chain resilience are creating a gloomy outlook for the UK’s vital small and medium sized enterprises. That is according to the latest ACCA and IMA Global Economic Conditions Survey (GECS), which shows UK SME confidence is stuck near record lows. However, the survey – which was conducted in the early days of the Iran War – did offer a few signs of recovery beginning to emerge. The proportion of respondents citing problems getting paid on time rose to its highest level in nearly 14 years – in Q4 2012 businesses were feeling the cash impact of the euro area crisis and grappling with a struggling UK economy. Concerns about suppliers going out of business are also close to pandemic era highs, while those about customers are also becoming elevated by historical standards, albeit they are significantly below their peak in Q2 2020.
Survey shows different strengths of flex space market in Manchester and Leeds
The North of England’s flexible workspace market continues to demonstrate strong returns outperforming traditional rents, demand and long-term growth potential, with Manchester and Leeds playing complementary roles in the region’s expansion according to new data from Chartered Surveyors Hewn. The latest UK-wide Flexible Workspace Returns Index highlights Manchester as one of the UK’s strongest regional markets, while Leeds reflects a more nuanced picture as it adjusts to shifting market dynamics and rising costs. Drawing on data from partners, including Office Ready Tech, Valve, OBI Property and Morton Property Consultants, the index considers desk rates, operational costs and market rents to provide a comprehensive view of flexible workspace performance across different product tiers.