Business News Round Up (22/06/2026)
Starmer announces resignation as PM
Keir Starmer has today announced his resignation as Prime Minister. After growing speculation over the weekend, the Labour leader stood at the lectern outside 10 Downing Street this morning to tell the assembled media that his two-year stint as PM was over. Starmer was widely applauded by members of his team as he addressed the nation, watched on by his wife, Victoria. The announcement paves the way for a possible leadership contest or as seems more likely, the coronation of former Greater Manchester Mayor Andy Burnham as the seventh PM in 10 years, following last week’s landslide victory in the Makerfield by-election. The outgoing PM said he had listened to his party and heard the answer that he was not the right person to lead Labour into the next general election.
https://businesscloud.co.uk/news/starmer-announces-resignation-as-pm
Scottish company insolvencies fall by 25% in May
The number of company insolvencies registered in Scotland fell by a quarter in May compared with the same month last year, according to the latest figures published by the Insolvency Service. A total of 100 company insolvencies were registered in Scotland in May 2026, down 25% from May 2025. The figures show that insolvencies comprised 51 creditors’ voluntary liquidations (CVLs), 40 compulsory liquidations, seven administrations and two company voluntary arrangements (CVAs). There were no receivership appointments during the month. CVLs remained the most common form of insolvency, continuing a trend that has been evident since 2020. Historically, compulsory liquidations were the dominant insolvency procedure in Scotland, but CVLs have typically outnumbered compulsory liquidations since April 2020.
https://www.scottishfinancialnews.com/articles/scottish-company-insolvencies-fall-by-25-in-may
Brexit knocked 6% off the UK economy, Bank of England company data suggests
Brexit has stripped roughly 6% from the size of the UK economy over the past decade, according to economists who have analysed internal Bank of England data covering the decisions, views and financial results of thousands of British firms since the 2016 referendum. The study drew on the same intelligence the Bank uses to set interest rates, reconstructing how the UK might have grown had it voted to stay in the EU. Its conclusion is that about half the damage came from the sheer shock and uncertainty of the post-referendum years, with the remainder flowing from the higher trade barriers that followed Britain’s exit from the customs union and single market in 2021.
https://bmmagazine.co.uk/news/brexit-cost-uk-economy-6-percent-bank-of-england-company-data
Skills shortages hit half of all Scottish employers
Half of employers in Scotland are reporting skills shortages and only 32% have recruitment or training initiatives aimed at those under 25. Research by The Open University also found 42% of employers have hired fewer people over the past year, compared with just 26% who have increased recruitment. At the same time, the research points to an opportunity for employers seeking to strengthen their workforce, with around 80% of 16-to-24-year-olds not in education, employment or training (neet) saying they would remain loyal to an employer that invested in training beyond the requirements of their immediate role. The Open University in Scotland stated that the findings demonstrate the need for stronger collaboration between employers and educators to tackle skills shortages, while creating more opportunities for young people to enter and progress within the workforce.