Business News Round Up (26/06/26)
UK food and drink exports fall as manufacturers lose ground to global competitors
The UK’s food and drink industry is facing mounting pressure after new figures revealed exports fell sharply in the opening months of 2026, while imports continued to rise, widening the trade gap and raising concerns over the sector’s long-term competitiveness. The latest Trade Snapshot from the Food and Drink Federation (FDF) shows food and drink exports declined by 4.8% year-on-year in the first quarter of 2026 to £5.7 billion. Export volumes fell even more sharply, dropping 8.9% to 2.0 billion kilograms, marking the lowest first-quarter export volume in a decade, excluding the disruption caused by the pandemic, and the third lowest since 2000. Meanwhile, food and drink imports increased by 2.6% to £16.3bn during the same period, highlighting the growing imbalance between goods entering and leaving the UK.
‘No recession but nothing to shout about’: Greater Manchester economy resilient but sluggish, latest figures show
Greater Manchester’s economy is staying resilient but seeing only low levels of growth, new figures have shown. Greater Manchester Chamber of Commerce’s latest Quarterly Economic Survey (QES) showed a slight weakening in the local economy. Its headline Greater Manchester Index fell from 15 in the first quarter of the year to 13 in Q2. Firms polled said they had been affected by dips in domestic demand and advance orders, while the service sector had seen a decline and construction had seen two consecutive quarters of contraction. Service exports also fell, but manufacturing exports rose as that sector showed some positivity. The QES figures were revealed at the Greater Manchester Business Index event, held by the Chamber and the Growth Company at The Manchester College’s City Campus.
https://www.business-live.co.uk/economic-development/no-recession-nothing-shout-about-34189984
Fraser of Allander upgrades Scottish GDP forecast
A stronger performance than expected has led the Fraser of Allander Institute to upgrade its forecast for Scottish GDP growth. Though revised only modestly to 1% from 0.9%, it reflects the institute’s view that the Scottish economy has continued to demonstrate resilience despite uncertainty arising from tensions in the Middle East. However, its Quarterly Economic Commentary warns that significant risks remain. Labour market indicators point to softening in economic conditions, with employment falling and both unemployment and economic inactivity increasing in the first quarter of 2026. Payrolled employment has also declined through the opening months of the year, potentially reflecting a more cautious approach to hiring as firms navigate heightened uncertainty. Inflationary pressures have eased in recent months, but the effects of the energy shock are being felt with a lag.
British Business Bank to commit £90m to back new generation of UK venture capital investors
The British Business Bank is set to commit £90m to support a new generation of UK venture capital fund managers. The Bank will act as a cornerstone investor in ten new microfunds – Evertrue Capital, Common Ventures, Openseed VC, The Tech Bros Fund, Almanac Ventures, Future Impact Ventures, Blue Lake VC, Firstdoor VC, Mustard Seed Fund and Twin Track Ventures – with fund sizes ranging from £10m to £20m. It marks the first investments under the Microfunds segment of its £400m Investor Pathways Capital initiative. Investor Pathways Capital is designed to widen access to venture capital by backing talented first-time fund managers from a range of backgrounds, particularly those who have faced barriers to raising institutional capital. The initiative aims to support a more diverse and dynamic investment ecosystem across the UK, while unlocking new sources of early-stage finance for high-growth businesses.