Business News Round Up (30/06/2026)
North West lags behind rest of the North as business confidence falls in June
Business confidence in the North West fell 11 points during June to 43% – the worst in the Northern region, according to the latest Business Barometer from Lloyds. Companies in the North West reported lower confidence in their own trading outlook month-on-month, down 13 points at 54%, but still above the UK average of 44%. When taken alongside their optimism in the economy, down nine points to 33%, this gives a headline confidence reading of 43% (vs. 54% in May 2026). Despite this, North West firms reported stronger customer demand (61%) and increased investment in capacity and technology (49%) as key drivers for confidence in their own trading outlook being above the UK average. Business confidence in the North West now sits below the 12-month average of 48%, with its highest figure of 58% in February 2026.
UK economy grows faster than expected in Q1
Growth in the UK was at a faster pace than many had expected at the beginning of the year, 0.6% in the first quarter of the year. The data from the Office for National Statistics show the UK outpaced the rest of the G7. The US and Japan were close behind, with quarterly growth of 0.5%, while Italy and Germany both grew by 0.3%. Canada stagnated, while France is on the brink of a technical recession after its GDP fell by 0.1% in Q1 2026. The UK figures were boosted as firms rushed to stockpile goods while activity rose rapidly just as tensions in Venezuela and the Middle East flared up, according to official figures. The UK economy declined by 0.1% in April, the second month of the Iran war. Business investment came to around 0.9% in the first quarter of the year, which was also slightly higher than expected.
North West manufacturers invest £1.9m in digital tech with Made Smarter support
Manufacturers across the North West are investing £1.9m in digital technologies to boost productivity, create jobs and accelerate growth, supported by Made Smarter. In total, 30 manufacturers have secured a combined £604,000 of government-backed funding to invest in automation, robotics, digital production systems and advanced manufacturing technologies. Among the project, Pure Lakes Skincare in Cumbria is investing in automated labelling technology, Forest Sofa in Greater Manchester is introducing digital fabric cutting, Rustic Tubs in Lancashire is expanding production with new manufacturing technology, Glyngary Joinery in Cheshire is modernising its timber window and door production, and JFM Workwear in Liverpool City Region is investing in smarter manufacturing systems. Together, the projects are expected to create more than 90 jobs, upskill more than 170 existing workers and generate more than £16.4m in additional growth.
Government’s £26m post-school education and skills reforms ‘lack of clear delivery plan’, warns auditor
Scotland’s £26 million post-school education and skills reform programme is making slow progress and ‘lacks a clear delivery plan’, according to a public spending watchdog. Inadequate resourcing, weaknesses in governance arrangements and unclear costs, impacts and outcomes were listed among ‘multiple risks’ to the implementation of the Scottish Government’s ‘post-school education and skills reform’ programme. Audit Scotland – which scrutinises public finances and assesses public service value for money – said the government needs to make stronger links with its wider plans across economic transformation, climate change, education and skills. It identified the post-school education and skills sector as ‘vital’ in helping people to achieve their ambitions and improve life chances, while helping meet the needs of a changing economy and society. But the sector faces significant financial and operational challenges, the auditor warned.