According to Lloyds Bank’s latest survey, UK business confidence declined in April, falling 10 points to 39%. While this marks a slowdown after a strong first quarter, sentiment remains higher than at the start of the year and above the 20-year average of 29%.

The shift was driven by a drop in economic optimism, which fell to 28%, the lowest level this year. Fewer businesses expect improvements in the broader economy, reflecting ongoing concerns over global trade dynamics and market volatility.

Trading outlooks remain relatively strong despite a seven-point dip to 50%. Confidence around hiring also edged slightly, but remains among the highest post-pandemic levels. Pay expectations eased modestly, though projections for larger wage increases are broadly unchanged from last year.

More firms plan to raise prices, with price expectations climbing seven points to 68%. The share of businesses expecting to cut prices held steady at 2%.

Sector performance was mixed. Construction saw the steepest confidence decline, down 22 points. Retail and services also slipped, while manufacturing held steady. Regionally, most areas saw flat or declining sentiment, though the North East and East of England bucked the trend with notable gains.

Reddington Pub Company has completed a £2 million investment to redevelop and reopen two hospitality venues in Gunthorpe, Nottinghamshire. The company aims to expand its footprint in the Midlands’ premium dining and events market.

The project includes the revival of The Anchor, a family-focused pub, café, and events space, and the transformation of Tom Browns into a high-end dining and entertainment venue. Both sites are located alongside the River Trent and have been longstanding fixtures in the local hospitality scene.

The investment has created 100 new jobs and positions the company to cater to leisure and corporate clients. The Anchor now offers dining, luxury accommodation, and an events courtyard suitable for private functions and business gatherings. It also features unique attractions like a model train for families and a café providing takeaway options for visitors.

Tom Browns has been repositioned as an adults-only dining destination focusing on premium steak and seafood. The venue will host live performances and events throughout the year, supporting Reddington’s strategy of integrating entertainment with upscale food offerings.

The relaunch aligns with the company’s growth strategy in the Midlands. It complements its existing venues, including The Old Vol and The Reindeer, and reinforces its presence in the region’s competitive food and beverage sector.

Volkswagen Financial Services is closing down its used car platform Heycar after years of mounting losses and weak revenue.

Launched in the UK in 2019 to rival Auto Trader and Motors, Heycar never gained market traction. It reported a £30 million loss in 2022 and £22.4 million in 2023, with revenue falling to just £7.4 million.

The platform, which listed nearly 100,000 vehicles, will shut down operations in Germany by mid-May, with the UK business expected to follow. Around 126 staff, mostly in the UK, are at risk of redundancy.

VWFS plans to reuse Heycar’s technology in a new venture focused on digital tools for the automotive sector. Dealerships using Heycar must move listings to other platforms or their own sites.

UK businesses are rapidly integrating artificial intelligence tools into their operations, with adoption doubling from 9% in 2023 to 18% by early 2025, according to the Office for National Statistics. Among larger employers, nearly one in three are now using AI technologies. However, this surge in uptake is unfolding without the in-house expertise to understand or manage the systems being deployed fully.

This trend is occurring against the backdrop of a severe digital skills shortage, which government figures estimate is costing the UK economy £63 billion annually. The gap in technical knowledge is particularly problematic in regulated industries—such as finance, insurance and healthcare—where decisions must be traceable and justifiable to both customers and regulators.

Many AI systems being implemented rely on self-learning algorithms that process large volumes of data to identify patterns and generate predictions. While powerful, these models often lack transparency. They produce results without a clear rationale, making it difficult for businesses to explain or challenge their outputs. This presents a significant compliance risk in regulated sectors, primarily when decisions affect credit approval, medical outcomes, or employee assessments.

There is growing concern that businesses may unknowingly introduce invisible errors into their operations. Without the ability to audit or interpret how an AI model arrives at a decision, firms could miss critical mistakes or fail to correct them in time. Regulators are also tightening their expectations, demanding that automated systems be able to provide clear, auditable justifications for their decisions. At the same time, employees and customers increasingly resist accepting AI-driven outcomes that appear arbitrary or lack human oversight, putting overall trust in the technology at risk.

In response, some research teams are working on ways to make AI more transparent and accountable. They focus on developing tools to explain how models work, flag potentially harmful decisions, and ensure human oversight remains in place for high-impact cases. These initiatives aim to help businesses draw clearer boundaries around AI use, reduce the risk of misuse, and align with regulatory expectations.