Alpesh Paleja, deputy chief economist, CBI, said: “After bumper growth at the start of the year, the economy has started off the second quarter on a disappointing note. Weaker momentum is more in line with the picture painted by our own business surveys.
“The sunniest April on record clearly boosted retail sales, but this wasn’t enough to offset drags on activity elsewhere, including some payback from sectors that saw strong growth in March. In addition, the onset of the US’ “Liberation Day” tariffs; the ensuing volatility in financial markets; and the ramp up in uncertainty may have taken the edge off activity for some businesses.
“The latest data means that, at best, we’re heading for near-stagnation over the second quarter. While we expect some pick-up in growth momentum further ahead, an environment of high uncertainty and cost pressures is still proving a significant headwind to activity.
“Looking ahead, while we expect some growth momentum to be sustained, an environment of high uncertainty and cost pressures is proving a significant headwind to activity. Yesterday’s Spending Review rightly chose to prioritise investment in clean energy and R&D, as well as delivering a much-needed boost to housing, transport, and infrastructure.
“But businesses are labouring under the cumulative burden of rises in NICs and the National Living Wage. With the Autumn Budget now coming sharply into focus, the Chancellor should prioritise squashing tax rumours and speculation that risks stymieing confidence and hitting investment plans further.”
UK economy contracts after better than expected first quarter
After seeing better growth than expected in the first quarter of 2025, the UK economy has shrunk.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have fallen by 0.3% in April, following growth of 0.2% in March.
It reflects, across key sectors, services output dipping by 0.4%, production output falling by 0.6%, and construction output conversely growing by 0.9%.
Sustainability consultant named Bronze Peak Partner in support of Peak District National Park
A Nottinghamshire-based sustainability consultant has been named a Bronze Peak Partner by the Peak District National Park Foundation, recognising her commitment to protecting and promoting the natural landscape that has inspired her since childhood.
Sophie Wragg, founder of Be Your Best Version, works with businesses across the region to help them reduce their environmental impact. Her new role as a Bronze Peak Partner will see her supporting vital conservation projects across the national park, including habitat restoration, improving access to nature, and the protection of carbon-rich peat bogs.
“I’ve lived on the doorstep of the Peak District my whole life,” said Sophie. “It’s where I went on day trips with my parents, and it’s where I took my own children. I’ve also worked with so many businesses in and around the Peaks over the past year, so this felt like a really natural way to give something back.”
The Peak District National Park Foundation launched the Peak Partners scheme to bring together like-minded businesses and organisations that want to help care for the national park. Funds raised through the programme support a wide range of environmental and heritage projects, from planting wildflowers and creating wildlife corridors to preserving historic landscapes.
For Sophie, the chance to champion one particular cause – peatland restoration – was especially important.
“Peat bogs are often overlooked in favour of more ‘Instagram-friendly’ tree-planting schemes,” she said. “But they’re actually one of the most powerful carbon sinks we have. When they’re healthy, they store huge amounts of carbon, and they help protect biodiversity, too. I think they’re beautiful in their own way – and a big part of what makes the Peak District landscape so special.”
Businesses that apply to become Peak Partners are vetted to ensure their values and practices align with the Foundation’s goals. Sophie said being accepted as a Bronze Partner had deepened her sense of connection to the place she calls home.
“It’s made me even prouder to do what I do – helping businesses understand their impact and take action to reduce it. The Peaks have given me and so many other people so much over the years. Now I get to help protect them for the future.”
Business confidence rebounds but hiring and demand remain uneven
New data from NatWest’s May Regional Growth Tracker points to a modest resurgence in business confidence across the UK, with firms reporting more optimistic outlooks and slight improvements in activity levels. Half of the 12 monitored regions reported growth in output, while sentiment about future activity rose in all areas. The North West and London saw the largest monthly increases in expectations, with the West Midlands remaining the most optimistic overall.
However, the recovery remains patchy. Wales posted the fastest growth in business activity during May, while London recorded its weakest performance in two and a half years. Inflows of new business rose only in Wales and stabilised in the East of England, with all other regions seeing a drop, led by a sharper decline in the East Midlands.
Employment figures were generally down, with Scotland being the only region to report a slight increase in headcount after six months of stagnation. The North West continued to cut jobs for the eighth straight month, though the pace slowed.
Order backlogs fell across the board for the third consecutive month, with the North West experiencing the most significant drop in outstanding work. Scotland saw the mildest decline.
Pricing trends moderated slightly, with the rate of increase in average prices charged slowing in every region compared to April. Wales recorded the biggest fall in output price inflation, while Northern Ireland and the West Midlands saw the highest ongoing pressure.
Input costs rose at a softer pace than the previous month but remained above historical norms. The South West and East of England faced the steepest increases, while Scotland saw the most subdued rise. Businesses continue to raise prices to manage persistent cost pressures, including rising labour expenses following April’s national insurance changes.
Ibstock bets on market rebound with production ramp-up
Ibstock has restarted operations at several of its brick factories as the UK construction sector shows early signs of recovery. The move is aimed at positioning the Leicestershire-based firm to meet rising demand, particularly in housing development, which remains well below government targets.
Current UK brick production stands at around 2.2 billion units annually, far short of the estimated 7.8 billion produced in 1970. That shortfall is critical, as the UK has not hit its 300,000-home annual construction goal in over five decades, with just over 100,000 homes built last year.
Efforts to scale up supply are complicated by long lead times for new manufacturing infrastructure; constructing a new brick plant typically takes at least 18 months. Meanwhile, several manufacturers, including L&G and Tophat, have exited the market in response to weakened demand.
Compounding the issue are rising production costs, which have driven up brick prices over the past five years. Manufacturers like Ibstock have struggled to pass these increases on to developers, particularly those operating in the low-margin affordable housing segment.
Despite a 15% drop in share price amid cost concerns, Ibstock is positioning itself for long-term gains as market conditions stabilise. Its renewed production push signals cautious optimism across the building materials sector.
Banking hub to launch in Ashby-de-la-Zouch
Ashby-de-la-Zouch is set to gain a new banking hub following the planned closure of the town’s NatWest branch this September. The hub will be delivered by Cash Access UK and is scheduled to open in June 2026.
Designed to serve customers of any bank, the facility will provide counter services operated by Post Office staff, enabling cash withdrawals, deposits, bill payments, and other basic banking functions. It will also feature a rotating schedule of bank representatives from various institutions, offering face-to-face services on designated days.
The initiative follows a recommendation from Link, the UK’s cash access and ATM network, and comes in response to the ongoing decline of traditional bank branches. The Ashby site will become the fourth such hub in Leicestershire, joining existing locations in Lutterworth, Syston, and Market Harborough. Nationwide, there are currently 160 operational banking hubs.
Before the hub’s launch, Cash Access UK will conduct community consultations and location scouting. The move aims to maintain cash access and in-person banking for businesses and residents despite the accelerating shift toward digital transactions.
Clegg Construction appoints new business development manager
Contractor Clegg Construction has strengthened its team with the appointment of a new business development manager.
Amy Fullaway has more than five years of business development experience in the construction sector and associated industries, plus a background in marketing and bid coordination.
She joins the business development team at Clegg Construction at a time when the company has a growing order book, with exciting schemes in the pipeline and projects under way across the Midlands, East Anglia and the North. Her role will involve developing new opportunities and strengthening relationships with existing clients.
Pre-construction director Christian White said: “The Clegg Construction team welcomes Amy to the business. She brings with her several years of experience in both business development and marketing, which will help us to achieve our future goals.”
Amy, who is originally from Derbyshire, has a Business and Management BSc Hons degree from the University of Derby.
She said: “Joining Clegg Construction is an exciting opportunity to contribute to a company with such a strong reputation in the industry. I look forward to collaborating with the team to drive innovation and explore new business avenues.”
Outbound travel growth offers £62bn boost by 2030
The UK’s outbound travel sector is projected to grow 20% by 2030, reaching an annual value of £62 billion, according to new data from Abta. The report positions outbound travel as a critical contributor to the UK economy, up from its current £52 billion valuation, with significant implications for regional infrastructure and wider economic resilience.
The study highlights the role of outbound travel in sustaining regional airports, where leisure travel accounts for up to 90% of passenger volume in specific locations, such as the East Midlands, Manchester, Birmingham, Bristol, and Exeter. Without robust outbound demand, these airports risk financial instability, which could undermine inbound tourism and harm local economies that rely on visitor spending.
Abta also underlines the broader commercial ripple effect, including support for domestic tourism and facilitation of international trade via business travel and cargo transported on passenger flights.
However, the trade body warns that realising this potential depends on government support through targeted tax and regulatory reforms. These include advancing sustainable aviation fuel initiatives, easing UK-EU travel frictions, and avoiding compounding taxes on tourism businesses.
Abta is calling for policy acceleration and strategic backing to position the UK as a global leader in sustainable travel and strengthen the sector’s contribution to jobs, trade, and regional development.
IMA director qualifies as RIBA architect
Following six years of study, IMA director Joe Travers has graduated from the RIBA Studio course run via Oxford Brookes School of Architecture and qualified as an ARB & RIBA architect.
Joe has graduated with a Royal Institute of British Architects’ (RIBA) Diploma in Architecture, while simultaneously completing RIBA’s own Part 3 qualification – the Advanced Diploma in Professional Practice in Architecture.
Already a qualified chartered architectural technologist, Joe began the RIBA course in 2019 while an associate at IMA after exploring professional development options and being recommended the RIBA course by a company peer.
Over the last six years he has studied full time alongside his demanding day job through a self-directed distance learning course which combined online lectures, in person exams and production of a portfolio of work, with guidance from a range of personal tutors and Oxford Brookes University examiners.
During the last six months of study, Joe also completed and passed both the RIBA Studio Diploma in Architecture and the RIBA Part 3, one of the final steps enabling individuals to qualify as an architect. Joe is now registered as a fully qualified architect with the Architect’s Registration Board (ARB) in the UK and registered as a chartered architect with the RIBA.
Talking about his achievements Joe said: “It has been so full on for a long time, working full time, becoming a director at IMA, studying a full-time degree and bringing up a family, but absolutely worth it personally, professionally and ultimately for the benefit of IMA’s clients.
“It’s been a really fulfilling process. I’ve worked on some different projects outside of the industrial and commercial sectors we specialise in at IMA, so all good learning to be able to contribute to the ideas and design philosophies within our practice. I’ve also met some great people who I hope to stay in touch with for a long time to come.”
Joe worked on a variety of schemes as part of his portfolio. His end of certificate project centred on an Astronomy Visitor Centre in Derbyshire with the final design being informed by the constellations of the night sky. It involved reclaiming a quarry and the building forms cascade into the quarry to reveal views of the various constellations and celestial bodies on the journey through the building.
Another project of note included a community cultural building that aimed to bring together popular activities relating to food, dance, arts and craft to connect three neighbouring but socially isolated communities. Its intention was to create cohesion, empathy and understanding between these traditionally disparate communities in Leicester. Its modular design, with open plan layout and extensive glazing, made it flexible to host multiple activities, enabling people to participate together, be curious and learn from each other to encourage integration.
His final dissertation project focussed on the use of Brutalist Architecture in Science Fiction films to denote dystopic themes. It explored whether this resulted in the viewer being negatively persuaded against Brutalist architecture in the real world, due to the association with dystopian settings in films. As a result, Joe was invited to present at the launch night of 2024 film ‘The Brutalist’ featuring Adrien Brody at the Phoenix Arts Cinema.
IMA’s co-founder Ian McCann said: “This is a fantastic personal achievement for Joe and a great outcome for the business. We’re pleased to have been able to support Joe with his professional development ambitions and look forward to taking projects from design concept through to completion with him.”
Now that Joe has completed a seven-year stint studying he is looking forward to having some more free time with his family without stressing about deadlines and applying what he has learnt to IMA’s clients to be involved in the wider design process from an earlier stage.
Student flats proposed for empty Leicester office
A vacant office block in Leicester may soon be repurposed into purpose-built student accommodation under a new planning application submitted to Leicester City Council.
St John’s House, located on South Albion Street and formerly occupied by NHS staff, could be redeveloped into housing for 142 students. The proposed scheme comprises 114 studio apartments, alongside communal facilities including lounges, study spaces, and a ground-floor gym.
The original 1976 building is expected to undergo structural modifications to enhance accessibility and livability. Revised plans include the infill of an undercroft area to create a new main entrance, addressing concerns previously raised about the impact on the adjacent Grade II-listed former St John’s Church.
If approved, the project could help address the growing demand for student accommodation in the city while repurposing underused commercial property. The shift reflects a broader trend in urban redevelopment, particularly in city centres where office vacancy rates remain high.
Majority of UK organisations remain committed to sustainability and ESG, says new research
More than 80% of organisations say that sustainability is important to them, according to new research from the University of Nottingham, supported by law firm Browne Jacobson.
The research, completed in spring 2025, captures the views of organisations following the US presidential election and the recent gains of Reform in UK local government elections. The findings reveal that issues associated with ESG, DEI or sustainability are not being sidelined, despite global political rhetoric.
The research project, ‘ESG and Sustainability: Rethinking Communications and Credibility’, has revealed the growing importance of environmental, social and governance responsibility to an overwhelming majority of private and public sector bodies in the UK.
The detailed research findings taken from almost 250 UK organisations identified how private and public sector companies can improve communications to enhance their credibility and effectiveness in ESG and sustainability.
More than 80% of respondents advocated that sustainability was important to them, with nearly three-quarters willing to risk income or profits to meet their ESG goals. There is significant impetus to reassess supply chain contracts, and even customer relationships.
Whilst some organisations are careful to take legal advice on DEI and related HR issues, organisations are currently less alive to legal risks in addressing other ESG issues.
Key recommendations include more robust use of terminology that reflects the understanding and intentions of relevant audiences, including employees, customers, investors and regulators.
The research demonstrates how more effective language use around sustainability makes for greater credibility in discussing ESG objectives, methodologies and outcomes.
Ben Standing, partner and head of Browne Jacobson’s sustainability strategy, said “ESG is fundamentally about sustainable organisations. Attracting the best talent, reducing costs and driving growth. The report identifies the variety of approaches taken in different sectors, and how much organisations can learn from each other.”
Jeremy Irving, partner and head of the financial services regulatory team at Browne Jacobson, said: “The findings on appropriate language make for more effective management of the reputational, legal, and other risks associated with sustainability strategies.
“These risks are increasing as regulators, investors and third parties take a more active approach to their own ESG-related priorities, such as a greater willingness to pursue allegations of ‘greenwashing’.”
Professor Louise Mullany, director of Linguistic Profiling for Professionals at the University of Nottingham, added: “If organisations want to succeed in bringing about serious, long-term change in sustainability and ESG, then ensuring they use language that genuinely reflects their commitments and organisational cultures is a crucial step.
“Vague language, or strategies that over-exaggerate, run the risk of becoming meaningless in an ever-changing landscape, where accountability and governance are becoming increasingly important components to organisational success.”
Dr Victoria Howard, project lead at Browne Jacobson and the University of Nottingham, said: “Our research shows how UK organisations are standing firm in their drive to operate responsibly.
“However, there are so many terms, with inconsistent meanings, used to talk about ESG, sustainability, DEI and ‘green’ initiatives, that key messages get lost or misinterpreted.
“Our recommendations support organisations to communicate more effectively about their current social and environmental impact, as well as the steps they are taking to achieve future sustainability goals. The steps we propose will ensure that accurate messaging reflects organisational values and demonstrates credibility.”
