Anna Wise

The UK economy is expected to have grown by around 0.4% in the second quarter of 2026, following 0.6% growth in the first quarter, despite supply-chain disruption, price pressures linked to the Iran war and political uncertainty. Services strengthened in May, while manufacturers stockpiled supplies, but economists anticipate a weaker June as construction activity declined and services and industrial production stagnated. Hospitality may also have suffered as consumers shifted spending from restaurants to pubs during the World Cup rather than increasing overall consumption.

British retailers HMV and The Works are benefiting from growing demand for collectible and screen-free products, including squishies, trading cards, K-pop merchandise, crafts and books. HMV reported a 12% rise in store visits in the first half of the year after redesigning shops around popular culture, while The Works said it was selling thousands of squishies weekly and seeing stronger demand for creative activities. Retailers attribute the trend to young people seeking shared offline experiences, parents reducing children’s screen time and renewed interest in physical music formats, with popular artists helping drive sales.

BP is marketing its UK North Sea business for sale as part of a strategy to streamline its portfolio and focus capital on higher-value opportunities. The business operates five production hubs, produced 117,000 barrels of oil equivalent per day in 2025 and employs about 1,100 people. Chief executive Meg O’Neill said the assets would be better positioned under another owner. The sale comes as Prime Minister Andy Burnham signals a pragmatic approach to North Sea resources, despite Labour’s commitment not to issue new licences. Aberdeen & Grampian Chamber of Commerce warned that the decision reflects weakened investor confidence caused by policy uncertainty and taxation, urging the UK Government to establish a stable fiscal and regulatory framework to protect jobs, energy security and future investment.