Ison Harrison expands in Skipton with Savage Crangle acquisition
Halifax provider of accident management services acquires Huddersfield business
2,000 new jobs and a multi-million pound investment for the region as Barnsley West gets go-ahead
HICA Group raises over £2,600 in cycling challenge
Financial services sector faces decline in activity and sentiment, CBI survey reveals
The latest CBI Financial Services Survey highlights a significant downturn in business activity and sentiment within the financial services sector. In the second quarter of 2025, business volumes fell at the fastest rate since December 2023, while optimism dropped sharply, marking the steepest decline since September 2022.
The survey, conducted between 29 May and 16 June, reveals that while firms expect activity to stabilise in the upcoming quarter, they also predict further declines in headcount and poor investment intentions, driven by ongoing economic uncertainty and the impact of last year’s Autumn Budget measures.
Key statistics show that business volumes decreased by 24%, a stark contrast to the 5% growth recorded in March. Despite this, firms expect volumes to remain roughly stable in the next quarter, with a slight increase of 3%. Optimism, however, plummeted by 55%, with firms anticipating modest profitability growth in the coming months.
Non-performing loans fell at the fastest rate since September 2021, while average spreads narrowed. The sector is also witnessing significant cuts in headcount, with a projected 52% reduction over the next three months. Investment intentions remain weak, with uncertainty about demand being the most cited factor limiting investment.
The financial services sector is now looking to the government’s upcoming Financial Services Growth & Competitiveness Strategy and further economic measures for reassurance amidst continued challenges.
Leeds BS and L&C Mortgages accelerate mortgage applications with open banking
Leeds Building Society and L&C Mortgages have launched an open banking pilot to streamline the mortgage application process. By connecting to Experian’s open banking platform, the two organisations can access applicants’ financial histories automatically, eliminating the need for traditional bank statements.
This approach allows clients to share their financial records directly, outlining income and regular payments. This shift not only speeds up the application process but also reduces the administrative load for brokers and clients. Following the success of the pilot, Leeds Building Society is set to expand the initiative to other intermediary partners, aiming to optimise the mortgage journey further.
The pilot demonstrates how digital innovation and collaboration can simplify complex procedures. With a growing demand for efficient, real-time financial solutions, open banking is proving to be a game-changer in the mortgage sector. Both Leeds Building Society and L&C Mortgages are now looking to scale the use of this technology, offering a faster, more transparent experience for both brokers and customers.
Diplomats strengthen ties with UK businesses to drive economic growth
A fresh initiative is underway to connect British businesses with global markets, as UK diplomats embark on a nationwide tour aimed at strengthening regional ties and promoting economic growth. Under the Government’s Plan for Change, ambassadors and high commissioners are travelling across the UK to meet with local leaders and entrepreneurs, identifying opportunities for trade and investment. This marks the first time such a diplomatic roadshow has taken place.
The roadshow, which began in June and will continue into autumn, focuses on enhancing relationships between UK regions and key international trade partners. The initiative aligns with the Government’s industrial strategy and includes sectors such as clean energy, life sciences, defence, and digital tech. Senior diplomats have been tasked with harnessing regional expertise to unlock growth potential for UK businesses abroad.
The roadshow has already made significant stops in areas like South Yorkshire, Greater Manchester, and South Wales, where diplomats are engaging with local businesses, research institutions, and government bodies. Key visits have included meetings with steel manufacturers, universities, and technology companies, aimed at fostering new partnerships and attracting foreign investment.
This effort underscores the Government’s commitment to positioning the UK as a global leader in business and innovation, with a particular focus on regions outside London.
Businesses challenge BID levy despite legal threats
A dispute has arisen over the Business Improvement District (BID) levy in Spalding, with a group of business owners refusing to pay the charge. The BID, which was created following a local vote in July 2024, aims to fund town centre improvements and increase foot traffic. However, some businesses argue the vote was flawed due to missing ballots and have vowed not to pay the levy.
The levy is calculated based on a business’s rateable value, meaning larger businesses contribute more. Despite the backlash, South Holland District Council has defended the process, asserting the vote was legally conducted and in line with national guidelines.
Small business owners, including photographer Julian Wheeler and beautician Macie Harman, are among those opposing the BID. While Wheeler has expressed his intent to challenge the legality of the vote, Harman has opted to pay the levy to avoid further costs, but still plans to fight the BID’s validity.
The council has maintained that the ballot and levy collection process were fair and properly managed, with strict oversight from an electoral services provider and the returning officer. Recovery actions have been handled in accordance with national regulations, with the council standing firm on the legitimacy of the levy.
Management buyout completes at Sheffield digital agency
Leeds introduces new funding programme to support business innovation and growth
A new funding initiative has been launched in Leeds to support innovation and business growth, backed by the Government through the UK Shared Prosperity Fund. The programme, administered by Leeds City Council, will provide grants between £25,000 and £50,000 to support local organisations running knowledge-sharing projects.
The aim is to help businesses, entrepreneurs, and innovators across Leeds maximise their potential through tailored business guidance, mentoring, and training. The grants will be available for both innovation-focused projects, such as those in AI and technology, and general business support projects targeting all sectors.
The funding is designed to benefit both established businesses and those in the early stages, as well as aspiring entrepreneurs. The intention is to equip participants with skills and networks to succeed in the competitive digital and tech industries.
The long-term goal of the programme is to foster innovation that will contribute to a healthier, greener, and more inclusive city. It also aims to enhance Leeds’ appeal to external investors by highlighting the city’s strengths in innovation.
Applications are open until July 27, with projects required to be completed by March 31 of the following year. The funding programme is expected to create opportunities, drive growth, and improve investor readiness for businesses across the region.