BCC: The Latest Quarterly Economic Survey Findings: What’s the Story?  

Place-based growth meets a fragile economy 

Andy Burnham’s recent speech in Manchester set out an ambitious economic vision of “good growth in every postcode”. He outlined a major rebalancing of power away from Whitehall, with a renewed focus on housing, transport, skills, infrastructure and industrial renewal. 

For the UK Chamber of Commerce Network, much of this will feel familiar. Chambers have long argued that economic policy works best when it is shaped close to the businesses and communities it is designed to serve.  

But the latest BCC Quarterly Economic Survey shows the hard economic reality facing the man who will very likely be the next UK Prime Minister. Business conditions weakened further in Q2 2026. Fewer firms reported rising sales, export sentiment weakened, confidence remained fragile, and investment intentions dropped to their lowest level since the pandemic. The survey drew on responses from 4,744 businesses, 92% of them SMEs, between 11 May and 8 June.¹  

These latest insights ask not whether place-based growth is desirable, but whether it can deliver quickly enough in a weak trading environment. 

The importance of investment 

The sharpest warning from the QES is on investment. Only 17% of firms said they planned to increase investment in plant, machinery or equipment, down from 21% in Q1. A quarter (26%) planned to cut back. That’s the lowest level since the Covid pandemic. 

Source: BCC QES. Q: Over the past 3 months, investment plans for plant, machinery, tech, or equipment have (increased, remained constant, decreased). n=4,133. 

This is where ‘Manchesterism’ has both relevance and a major test. Burnham’s model of using public and private investment to support regeneration, transport and housing fits well with the Chamber Network’s call for long-term investment in transport, digital and energy infrastructure.  

But businesses will judge it by delivery. Does it make decisions faster? Does it make accountability clearer? Does it make business support easier to navigate? Or does it create new structures, overlapping responsibilities and more bureaucracy without better outcomes? 

The recent BCC report², co-authored by BCC President and former Chief Economist at the Bank of England Andy Haldane, set out a clear test to measure exactly that: before announcing any major economic measure, policymakers should ask, will this prompt firms to do something they would not otherwise have done?   

Confidence slides away 

The QES also shows that confidence has weakened. Just 44% of firms expected turnover to improve over the next 12 months, down from 49% in Q1, while 23% expected a decline. This is a return to turnover confidence being on a downward trend, following a brief recovery earlier in the year.  

This is the backdrop against which any new Government must operate. Place-based growth can help business confidence because many firms experience the economy locally. The recent speech in Manchester highlighted local skills and procurement as two priorities for any new administration. Confidence may grow if smaller firms have a fairer chance to access major public and private-sector supply chains as well as being able to find people with the right skills, in the right places, at the right time.  

Costs pressures go supersonic 

The survey also shows inflation re-emerging as the leading concern for businesses, cited by 66% of firms. Fuel costs rose sharply as a price pressure, while labour costs remained the most common source of price pressure.  

This is a key constraint on the devolution agenda. Businesses may support stronger local powers, but they will want reassurance that fiscal devolution does not become a route to unnecessary new local taxes or levies. In an environment where firms are already under pressure from wages, tax, utilities, fuel and borrowing costs, the margin for policy error is narrow. 

Trading half the world away 

Burnham’s speech went big on domestic renewal, but less clear on how firms will be helped to sell overseas, navigate global supply chains or access new markets. That will be a worry for Chambers at a time when QES export sales indicators have been declining across the board, dropping into negative territory in Q2.  

A stronger local economy cannot only mean better domestic coordination. It must also mean helping firms connect to global markets. “Growth in every postcode” must also mean connecting every postcode to the world. 

The masterplan 

The right test for any new administration is therefore the BCC’s Growth Delivery Test: will it prompt firms to do something they would not otherwise have done? 

Will more firms invest? Will more recruit and train? Will more enter supply chains? Will more export? Will more scale? 

The QES suggests many firms are stuck in a risk-aversion cycle. Burnham’s agenda could help break that cycle if it turns local leadership into practical delivery. But if it creates more bureaucracy, higher costs or unclear accountability, it will miss the moment. 

The latest QES does not weaken the case for place-based growth, but it does make the delivery challenge sharper. If successful, Burnham’s agenda could help turn business ambition into investment, recruitment and growth. But if it creates more bureaucracy, higher costs or unclear accountability, it risks becoming another policy agenda that diagnoses the problem without changing the decisions businesses make each day. 

Further reading 

QES Q2 2026: https://www.britishchambers.org.uk/news/2026/07/business-investment-plans-hit-post-pandemic-low/  

QES Dashboard: https://www.britishchambers.org.uk/insights-unit/quarterly-economic-survey/   

BCC Insights Unit publications: https://www.britishchambers.org.uk/insights-unit/publications-and-commentary 

The Council of Women in Business in Bulgaria believes that employees with many years of professional experience are carriers of knowledge, expertise and organisational memory, which are of key importance for sustainable development and success. In the conditions of dynamic changes in the labour market, the question of how companies attract, develop and retain not only young talents, but also experienced professionals is becoming increasingly important.

In this regard, the Council of Women in Business in Bulgaria has launched a study dedicated to people with over 20 years of professional experience and their place in the modern work environment.

Get involved in the initiative by sharing the practices and observations of the organisation you represent.

The purpose of the study is to gather the perspectives of both employers and the professionals themselves in order to better understand:

• What are the attitudes towards attracting and retaining experienced people;
• What are the real challenges and opportunities facing them;
• What is the importance of factors such as development, recognition, adaptation to new technologies, intergenerational environment, psychological safety and a sense of value in the organisation?

Employer Questionnaire: https://womeninbusiness.bg/new-site/praktiki-organizacii-slujiteli-20plus-prof-opit/

Share practices and observations relevant to the company you represent. One response from each company should be submitted by a representative with a comprehensive view of the organisation’s people policies. Suitable respondents are: HR Director, HR Business Partner, Talent Acquisition Lead, People and Culture Head, Learning and Development Specialist, CEO, Manager, Senior Management Member or Manager of a Function or Business Unit.

Employee questionnaire: https://womeninbusiness.bg/new-site/online-vaprosnik-profil-na-opitniya-profesionalist/

Deadline for participation: July 26, 2026.

The survey is anonymous, and the information provided will be used solely for the purposes of the survey in aggregate form.

The British Chambers of Commerce held their annual International Conference in London at the end of June, and the British Bulgarian Chamber of Commerce was represented by board member Gilbert McCaul.

Here’s what Gilbert McCaul has shared:

The event covered two days; the first day was a Global Leaders Forum which was attended by board members and senior staff from chambers all around the world. This proved a very useful day. I was able to meet and discuss issues with representatives from many different chambers, both UK and internationally based. A key theme was on building better and more effective networks, taking us beyond excellent connections to ensuring even better commercial collaboration with our members. The critical role of our co-operation with British and local embassies was emphasised.

After an evening reception in the grand surroundings of the Locarno Suite of the Foreign Office, the main conference was held the next day in the QE II Centre in Westminster. This was a more formal event than the previous day’s forum, but it gave an excellent insight into the economic and political issues currently facing the UK. As the conference was being held in a week when Prime Minister Keir Starmer announced his intention to step down from office the was plenty of political comment being made. There were senior speakers present from the five major national UK political parties, a notable first for this conference, which clearly gave rise to a variety of different views on how best to develop the economy. Delivering Growth was the key message of the conference. The new president of the British Chambers of Commerce is Andy Haldane, a former chief economist of the Bank of England, who gave a thoughtful speech on the key opportunities and risks facing the British economy. Breakout sessions covered issues such as the unlocking of trade potential through the UK/EU reset, delivering growth through AI adoption and how investment in infrastructure can act as a catalyst for longer-term growth.

Despite being held on the warmest two June days on record in the UK, I believe that all delegates found this to be a very worthwhile event. The key message from the conference is to use the international chamber network to deliver economic growth through the most effective collaboration.

MY Synergy has developed and implemented a specialized AI solution for the Faculty of Pharmacy at Medical University – Pleven. The solution supports lecturers in creating exam questions, tests, case studies and other student assessment materials.

The project is among the first practical applications of artificial intelligence in Bulgarian higher education designed to support lecturers in their day-to-day work and make more effective use of existing academic knowledge. The solution enables faster creation of exam content, greater consistency in the preparation of assessment materials and easier adaptation of content to different learning objectives and levels of complexity.

“We chose to work with MY Synergy not only because of the team’s technological expertise, but also because of their ability to understand the specifics of the academic environment and turn the real needs of lecturers into a working solution. Our previous successful experience with the implementation of the AI Library gave us confidence that we could rely on a partner that combines strategic thinking, a practical approach and proven technological capabilities,” said Prof. H. Lebanova, PhD, Dean of the Faculty of Pharmacy at Medical University – Pleven.

The solution uses existing academic materials provided by the university, including textbooks, manuals, lectures, presentations and specialized documentation. In the first phase, the system has been implemented for the Social Pharmacy and Pharmaceutical Legislation course. It analyzes the source content and automatically generates different types of exam questions, tests, case studies and practical assignments. The platform also allows materials to be grouped by topic and lecture, different versions of questions to be created, and content to be adapted for different groups of students.

The result is a significant reduction in the time required to prepare exam materials, together with more effective use of the faculty’s existing educational resources. The project also creates a foundation for the broader adoption of artificial intelligence across other disciplines and faculties within the university.

“We believe the role of artificial intelligence in education is not to replace lecturers, but to give them more time for high-value activities – teaching, mentoring and working directly with students. This project shows how AI can be introduced in a controlled, practical and useful way, building on existing academic knowledge and making it easier to access and use. For us, this is another step towards creating a more modern and effective educational environment,” said Mladen Georgiev, Managing Partner at MY Synergy.

Following the successful completion of the first phase, the solution can be expanded to additional disciplines, departments and faculties, creating a model for the broader application of AI technologies in higher education.

Celebrate Grand Hotel Millennium Sofia’s 6th Anniversary with a €60 Hotel Credit (117.35 BGN)

To celebrate six years of welcoming guests from around the world, Grand Hotel Millennium Sofia is delighted to extend a special invitation with their Summer Indulgence offer.

Learn more:https://bit.ly/4ggNdao

Located in the heart of Sofia, Grand Hotel Millennium Sofia offers the ideal setting for both business and leisure, combining contemporary luxury with outstanding hospitality.

Following the approval of all regulatory authorities Diyana Dimitrova-Kamenova has been officially entered as a Management Board Member and Executive Director SME Banking of United Bulgarian Bank (UBB), part of KBC Group in Bulgaria. On 1^st July 2026 the Commercial Register officially entered the change in the Management Board of UBB. In this position Diyana Dimitrova-Kamenova replaces Frank Jansen, who retired in March 2026 after decades of successful professional career at KBC Group.

Diyana Dimitrova-Kamenova has more than 25-year experience in Bulgaria’s banking sector, starting in 2001 as a SME Lending Expert at Procredit Bank. In 2005 she joined the team of CIBANK as SME and External Credit Lines Department Head. 

Her professional development also continued after the bank’s acquisition by KBC Group, and in 2007 she took over the management of the corporate segment as Head of Corporate Banking. Over the 2011-2014 period she also performed an additional role as a Functional Manager Legacy Bank.

Diyana Dimitrova-Kamenova has substantial contribution to the successful development of the corporate segment, including also the successful realization of two consecutive integrations – between UBB and CIBANK (2017-2020) and between UBB and Raiffeisenbank Bulgaria (2022-2024). Since 2023 she has been General Manager Corporate Banking at UBB.

Diyana Dimitrova-Kamenova holds a Master’s Degree in International Economic Relations, and Bachelor’s Degrees in International Economic Relations and in Accounting and Control from the University of National and World Economy. 

This past weekend, the BBCC IT Retreat brought together tech founders, executives, and partners at AluaSoul, Sunny Beach. Designed as a dedicated space for peer-to-peer networking, the event offered our IT community the opportunity to step away from the daily routine and focus on strategic growth.

The weekend’s agenda focused on actionable insights and collaboration, highlighted by:

• The “Who is Who” Presentations: A series of concise showcases where participating companies shared their current project priorities, capabilities, and upcoming initiatives, opening the door for direct alignment.
• Negotiations Strategy Session: An insightful presentation focused on effective negotiation frameworks tailored specifically for the challenges and dynamics of the IT sector.

We would like to extend our sincere thanks to all of the attendees, speakers, and partners who joined us. The engagement and professional exchange throughout the weekend continues to strengthen the British-Bulgarian tech ecosystem.

We look forward to seeing the connections built by the sea develop into successful future collaborations.

Reacting to the release of the Defence Investment Plan, Kate Shoesmith, Director of Policy at the British Chambers of Commerce, said:  

“The release of this spending plan is long overdue. Businesses have been patiently waiting to get a better understanding of the government’s priorities and how these dovetail with long-term procurement and supply chain resilience policies.  

“National security and economic security must go hand in hand. Boosting defence manufacturing and exports have to be key goals for the next decade and beyond. 

“This includes protecting access to steel. It is imperative the government keeps its quota and tariff plans under review as these could still harm defence firms in downstream sectors including engineering and manufacturing. 

“It’s equally important that funding any uplift in defence spending is not done at the expense of other strategically important initiatives on energy, regional growth and infrastructure investment.  

“But the prize here is significant. In 2023, UK defence exports surged by 29% on the previous year, and 49% of these overseas sales went to the EU. 

“Raising these metrics further would give the UK economy a welcome boost, so the new Defence Exports Facility, underpinned by a £50bn uplift in UK Export Finance, should be applauded. 

“To maximise the economic benefits, we must also increase the number of SMEs that can competitively bid for contracts through simplified procurement rules and better supply chain connectivity. 

“Alongside the investment plan, the UK must also seek to benefit from wider access to defence initiatives involving our allies, including the EU, US, NATO and Australia. 

“While it may now be too late to access the EU’s current Security Action For Europe (SAFE) initiative, the government should make sure it does not miss out on other opportunities with the EU and individual countries.” 

More detail on the Defence Investment Plan can be found here. 

Source: British Chambers of Commerce

Responding to the speech by Labour leadership candidate Andy Burnham, Shevaun Haviland, Director General of the British Chambers of Commerce, said: 

“Firms need consistency, clarity and stability from policymakers, if business confidence is to be improved.  

“Businesses will judge Andy Burnham’s plans on whether they deliver the boost to investment, productivity and trade desperately needed to unlock growth. As our recent report outlined, government must always ask whether policy passes a ‘growth delivery test’ to encourage firms to invest and grow.  

“It’s crucial that the devolution agenda has local business at its heart and brings benefits to all parts of the UK.  

“Our Chamber network completely understands how national ambition can be translated into local economic growth. We’ve long argued that more decisions affecting local economies, including transport, skills and infrastructure, should be taken closer to the communities they serve.  

“Successful Chamber-led Local Skills Improvement Plans across England show the power of devolution to help address the challenges facing our economy. Creating greater parity between academic and technical qualifications is something business wholeheartedly supports.   

“A pledge to improve the public procurement system is welcome, but it must quickly bring benefits to SME supply chains across the UK.  

“Fiscal devolution must see money spent in the right way, to boost local growth. It must not mean further costs on business. BCC analysis shows government-imposed costs on SMEs have risen by more than 70% in just 10 years. New local business taxes and visitor levies would stifle economic growth.  

“The difficult truth is, whoever leads the UK, the primary challenge remains the same – delivering growth. Business stands ready to work in partnership with any new Prime Minister to focus on that crucial task.”  

Source: British Chambers of Commerce

The global internet exchange platform provides services free of charge to Czech student Jakub Krša, to inspire the next generation of engineers

NetIX, a global internet exchange platform and part of the Neterra group, is supporting AS214757 – an educational, non-commercial networking project run by Jakub Krša, a 15-year-old student from the Czech Republic.

Curious about how the Internet works, Jakub built his own network. Today, he also helps other aspiring engineers and hobbyists with free tools such as IPv6 transit and a tunnel broker, along with guidance and services, so they can gain hands-on experience.

To reach more people and improve connectivity for his growing community, Jakub turned to NetIX. He wanted to connect at the NIKHEF data centre in Amsterdam, one of the major connectivity hubs, and strengthen peering toward Bulgaria.

NetIX provided AS214757, free of charge, with a 10G port, 10G of the Global Internet Exchange (GIX) service and 10 Mbps of Neterra IP transit for added resilience.

Through the collaboration, Jakub improves connectivity and reduces latency for his users and peers. He also gains real experience in managing interconnection, peering and transit, while his project becomes more recognized within the global telecom community.

“At NetIX, we believe in the power of community and in supporting the next generation of network builders,” says Dean Belev, Senior Product Manager, Connectivity and NetIX, at Neterra. “By supporting Jakub and AS214757, we are not just helping one project, we are glad to inspire the future of global connectivity.”

Jakub’s initiative already has backing from other industry organizations, including AMS-IX, CDN77, and NL-IX, and talks with regional operators continue. If you would like to support Jakub too, get in touch via as214757.net.