Business News Round Up (04/10/2022)
Majority of UK firms to ramp up business travel spending by next year
The majority of UK businesses are set to ramp up their travel spending in the next year, according to research. Data published on Monday by American Express revealed that 68 per cent of UK companies would increase their business travel spending by at least 50 per cent, while four in ten firms are looking to travel more. The vast majority in fact believes that business travel is fundamental to drive profitability and growth. Figures published in June by WPI Economics showed that business travellers returning to pre-pandemic levels by next year would lead to UK growth rates going up by 50 per cent by 2030. “Businesses had no choice but to press pause on a lot of travel over the last two years and lean on virtual alternatives to build relationships with customers and colleagues,” said Hana Lear, American Express’s corporate vice president of UK card services. “However, there’s clearly a renewed focus on the entire business travel experience to ensure both companies and employees maximise the value of trips.”
Record year for SIS as active loans and investments reach £41m
The latest annual investment figures from SIS show that active loans and investments during 2022/21 increased by £3m from £38m in 2021/2020, a record amount for SIS during its 21-year history. The record investment figures were achieved during the second year of its ten year Building an Impact Economy Strategy, supporting, and encouraging businesses of all kinds to make a real, measurable, and sustainable impact on people’s lives. Lending volumes include £12.4m in loan and equity funds drawn by social enterprises in Scotland, and £6.8m loaned to responsible lenders across the UK who, in turn, offer finance to enterprises and individuals who are unable to secure them from mainstream financial lenders. £1.8m in equity funding was drawn by impact-led businesses through impact investor SIS Ventures. SIS also approved £9.15m new investments for Scotland’s social enterprises during the year. The activities of SIS, either directly or indirectly, benefited 4.3 million people, more than double last year’s total of 1.9 million people, with those benefits felt by communities in all 32 local authorities in Scotland. One third (33%) of loan customers secured loans of under £50,000 underlining SIS’s support for smaller social enterprises, charities, and community organisations.
UK pauses data reform bill to rethink how to replace GDPR
The UK government has confirmed another pause to draft digital legislation under new prime minister Liz Truss’ reshuffled cabinet — saying the data reform bill it had introduced in recent months is on hold while ministers take another look. The paused bill contained a package of amendments to the UK’s data protection regime, which remains based on a pan-European Union framework — tweaking rules for personal data processing in areas like consent for online tracking; data for scientific research; public sector data use and sharing; and easing certain regulations for small businesses, as well as mooting changes to the data regulator itself — with the government projecting it would yield savings for businesses of over £1BN over ten years. However that reform is now on pause as the Truss-led government rethinks. The fresh-in-post secretary of state for digital, Michelle Donelan, gave over the first chunk of her Conservative Party conference speech Monday to a headline-grabbing (but under-explained) announcement that it would be “replacing” the General Data Protection Regulation (GDPR) — a law the UK had (in her words) “inherited” from the European Union.
Jobs at risk as loss-making challenger Bank North collapses
Jobs have been put at risk after a Manchester-based start-up challenger bank revealed plans to “wind down” after failing to raise the £30m it needed to stay afloat. Bank North had been founded in 2018 by chief executive Jonathan Thompson and is chaired by former British Business Bank boss Ron Emerson. The bank had been aiming to disrupt the small business lending market but failed to raise the £30m it needed to secure a full banking licence from the Bank of England, according to a report in the Daily Mail. In a letter seen by the publication, Mr Emerson said Bank North had been “unable to close this critical capital raise within the necessary timeline”. He added: “It is therefore with great regret that I have to inform you that… the board of Bank North has decided to initiate a solvent wind-down of the bank, with immediate effect.” The Daily Mail added that the bank is in talks to sell its £17m loan book and transfer its Manchester-based lending team.
https://www.business-live.co.uk/enterprise/jobs-risk-loss-making-challenger-25166317