Business News Round Up (07/10/2024)
Reeves urged to reform business rates as retailers seek fair share
Over 70 leading retailers, including Tesco, Marks & Spencer, and Ikea, have united to call on Chancellor Rachel Reeves for a significant overhaul of the business rates system. They are advocating for a 20% reduction in business rates to create a fairer tax environment for the retail sector. The British Retail Consortium (BRC) highlights that retailers contribute 7.4% of all business taxes while accounting for only 4.9% of the UK’s economic output. This imbalance has led to reduced investment and numerous store closures, adversely affecting local employment and communities. The retailers propose a ‘retail rates corrector’ to lower business rates for shops by 20%, aiming to level the playing field across industries. Without reform, the BRC warns that around 17,000 shops could close over the next decade. High business rates are hindering investments in employee training, store improvements, and technology—key areas necessary for boosting productivity and economic growth.
UK businesses put hiring on hold as Budget looms
UK businesses have put hiring on hold because of uncertainty over the government’s plans on tax, industrial strategy and workers’ rights, a closely watched survey showed on Monday. Recruiters placed fewer people in jobs in September, in a continuation of a market slowdown that has lasted two years, the monthly report from KPMG and the Recruitment & Employment Confederation showed. Meanwhile, growth in starting salaries was at its weakest since February 2021. Jon Holt, UK senior partner at KPMG, said businesses had put the brakes on recruitment in the run-up to the Budget to “wait for clarity on future taxation, business and economic policy”. Recruitment agencies responding to the survey said they had placed fewer people in permanent positions that month because “unclear government policy” had made their clients cautious.
https://www.ft.com/content/bfb99b57-0513-4dcf-b6d3-6d8a93e192cb
Santander calls for government focus on leadership, digital, and sustainability skills to future-proof UK economy
Santander UK has urged the government to prioritise leadership, digital, and sustainability skills in its new National Plan for Skills to tackle the UK’s productivity crisis and prepare the workforce for the future. In a newly published report, Tomorrow’s Skills, Santander highlights three major societal shifts—changing attitudes to work, the rise of AI, and the transition to Net Zero—that will impact the British workforce. The report calls for increased investment in training and upskilling to address these challenges. The report reveals that UK workers are spending 20% less time on training than they did a decade ago, despite more than half acknowledging that they need to upskill to stay relevant in their roles. Barriers such as time constraints, costs, and lack of flexibility are preventing workers from accessing training, contributing to the country’s stagnant productivity levels.
New funding for green economy research at Scottish Universities
Researchers from Scottish universities are to lead new projects to accelerate the growth of the UK’s green economy, supported by millions in funding from the UK Government. The University of Glasgow will lead the £5.5 million Responsible Electronics and Circular Technologies Centre (REACT), while the University of Edinburgh will host the £5.6 million Centre for Net-Zero High Density Buildings. REACT will work to establish Scotland’s central belt as a global leader in sustainable electronics manufacturing and design, while the Centre for Net-Zero High Density Buildings will aim to significantly reduce carbon emissions from densely packed buildings in UK cities and towns. The centres are part of five newly announced across the UK, receiving a portion of UK Research and Innovation’s £25 million Accelerating the Green Economy programme, an initiative aiming to boost research and innovation efforts to help the UK achieve its net zero target by 2050.
https://www.digit.fyi/new-funding-for-green-economy-research-at-scottish-universities