Business News Round Up (09/06/2022)
UK growth to be worst of developed nations
Further pressure mounted on the Chancellor to cut taxes as a think tank said the UK economy will stop growing next year with only sanctions-hit Russia performing worse among leading economies. In its bi-annual economic outlook, the Paris-based Organisation for Economic Cooperation and Development (OECD) urged the UK government to row back on tight fiscal measures, warning that recent increases in taxes will contribute to zero growth in 2023. In a further knock to prospects, the British Chambers of Commerce downgraded its outlook for growth next year to 0.6% before recovering slightly to 1.2% in 2024. It expects a UK unemployment rate of 3.8% in 2022, 3.9% in 2023 and 2024. The OECD says the UK economy will expand by 3.6% this year – the second-fastest rate among the Group of Seven advanced nations after Canada – before plunging to the foot of the table. All other G7 countries will grow by more than 1%.
Knight Frank: lack of office development now a threat to Edinburgh’s economic growth
Edinburgh is facing a crunch point, with no available new office space currently under construction in the city centre despite a strong rise in demand from occupiers as they return to the workplace, according to Knight Frank. The independent commercial property consultancy found that there is 0 sq. ft. of new build office space under construction that has not already been pre-let. Although there are more than 400,000 sq. ft. of major new build and refurbishment projects set to be completed over the next two to three years, 746,950 sq. ft. of requirements have been issued already during 2022 for city centre space at an average size of around 5,100 sq. ft. Knight Frank pointed to the success of Haymarket Edinburgh as an indication of the level of demand for new office space in the city centre and the wider flight to high quality accommodation. The development is fully let ahead of its first building being completed later this year. The firm’s research from 2019 also highlighted the lack of Grade B space available in Edinburgh to absorb excess demand, with 720,000 sq. ft. of Grade B office space converted through planning for change of use, largely to hotels and residential.
£1m secured to help fill vacancies and reduce skills gap
More than £1m in funding has been secured to run courses to help fill job vacancies and reduce skills gaps across Cheshire and Warrington. Cheshire and Warrington Local Enterprise Partnership has been awarded £1,036,653 by the Department for Education to run skills bootcamps in the sub-region. Skills bootcamps offer free, flexible courses of up to 16 weeks – giving people the opportunity to build up sector-specific skills and fast-track to a guaranteed interview with a local employer. The funding is to be used across 15 bootcamps during the coming months. The first three bootcamps will be in logistics (HGV driving), digital marketing and green skills and training providers and employers can apply now to provide these. These bootcamps will provide training for 264 people across Cheshire and Warrington. It is hoped that even more training can be introduced in the future, with access to further funding rounds.
Hunt starts for UK’s 100 most inspiring entrepreneurs to mark Small Business Saturday’s tenth anniversary
A nationwide search for the UK’s 100 most inspiring small businesses has kicked off, as part of major plans to mark the tenth-year anniversary of Small Business Saturday UK. Organisers are calling on brilliant small businesses from across the country to apply to be featured in this year’s SmallBiz100, which showcases the best of Britain’s vibrant small business community, as part of the official countdown to the annual campaign. Now in its tenth year in the UK, Small Business Saturday will return on 3 December 2022 for an extra special extravaganza celebrating small business success and encouraging consumers to shop small and support businesses in their communities. “Small Business Saturday is all about shining a light on the UK’s fabulous small businesses and the extraordinary contribution they make to the UK and our local areas,” said Michelle Ovens CBE, Director of Small Business Saturday UK. We are excited to be showcasing more incredible small businesses from all over the country again this year, as we mark this amazing ten-year milestone. So, if you run an exciting small firm that brings something special to the community, we want to hear from you! Whether you are online or on the high street, based in an office or at home, supporting consumers or other businesses in the supply chain.”