Business News Round Up (09/12/2022)

UK SME manufacturers want a dedicated minister to tackle industry challenges

Almost three quarters (71%) of small to medium sized manufacturers believe their industry’s fortunes would be improved with a dedicated Minister for Manufacturing, according to research commissioned by after-market technology specialist SamsonVT.  The company surveyed 200 senior managers and decision-makers working within UK manufacturing businesses (up to 250 employees) about the current state of the industry. It found various challenges were impeding SME manufacturing growth. Inflation was viewed the biggest challenge, with almost fourth fifths (78%) listing this as a threat to their business. This was followed by the deteriorating value of the pound (40%), import and export regulations (39%) and mounting wage pressures (29%). Currently, the responsibility for manufacturing comes under the remit of the Minister of State for Industry – a role that also covers retail, consumer goods, personal care, professional and business services, hospitality, weddings and nightclubs. The survey found just 9% thought the industry’s current plight wouldn’t be improved if there was a minister who was solely focused on manufacturing. The survey also found that more than half (52%) of the UK’s exporting SME manufacturers believed the fluctuating value of the pound had become a significant challenge – while more than a third (38%) said the complexity of administrative processes was also creating serious difficulties. The research showed that exports were found to be contributing almost a fifth (19%) of overall sales for UK SMEs.

Businesses urged to have a flexible approach to flexible working

A leading employment lawyer is advising businesses to consider carefully the implications of new flexible working proposals, which will give employees the right to request flexible working from the first day in a new job and put more onus on employers to discuss options with staff. Chris Phillips, employment partner at full-service law firm Thorntons, commented following the publication of proposals, set out in the UK Government’s response to a consultation on the issue. The consultation response advises that employees should be able to ask for flexible working from day one instead of having to complete 26 weeks of service before submitting a request as required at present. It also proposes increasing the number of flexible working requests that can be made in a year from one to two and suggests employers speed up their decision making by reducing from three months to two months the timeframe for responses. If the measures are adopted employees won’t have to show how their requests can be accommodated as they do under current regulations. Chris said: “The UK flexible working scheme gives employees the right to ask their employer to consider a range of options such as working from home, job-sharing, compressed hours, flexi-time, part-time and term-time working. During the pandemic, there were calls for flexible working to be a day one right for employees and, while there was some support for this proposal, the government hasn’t gone as far to support giving all employees the right to flexible working. Instead, it has said it supports giving all employees the right to request flexible working from day one of their employment.”

UK banking rules in biggest shake-up in more than 30 years

The government has announced what it describes as one of the biggest overhauls of financial regulation for more than three decades. It says the package of more than 30 reforms will “cut red tape” and “turbocharge growth”. Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed. Those were introduced after the 2008 financial crisis when some banks faced collapse. The package of changes is being presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy. However, critics say it risks forgetting the lessons of the financial crisis. Between 2007 and 2009 the then Labour government spent £137bn of public money to bail out banks. The plans to ease regulations on financial services are being described as another “Big Bang” – a reference to the deregulation of financial services by Margaret Thatcher’s government in 1986. The government has already announced it will scrap a cap on bankers’ bonuses and allow insurance companies to invest in long-term assets such as housing and windfarms to boost investment and help its levelling up agenda.

https://www.bbc.co.uk/news/business-63905505

Edinburgh unveils new smart city operations centre

A new ‘smart city’ operations centre has been unveiled in Edinburgh – harnessing the latest technology to keep traffic and people moving. The state-of-the-art facility will use real-time data to monitor congestion and alleviate pinch points for wheeled vehicles and pedestrians across the capital. It will also serve up insights into how city planners can reduce carbon emissions, as well as how to manage major events more effectively and aid emergency first responders. The multi-screened room, which gives operators micro-level detail from CCTV cameras arrayed across the city, has been set up through a combination of local and European funding. It has been delivered in partnership with IT service and solutions provider North as part of a £2.6m contract, funded by the Council and the European Regional Development Fund (ERDF) 2014-2020 programme known as ‘Scotland’s 8th City– the Smart City’, which is contributing £712k in grant funding towards the project. Replacing an outdated control centre which was no longer fit-for-purpose, the new smart operations centre will be manned and receive real-time data from the CCTV network 24/7. This will integrate other technologies which will help to improve traffic flow, transport infrastructure and city planning – improving the city’s collective carbon footprint.