Business News Round Up (10/01/2023)
UK consulting sector to create 10,000 jobs by 2026
As the war for talent continues, the management consulting industry of the UK looks to be stepping up its recruitment – with an industry report finding a 20% increase in new roles over the last year. The trend looks set to continue in spite of economic turbulence, too, with 10,000 new jobs reportedly set to be created in the coming three years. The Management Consultancies Association (MCA) is the representative body for management consultancy firms in the UK. Each year, the Management Consultancies Association (MCA) uses the performance of its members to gauge the size and health of UK’s management consulting market – and according to the organisation’s latest figures, the sector is set for major growth in the coming years. Figures collected by the MCA show that nearly 10,000 new jobs have recently been announced by in-demand consultancies, as they invest in boosting their talent pipeline until 2026. This continues a sustained trend across firms of all sizes, which has seen ambitious recruitment plans launched during one of the busiest periods ever for the consulting industry. As clients turn to consultants for critical support during periods of significant change – resulting from the recession, the lingering impacts of Brexit, the pandemic, supply chain disruption, and digital transformation, among other key trends.
https://www.consultancy.uk/news/33211/uk-consulting-sector-to-create-10000-jobs-by-2026
200% jump in funding for Scotland’s fintech cluster
In the last 12 months, Scottish financial technology (fintech) firms received more than £305m in funding, representing an increase of over 200% on the previous year. More than 60% of this was raised by small and medium-sized enterprises (SMEs) focused on payment and data innovation, while wealth management solutions and financial regulation firms also made up a significant proportion of those receiving investment. The latest figures compiled by industry body FinTech Scotland also showed that 2022 saw the number of Scottish fintech SMEs increase to 211 – up 13% during the year – driven by both new start-ups and international firms setting up in Scotland. The organisation’s chief executive Nicola Anderson said: “I am continuously inspired by the progress achieved by fintech entrepreneurs who continue to accelerate innovation, change and growth across the cluster. The record levels of investment reinforces the value of of fintech innovation, and propels us to continue driving cluster excellence, build on the recognition we achieved in 2022, and the role we play in contributing to the growing wider UK fintech ecosystem.” Adrian Gillespie, chief executive of Scottish Enterprise, added: “The growth of Scotland’s fintech sector demonstrates what can be achieved when all partners work collaboratively to create an ecosystem that is attractive to companies and investors. FinTech Scotland has made an enormous contribution to developing our country’s fintech sector since its inception.”
https://www.insider.co.uk/news/200-jump-funding-scotlands-fintech-28914795
Britain’s shrinking workforce prolonging inflation, warns Bank of England
A surge in early retirement and long-term sickness means Britain faces a prolonged period of inflation compared with the rest of the world, the Bank of England’s chief economist has warned. Huw Pill said the UK was facing a “distinctive” combination of challenges that meant the “threat” of persistent price rises may remain, even if energy costs fall. The warning came even as the chief economist said there were signs that the jobs market was cooling, as more companies stop hiring and the economy falls into recession, which will help to keep a lid on price rises. Mr Pill identified Britain’s shrinking workforce as a key factor that could keep prices high, which together with the energy crisis and supply chain issues increases the risks of price rises persevering. More than half a million Britons have stopped looking for work altogether since the start of the pandemic, with many dropping out of the workforce because of ill health. The decline in participation rates, particularly among people aged 50 to 65, is fuelling the tight labour market, said Mr Pill during a speech in New York. He added: “The reasons behind this decline remain the subject of debate, but the impact of the pandemic on early retirement and long-term health, as well as underlying demographic developments, all seem to have played a role.” Mr Pill added that the shrinking workforce made it more “difficult” for policymakers to control price rises, even as the economy shrinks. He said that workers could continue to demand above inflation pay rises for years to come in an effort to compensate for this year’s expected plunge in living standards.
New energy support package falls short for struggling UK businesses
Following today’s announcement from Government on a new energy support package for businesses, BCC Director General, Shevaun Haviland, said: “Despite Government efforts, an 85% drop in the financial envelope of support will fall short for thousands of UK businesses who are seriously struggling. Many businesses have been fighting for their survival for months, and rising energy costs have fast become the tipping point. While we welcome the 12-month duration of this package, its value is nowhere near far enough and means that for some firms, energy will now be a cost too far. We understand Government must consider public finances, but any support package, short or long term, should be right for business – otherwise we’re going around in circles. The wrong type of support will continue to see business confidence deplete and Government having to revisit its package. This is not about giving a handout to failing firms. It is about investing in British businesses, many of whom are confident about the strength of their orderbooks despite being hammered by eye-watering energy costs. Our economy will not be able to grow if our businesses are in decline. Alongside an energy support package, we need an energy support strategy to get businesses on the right track to longer term efficiency.”