Business News Round Up (10/02/2023)
Britain narrowly avoids sliding into a recession
Britain has narrowly avoided a recession as new data reveals the economy is in more robust shape than some forecasters expected. However, the economy contracted sharply in December, meaning there was zero growth in the final quarter of 2022 and the country may still tip into recession this year. Services saw 0% growth, production fell 0.2%, while construction saw 0.3% growth. A country is considered to be in recession if GDP shrinks for two consecutive three-month periods. GDP in the third quarter (July to September) fell by 0.3%, but there were indications that the final quarter was not as bad some feared. The economy grew by 4% over the year. “Despite recent squeezes in household incomes, restaurants, bars and travel agents had a strong year,” said the ONS. Chancellor Jeremy Hunt said: “The fact the UK was the fastest growing economy in the G7 last year, as well as avoiding a recession, shows our economy is more resilient than many feared. However, we are not out the woods yet, particularly when it comes to inflation. If we stick to our plan to halve inflation this year, we can be confident of having amongst the best prospects for growth of anywhere in Europe.”
https://dailybusinessgroup.co.uk/2023/02/britain-narrowly-avoids-sliding-into-recession/
Salesforce named founding partner of North West cybercrime unit
The North West Cyber Resilience Centre (NWCRC) has revealed that Salesforce will be its latest founding partner. The centre is part of a network of 9 regional hubs set up to support SMEs and third sector organisations reduce their vulnerability to cybercrime. “We’re delighted to welcome Salesforce as our latest Founding Partner. Seeing so much interest in our mission to improve cyber resilience across the region’s business community is really encouraging. We’ve been fortunate with the calibre of partners supporting us,” explained Detective Chief Inspector Chris Maddocks of the North West Regional Organised Crime Unit. “The NWCRC was set up in Greater Manchester in 2019 as a pilot scheme to support businesses in the region with the growing threat of cybercrime and cyber fraud. It was so successful that it was expanded for the North West region, rolled out to other areas across England and Wales, and included in the HM Government National Cyber Strategy 2022. As a result, the NWCRC membership continues to grow at pace year on year.”
UK recovery data shows London pulls ahead of other English regions
The latest regional figures for the UK economy show that London grew at a faster pace than the other eight English regions in figures that highlighted the government’s challenges in shifting growth outside the capital. The Office for National Statistics (ONS) said London had the largest positive quarter-on-quarter growth in last year’s April to June period at 1.2 per cent, while the largest negative growth was in the North-east, at 1.6 per cent. Overall UK GDP growth in Q2 of 2022 was 0.1 per cent, part of an up-and-down year in which Britain posted a 4 per cent increase, the fastest in the G7 grouping. “Of the nine English regions, only London, the east of England and Yorkshire and the Humber are estimated to have shown positive growth in quarter two, 2022, with growth flat in the North-west,” the ONS said. “The North-east, South-east, East Midlands, South-east and West Midlands all showed negative growth, with the largest negative growth at 1.6 per cent in the North-east.” Compared with the same quarter in 2021, London’s economy grew by 9.5 per cent, followed by the North-west with growth of 3.6 per cent. The ONS pointed out that “regional data can be volatile and quarterly movements should be considered alongside the long-term trend”.
Alcohol advertising ban could ‘cost jobs’ in whisky industry
Stricter alcohol advertising rules planned in Scotland are “draconian” and could have an impact on the whisky industry, a senior Scottish Conservative has warned. Conservative former Scotland secretary David Mundell claimed that restrictions the Scottish Government is currently consulting on could “cost jobs in Scotland”. The Scottish Government has launched a consultation which considers banning alcohol sponsorship for both sports and live events. This runs until 9 March, with proposals that could also see distillery and brewery shops barred from selling branded merchandise to visitors, as well as drinks branding being removed from pub umbrellas and glassware. Leading companies in the drinks sector have written to the Scottish Government to air their concerns about the new planned advertising restrictions. In the Commons, Mundell said: “Is the minister aware that the Scottish Government is planning to bring forward draconian restrictions on the advertising of whisky and other drinks in Scotland?” The MP for Dumfriesshire, Clydesdale and Tweeddale, added: “Not only will that cost jobs in Scotland, it will make it much more difficult for the industry to export to the EU and elsewhere.”
https://www.insider.co.uk/news/alcohol-advertising-ban-could-cost-29174969