Business News Round Up (10/10/2022)
Businesses pessimistic about government support as output shrinks
Inflation concerns and fears of surging energy prices are taking a heavy toll on businesses despite the UK Government’s pledges to cover a proportion of costs. For half of small businesses, fuel and energy costs remain their biggest concern, according to a survey from business financial platform Tide, conducted at the end of September. Businesses, charities, and public sector organisations will be protected over the next six months with the government’s business relief package which provides companies with a discount on their bills. It is expected to cost around £29bn over the period and will be followed by more targeted support afterwards. But many businesses remain hesitant about whether they will benefit from the policy measures, amid turbulence in the financial markets. More than 70% of small business owners said the Chancellor’s mini-budget – which unveiled sweeping tax cutting measures to stimulate economic growth – had not boosted their confidence. Almost a third of small businesses in Scotland, out of the 128 surveyed, said they are considering closure due to cost-of-living pressures in a stark sign of the mounting burdens on smaller firms.
https://www.insider.co.uk/news/businesses-pessimistic-government-support-output-28196357
Region’s business activity falls for the first time since January 2021
Firms across the North West reported a fall in business activity in September, ending a period of growth stretching back more than a year-and-a-half, the latest Regional PMI data from NatWest shows today (October 10). The headline North West PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – dropped below the 50.0 threshold that separates growth from contraction for the first time since the third national lockdown in January 2021. At 49.4, down from August’s 51.8, the index signalled a modest rate of contraction that was slightly slower than that seen across the UK as a whole (49.1). September saw a further decrease in the level of new business at firms across the North West, indicating a sustained slowdown in underlying demand across the region. The fall in new work was the third in as many months and attributed by surveyed businesses to growing anxiety among customers and a squeeze on purchasing power due to the rising cost of living. Although only modest, it was the biggest fall in new business since the COVID-19 lockdowns in January 2021. The rate of decline matched that seen across the UK as a whole.
‘Made in the UK, sold to the world’ – Government gears up exporting efforts
The Department for International Trade’s flagship campaign ‘Made in the UK, Sold to the World’ begins a new phase, with several Scottish businesses featuring. FROM fire and rescue vehicle manufacturing to satellite technology, the Department for International Trade is shining a light on Scottish SMEs in the next phase of its nationwide campaign. DirectID, Emergency One and AAC Clyde Space are among the Scottish firms featuring in the adverts which will run on local radio, in print, and on billboards in train stations across the UK until the end of November. ‘Made in the UK, Sold to the World’ aims to encourage more businesses to export, and to make use of the free expert advice offered by the UK Government to help them on every step of their journey. Minister for Exports Marcus Fysh said, “Exporters create jobs, pay higher wages, and help grow our economy, which is why we want the UK to be an export-led economy and reach a trillion pounds of exports a year by 2030. “This campaign highlights some fantastic businesses punching above their weight, selling their brilliant products and services made here in the UK to the world. I hope they serve as inspiration to others looking to get onto the exporting ladder. As the campaign says: if you make it in the UK, why not sell it to the world?”
UK & US eye digital data transfer deal
The UK and United States have made ‘significant progress’ towards a data adequacy agreement to boost digital trade between the nations. UK Digital Secretary Michelle Donelan met US Secretary of Commerce Gina Raimondo to discuss digital priorities which the UK government said, “paves the way for a new data adequacy agreement in the coming weeks”. They discussed the UK’s adequacy assessment of the new US Data Privacy Framework, used to send UK data to organisations in America. Data adequacy agreements allow personal data to be transferred freely from the UK to countries with high protection standards, the UK government said. “New deals with other countries will unlock more growth and allow us to share crucial information, such as life-saving research and manufacturing details across our borders,” it claimed. “Reducing barriers to data flows makes it easier for businesses to trade and grow in international markets and brings benefits for consumers such as better access to higher-quality products and lower prices.” It comes after President Biden signed an Executive Order aimed at strengthening safeguards for UK and European Union data processed by US authorities, including protocols for citizens in the EU to seek redress if their data is used unlawfully by intelligence agencies.