Business News Round Up (11/08/2023)
UK economy grows by 0.2 per cent between April and June
The U.K. economy grew by 0.5 percent in June, according to figures published by the ONS this morning. The U.K.’s gross domestic product shrank by 0.1 percent in May — which was put down to the three bank holidays — and grew by 0.2 percent in April. Production output grew by 1.8% in June 2023 after a fall of 0.6% in May 2023, unrevised from the previous publication; this sector was the main contributor to the growth in monthly GDP in June. The construction sector grew by 1.6% in June 2023, following a fall of 0.3% in May 2023, revised down from a fall of 0.2% in the previous publication. Services output was up 0.2% in June 2023, after showing no growth in May 2023, unrevised from the previous publication; output in consumer-facing services grew by 0.5% in June 2023, following an unrevised fall of 0.2% in May 2023. It was the first time since October 2022 that all three sectors of the economy recorded growth.
Post-Brexit export scheme ends to salmon producers’ dismay
Trials of a system designed to cut regulations for fish exporters after Brexit are ending without a replacement – causing dismay in the Scottish salmon industry. The digitisation of the paper health certificates required for all fish and chilled food being exported to Europe was intended to save traders time and up to £3m on post-Brexit paperwork. But the Guardian has reported that the Department for Environment, Food and Rural Affairs (DEFRA) has told those involved in a pilot scheme – in place since September 2021 – that it will end. The sector saw electronic certification as a means of reducing the paperwork for exports, needed since Brexit. It was hoped that the new electronic certification system could be introduced in the UK and then in other ports across Europe. Delays to the digitisation project come days after it emerged the UK Government was going to delay – for the fifth time – the first phase of paperwork required for EU fresh food producers that export to the UK. The UK also recently delayed, indefinitely, the plans to introduce an alternative to the CE safety label with its own UKCA logo. While British farm food products have been subjected to public health checks and controls since 2021, their EU counterparts have in effect had a free pass, with the equivalent checks in the UK now not being introduced until next year.
https://www.insider.co.uk/news/post-brexit-export-scheme-ends-30673160
‘UK businesses unprepared for net zero’
Nearly 35% of smaller firms in the UK possess a clear comprehension of the net zero objective, in contrast to 56% of their larger counterparts. That’s one of the findings of a recent survey conducted by the British Chambers of Commerce (BCC) and Lloyds Bank. The survey, which encompassed more than 1,000 businesses, shed light on the varying levels of awareness based on the size of the company. While the survey reveals a knowledge gap, it also offers encouraging insights. Despite a partial understanding of the net zero target, many firms are already adopting eco-friendly practices and technologies. For instance, over two-thirds of small and medium-sized enterprises (SMEs) have embraced energy-efficient LED lighting. Moreover, more than a third are investing in environmentally friendly vehicles, and nearly half are implementing recycling and waste reduction measures. Paul Gordon, Managing Director, Relationship Management at Lloyds Bank said: “SMEs are the lifeblood of the UK economy and will play a critical role in our sustainable transition. Despite a challenging external environment and cost, time and resource pressures, our research with the BCC shows that businesses are taking steps towards net zero, particularly where the commercial benefits are clearer – for example, reducing energy consumption to lower costs.”
The hidden business cost of outdated technology
Almost nine in 10 UK businesses continue to struggle with basic tasks each day because of a failure to update their technology systems. It may seem more affordable to keep existing technologies and only invest in upgrading them when the systems or software becomes broken. But many business leaders are unaware of the impact old legacy systems can have on finances and outputs. Cloud technology experts at TelephoneSystems.Cloud have named the hidden costs businesses are unknowingly incurring by keeping their old tech in place, rather than upgrading to modern systems. Business leaders that fail to understand how legacy systems can hinder growth risk falling behind competitors who have moved more quickly to update systems. Newer technology is usually faster and more efficient while offering greater transparency and collaboration resulting in stronger internal and external business relationships. Staff retention is often higher if a business embraces integrated technologies that enable more progressive working practices with more employees wanting to have the opportunity to work remotely. A recent study has shown that more than one third of UK workers would quit their job if they were asked to work full time in the office.