Business News Round Up (12/08/2021)
UK exports to EU ‘return to pre-Brexit levels’
UK exports to the European Union are back at pre-Brexit levels, according to official data. Data for May and June from the Office for National Statistics shows exports rose 9.1% in May to £14.1 billion and 1.2% in June to £14.3bn. William Bain, head of trade policy at the British Chambers of Commerce, said the data revealed how demand picked up following the end of lockdowns and the unbundling of pre-Brexit stockpiles, as firms begin to reorder.” Non-EU exports fell by 5.6% between May and June this year. The data also suggests that logjams at the border caused by new rules and paperwork could be beginning to ease. However, the ONS urged caution in over-interpreting the numbers. Exports to the EU overtook non-EU countries in May 2021 and remain higher in June 2021. However, monthly data are erratic and small movements should be treated with caution.
Organisations encourages to adopt workplace testing to boost recovery
Organisations with ten or more employees can now sign up for asymptomatic workplace testing as part of an enhanced drive to identify emerging coronavirus (COVID-19) cases and break chains of transmission. Free lateral flow device (LFD) tests have been made more widely available as the country emerges from lockdown restrictions and moves beyond level 0. The testing regime is voluntary, and organisations can adopt an LFD Collect model to distribute among workers or implement their own asymptomatic test site (ATS) model in workplaces. Workplace testing in Scotland had previously been targeted at prioritised areas of the public sector, critical national infrastructure, and private businesses with higher transmission rates.
UK economy rebounds as Covid restrictions ease
The UK economy grew by 4.8% between April and June, according to official figures, as most businesses emerged from lockdown. Data from the Office for National Statisticsshowed that the expansion in gross domestic product (GDP) was fuelled by retail, restaurants, and hotels. Education also boosted the economy as schools reopened in the second quarter. However, the figure was slightly below the 5% the Bank of England expected. The UK economy is now 4.4% smaller than it was before the pandemic. Growth in the second quarter contrasts with the first three months of the year, when the economy shrank by 1.6% while Covid restrictions were still in place. In April, non-essential retailers reopened, as well as gyms, hairdressers, and outdoor dining. In May, pubs, restaurants, and cafes were allowed to serve customers indoors, while theatres, galleries and cinemas were allowed to open their doors. The main driver of growth was consumer spending, which rose by 7.3% over the quarter, ahead of expectations.
https://www.bbc.co.uk/news/uk-58183519
Investors continue to deploy record amounts of money into UK scale-ups – KPMG
Businesses in the North attracted £302 million in venture capital investment in the second quarter of 2021, according to a new report. KPMG’s Global Venture Pulse Survey plotted 75 deals in the region, representing 11% of all UK deals by volume during the quarter. The most significant investments in Yorkshire were Element Two from Skipton who secured £41m in funding and Rinri Therapeutics from Sheffield who secured £14m. Ben Taylor, head of technology mergers and acquisitions for KPMG in Yorkshire, said: “The continued investment in businesses is testament to their vision, strong potential and business models. The venture capital these businesses receive will give them a significant boost as they look to scale their businesses and fulfil their ambitions. In keeping with what we are seeing more broadly, there is a lot of interest from investors in businesses with a strong environmental, social and governance agenda, so if your early stage business is able to demonstrate that then you might attract more VC.” The most significant investments in the North West in Q2 were Elieum Therapeutics from Altrincham, who secured £60m from a group of investors, Liverpool ChiroChem and Prevayl from Manchester.