Business News Round Up (14/10/2021)
Covid claims almost 10,000 licensed premises
Britain lost nearly 10,000 pubs and restaurants during the pandemic, with a late flurry of closures in recent months despite the ending of lockdown. New data reveals there are 9,900 fewer licensed premises than in March 2020, with 980 closing since July this year when the market reopened. The closures – an average of 16 a day – expose a range of operational challenges including labour shortages, disruption to supply and rising costs. The Market Recovery Monitor from CGA and AlixPartners indicates that small businesses have borne the brunt of closures. Independently run pubs, restaurants, bars, and other licensed premises accounted for nearly three quarters of all closures between July and September, reducing the independent sector in size by 1%. By contrast, the managed sector proved robust over the summer, achieving growth in site numbers of 0.1%. The latest report also highlights the plight of nightclubs over the COVID crisis. Despite being able to trade from July, the number of nightclubs dipped by nearly 100 to just over 1,000 by September – a drop of 9% in just two months.
Employers have yet to adapt to the flexible working revolution sweeping through the UK’s offices, new research has shown
More than 1,000 office workers across the UK were surveyed in August to understand how well prepared employees and organisations felt for their widespread return to the workplace this autumn, and how flexible working practices – where staff time is split between working from home and from the office – were playing out. Just 22% of participants reported that their offices had been redesigned to support hybrid working, and only 7% had received training in managing or participating in hybrid meetings, indicating a training gap for effective hybrid working and hybrid meeting management. While most participants reported flexible working patterns at their workplace, only 31% were aware of a formal flexi-hours policy in their organization, and just 21% knew of a formal hybrid working policy. The research raises the prospect of significant disruption and change in UK workplaces in the coming months as employers adapt to the biggest shake-up of office work in decades, with findings being a part of a major research project being undertaken by Leeds University Business School on changes in the workplace as the UK emerges from COVID-19.
Economic recovery underway for Scottish businesses but threats are still looming
Businesses in Scotland have reported strong economic growth over the summer months, but concerns are still mounting over rising cost pressures, inflation and taxation, a survey has found. Reporting “resilience” in the Scottish economy, the latest Scottish Chambers of Commerce (SCC) Quarterly Economic Indicator Survey said firms are “shaking off the cobwebs” thanks to the benefits of the easing of Covid-19 restrictions. A bounce back was enjoyed during the summer months which saw most of the growth generated from the construction, financial & business services (FBS) and manufacturing sectors according to the findings. Although retail and tourism also saw growth from Q2, it was described as “subdued” in comparison to other sectors. However, the report highlighted all sectors have reported significantly increased concerns over inflation and taxation with levels of concern over inflation now reaching record highs. Surges in the cost of raw materials and shipping, global supply chain disruption and the UK Government’s decision to raise National Insurance contributions, were all cited by firms as key factors.
Reform UK business rates or risk more shop closures, say trade groups
UK trade groups representing 9m employees have called on ministers to reduce the burden of business rates or risk further store closures as well as undermining net zero investment ambitions. More than 40 trade associations spanning the UK economy such as the CBI, British Retail Consortium and British Property Federation with roughly 261,000 business members have issued a joint call for a long promised reform to the rates system. The trade groups argue the chancellor needs to use the Budget this month to freeze or cut business rates where appropriate to boost investment, describing the current regime as “outdated and outmoded” and acting as “a drag on the government’s goal of a high wage, high productivity and high investment economy”. Helen Dickinson, chief executive of the British Retail Consortium, said that “sky high business rates are closing stores up and down the country and preventing new ones from opening”.
https://www.ft.com/content/7df80c7f-4bfa-46ad-b20c-aa02cb801930