Business News Round Up (15/07/2022)
Fewer UK businesses plan to raise prices, ONS says
The proportion of businesses expecting to increase their prices fell to its lowest in at least three months, according to a survey of businesses that adds to signs price pressures are cooling from recent highs. The Office for National Statistics (ONS) said 26% of companies surveyed over the past two weeks intended to raise prices in August. This was down from 31% in April, when the question about price changes for the following month was first asked. The proportion of businesses reporting that they had raised their prices over the last month fell to 20%, down from 24% in March, the ONS said. Other gauges of inflation expectations among businesses and consumers have also eased back recently after hitting multi-year highs — good news for the Bank of England (BoE) as it watches for signs that the recent jump in inflation is becoming embedded in the economy. The BoE is also watching for signs that the economy might enter a more severe slowdown than feared, with chief economist Huw Pill last week warning that little to no economic growth was likely over the next year. A BoE survey of lenders published on Thursday showed lenders expect the biggest fall in demand for mortgages since mid-2020, in a further sign that the housing market is cooling in the face of surging inflation.
https://www.fm-magazine.com/news/2022/jul/fewer-uk-businesses-plan-raise-prices-ons-says.html
Edinburgh office market performance for Q2 2022 revealed by CBRE
OFFICE take-up in Edinburgh totalled 87,168 sq ft in the second quarter of 2022, down 45% from the same period in 2021 and down 65% against the Q2 five-year average of 251,458 sq ft. Despite this the total take-up for the year to date is a healthy 206,094 sq ft. Encouragingly, with 789,275 sq ft worth of occupier requirements in the pipeline, Edinburgh is still in high demand. The flight to quality accommodation also remains within the Capital, with 35% of the space transacted in Q2 classified as Grade A. The actual volume of deals remains in line with previously forecasted predictions, and with 13 occupiers within the city regearing over 187,000 sq ft, the city evidently still has appeal. Notable regears included Scottish Ministers’ 89,000 sq ft space at Silvan House and Skyscanner committing its future to Edinburgh’s Quartermile One by extending its lease. The quarter’s largest deal was at Exchange Crescent, with Dukosi taking 12,000 sq ft in a deal that CBRE was involved with. Copenhagen Offshore Partners transacted 5,318 sq ft at the recently completed 10 George Street and Manor Estates has taken 5,073 sq ft at New Mart Place. So far this year the highest level of activity has been recorded in the sub 5,000 sq ft market, with 56 deals equating to an 85% market share of all 2022 deals within the city. Despite modest take-up figures for the second quarter of 2022, supply has still dropped significantly as some properties were withdrawn from the market for alternative uses. At the end of June, Edinburgh office supply sat at 1.83m sq ft, the lowest it has been in nine months. Furthermore, newly developed Grade A space remains at an absolute premium within the city centre of Edinburgh, with just 31,423 sq ft available – representing a vacancy rate of 0.17%.
UK tech talent shortage threatens to stifle growth in the industry
The UK technology sector has a talent shortage which could “stifle growth”, an industry body has warned. Liz Scott, from TechNation, said it was “a real issue” which must be rectified. There were more than two million UK job vacancies in tech last year, more than any other labour area, but an industry coalition says nearly 12 million workers lack essential digital skills. The government told the BBC it was working very closely with industry on digital skills training. However, schemes like boot camps, apprenticeships and degree apprenticeships do not seem to be enough to address the gap. Michelle Donelan, former education minister, said: “Employers both large and small are crying out for more people to be trained in digital skills. An apprenticeship is a fantastic way to achieve that. Not just for young people, but also those looking to upskill.” But, according to government figures, nearly half of all apprentices across all sectors, not only in tech, dropped out last year. Data cited in the latest UK jobs report from professional services network KPMG and the Recruitment and Employment Confederation showed candidate numbers for job vacancies has been falling.
https://www.bbc.co.uk/news/technology-62098767
New bursaries to help learners upskill and retrain
Learners who could struggle with study-related costs such as books and childcare fees can now apply for up to £2.5 million worth of targeted bursary funding to help them access new higher education ‘short courses’. As part of the government’s pledge to offer tens of thousands of adults the chance to retrain in later life, gain in-demand skills and open further job opportunities, 22 universities and colleges across England will be offering over 100 short courses to students from this September as part of a three year trial. Developed with the help of employers, the courses give learners the flexibility to gain an accredited certificate and valuable skills that can be applied in the workplace in key areas. These courses that could be as short as six weeks – or as long as a year if studied part-time – in subjects vital for economic growth including STEM, healthcare and education. To support this flexible study, learners can now apply for tuition fee loans created especially for the short courses to support them for the duration of their study and administered by the Student Loans Company. Alongside this, bursary grants will be available for learners who need extra financial support to pay for additional costs associated with study. Anyone applying for a loan for one of these ‘short courses’ who faces financial barriers to their learning could be eligible for a bursary. This includes the costs of learning materials such as books, childcare fees and learning support for disabled students.