Business News Round Up (17/06/2022)
Testing times as quarterly growth dries up says Chamber of Commerce
The British Chambers of Commerce has downgraded its expectations for UK GDP growth for 2022 to 3.5% (from 3.6%) against a deteriorating economic outlook. It now expects the UK inflation rate to reach 10% in the last quarter of the year, comfortably outpacing average earnings growth. The heightened economic uncertainty and rising costs are also expected to significantly weaken business investment, with 1.8% growth predicted in 2022, down sharply from 3.5% in the previous forecast. Expectations for growth in 2022, at 3.5% are now less than half the 7.5% growth recorded last year. Quarter on quarter GDP is expected to flatline with no growth expected in Q2 and Q3 before contracting by 0.2% in Q4. This negative outlook reflects a combination of soaring inflation, weak business investment, tax rises and the global economic shocks – initially caused by Covid and then compounded by the war in Ukraine. Annual UK economic growth is expected to slow sharply to 0.6% for 2023 before recovering slightly to 1.2% in 2024.
£18m cybersecurity hub opens in Dundee
A new centre for cybersecurity has opened at Abertay University in Dundee. The Abertay cyberQuarter is joint funded by the UK and Scottish governments through the Tay Cities Region Deal. The project cost £18 million to complete. The hub, which is the first of its kind for Scotland, will support the rapidly growing cyber sector. It aims to create new solutions to local, national, and international cybersecurity challenges, while bringing inclusive economic growth to the area as it supports expansion of existing companies and helps grow new ones. The four-floor space is open to businesses, academics, and students and it includes a secure cloud-computing infrastructure for online teaching. National Services Scotland’s cybersecurity arm will be the first to move into the centre, creating 30 new jobs. Students on the University’s Ethical Hacking, Computing and Cybersecurity courses will have the opportunity to learn from industry professionals in the cyberQuarter, while they bring new ideas to joint projects.
https://www.holyrood.com/news/view,18m-cybersecurity-hub-opens-in-dundee
Employees ‘struggle with hybrid colleagues’
Hybrid working arrangements are creating tensions between managers and employees as they adapt to operating in dispersed teams. A survey of 2,000 workers and more than 500 employee relations directors highlighted a looming HR crisis with a third (35%) of employees “struggling to collaborate with colleagues in a hybrid environment”. Results from the research by HR and talent solutions company LHH suggest that a majority (53%) of learning and development (L&D) leaders understand that managing teams remotely is a very different skillset to managing someone in person. Disagreements over hybrid working arrangements, including who gets to work from home and why, could create serious challenges for HR and business leaders, says the study. When asked what factors were most important in determining who should be able to work remotely, employees said that job role or department (73%) and a proven track record of being able to work from anywhere (73%) were the most important. By contrast, the majority (68%) of L&D leaders believe that decisions about where employees work should be based on how each individual employee works best and two-thirds (63%) agreed that every employee should take a personality and working assessment test to ascertain how they perform best.
Less than one in five Scottish businesses decline client work over ESG credentials
Business leaders in Scotland are voting with their feet and declining to work with clients because of their ESG credentials, but at a much lower level than across the rest of the UK. That is according to new research from accountancy and business advisory firm BDO. Its survey found that 18% of businesses in Scotland are declining or discontinuing to work with clients or customers as a direct result of their environmental, social and governance (ESG) performance. When asked which factors business leaders considered most important when selecting or renewing contracts with customers or suppliers, 55% selected equality, diversity, and inclusion performance. The second most important consideration from 21% of businesses is the reputation of potential customers or suppliers with external stakeholders including the media. Personal relationships was also cited by one in 10 companies. In regard to diversity and inclusion, improving social mobility and socio-economic diversity is a key priority for a 38% of businesses. This compares to 23% of businesses that are prioritising environmental commitments as part of their ESG agenda.
https://www.insider.co.uk/news/less-one-five-scottish-businesses-27252440