Business News Round Up (19/04/2022)
Vacant shops reborn as landlords to be forced to let units that have been empty for six months
Empty shops will be given a new lease of life under a radical plan to revitalise high streets. Landlords will be forced to let out retail units that have been vacant for longer than six months under the Government’s new plans. It will allow community groups and small businesses to take over boarded-up properties that blight once thriving town centres, hopefully returning them to their former glories. The new powers will be introduced as part of the Levelling Up and Regeneration Bill, which will be announced in the Queen’s Speech next month. The number of empty shops has soared since the pandemic with many that were shuttered during lockdowns failing to get back on their feet as the shift towards online shopping accelerated. Fashion retailers have been among the hardest hit, with the closure of brands such as Debenhams and Topshop contributing to vacancies. Across the country, one in seven shops is sitting empty according to latest figures from the British Retail Consortium. The north-east of England has the highest vacancy rate, with one in five closed. Under the new plan, local authorities will be able to force landlords to rent out commercial property on high streets through a Compulsory Rental Auction. After a short grace period for landlords to fill the shop, local authorities will be able to instigate an auction, inviting bids from interested parties.
HR firms experiences 75% increase in businesses requesting support to help implement new ways of working
Aberdeen-based Align People HR has reported a 75% increase for requests from businesses looking for support to implement permanent hybrid working practices and flexible working trials. The independent HR consultancy has been assisting businesses across multiple sectors in the North-east to introduce a range of flexible working trials. It experienced the increase in the first quarter of this year for support. It includes moving to an output or productivity-based work system, whereby employees receive an additional one day off per month with no reduction in pay – providing productivity targets are met. Other clients have introduced flexibility in allowing employees to choose their start and finish times: provided core hours are being covered they can opt to work on a more flexible basis to fit in with their lifestyles and family commitments. Businesses have reported an overwhelmingly positive reaction so far from employees involved in this three-month trial, Align People HR reported. The Chartered Institute of Personnel and Development (CIPD) recently published a research paper arguing that organisations need to offer flexibility beyond traditional work or shift patterns in order to be considered an employer of choice.
Subdued start for FTSE 100 as slower growth concerns weigh, investors await US earnings
Investors returned from the long Easter weekend in a subdued mood, amid concerns about slowing economic growth and tightening monetary policy, while the focus for the week ahead will continue to be on the US first-quarter earnings season. A group of 143 countries representing 86% of the global economy is expected to hear from the International Monetary Fund on Tuesday that economic growth is likely to slow down in their countries in the near future. The IMF is due to release its latest world economic outlook at 1300 GMT on Tuesday, and director Kristalina Georgieva had already warned that the news is likely to be downbeat. The Russian invasion of Ukraine, which has resulted in disruption of exports from both commodity-rich countries, coupled with the Western sanctions piled on Russia in response, both play a role in the expected slowdown. The FTSE 100 index was down 7.12 points, or 0.1%, at 7,609.26 early Tuesday. The mid-cap FTSE 250 index was down 131.88 points, or 0.6%, at 20,989.73. The AIM All-Share index was down 2.79 points, or 0.3%, at 1,057.37.
Manchester-headquartered Northcoders opens first hub outside the North
Northcoders, the Manchester-headquartered provider of software coding trading, is set to open a new Birmingham hub in line with increased demand for tech training and upskilling across the Midlands. Building on its existing hubs in Manchester, Leeds and Newcastle, Northcoders’ first hub outside the North of England will open on May 3rd May in Spaces at Birmingham’s Mailbox development. The new hub will facilitate flexible hybrid teaching online and in-person, accessible immediately. “Birmingham and the wider Midlands region has a strong tech scene, so this was the next natural step in our growth following the opening of our sites in Manchester, Leeds and Newcastle,” said Chris Hill, CEO of Northcoders. “The demand for digital skills and upskilling is only going to increase over the next few years so the focus for us will be on ensuring that our Birmingham hub delivers the education and technology training that will help businesses, individuals and the region’s economy to thrive.”