Business News Round Up (19/09/2023)
UK business continue to expand operations, despite challenging economic environment, research by IWOCA reveals
Despite a challenging economic environment, 101 new businesses were created every hour across the UK in the first half of 2023, according to research by iwoca, one of Europe’s small business lenders. Analysis of Companies House data reveals “that over 436,000 businesses were registered in the UK between January and June 2023, an increase of 8% from the 402,000 set up over the same time period in 2022.” iwoca’s Business Hotspots 2023 reveals London “saw the highest rate of business creation in the first half of this year with 1,768 businesses being created per 100,000 people.” This was followed by the North West “with 612, climbing from third to second place.” By contrast, last year’s runner-up in new business creation per capita – “the West Midlands – fell to third place this year, with 574 businesses set up per 100,000 residents.” Scotland came bottom of the list “with 365 companies set up for every 100,000 residents, with Wales in penultimate place with 371.” Camden saw the highest total number of businesses per capita “out of all UK local authorities, with 13,646 new companies per 100,000 residents – nearly 3,500 more than were registered in the borough the year before.” The second largest number of firms per capita “were registered in Hackney (6,383) followed by Islington (6,241). London’s local authorities make up all of the top 10.” The analysis reveals that Somerset West and Taunton “saw the largest number of new businesses per capita outside of London, with 1,201 businesses created per 100,000.” West Suffolk ranked second of “all local authorities outside London at 1,187 per 100,000. The high rate of business creation coincides “with the highest self-employment levels since December 2020. ONS figures show the UK was home to 4.39 million self-employed individuals in Q1 2023 – an increase of 154,000 on Q1 2022.”
Report highlights challenges in improving hospitality sector working conditions
A new hospitality-focused project has highlighted the complexities in improving conditions for workers, as employers face the most challenging business environment in more than 20 years. Research published by Poverty Alliance, the University of Strathclyde’s Fraser of Allander Institute, and the Institute for Inspiring Children’s Futures, summarises early findings across three different streams of research into the sector. The three-year Serving the Future project brings together businesses from urban and rural areas of Scotland, aiming to understand, reduce and prevent in-work poverty and to identify actions that both the industry and the government could take to support these aims. The current economic environment has compounded ongoing problems with recruitment, pay and training, leading to difficulties for both employers and workers, it found. Some businesses are also not aware of the support made available by industry bodies and relevant charities. In the case of smaller businesses, feelings of isolation and a perceived lack of unified industry voice were also a cause for concern. The research also heard evidence from workers across Scotland of good and bad practice in the sector, with some employees feeling well supported, while others faced maltreatment and even exploitation. While it is clear that there are employers within the sector motivated to make improvements, the research showed that employees are dealing with precarious hours and relatively low wage rates, leading to greater insecurity. The briefing highlighted seven key themes that have arisen from the research, including the negative impacts of the recruitment crisis, a need for clearer signposting of available training opportunities, and challenges in navigating available support for workers and businesses.
https://www.insider.co.uk/news/report-highlights-challenges-improving-hospitality-30968336
UK manufacturers need more support to help us reach net zero, new report says
The UK needs to make better electrical machines and make its manufacturing processes more efficient if it is to reach net zero by 2050, according to a world leading group of engineers. The Future Electrical Machines Manufacturing Hub (FEMM), a consortium of academics led by the University of Sheffield, focused on addressing key manufacturing challenges in the production of high integrity and high value electrical machines, has made the call as part of its new technology roadmap. Led by Professor Michael Ward from the University of Strathclyde, the roadmap has set out the changes the UK needs to make to electrical machines and the way it manufactures them in order to reach net zero. Electrifying systems that are currently powered by fossil fuels is seen as one of the major ways the world can decarbonise. In the UK, the government’s plans to reach net zero are heavily reliant on emerging and developing electrification technologies. However, according to the new roadmap, this drive to electrification is set to place huge pressure on manufacturers, who will need to produce more electric machines to support this inexorable growth in demand and the ever-increasing requirements on performance and sustainability.
Just Transition Commission: Scotland needs huge new workforce for retrofit
A new report from Scotland’s Just Transition Commission says the Scottish Government must step up with bold and decisive leadership to deliver a major programme to retrofit the country’s buildings and meet climate targets. Today’s report, “Scotland’s Retrofit Workforce” calls for a step-change to make the construction industry meet fair work standards: “Neither business as usual nor piecemeal efforts, however well intentioned, will suffice, especially given the well-documented, serious and persistent problems experienced by those already working in our construction industry in terms of pay, safety, security, terms and conditions, and systemic inequalities in the demographic of the workforce.” The Commission’s latest report urges the Scottish Government to make full use of procurement mechanisms and regulation “to address low pay and widespread bad practices such as bogus self-employment, precarious short term contracts, informal recruitment practices and funding arrangements that have made the industry more an employer of last resort than of choice. We can no longer afford a “cheapest wins” approach,” the Commission warns. “Clear mechanisms are required to move beyond this if we are to support the new workforce required.” The report says there needs to be an urgent and honest public conversation about how retrofit of Scotland’s buildings is paid for if this transition is to take place fairly, noting that “there is a clear risk that costs will be distributed inequitably across those in social, private rental and mortgaged housing, and that those who can afford to pay for the work required will be highly resistant to doing so.”