Business News Round Up (19/11/2021)
UK business chiefs’ economic optimism on the rise
According to this year’s ‘Captains of Industry’ survey, 81 per cent of the business leaders expected their companies’ fortunes to improve over the next 12 months – up from 42% a year ago and equal to the optimism expressed when the question was first asked in the survey in 1987.
The report was compiled by research and polling firm Ipsos MORI, which surveyed business leaders from some of the nation’s biggest firms by turnover, and financial companies by capital employed. Almost four-fifths of the respondents also expected the economic condition of the country to improve over the coming 12 months, compared to just 30% in the 2020 survey. Kelly Beaver, chief executive at Ipsos MORI, Kelly Beaver said: “This is the 40th anniversary of the ‘Captains of Industry’ study providing unique insights into what the UK’s leading businesspeople think about a whole host of important issues, across the economy, politics, business, diversity and the environment. What the latest study shows is that while Covid has had a significant impact, businesses are relatively optimistic about the next 12 months. And while it has often been the case across the 40 years of the ‘Captains of Industry’ study that those interviewed are more optimistic about their own businesses fortunes over the next 12 months than about the general economic outlook, this year bucks the trend with equal optimism across both.”
Cancelling HS2 to the North will affect the ‘economy’ and ‘a wide range of job opportunities’
Greater Manchester Chamber of Commerce has responded to the government’s Integrated Rail Plan. The plan confirmed vital and significant new routes such as the eastern leg of HS2 to Leeds and Northern Powerhouse Rail from Leeds to Manchester via Bradford have either been scaled back, replaced by upgrades, or completely scrapped, but also contained details of new high speed track announcements including a new line from Warrington via Manchester to the West Yorkshire border. Chris Fletcher, Policy Director at the Chamber, said: “After such a prolonged and delayed build up we were really expecting a lot more from the Integrated Rail Plan around brand-new lines, investment and capacity where they are needed most, linking the major economic centres across the north and opening access to the Midlands and beyond. The original aim of previous schemes and strategies such as the Northern Powerhouse, was to add in vital extra rail capacity that would allow the unlocking of labour markets across the north to allow the easier movement of people to access a wider range of job opportunities.”
UK consumer confidence unexpectedly increases in November
Consumer confidence in the U.K. improved in November after three consecutive months of declines, signalling that Britons’ moods could have bottomed out and people are willing to spend more over the coming holiday season. GfK’s consumer-confidence barometer rose to minus 14 in November from minus 17 in October, recovering some of the lost ground from the falls registered in the past few months. Economists polled by The Wall Street Journal expected the barometer to decrease to minus 18. Consumer prices increased 4.2% on year in October after a 3.1% rise in September–the fastest rate of inflation since December 2011 and more than double the Bank of England’s 2% target. Four out of five measures that make up the consumer-confidence barometer increased in November compared with the previous month. The data showed that views on the general economic situation improved, but also signaled that consumers are less optimistic about their personal finances.
£95m ultrafast broadband boost for Scotland
Over 250,000 Scottish homes and businesses are set for a major broadband boost thanks to a £95m investment by leading digital network provider Openreach. More than 50 further communities across Scotland will be upgraded following the company’s latest build announcement, with a new, ultrafast, ultra-reliable “full fibre” network to be built to most premises in these areas. The Highland capital of Inverness and East Kilbride are the largest locations to benefit, with Ecclefechan in Dumfries and Galloway and Stow in Scottish Borders among the smallest. The island communities of Rothesay on Bute, Whiting Bay on Arran and Port Ellen on Islay are also included, alongside places such as Broughty Ferry, Portsoy, Cumbernauld, Wishaw and Garelochhead. Openreach has now extended its “superfast” broadband to more than six million homes and businesses across the UK with ultrafast full fibre, around 480,000 of them in Scotland. The latest plans follow news earlier this year that around 300,000 Scottish homes and businesses would get access to Openreach’s new network, mostly in rural and harder to serve areas.