Business News Round Up (20/06/2024)
Businesses lack confidence in AI and green technologies as the skills shortages persists
New data from this year’s Business Barometer report published by The Open University in partnership with the British Chambers of Commerce, has found that nearly two thirds (62%) of UK organisations are still reporting worrying skills shortages. The annual report, monitoring the current UK skills landscape, highlights that although there is a modest improvement with slightly fewer organisations reporting skills shortages, down from 73% to 62%. However, skills shortages remain a prevalent issue across sectors and regions in all four nations. Despite this, less than one in five (19%) organisations have implemented a written skills plan for their workforce this year, hindering the ability to strategically address these issues and prepare for future demands. In particular, organisations have reported a lack of confidence (64%) in applying either new AI or green technologies, skills that employers agree are crucial to growth and sustainability for UK businesses and the wider economy.
Inflation falls to Bank of England’s 2% target
Inflation has fallen to the Bank of England’s 2% target, providing some welcome news for businesses and household as well as the Prime Minister who will see it as an endorsement of his economic policy. The fall from 2.3% in April was predicted and means it is the first time inflation has met the target since July 2021. The easing in the inflation rate comes ahead of the Bank’s decision tomorrow on interest rates which it is expected to hold at 5.25%. There was a slowdown in price rises for food and soft drinks, recreation and culture, and furniture and household goods. Core inflation which excludes food, energy, alcohol and tobacco, as they tend to be volatile, is forecast to have fallen to 3.5% from 3.9%, also as expected.
https://dailybusinessgroup.co.uk/2024/06/inflation-falls-to-bank-of-englands-2-target/
Scottish businesses urge next UK Government to focus on jobs and economic growth
The leading Scottish business organisation is calling on all main political parties in the UK General Election to prioritise economic growth and job creation. The Scottish Chambers of Commerce (SCC), which represents 12,000 businesses across all sectors, has published a 15-point action plan for the next UK Government. It wants Westminster to establish a Joint Economic Growth Board, a partnership between business and government, within their first 100 days in office to oversee an ambitious programme of pro-enterprise and pro-growth policies. Key priorities for the SCC are a commitment to no new taxes or levies on business for the lifetime of the next Parliament, investment in a Green Industrial Strategy, boosting global trade, developing a skilled workforce, a detailed just transition plan for the oil and gas sector, and cutting VAT across the hospitality, leisure, and tourism sectors.
Scotland’s skills shortages persist despite progress
New data from this year’s Business Barometer report published by The Open University in partnership with the British Chambers of Commerce, has found that over half (56%) of Scottish organisations are still reporting worrying skills shortages. According to the annual report, monitoring the current UK skills landscape, this is lower than the UK average of 62%, but a modest improvement on 2023 UK results, when almost three quarters (73%) reported skills shortages. However, despite this, less than one in four (23%) organisations have implemented a written skills plan for their workforce this year, hindering the ability to strategically address these issues and prepare for future demands. While 56% of organisations reported a lack of confidence in applying new AI and 47% in adopting green technologies, employers agree that these skills are crucial to the growth and sustainability of UK businesses and the wider economy.