Business News Round Up (21/03/2022)
US and UK start talks on deepening trade and investment links
The United States and Britain will this week open talks aimed at deepening trade and investment links between the two countries. Securing a bi-lateral free trade agreement with the US has been a high priority for the UK since it left the European Union. However, the Biden administration had indicated that its focus was on its domestic agenda. US media has reported recently that the Biden administration now wants to strengthen economic ties with friendly nations in light of the Russian invasion of Ukraine and China’s growing influence in setting rules and standards for global trade and technology. A US/UK trade accord has, however, been complicated by concerns among senior political figures in the US Congress about the Northern Ireland border and any moves by the British government that could undermine the Good Friday agreement.
EY relocates to new Liverpool office as it shifts to hybrid working
EY is relocating to new serviced office space in Albert Dock, Liverpool after transitioning to hybrid working. The big four auditor is moving from its current home at 20 Chapel Street to Clockwise: Edward Pavilion, a Grade I listed building which will provide areas for in-person collaborative working, along with a variety of workstations including hot desks and team areas. Last year, EY confirmed that it is transitioning to hybrid working in the UK, enabling individuals to split their time between the office, client sites, or working from home. The move builds on the firm’s “long-standing culture of flexible working, which had been in place for many years prior to the pandemic.” It said offices will become increasingly important for collaboration, teaming, innovation, and wellbeing. The move comes as the firm welcomed seven graduates and apprentices as it expands the range of skills and services it provides to clients.
Policymakers urged to help encourage people back into city centres
The Scottish Retail Consortium (SRC) has called on the Scottish Government and councils to take early action to entice shoppers back to the city centre following the removal of restrictions on shops. It is almost exactly two years since the first lockdown was introduced on 23 March 2020. From today, two of the final restrictions on shops will end: The regulations and statutory guidance affecting stores on the use of plastic screens, physical distancing in queues, floor markings and up to fifty other mitigations contained in the ‘retailer checklist’ will be rescinded; The statutory duty on retailers with cafes, coffee shops, quick service restaurants and other eateries to collect customer details for contact tracing will also end. However, the wearing of face coverings in stores – which has been mandated for the past 625 days since 10 July 2020 – remains in place for now. This new phase of moving beyond restrictions will mean much of the duty to keep shops and colleagues safe falls on businesses themselves. The SRC has called for a concerted effort and an upbeat message from policy makers to encourage and entice people back into city centres.
https://www.insider.co.uk/news/scottish-retail-consortium-calls-policymakers-26499908
Two thirds of health and social care levy lost to slower growth
Ahead of Wednesday’s spring statement, the TaxPayers’ Alliance (TPA) has modelled the impact of the planned national insurance rise on growth, wages, and investment. The model, produced by economics consultancy Europe Economics, lays bare the impact of the health and social care levy plans, predicting that it will result in the UK economy being £24 billion smaller over ten years. The figures also show that the UK will lose £6 billion of investment and see wages £5 per week lower than they would have been without the hike in national insurance contributions (NIC). As a result, two thirds of the amount expected to be raised by the tax rise could be lost through lower growth. Using official data from the Office for Budget Responsibility and other sources, the model can be used to show the outcome of a range of tax changes, including taxes on income, businesses, capital and expenditure. Similar modelling was used by then-chancellor George Osborne to show the dynamic effects of cuts to corporation tax and fuel duty.