Business News Round Up (22/11/2021)
UK economic recovery to be slower than expected but it’s ‘far from out of steam’, says EY ITEM Club
The EY ITEM Club has downgraded its projections for UK GDP growth in its new Autumn Forecast, published today. Growth of 6.9% is now expected in 2021 (down from 7.6% in July’s Summer Forecast), while 5.6% growth is predicted in 2022 (down from 6.5%). Despite the downgrades, the UK economy is still expected to grow at the fastest rate since 1941 in 2021, and 2022 growth is expected to be the fastest since 1988. The economy is forecast to regain its pre-pandemic size in the first quarter of 2022. The downward revisions reflect a combination of higher and more sustained inflation, recent rises in energy prices, and intensifying supply chain disruption – although the strength of the labour market, high levels of household savings, and healthy business balance sheets remain causes for optimism. The EY ITEM Club forecasts growth to slow to 2.3% in 2023 before settling at 1.8% in 2024 and 2025.
Half of Scottish business owners plan to stay involved after stepping back
Business-owning retirees are more likely to keep a foot in the door than head off into the sunset, according to new research from Rathbone Investment Management. Most Scottish company heads (54%) plan to remain at the helm and hand over only the daily management of their business, either to a candidate from the wider industry (32%), or to an employee already working in the firm (22%). Just under a third (29%) have a family member in mind to take over when they step down. Meanwhile, 12% will make a clean break on retirement, with a plan to sell and exit the business. Of that group, many have plans for what to do with the money they release. Re-investing is one of the biggest priorities, as just under half (42%) will invest the money they make from any sale into the stock market and more than a third (35%) will look to invest in property. Sharing their good fortune features almost as highly, with just under a third (31%) planning to donate a portion of their windfall to charity. A quarter are focussed on pension planning and will use the lump sum as income, instead of drawing down from their pension.
https://www.insider.co.uk/news/half-scottish-business-owners-plan-25514782
Greater effort needed to achieve levelling up, says CBI boss
Economic growth must be evenly spread around the UK rather than concentrated in south-east England, the boss of the CBI business group will say. CBI director general Tony Danker will argue that “levelling up” cannot be left to the free market. Speaking at the CBI’s annual conference today, he will stress the need for “high-valued” sectors, firms, and jobs across the country. The government said levelling up the UK was “at the very heart” of its agenda. Climate targets provide the opportunity for a “new industrial revolution” in the UK, Mr Danker will tell the CBI conference, with new industries such as biotech offering ‘a shot at redemption’. “Levelling up so far has been a lot about politics and not enough about productivity, economics and business,” Mr Danker told the BBC’s Today programme. “The reason we say there’s a shot of redemption is that probably for five decades we’ve had no idea how to do that, but now we’ve got industries like clean and renewable energy, life sciences, cyber-security and they don’t have to be based in the South East.”
https://www.bbc.co.uk/news/business-59353192
Only half of Scottish employers are confident they’ll treat employees evenly and fairly
With workforces divided between home and office, 47% of businesses are not confident their employees will be treated fairly. New research has revealed concerns over the treatment of Scottish staff in the world of hybrid work. The Mind the Gap report from Employment Law, HR and Health & Safety specialist WorkNest, found that only around half (53%) of Scottish employers are confident that office-based and home-based employees will be treated evenly and fairly in the next 12 months. Compounding the issue, employees are even more doubtful about their employer’s ability to be even and fair. Only 38% of Scottish workers are confident that their employer will be. One of the greatest areas of concern is development and progression opportunities. With workforces divided between home and office locations, just 47% of business decision makers surveyed said they are confident their employees will be treated evenly and fairly when it comes to progression and promotion prospects.