Business News Round Up (26/02/2024)
UK exporters and manufacturers grapples with Red Sea disruption
A recent survey conducted by the British Chambers of Commerce has revealed that a majority of UK exporters and manufacturers have been adversely affected by the disruptions in the Red Sea, stemming from attacks on shipping vessels by Yemen’s Iran-aligned Houthi rebels. According to the survey findings, 55 per cent of exporters and 53 per cent of manufacturers and business-to-consumer services firms, including retailers and wholesalers, reported experiencing disruptions, with 37 per cent of all businesses reporting some level of impact. “There has been spare capacity in the shipping freight industry to respond to the difficulties, which has bought us some time. But our research suggests that the longer the current situation persists, the more likely it is that the cost pressures will start to build,” William Bain, the head of trade policy at the British Chambers of Commerce told Reuters.
Mental health putting more young people out of work as UK struggles with high inactivity rate
Poor mental health among younger people is pushing up the UK’s inactivity rate and hampering the economy, according to new research from a leading think tank. Over the past decade, the number of young people out of work for health reasons has doubled to 190,000 from 93,000. This means people in their 20s are now more likely to be economically inactive due to ill health than people in their 40s, according to the Resolution Foundation. The increasing prevalence of mental health issues has been one of the key factors in this rise. One-in-three people aged between 18-24 reported symptoms of depression, anxiety, or bipolar disorder in 2021-22. This was up from one in four people in 2000. This means young people are more likely to experience a common mental disorder than any other age group. 20 years ago, they were the least likely group to suffer from a mental disorder.
Logan Energy investment round raises £5 million
Logan Energy has successfully secured a £5 million investment to advance its systems-focused approach in the hydrogen power sector. Headquartered in Edinburgh, with manufacturing facilities in Wallyford and development centres at Heriot-Watt University, the company has secured over 50% of the total investment from the green energy investor Lanxing New Energy, based in Singapore. The remaining portion of the investment comes from Scottish Enterprise. These funds are earmarked for enhancing Logan Energy’s technological infrastructure and facilities, expanding its workforce, and supporting its global expansion initiatives – the company has ongoing projects in the Netherlands, Germany, Northern Ireland, Ireland, Spain, Singapore, and China, Logan Energy has established itself as a key player in the international hydrogen sector. This strategic move allows the distillery to partially power its operations with environmentally sustainable green hydrogen, generated using renewable electricity sourced from wind turbines and local water resources.
https://www.digit.fyi/logan-energy-investment-round-raises-5-million/
HS2: Midlands and Northern England to get ‘reallocated’ funds
The government has outlined further details of how it would redirect funding from the scrapped northern legs of the HS2 rail line. Around £4.7bn from cancelling the high-speed routes is due to be handed to councils outside big cities in the Midlands and northern England. Councils would be responsible for allocating funds to specific projects, in line with government guidance. The funding has been earmarked for spending between 2025 and 2032, after the next spending review that sets departmental spending. The period covered would also come after the next general election, which is expected later this year, raising further uncertainty over the plans. In October, the government shelved the parts of the HS2 line between the West Midlands to Manchester, and to the East Midlands, following spiralling costs in recent years.