Business News Round Up (26/08/2021)
ONS: Remote working to stimulate employment among older brits, adding billions to UK economy
Remote working could stimulate employment rates among older workers, potentially adding billions to the UK economy, according to fresh figures published today. Data from the Office for National Statistics shows older workers who have switched to working from home entirely are more likely to retire later than those who are still working in physical workspaces. In June and July of last year, 11 per cent of older workers who were working entirely from home were more likely to retire later, compared to five per cent of those not working from home, the ONS said. According to the statistics agency’s estimates, if employment rates among older workers matched those aged between 35 and 49, it would add £88bn to the UK economy.
Scottish economy grows as hospitality and tourism surge after lockdown
Scotland’s economy grew by 0.9% in June in a fifth consecutive monthly rise, but still remains smaller than before the Covid pandemic struck.New Scottish Government experimental statistics said onshore GDP remained 2.1% below where it was in February 2020, the last month before lockdown. However there have been recent surges in some sectors, including tourism and hospitality. The services sector grew by 1.2% in June, with the largest contribution coming from accommodation and food as travel and socialising restrictions were relaxed. However, output in services remains 12.9% below pre-pandemic levels. Output in the production sector rose 0.5% overall, with growth in the electricity and gas supply subsector offset by falls in manufacturing and water and waste management. Output in the construction sector is estimated to have fallen by 1.4%, broadly in line with the UK as a whole over the course of the latest quarter.
Digital Secretary: New data laws to ‘deliver a Brexit dividend’ for UK businesses
The government has today unveiled plans for an overhaul of data laws following the UK’s departure from the European Union. The government has outlined the first territories with which it will prioritise striking ‘data adequacy’ partnerships now it has left the EU as the United States, Australia, the Republic of Korea, Singapore, the Dubai International Finance Centre, and Colombia. It has also been confirmed that future partnerships with India, Brazil, Kenya, and Indonesia are being prioritised. Digital Secretary Oliver Dowden commented: “Now that we have left the EU I’m determined to seize the opportunity by developing a world-leading data policy that will deliver a Brexit dividend for individuals and businesses across the UK. That means seeking exciting new international data partnerships with some of the world’s fastest growing economies, for the benefit of British firms and British customers alike.”
Bank North granted licence to become the UK’s ‘first truly regional bank’
Bank North – previously B-North – will become the UK’s newest SME bank, after being granted its banking licence by the UK’s Prudential Regulation Authority. The bank will open the doors of its first lending Pod in Manchester later this year, before a managed roll-out across the UK. It will start lending in October 2021, delivering flexible, borrower-friendly, and fast-paced support for businesses. Its “unique” model is built on seamlessly-integrated, cloud-native banking technology. This powers a network of regional ‘Pods’, where experienced bankers will deliver committed finance to businesses up to ten times faster than the industry standard. These pods are viewed as the backbone of a unique de-centralised model where loans are tailored to the circumstances of each business, locally decisioned and locally delivered. This is considered a much-needed antidote to what some believe is the UK’s “heavily centralised, standardised banking system”, which has left many businesses with no local contact at their bank, and where support has been steadily degraded over the last decade.