New data from IHS Markit suggests that British households have become increasingly pessimistic regarding the long-term economic prospects following last year’s vote to leave the EU. The March poll, conducted by Ipsos MORI, showed the proportion of people expecting the UK economy to fare better over the next ten years falling to 29%, down from…
New measures to support Britain’s Artificial Intelligence (AI) sector are set to be announced by the Government, with proposals expected to include: • A major AI review to identify the critical elements for the technology to thrive and grow in the UK. It will consider how Government and industry could work together to back this…
The Financial Reporting Council (FRC) is to undertake a fundamental review of the UK Corporate Governance Code. The review will take account of work done by the FRC on corporate culture and succession planning. It will also take into account the issues raised in a recent Government Green Paper which proposes linking executive remuneration with…
Plans for a new Enterprise Zone to support the UK’s space science industry have been confirmed. The project will cover three sites across Leicester and Loughborough, and aims to deliver 6,500 new jobs by building on the local area’s expertise in the sector. Leicester is already home to the National Space Centre and the new…
British business leaders fear that UK infrastructure is lagging behind the rest of the world and feel less confident about global economic conditions over the next 12 months, according to new research from Lloyds Bank. The study, which canvassed the views of boardroom-level executives from leading UK companies and global corporates, shows that two thirds…
The recent slump in sterling should prompt a significant readjustment of the UK economy away from consumer spending towards exports, according to the EY ITEM Club winter forecast. But while economic growth will be better balanced it is also likely to be slower. The respected economic forecaster says that the impact of sterling in increasing…
UK manufacturers expect 2017 to be another year of risks but at the same time are gearing up for the challenges ahead. According to the annual Executive Survey from EEF, the manufacturers’ organisation, almost half of companies surveyed see more risks than opportunities in the year ahead. However, in 2017 56% of firms expect to…
The UK manufacturing sector ended 2016 on a positive note with rates of growth for production and new orders in December among the best seen over the past two-and-a-half years. The Markit/CIPS Purchasing Managers’ Index (PMI) rose to a 30-month high of 56.1, up from 53.6 in November and well above its long-run average (51.5). …
Business travellers and frequent visitors from a host of countries will be able to benefit from faster entry to the UK as the Government’s Registered Traveller Service is expanded. From 21st November, frequent travellers to the UK from 16 new countries will be eligible to apply for membership of the scheme, which provides the potential…
The Government has launched GREAT.gov.uk a trade hub aimed at helping firms access potential overseas orders by giving practical advice and signposting support for businesses looking to win export contracts. The new site acts as a single digital destination for trade and investment, bringing together and connecting UK businesses, international buyers and international investors. Whether…
The UK economy will grow 2% in 2016 before slowing to 1.4% in 2017, according to the National Institute of Economic and Social Research (NIESR). At the same time, consumer price inflation will accelerate, peaking at around 4% in the second half of 2017 and making an impact on real disposable income. The think-tank expects sterling to remain…
The Government has launched an Inclusive Economy Unit which will focus on supporting mission-led business plus strengthening the social investment market and social impact bonds. Key aims are as follows: Encourage better use of private investment and support markets that deliver social impact as well as financial returns. Improve delivery of public services: increasing social…
Government proposals to oblige UK companies to disclose details of the foreign workers they employ have been abandoned. Speaking to the BBC, Defence Secretary, Sir Michael Fallon, said: “This is not going to happen” but added that firms could be asked “simply to report their numbers” as this could help identify skills gaps in the…
Conditions in the UK manufacturing sector continued to improve at the end of the third quarter, according to the Markit/CIPS Purchasing Managers’ Index (PMI). The domestic market remained a prime driver of new business wins, while the weaker sterling exchange rate drove up new orders from abroad. At 55.4 in September, up from 53.4 in…
In its first economic forecast since the EU referendum, the British Chambers of Commerce (BCC) has downgraded its UK GDP growth forecast from 2.2% to 1.8% in 2016; from 2.3% to 1.0% in 2017 and from 2.4% to 1.8% in 2018. Weaker consumer spending and a large fall in investment were the main reasons for…
The UK service sector returned to growth in August, according the Markit/CIPS UK Services Business Activity Index. Following abrupt contractions in output and new business in July, linked to the EU referendum, the latest data signalled a return to growth as companies reported that uncertainty had abated somewhat. The business activity index rebounded to 52.9…
August saw solid rebounds in UK manufacturing output and incoming new orders, according to the Markit/ CIPS Purchasing Managers’ Index (PMI). Companies reported “solid inflows” of new work from both domestic and export customers, the latter aided by the sterling exchange rate. As a result, the PMI recovered sharply from the 41-month low of 48.3…
The UK service sector registered a fall in business activity in July, according to the latest PMI survey data from IHS Markit and CIPS. Output and new business both declined for the first time in over three-and-a-half years and at the fastest rates since early-2009. Consequently, employment in the sector was unchanged since June, ending…
UK business confidence levels fell by 26 points to 6% in the past month, according to the latest Business Barometer from Lloyds Bank Commercial Banking. The survey was conducted in the week after the EU referendum – overall confidence fell to the lowest level for over four years but remained above the lows seen during…
Total transactions for the UK’s five most prominent sharing economy sectors – collaborative finance, peer-to-peer accommodation, peer-to-peer transportation, on-demand household services and on-demand professional services – could see a 20-fold increase to £140 billion by 2025, up from £7 billion today, according to new analysis by PwC. Over the past year the UK’s sharing economy…
UK quoted companies issued 76 profit warnings during the first three months of this year – down from 77 in Q1 2015, and 24 fewer than Q4 2015. However, according to EY restructuring experts, this is remarkably high given the substantial downgrade in profit expectations at the end of 2015. In the twelve months to…
The Minister for the Cabinet Office and Paymaster General, Matt Hancock, has confirmed that the UK’s new cyber centre, announced by the Chancellor in November, will be called the National Cyber Security Centre (NCSC). According to the Government, the UK faces a growing threat of cyber-attacks from states, serious crime gangs, hacking groups as well…
The process of transferring the UK’s Green Investment Bank (GIB) into private ownership has begun with the Government inviting private sector investors to register their interest. According to Business Secretary, Sajid Javid, the move will allow the GIB to maximise investment into green energy projects by attracting greater private sector investment, which has so far…
The UK has seen a double-digit rise in economic crime against corporates in the last two years with 55% of organisations affected (up 11% since 2014), according to PwC’s latest Global Economic Crime Survey. Sixty per cent of economic crime in the UK was committed by external perpetrators, up from 56% in 2014. While there…