Displaying items by tag: Business

UK business confidence has fallen to its lowest level since the early days of the Covid pandemic, according to the Institute of Directors (IoD). November’s economic confidence index dropped to -65, the lowest since April 2020’s record low of -69. This follows the government's autumn budget, which introduced £40 billion in tax increases, including £25 billion from higher national insurance contributions (NICs) for employers. Business leaders warn these measures will hinder private sector growth, with many firms anticipating reduced investment and workforce cuts. UK hospitality businesses have voiced concerns about closures and reduced investment due to the NIC hikes. IoD chief economist Anna Leach criticised the budget for undermining economic foundations and damaging businesses’ ability to grow. Chancellor Rachel Reeves defended the budget as necessary for stabilising public finances. The IoD hopes upcoming announcements on industrial strategy, infrastructure, and tax reform will boost economic prospects. See

DIY retailer Homebase has entered administration, putting 2,000 jobs at risk. Its owner had hoped to sell the struggling retailer but failed to secure a buyer. The Range has purchased up to 75 Homebase stores and the brand, saving approximately 1,600 jobs, but 49 stores remain unsold. The administrators are continuing to seek a buyer for these locations; no immediate redundancies have been announced, and the stores will continue trading for now. The firm’s collapse follows years of financial difficulties, exacerbated by a decline in consumer spending after the pandemic, persistent inflation, supply chain disruptions, inability to match the price and quality of competitors, and unseasonably poor weather. Losses totalled £84.2 million last year, and despite efforts to restructure and secure investment, the company’s financial struggles persisted. The situation reflects broader trends in the home improvement sector, where high inflation and consumer caution have hit sales.

The British Chambers of Commerce (BCC) have reported that nearly half of UK businesses plan to raise prices soon, despite overall inflation pressures easing. Their survey, covering 4,800 firms, found 46% expecting to increase prices, 51% planning to maintain current prices, and only 3% foreseeing a reduction. This pricing trend is linked to economic challenges affecting business investment, which remains sluggish. A significant factor is the higher labour costs, particularly in the hospitality and manufacturing sectors; 77% and 76% of firms respectively cite it as a major influence on pricing decisions. Additionally, the survey indicates a stagnant landscape for business investment. Most firms reported no change in their investments in new equipment and machinery this quarter: only 24% have increased their investment, while 16% noted a decrease.

Lyle's Golden Syrup has faced criticism from some people for its rebranding, which has removed a Biblical image. The iconic picture of a lion and bees, referencing the biblical story of Samson, has been replaced with a more modern version. Some argue that the move disregards the brand's heritage, and ask if there is still a place for Christians in the UK. Tate and Lyle apologised for any upset caused but emphasised that religion played no role in the decision. Despite the redesign, the original image (the oldest continuous one in the world) will remain on the classic tin. The update has been defended as a necessary step to appeal to a modern audience while retaining nostalgia. The company has given assurances that the story of Samson and the tin's heritage will endure.

Wilko’s 400 stores are expected to close within weeks with 12,500 redundancies unless a buyout is secured. Pray for the 12,500 families living with fear of being out of work. Wilko’s assets were valued at £41m and the stock is likely to be worth tens of millions of pounds. The stores could be bought by rival bargain retailers like Poundland, Home Bargains, Primark, and B&M, who would rebrand them, possibly without retaining existing staff. The GMB union, which represents thousands of Wilko staff, said it would be ‘a disgrace’ if bids that could save jobs were disregarded. 12,500 jobs cannot be sacrificed for a few pence in the pound for creditors. Viable bids that protect jobs must be prioritised. M2 Capital’s bid to keep the entire Wilko chain trading fell through on 31 August. Job losses are feared.

On August 3rd, the Bank of England’s base rate rose again to 5.25%. The last time it was 5.25% was in 2008. The Bank expects inflation to fall below 5% in the final quarter of 2023, while the government pledges inflation will be 5% or below by 2024. The Bank's increase influences the cost of borrowing, making mortgages more expensive, while at the same time offering greater returns on savings accounts. The theory is that raising interest rates makes it more expensive to borrow money, so people have less to spend, reducing demand and inflation. Meanwhile, rising interest rates, higher energy costs and squeezed consumer spending have weighed on retailers with Wilko homewares now on the brink of collapse, putting 12,000 jobs at risk. They have filed a notice of intention to appoint administrators after failing to find enough emergency investment. Wilko has 400 UK stores. See

A summit on faith in the workplace was held in the PM’s office at No 10. It was chaired by Christian MP John Glen, chief secretary to the Treasury. National and multinational companies shared how they are welcoming employees to bring their whole selves to work, faith and all, by encouraging faith-friendly policies. They see a person’s religious beliefs as an asset with bottom line benefits rather than a problem to be solved or avoided. At the event, OVO Energy received the award for being the most faith-friendly national UK workplace in 2023. The group announced that a national summit on Faith-and-Belief@Work will be held in November at London’s Salesforce Tower. Rishi Sunak, the UK’s first Hindu PM, is invited to keynote the summit.

Last week we prayed about school uniform costs. This week we can be grateful that Marks and Spencer are offering families money off children’s clothes if they donate school uniform hand-me-downs to help parents struggling amid the cost of living crisis. The second-hand uniforms will be sold via Oxfam’s high street chain and a new ‘back-to-school’ eBay shop.

The Children's Society reports that parents spend on average £422 a year on secondary and £287 on primary uniforms, despite government rules meant to lower the costs. Schools requiring parents to buy costlier branded items were partly to blame. One mum said, ‘Constantly replacing damaged clothing makes it even more expensive’. Under changes to the Education Act last year, schools should be helping cut costs by promoting cheaper second-hand uniform options or removing unnecessary branded items from uniform lists. But pupils still must have an average of three branded uniform items. Almost 1/3rd of secondary school pupils must own four to five branded items, and 45% of parents said school uniform policies had still not been updated. Pray for more clothing banks like Reloved who provide pre-worn uniforms free to families struggling with costs. In 11 months it has supported 3,000 families, and demand is rising as the cost of living soars.

A French-UK joint mining venture in the St Austell area of Cornwall has been announced. The project will provide battery-grade lithium carbonate, a key component in electric cars. It will create more than 300 jobs, and the site has reserves lasting for around 30 years. The venture aims to operate the UK's leading lithium hub within five years; its target is to supply 500,000 electric cars per year with the component by the end of the decade. This would meet roughly two-thirds of Britain's estimated battery demand. A spokesperson said drilling and exploration have been carried out since 2017, and a process and pilot plant has been developed. The project has received financial support from Innovate UK and the Automotive Transformation Fund, a programme to support the electrification of vehicles and their supply chains in the UK.