Just two weeks to go until the Property & Business Investment Lincolnshire Expo!

Only two weeks remain until the Property & Business Investment Lincolnshire Expo, so if you haven’t yet registered for the free event, now is the ideal time. The highly anticipated expo, for which Business Link is a proud partner, will take place on Wednesday 27 April 2022 at The Bentley Hotel, Lincoln, providing everything you require for a great day of networking and business generation. A well targeted event aimed at the Construction, Property, Business, Investment, Finance, Professional Services and related B2B markets, exhibitors include Aspbury Planning Ltd, Belvoir, Business Lincolnshire, BSP Consulting, Delta Simons, the Federation of Small Businesses, J Tomlinson, NatWest, Willmott Dixon, and YMD Boon, to name a few. To see the full list of who is exhibiting click here. Opening at 9am, the expo will also host a workshop from Team Lincolnshire and Business Lincolnshire. Running from 10:15 – 11:45, it will demystify the procurement process and explore the potential which public sector contracts could bring to your business. Team Lincolnshire ambassador Neal Wheatley, director and general manager of RG Carter Lincoln Limited, and Barry Taylor, regional director at Parker Technical Service, will be sharing insightful first-hand experiences on winning a major Lincolnshire County Council contract for the construction of the South Lincolnshire Food Enterprise Zone and how supporting the local economy is a core value within the RG Carter Supply Chain Commitment. Sign up to the free workshop here. As the exhibition closes, it will roll directly into an informal, open buffet style network lunch – tickets for the lunch are just £25 plus vat and can be ordered and paid for directly online. Spaces for the lunch are limited, so order as soon as possible to avoid disappointment. Tina King, of Business Shows Group, said: “It’s been a long time in the making thanks to the pandemic, but we are finally nearly there, The Property & Business Investment Lincolnshire Expo is gearing up to be one of the best to date!” To attend the event, register for free here. To generate opportunities by exhibiting at the event, click here. Purchase tickets to the networking lunch here. Meet more potential clients in one amazing cost effective day, than it would take months out on the road.

Making Tax Digital applies to all VAT registered businesses from April 2022. Are you ready? By Michael Ball, Streets Chartered Accountants

Michael Ball, tax director at Streets Chartered Accountants, dives into Making Tax Digital. Since April 2019 most VAT registered businesses with a turnover over £85,000 have been within Making Tax Digital (MTD) for VAT. This means that they have had to keep digital records and submit their tax returns via MTD compatible software. From April 2022 MTD for VAT is being extended to all VAT registered businesses. In practical terms this means that they will no longer be able to submit their VAT returns via the old HMRC portal.

What are the requirements?

As already referenced, under MTD a business must keep digital records, but what does that mean? As the name suggests your business records need to be kept in a digital format, so manual records will no longer be allowed and the records must include the following details:
  • your business name, address, and VAT registration number
  • any VAT accounting schemes you use
  • the VAT on goods and services you supply
  • the VAT on goods and services you receive
  • any adjustments you make to a return
  • the ‘time of supply’ and ‘value of supply’ for everything you buy and sell
  • the rate of VAT charged on goods and services you supply
  • reverse charge transactions – where you record the VAT on both the sale price and the purchase price of goods and services you buy
  • your total daily gross takings if you use a retail scheme
  • items you can reclaim VAT on if you use the Flat Rate Scheme
A further requirement is that there is a fully digital journey from the records to the submission of the VAT return. The simplest way to achieve this is to keep your records in ‘Functional compatible software’, that is software that can not only keep your records but also can provide and receive information to HMRC directly. If your records are not kept in such software, for example if you use a spreadsheet, then bridging software can be used to make the submission but there must be a digital link between the software. Similarly, if a set of programs are used, there must be a digital link between the pieces of software. There are a number of options available for software solutions and a list of compatible software is provided on the HMRC website at https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat However, if you have any questions or concerns regarding MTD for VAT or would like to talk over your business and the software options that might work for you then please do get in touch by emailing mtd@streetsweb.co.uk   See this column in the April edition of East Midlands Business Link Magazine.

Howes Percival delivers £300m of corporate deals in Q1

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Howes Percival’s corporate, commercial, and banking (CCB) team has seen a strong start to the year, completing 37 deals with a combined value of just over £299.5 million in Q1. The large volume of completed deals at the start of 2022 is a result of ongoing high levels of M&A, financing and restructuring activity. Since the beginning of the year, the team have advised on a substantial pipeline of transactions for owner-managed businesses, including:
  • Advising on the management buyout of Blue Alligator Company,
  • Advising Bright Star Financial Limited on a share buyback of Omni Equity Partners LLC’s shares,
  • Advising the shareholders of Cave and Sons Investments on a partial sale to Macintyre Hudson.
Andy Harris, partner, and head of Howes Percival’s CCB team, said: “We’ve had an incredibly strong start to 2022. We’re reaping the rewards of a concerted focus on recruitment into the team and increasing our capacity. We’ve been able to promote some really good people, alongside bringing in top lawyers, who have decided to develop their career with us. “Our growing reputation has enabled us to attract talent from much larger law firms – specialists who are known experts in their field – and our clients have reacted very positively to their arrival. We’ve been able to add a further seven hires since the summer, building on the 50% growth we’ve had in the team since 2019. “The sheer variety of the transactions has been very interesting – we’ve seen a lot of activity across all of our sector specialisms, with deals ranging in value from £50,000 to over £100 million, and the depth and balance we now have at all levels in the team means we can always provide a cost-effective solution, whatever the deal size.” Recent high-profile recruits include senior partner and head of commercial, Paula Dumbill, from Browne Jacobson, and corporate and venture capital specialist, Tom Redman from Dentons. Andy Harris continued: “The war in the Ukraine and spiralling energy costs are giving everyone pause for thought, and we will all have to see how things are the other side of the summer, and the effects on consumers who will have less spare cash. But at the moment our pipeline remains strong, and the after-effects of the pandemic are continuing to fuel activity. “The increased reliance on technology over the past two years is here to stay as the demand for innovation and automation continues. Similarly, while supply challenges are impacting manufacturers at the various points in the automotive supply chain, a lot of our motor dealer clients had a very good 2021, with pent up demand for new cars. With our focus spread across different sectors we often see a tapering off in activity in some areas, offset by an increase in others. The healthcare sector is one that is proving resilient to most economic curveballs.” Howes Percival has offices in Leicester and Northampton.

Environmental company appoints new consultancy manager

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East Midlands Environmental Consultants (EMEC) has appointed Dr Edward Tripp as its new consultancy manager. Ed, who lives in Long Eaton, is highly qualified and joins from Nottinghamshire Wildlife Trust (NWT). In his new role, Ed will be leading a highly qualified, knowledgeable and enthusiastic team of land management consultants, ecologists and project managers. Established in 1991, EMEC provides services to developers, planners, architects, power and extraction industries, utility companies, local authorities, government agencies and private individuals. Work ranges from major nationally impactful contracts and large-scale ecological assessments for housing and industry, through to management planning, habitat management, protected species surveys and habitat surveys of small-scale developments. Ed has a background in ecology, and a passion for conservation. He has volunteered within the conservation sector since he was 18 and his first role began as a part time Education Officer in 2012. Latterly he was managing Nottinghamshire Wildlife Trust Trading Ltd, which generates income for the charity from revenues received through business relationships, catering and retail functions, events and engagement. Ed’s qualifications include a BSc (Hons) Geography, PgC Geographical Information Systems, MSc Botanical Conservation and a PhD in Heathland Ecology. Commenting on his new role, Ed said: “I am committed to helping nature to recover, tackling the ecological and climate crises. My business management and ecology background will help me to lead the teams at EMEC to generate profit to gift to NWT. I also hope to ensure EMEC aspires to achieve at least 10% biodiversity net gain through our work with clients. I’m really excited to have this opportunity to lead the team to many successes and achievements.” In his spare time Ed loves hiking with his partner and two rescue dogs. He also enjoys playing hideously complicated board games, or relaxing with a good book. He is also passionate about classical music, and volunteers with Nottingham Royal Concert Hall, helping them to bring classical music to new audiences. He also has a particular interest in plants, lichens, bryophytes and fungi. As a passionate nature lover, amongst other things, Ed has spent many years volunteering for various organisations and has sat for days in all weathers watching peregrine nests to protect them against persecution. He has monitored nightjars in Sherwood Forest to help them to recover from habitat loss. Helped children to learn about sustainable food production at National Trust houses, planted trees, built fences, cleared balsam and helped to manage heathland. EMEC is one of 24 Wildlife Trust Consultancies that gift aid all of profits to a local Wildlife Trust to ensure positive conservation outcomes and support the recovery of nature across their counties.

Dip in confidence for financial services firms

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Sentiment among financial services firms fell at the quickest pace since September 2019, according to the latest CBI/PwC Financial Services Survey. Despite declining optimism, the survey of 81 financial services firms – conducted between 1 March and 22 March – found that business volumes had continued to grow in the three months to March, albeit at a slower pace than the previous quarter. Firms expect volumes to be flat in the quarter ahead. The survey also saw a significant slowing in profitability growth on the previous quarter, with firms anticipating a modest decline in the next three months. The outlook for investment in the year ahead continues to present a mixed picture. Firms expect to continue investing in IT but are looking to cut back capital expenditures on land & buildings and vehicles, plant & machinery. Uncertainty over demand (37%), inadequate return on investment (32%) and labour shortages (16%) were cited by firms as the biggest constraints on investment. However, the share of firms citing labour shortages as a factor likely to limit future investment (16%) dropped significantly from last quarter (31%). Building operational resilience emerged as a key theme throughout the survey, with 92% citing this as the key priority for future business strategy and transformation plans. Firms separately identified ‘responding to new cyber threats’ (81%) and ‘improving detection of cyber breaches’ (71%) as the main priorities to improve cyber resilience and reduce tech risk. Elsewhere, headcount across the FS sector was broadly unchanged for the third quarter in a row. Expectations are for a significant uptick in employment next quarter. Rain Newton-Smith, CBI chief economist, said: “While business volumes and profitability held up against the headwinds buffeting the economy, global inflationary pressures and increased geopolitical uncertainty stemming from war in Ukraine have started to take a toll on business confidence. “With operational resilience becoming an ever more important priority for the sector, there is danger that a ‘wait and see’ approach may dampen growth prospects for the wider economy. “A lack of preparedness for mainstream use of digital currencies and challenges in developing Net Zero plans suggest a need for swifter policy development in both areas to guide and stimulate industry-wide action.” Isabelle Jenkins, head of Financial Services at PwC UK, said: “Financial services organisations are right to be careful and cautious as their resilience is once again put to the test. “As the cost-of-living crisis mounts for households, it’s likely that we may see an increase in non-performing loans, another challenge financial services firms will have to respond to ensure consumers are supported through this difficult time. “Despite some investment plans reined in for now, this is not the time to batten down the hatches completely, rather firms should continue to look at how they can best use the insight they are gathering to respond quickly and decisively in changing market conditions.”

Retail sales slow as confidence wanes, says experts

The retail sector has been through a great deal of late and the pandemic has meant much of retail bounced between being open and closed, significantly impacting sales and changing consumer behaviours.

In March 2020, non-essential retail stores began to close, pushing many consumers to buy goods online. In this context, while all comparisons are provided on a year-on-year (YoY) basis, those focused on online/in-store have also been compared with March 2019 (Yo3Y). This will be clearly signposted below.

Sales figures are not adjusted for inflation. Given that both the March SPI (BRC) and February CPI (ONS) show inflation running at historically high levels, a portion of the sales growth will be a reflection of rising prices rather than increased volumes.

Covering the five weeks 27 February – 2 April 2022

  • On a Total basis, sales increased by 3.1% in March, against an increase of 13.9% in March 2021. This is worse than the 3-month average growth of 6.9% and the 12-month average growth of 10.3%.
    • On a three-year basis, Total retail sales grew 5.4% (Yo3Y) during March compared with the same month in 2019.
  • UK retail sales decreased 0.4% on a Like-for-like basis from March 2021, when they had increased 20.3%. This was worse than the 3-month average growth of 3.2% and the 12-month average growth of 6.5%.
  • Over the three months to March, Food sales decreased 2.6% on a Total basis and decreased 3.1% on a Like-for-like basis. This is below than the 12-month Total average growth of 0.8%. For the single month of March, Food was in decline year-on-year.
  • Over the three-months to March, Non-Food retail sales increased by 14.9% on a Total basis and by 8.6% on a Like-for-like basis. This is worse than the 12-month Total average growth of 18.3%. For the single month of March, Non-Food was in growth year-on-year.
  • Over the three months to March, In-Store sales of Non-Food items grew 92.9% on a Total basis and 74.9% on a Like-for-like basis. This was an improvement on the Total 12-month average growth of 69.9%.
    • On a three-year comparison, over the three months to March, In-Store sales of Non-Food items declined 18.2% (Yo3Y) on a Total basis and 3.9% (Yo3Y) on a Like-for-like basis since March 2019.
  • Online Non-Food sales decreased by 29.0% during March, compared with growth of 64.7% in March 2021. This is worse than the 3-month decline of 27.3%.
    • On a three-year comparison, Online Non-Food sales increased by 38.9% (Yo3Y) in March. This is broadly in line with the 3-mth average increase of 38.8%.
  • Non-Food Online penetration rate decreased to 38.5% in March from 63.0% in March 2021. However, it was up 9.2 percentage points on the 29.3% seen at the same point in 2019.

Helen Dickinson OBE, Chief Executive | British Retail Consortium says:“As consumer confidence continued to sink, March saw sales slow, and while spend remained above last year this likely reflects higher prices. Beauty and fashion items were popular last month, as consumers took to their town and city centres for some retail therapy in the run up to Mother’s Day. While it is promising to see experiential shopping back in fashion, much in-store retail has not recovered to its pre-pandemic level. Online sales also decreased compared to last year but remain well above 2019 levels due to investment by retailers in their digital offer.

“The rising cost-of-living and the ongoing war in Ukraine has shaken consumer confidence, with expectations of people’s personal finances over the next 12 months reaching depths not seen since the 2008 financial crisis. Furthermore, households are yet to feel the full impact of the recent rise in energy prices and national insurance changes. There is also potential for further supply chain disruption, with China putting key manufacturing and port cities into lockdown. Ultimately, consumers face an enormous challenge this year, and this is likely to be reflected in retail spend in the future.”

Don Williams, Retail Partner, KPMG adds:“Growth on the high street continued last month with total sales up 3.1% compared to March 2021, driven by a strong performance across most non-food categories. However, the drag came from food sales which were down 6.1%, potentially due to the timing of Easter in 2021 and compounded  by the impact of the lockdown in March last year.

“Online sales fell across all categories compared to March 2021, but penetration rates remain high confirming the “locked in step up” in online purchasing.  This continues to force retailers to focus on finding the most effective mix between physical and online retailing.

“Sales growth in March rose at the slowest rate so far this year, suggesting clouds on the horizon as household budgets come under pressure from rising costs, an increasing tax burden and competition from holidays. There is concern on what this could mean for consumer confidence and the impact on discretionary spend.   Additionally, retailers are facing their own battle with rising costs and inflation, and are walking a tightrope between absorbing rising costs themselves or passing these on to consumers, when competition for share of a shrinking wallet is increasingly fierce. The best retailers will continue to balance attention on areas that can yield cost and efficiency gains with a clear understanding of their customer and what they want to buy and how.  The primary concern now is whether consumers will choose to reduce their physical and virtual shopping to counteract rising household bills and reduced household income.”

Food & Drink sector performance | Susan Barratt, CEO | IGD

“Food and drink sales struggled in March, partly due to facing strong comparatives to 2021. Not only were sales elevated last year due to lockdown, but Easter was also earlier and we’re yet to see holiday spending ramp up this year.

“It is no surprise that shopper confidence continues to fall and is now lower than the previous low of December 2013 when the horsemeat scandal impacted the food industry. There was a brief peak in confidence when it looked like oil prices might come down, but with 50% of shoppers now expecting food prices to become much more expensive, this optimism was short-lived. These challenges affect shoppers in different ways, with household cutbacks seeing less affluent shoppers skipping meals to save money. This volatile time is set to continue as the reality of the energy price increase, as well as general inflation, hits home for shoppers.”

 

FSB lobby for sick pay rebates as Covid rates soar.

Soaring absentee rates and the withdrawal of free Covid testing have led small firms’ champion the FSB to call for a sick pay rebate. Responding to publication of the UK Health Security Agency’s Living Safely with Covid guidance, and the withdrawal of free Covid lateral flow tests in England and Wales, Federation of Small Businesses National Chair Martin McTague, said:“The scaling back of working safely guidance and removal of free Covid tests at a moment when infection rates and inflation are soaring is going to throw up really challenging scenarios. “Imagine you’re a sole trader struggling to make ends meet as bills spiral – you develop a tickly cough, you don’t have access to a lateral flow test, and at the same moment win a piece of work that would see you through the end of the month. “Or you’re a part time employee with caring responsibilities who doesn’t meet the lower earnings limit that ensures you qualify for Statutory Sick Pay – you start to feel under the weather, again no access to a covid test, but you feel well enough to work, and working from home is not an option. “The change in the new guidance from an instruction to “stay home” in the event of a positive test to “try to stay at home” and “talk to your employer about options” if you do want to come in will put stress on employers without the kind of support that’s existed in the past. “A small firm isn’t like a big corporate – if one or two members of staff are away it puts huge pressure on the business – any more than that and it may consider closing for a while. “The cost of workplace absence, including finding cover, surpassed £3,500 last year for the average small employer, meaning a collective £5bn cost to the small business community as a whole. “Those additional outgoings come against a backdrop of the workplace testing initiative and small business sick pay rebate being withdrawn, along with wider Covid support measures. “Small employers are acutely aware of their duty of care towards their teams. They now need more support to protect employee wellbeing. “That’s why we’ve worked with TUC to put forward proposals for a comprehensive small business sick pay rebate that would see the lower earnings limit removed. “Given the circumstances we’re now in, the Government should look again at the future of workplace testing for those who cannot work from home. “We’re urging the UKHSA and Health and Safety Executive to do all it can to proactively promote best practice around hygiene and ventilation, particularly as we move towards summer and the reopening of outdoor leisure spaces. “We’d also urging everyone to respect the house rules that each individual small firm has chosen to implement – many have spent thousands from depleted cash reserves to make premises safer.”

Major refurbishment underway at Chesterfield office building

A major refurbishment of The HQ, Rowland Hill House in Chesterfield is underway by property and asset management firm, FI Real Estate Management (FIREM), resulting in a raft of new tenants. A £1.2m remodelling of the ground and third floors has created brand new reception and meeting space and the ground floor has been split into a series of smaller suites in response to market demand. This is now fully occupied by a diverse range of businesses including software consultancy Forefront Technology and advertising agency, Eehhaaa. The next phase of works will see a £1m+ refurbishment of the first and second floors that will see the space divided to provide smaller units, with FIREM already in discussions with a number of interested parties from Derbyshire and beyond. The HQ, Rowland Hill House offers a wide range of refurbished, flexible office space from 400 sq ft up – right up to 60,331 sq ft across four floors. Space can be divided in order to meet specific business requirements, with turnkey and bespoke packages available. The property also boasts 326 on site parking spaces. A spokesperson for FI Real Estate Management said: “We continue to see strong demand for high quality office space in prime locations in Derbyshire and the surrounding area, particularly those with ample on-site parking like here at The HQ, Rowland Hill House. “Local and regional businesses are keen to find first class office environments but understandably want the flexibility to create solutions that are tailored to them and suit their unique needs. We’re able to offer traditional leases as well as bespoke, turnkey packages and are already seeing good interest in floors one and two on this basis.”

Energy strategy to create half a million jobs and wean us off fossil fuels, labelled as ‘recipe for failure’

Scientists, climate campaigners and politicians alike have warned that the government energy strategy, geared to weaning the UK off fossil fuels and creating half a million jobs by the end of the decade, is a ‘recipe for disaster’ and will do little to cut fuel bills or boost the country’s long-term energy independence, security and prosperity. The government’s British Energy Security Strategy sets out how Great Britain will accelerate the deployment of wind, new nuclear, solar and hydrogen, whilst supporting the production of domestic oil and gas in the nearer term – which could see 95% of electricity by 2030 being low carbon. The strategy will see a significant acceleration of nuclear, with an ambition of up to 24GW by 2050 to come from this safe, clean, and reliable source of power. This would represent up to around 25% of our projected electricity demand. Subject to technology readiness from industry, Small Modular Reactors will form a key part of the nuclear project pipeline. A new government body called Great British Nuclear, will be set up to bring forward new projects, backed by substantial funding, and the £120m Future Nuclear Enabling Fund will be launched this month, potentially delivering up to eight reactors, equivalent to one reactor a year instead of one a decade, accelerating nuclear in Britain. Other plans also include:
  • Offshore wind: A new ambition of up to 50GW by 2030 – more than enough to power every home in the UK – of which we would like to see up to 5GW from floating offshore wind in deeper seas. This will be underpinned by new planning reforms to cut the approval times for new offshore wind farms from four years to one, and an overall streamlining which will radically reduce the time it takes for new projects to reach construction stages while improving the environment.
  • Oil and gas: A licensing round for new North Sea oil and gas projects planned to launch in Autumn, with a new taskforce providing bespoke support to new developments – recognising the importance of these fuels to the transition and to our energy security, and that producing gas in the UK has a lower carbon footprint than imported from abroad.
  • Onshore wind: developing partnerships with a limited number of supportive communities who wish to host new onshore wind infrastructure in return for guaranteed lower energy bills.
  • Heat pump manufacturing: A Heat Pump Investment Accelerator Competition in 2022 worth up to £30 million to make British heat pumps, which reduce demand for gas.
Attempts will be made to increase the UK’s current 14GW of solar capacity, consulting on the rules for solar projects, particularly on domestic and commercial rooftops. The scheme also aims to double the ambition to up to 10GW of low carbon hydrogen production capacity by 2030, with at least half coming from green hydrogen and using excess offshore wind power to bring down costs. This will not only provide cleaner energy for vital British industries to move away from expensive fossil fuels, but could also be used for cleaner power, transport and potentially heat. This plan comes in light of rising global energy prices, provoked by surging demand after the pandemic as well as Russia’s invasion of Ukraine. This will be central to weaning Britain off expensive fossil fuels, which are subject to volatile gas prices set by international markets we are unable to control, and boosting our diverse sources of homegrown energy for greater energy security in the long-term. In total, the British Energy Security Strategy builds on the Prime Minister’s Ten Point Plan for a Green Industrial Revolution, and, together with the Net Zero Strategy, is driving an unprecedented £100 billion of private sector investment into new British industries including Offshore Wind and supporting 480,000 new clean jobs by the end of the decade. Business and Energy Secretary Kwasi Kwarteng said: “We have seen record high gas prices around the world. We need to protect ourselves from price spikes in the future by accelerating our move towards cleaner, cheaper, home-grown energy. “The simple truth is that the more cheap, clean power we generate within our borders, the less exposed we will be to eye watering fossil fuel prices set by global markets we can’t control.

“Scaling up cheap renewables and new nuclear, while maximising North Sea production, is the best and only way to ensure our energy independence over the coming years.”

Dr Shaun Fitzgerald FREng, Director of the Centre for Climate Repair says ” “The Energy Strategy launched by the government today is just 3 days after the harrowing IPCC AR6 WGIII report as to what is happening climate-wise and the urgency required for measures to change course. On Monday we learned that emissions need to peak no later than 2025. That is three years from now. “We need to see change, and we need to see it fast. Does the Energy Strategy launched today deliver these changes in the timescales required? “A big story in the strategy involves the procurement of new nuclear stations. Whilst these will be low carbon in operation, they won’t be delivering electricity in the timescale required. It is at least 10 years hence for a new power station. “Furthermore, an Energy Strategy should involve significant efforts in both supply and demand. The Energy Strategy today talks a lot about Energy Supply, but much less on Demand Reduction. Reducing demand (by increasing efficiency) has an immediate benefit not just in terms of the climate, based on the assumption that some of the energy is still provided by fossil fuels, but also in terms of bills. And energy bills are a huge issue for many people right now.  The Energy Strategy launched today is really an Energy Supply Strategy. We need more investment, urgently, in energy savings schemes. This would also help reduce our reliance on energy imports. “The pace of change associated with today’s Energy Strategy is nothing like that which we need. And the climate won’t wait.” Prof Sir Jim McDonald FREng FRSE, President of the Royal Academy of Engineering, says: “The UK’s energy system faces a combination of threats from high consumer costs that threaten to worsen energy poverty, disruptions in the global supply chain due to Russia’s invasion of Ukraine, increasing risk to energy security and unsustainably high carbon emissions as a result of fossil fuel dependence, which must fall rapidly and immediately in order to have any chance of meeting the Paris goal of 1.5C. “There are many vital, low-regrets policies that would address all these issues at the same time, particularly:
  1. rapid renewables and energy storage deployment alongside energy network investment;
  2. home insulation measures which deliver at least half a million retrofits per year, including support for heat pump supply chains; and,
  3. measures to reduce energy demand and increase energy efficiency across all sectors.
“We are pleased to see some of this in the energy security strategy, such as further expansion in the ambition for offshore and floating wind power. A focus on the system level architecture is also welcome and a vital step to enable the transformation required in the energy system as a whole to reach net zero. However, there are some unanswered questions that must be addressed. New nuclear could take until 2035 to make a difference, and is reliant on the availability of technology and skills, neither of which is guaranteed. We will need more than targets to realise the ambition for 10GW of low carbon hydrogen production capacity by 2030, not least the requirement for significant investment to rapidly and urgently scale critical infrastructure such as Carbon Capture Utilisation and Storage for blue hydrogen and investment in renewable energy generation and electrolyser roll out for green hydrogen. And in the meantime, we need more short-term measures to increase energy independence or reduce emissions at the scale required, particularly demand-side measures, such as home insulation policies. “The scale of the skills challenge should also not be underestimated. This demand for massive growth in green jobs comes at a time when engineering skills have largely been stagnating over the past ten years. In higher education, the proportion of students studying engineering has remained at around 5% for the past 15 years, and in certain subject areas such as electronic and electrical engineering, critical to our net-zero transition, there has been long-term decline. The numbers of new apprentices starting engineering and manufacturing apprenticeships has also been in decline. “Much of what the government is doing to address the challenge is moving in the right direction, but the tendency towards letting the market dictate pace, scale and detail is still a concern. We need greater consideration of skills as a strategic national asset with more direct government interventions and less reliance on the market to find our future engineers and technicians.”

Economic growth to halve this year says leading business lobby group

The UK economy grew more slowly in February, an indicator that the rebound was losing steam even before the impact of Russia’s invasion of Ukraine, says Suren Thiru, Head of Economics at the British Chambers of Commerce.  He said: “Tourism-related industries and accommodation services recorded the strongest improvements in the month as the end of Plan B restrictions, and reduced concerns over Omicron, supported activity. However, this was mostly offset by a significant drop in NHS Test and Trace services and vaccine activity as well as declines in industrial and construction output.     “February’s slowdown is likely to be the start of a prolonged period of considerably weaker growth as rising inflation, surging energy bills and higher taxes increasingly damages key drivers of UK output, including consumer spending and business investment.   “Weakening health sector output following the end of free Covid testing and mass vaccinations, is also set to weigh on UK GDP in the near term.   “The Government must provide urgent financial support, through the expansion of the energy bills rebate scheme, to include small firms and energy intensive businesses, and an SME energy price cap to protect smaller firms from some of the price increases.”  UK trade data from the ONS remained volatile in February 2022 as changes in data collection methods unwind. The figures for February 2022 reported a 25% increase in exports (following a 22% decline the previous month). Comparing the last 3 months data together with that over the same period 4 years ago reveals that exports in goods were £1bn lower (1.2%). It is hard to discern therefore any sustained increase in UK exports of the levels currently occurring in our largest neighbouring trading partners.  Furthermore, the ONS Business Insights and Conditions Survey reveals increasing challenges faced by firms with export and import paperwork respectively. 68% of exporters and 70% of importers reported these challenges in February to March 2022 a rise of 7% and 9% respectively. This echoes BCC data which finds a similar worsening trend.