Author: WTX Business Team

Cabinet minister pledges to make government more ‘start up’ A cabinet minister is set to pledge that the government will become “more like a start up” ahead of the launch of a £100m fund targeting public service reform. Pat McFadden will call for Whitehall to adopt a ‘test and learn culture’, stating: “If we keep governing as usual, we are not going to achieve what we want to achieve” Speaking at University College London in Stratford on Monday, the Chancellor of the Duchy of Lancaster is expected to launch a new fund focusing on efficiency in bureaucracy. “Test it. Fix the…

Job vacancies collapse as Budget tax raid puts firms off hiring, survey shows The number of job vacancies in the UK fell at its fastest pace in over four years last month as firms held off hiring due to the government’s Budget tax hikes, a new survey suggests. The latest report on jobs from KPMG and the Recruitment and Employment Confederation (REC) showed an “accelerated decline” in the number of people placed in permanent roles by recruiters. The survey also showed that the number of job openings fell at the sharpest pace since August 2020 as demand for staff dried…

Bitcoin, the world’s largest cryptocurrency, has smashed through the $100,000 mark for the first time, setting a new record high. This historic milestone comes amid growing excitement over the possibility that US President-elect Donald Trump may support cryptocurrency-friendly policies.

Will other Chinese firms follow Shein to London? Shein’s reported decision to list in London rather than New York is likely to be an anomaly rather than a trend, says Megan Penick Fashion giant Shein’s prospective IPO – slated for early next year – has caused something of a stir in the City. Indeed, the decision to list on the London Stock Exchange appears on the surface a major vote of confidence for London, as it looks to compete with the New York Stock Exchange and Nasdaq. In an uncertain economic landscape, it provides reassurance that Britain is still an…

Costain wins major HS2 contract It has been announced that engineering firm Costain has been awarded a contract by HS2 worth upwards of £400m. The deal will see the group supply tunnel and lineside mechanical and electrical systems over a seven-year period, beginning in the first quarter of 2025. It comes after a stellar year for the company, which has seen its shares rise over 60 per cent since January. Costain reported a near-doubling of profit in its half-year results in August. It also announced a £10m share buyback programme. https://www.cityam.com/costain-wins-major-hs2-contract/

Employment reforms need considerable thought to not ‘swamp business’ A legal group urged Parliament that the Employment Bill needs “considerable thought” to avoid ” swamping business” with costs or obligations that “confuse even senior and experienced lawyers.” In written evidence provided to the Committee overseeing the Employment Rights Bill, the Employment Lawyers Association (ELA), a group of 7,000 lawyers, urged the government to reconsider some of the changes contained within the bill. The ELA stated that the zero-hour contract changes “will grant workers rights that are so difficult to navigate that this may well impact their ability to be enforced”…

The chaos in South Korea leads the Financial Times after the country’s president declared martial law – later rejected by the country’s parliament.

The front page of CITY AM reports on the junk food ad ban set to be introduced amid warnings from the industry that it could impact the economy.

Business insights this week – 02/12/24 -WTX News Business Consumer confidence in the economy dips following Budget -CITYAM

French PM forces social security budget bill without a vote -Le Monde French PM Barnier announces concession in bid to end budget standoff -France24 What happens without a Social Security budget? -Le Monde

House prices rise at fastest rate in two years – Nationwide House prices rose at their fastest annual rate in two years in November as the housing market continued to display surprising strength. New figures from Nationwide show that house prices rose by 3.7 per cent year-on-year last month, up from 2.4 per cent the month before. This means that house prices are just one per cent below their all-time high recorded in the summer of 2022. In November alone, house prices rose 1.2 per cent, the largest monthly increase since March 2022. https://www.cityam.com/house-prices-rise-at-fastest-rate-in-two-years-nationwide/

Budget could wipe out 125,000 jobs in family businesses The government’s move to limit inheritance tax relief for family-owned businesses could cost Britain roughly 125,000 jobs and significantly reduce economic activity, new research has found. The change unveiled in Labour’s first Budget could reduce the value of goods and services produced across the UK economy by £9.4bn and incur a £1.3bn net loss for the Treasury between 2026/27 and 2029/30, according to a study by CBI Economics. The latter figure contrasts with a £1.4bn gain in revenues estimated by the Office for Budget Responsibility over the same period from the…

Consumer confidence in the economy dips following Budget Consumer confidence in the health of the economy dipped in November, a new survey shows, as the Budget failed to allay households’ economic fears. The British Retail Consortium’s (BRC) sentiment monitor showed that consumers’ confidence in the economy fell back to -19 in November, down two points from October. The reading confirms that households’ optimism in the economy remained relatively depressed throughout the autumn, having improved significantly earlier in the year. In July, following Labour’s election, the reading briefly strayed into positive territory. https://www.cityam.com/consumer-confidence-in-the-economy-dips-following-budget/

Employer national insurance raid could lead to 130,000 jobs being slashed The government’s hike to employers’ national insurance could cost as many as 130,000 jobs, according to new research. Analysis from Bloomberg Economics suggests that up to 130,000 jobs could be lost if firms responded to the tax hike primarily by cutting employment. This would amount to a 0.4 percentage point increase in unemployment, and would likely encourage the Bank of England to cut interest rates faster than markets anticipate. The analysts did not think this was the most likely outcome, suggesting that the cost of higher taxes would likely be distributed more evenly…

London maintains tech capital crown but New York threatens London has kept its title as the tech capital of the world in a closely-watched league table, while New York edged closer to reclaiming the crown. The Z/Yen Smart Centres Index – which ranks 77 global commercial hubs on their ability to create, develop and deploy tech – showed London remained in first place, a title it has held in the biannual ranking since overtaking New York last May. In the latest edition, New York took back second place after coming in third behind Zurich six months ago. The gap between London and New York…