Join Alzheimer Scotland over the event weekend of 16th-18th September in your own special Memory Walk location and you’ll be uniting with thousands of other amazing supporters.
Every penny raised stays in Scotland, and that’s a promise.
Every person walking has something in common; they’re walking for someone they care about: a person currently living with dementia, a carer or in memory of a loved one.
This year Alzheimer Scotland wants you to sign up and encourage your nearest and dearest to join in.
It’s easy to sign up via our all-in-one fundraising website and our team page feature is perfect for colleagues, friends or family to join in.
This year an extra day has been added to Scotland’s Memory Walk as we understand many workplaces want to take part collectively during the working week. If you are unable to take part on these dates (16 – 18 September), we would still love you to sign up and complete your walk on a date that works for you.
We would be delighted if you could share the news about Scotland’s Memory Walk with your network, so that we can ensure as many people as possible across Scotland are uniting to help ensure nobody faces dementia alone.
Visit our website to find out more and sign up for free at memorywalk.alzscot.org or email our friendly Memory Walk team if you have any questions memorywalk@alzscot.org
With rising inflation and the ongoing cost-of-living crisis across the UK impacting households as well as businesses, a range of measures have come together creating an opportunity to alleviate cost pressures and also drive forward the use of green energy.
As part of its net zero objectives and legislative changes following the UK’s departure from the EU, the UK Government recently cut VAT from five percent to zero, on energy-saving infrastructure and materials. The zero rating, which will remain in effect until April 2027, applies to a range of items including solar panels, heat pumps and roof insulation as well as wind and water turbines for domestic properties and relevant residential buildings such as care homes.
This measure comes in the wake of COP26 where the UK was one of the 190 nations committing to moving away from fossil fuels and towards more green energy sources. It comes at a time where many households are struggling with rising energy costs and struggling to pay their bills. Meanwhile, the impact of inflation, Brexit and wider cost-of-living pressures are also impacting on many Scottish businesses.
The key question is whether hard-pressed consumers and businesses will actually invest in energy saving measures on the back of these becoming VAT-free, especially in a challenging economic environment where finances are being squeezed. There are, however, other support options to be considered that can help make it viable for both individuals and businesses to make the green energy transition and benefit from a current zero VAT rating.
For households there are interest-free loans of up to £17,500 available when installing home renewables through the Home Energy Scotland loan. This scheme includes up to 40% cashback for some eligible energy efficiency measures and 75% for certain renewable heating systems.
There is also support available for small businesses which are keen to transition to greener forms of energy despite facing a tough economic climate. Through the Energy Saving Trust SME loan scheme, small companies can access up to £100K to help them pay for energy and carbon-saving upgrades across their business. The initiative, which has so far provided Scottish businesses with over £26m in loans, also offers cashback grants of up to £20K to further support sustainability investment.
The SME loan is available to Scottish businesses that fall within the EU definition of small and medium-sized enterprise, as well as not-for-profit organisations, and charities. It can be used to finance the installation of energy efficient systems, equipment or building fabric, including heating, ventilation, and air conditioning upgrades. It also covers 75% of eligible costs up to a maximum of £10,000 on renewable heat technologies such as solar panels, wind turbines, biomass boilers and air source heat pumps, all of which are now zero-rated for VAT.
Along with the SME loan scheme, there are other forms of support to help businesses in making the green transition. In addition to sign-posting businesses towards other forms of funding, Business Energy Scotland also provides advice to help companies save energy, money and carbon.
While welcomed, the zero VAT rating on renewable energy measures will not in itself start a revolution. Alongside this combination of support measures, the post-COP26 focus on sustainability, and rising energy costs it does however help make it easier for businesses and consumers to invest in green energy.
PhysioMedics is poised to scale its commercial operations after securing growth capital from investors led by Archangels, the world’s longest continually operated business angel syndicate. The investment follows the appointment last year of experienced CEO, Charles Sweeney, to lead the company through the next stage of its growth.
Edinburgh-based PhysioMedics secured equity and grant funding totalling £1.5m from Archangels, Scottish Enterprise and Innovate UK to allow it to accelerate its commercial growth and product roadmap, including expanding into European and Indian markets.
The company’s PhysioWizard platform is the only clinically validated self-assessment tool for muscle and joint problems that patients can complete online, without requiring a clinician. PhysioWizard accurately matches patients with the recommended treatment (triage), and the platform provides patient-led self-care and advice, enabling users to actively participate in their treatment and achieve better results. With 6 in 10 home workers reporting muscle and joint issues, the demand for quick instant access to care has increased significantly with COVID, driven by the move to hybrid working.
Charles Sweeney has more than 20 years’ experience of leading companies in a range of sectors. He has a long association with Archangels, who continue to support PhysioMedics. Charles is currently non-executive chairman of another Archangels portfolio company, Hearing Diagnostics, and a board member of the Glasgow-based Digital Health and Care Innovation Centre.
PhysioMedics was founded by Kirsten Lord in 2010, a Chartered Physiotherapist with over 30 years’ experience of treating thousands of patients, working with a team of specialist physiotherapists.
Charles Sweeney said: “The further investment secured from Archangels and Scottish Enterprise comes at an important stage of our journey, as we move from product development and early commercialisation, into a more focused phase of commercial growth. The Innovate UK grant will also allow us to accelerate the pace of our product roadmap which will revolutionise how musculoskeletal triage is delivered to customers.”
David Ovens, Joint MD of Archangels, said: “In a post-pandemic world, web-based clinical triage is becoming an increasingly an important part of how healthcare is delivered in the UK and globally, providing a vital service and reducing the burden on healthcare teams. I have no doubt that the clinical depth of the PhysioWizard product, which has been developed over many years, will ensure that it becomes the leading digital triage solution not only in the UK but globally.”
Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise, said: “Since the pandemic, more and more people are turning to digital healthcare solutions and PhysioMedics is helping to meet that market demand with its PhysioWizard product. We’ve supported the company in various ways since its early days and are pleased to see it continue to scale up and expand internationally.”
For further information on PhysioMedics and the PhysioWizard platform, please visit: https://www.physiomedics.com/
London North Eastern Railway’s (LNER) annual Customer and Community Investment Fund (CCIF) is now open for applications from communities, customers and charities across the route.
The Fund supports projects where there is an identified social need and that focus on mental health, education and employability skills amongst marginalised groups within 15 miles of the LNER route. It also supports projects that promote diversity and inclusion, as well as environmental sustainability.
To date the fund has supported many different charities in Scotland – supporting projects that tackle mental health issues, helping individuals suffering from loneliness and social isolation, as well projects that enhance people’s opportunities to get into work.
David Horne, LNER Managing Director, said: “LNER is proud to serve our communities and support fantastic projects across the full length of our route. It is incredibly rewarding to see these projects succeed and lives improved because of our Customer and Community Investment Fund and knowing that LNER played a small part in their success. Together we can help change lives and make our communities more inclusive, prosperous and connected. Those eligible to apply should visit our website to find out more.”
As part of the 2021/2022 round, Edinburgh’s Carr Gomm received nearly £30,000, helping to fund its Men in Sheds project in Craigmillar, Edinburgh one of Scotland’s most deprived communities. This project creates a space for men to tackle feelings of isolation, improve confidence, encourage positive lifestyle changes and forge friendships.
Helena Richards, Edinburgh Community Projects Manager at Carr Gomm, commented: “The help we’ve received from LNER’s fund has been invaluable, enabling us to update equipment such as laptops. It has also allowed us to buy new equipment for the men to enjoy, and this has been greatly appreciated by all.
“From the point of application to delivery we’ve had such a positive experience and the communications and support from LNER along the way has been excellent.”
A user of Men in Sheds, John attends the group three times a week. He said: “After losing my close friends and many of family through them passing, I felt isolated and would struggle to meet people or have a routine to get me out of the house. Attending Men in Sheds has been fantastic – I’ve met new friends and developed woodwork skills I never thought would be possible in my sixties.”
They catered to the cast and crew during the filming of Batgirl and Good Omens, but now the dynamic duo behind Scotland’s best loved street food business are taking a permanent residency in Bonnie & Wild’s Scottish Marketplace.
Winner of this year’s “People’s Choice” at the recent Scottish Street Food Award, Kochchi is about to move into Bonnie & Wild’s food hall, where founders Suki Jayaratne and Shehan Fernando will be cooking alongside exceptional food stalls including top chefs from Creel Caught, Salt & Chilli Oriental, El Perro Negro, east PIZZAS and Joelato.
Mr Jayaratne said: “We were brought up around traditional home-cooking and Sri Lankan Street Food, and are passionate about sharing our amazing island dishes with other people. Kochchi has turned our dream into reality and for this we’re very lucky!”
After converting a horsebox into a mobile kitchen, Suki and Shehan took their Kochchi business to food and music festivals like TRNSMT, Craft Beer & Street Food and PlayGround Festival. They also provided mobile catering to the sets of the Amazon TV series Good Omens with David Tenant and superhero film Bat Girl, starring Leslie Grace.
Suki and Shehan quickly established Kochchi as one of the country’s best street food operators, and won the People’s Choice gong in this year’s Scottish Street Food Awards.
Mr Jayaratne said: “Now we’re looking forward to a more permanent kitchen at Bonnie & Wild where we’ll be sharing our iconic Sri Lankan Street Food dishes that are vibrant and packed with flavour! Our creative combinations are made with local produce and cater to vegans, veggies and meat lovers alike.”
Mr Jayaratne added: “You can expect dishes like our legendary Kotthu, our show-stopping Hoppers and signature Deville dishes!”
Kotthu, explains Mr Jayaratne, is one of Sri Lanka’s most popular dishes, prepared by bashing ingredients with metal plates against a hot plate. “You will hear this dish being prepared before you see or smell it!” says Suki. “It’s the ultimate comfort food, and tastes as good as it sounds!”
Hoppers are savoury crepes formed into a ‘bowl’ made from rice flour and coconut milk with a soft-centre and crispy edges, and can be filled with sweet or savoury goodness to form breakfast, lunch or dinner.
Mr Jayaratne adds: “And if you like heat, then our ‘Deville’ dishes will be sure to have your taste buds tingling!”
The addition of Kochchi to Bonnie & Wild means the Scottish Food Hall has a diverse line-up of first-class food operators that includes Gary Maclean’s Creel Caught, Jimmy Lee’s Salt & Chilli Oriental and his recent start-up Leith Woks, Tony Singh’s Radge Chaat, alongside Edinburgh’s east PIZZAS, award-wining burger stall El Perro Negro, gelateria Joelato, pancake house Stack & Still, plus boutique bottle shop Inverarity Morton. The new Scottish deli Soup & Caboodle is also due to open in the next few weeks.
Ryan Barrie, Bonnie & Wild’s Operations Director, said: “I’m delighted that Suki and Shehan are bringing their Kochchi Sri Lankan street food to Bonnie & Wild. I love the food, but I also love the energy and passion Suki and Shehan bring with it.”
Mr Barrie added: “This is yet another example of the diversity and brilliance of Scotland’s food scene, which is beautifully demonstrated within our Food Hall, featuring some of the country’s best chefs using some of the country’s finest products and natural ingredients.”
Kochchi is due to open week beginning July 18th.
The City of Edinburgh Council and Edinburgh Leisure have announced that the new Meadowbank Sports Centre will open to the public on Tuesday 19th July.
The new £47m project Meadowbank is a state-of-the-art community sports facility built on the site of the original Meadowbank, which closed in December 2017. The centre will support physical activity, sport, health, and wellbeing in Edinburgh for generations to come, whilst also recognising the legacy and heritage of the old Meadowbank.
The new venue supports accessible participation and has improved indoor facilities with two multi-sport games halls with seating, fitness studios and gym with triple the number of exercise stations and three larger fitness studios.
City of Edinburgh Council Leader Cammy Day said: “I’m delighted that we can now confirm when the doors for this fantastic new venue will open to the public. Meadowbank, I believe is one of the county’s top community sports centres, and features some of the most state-of-the-art fitness facilities in Britain. I very much look forward to seeing it bustling with sporting activity through the wide range of Edinburgh Leisure facilities and classes.
“Participation and accessibility are at the heart of the Centre and the huge physical, mental and social benefits Meadowbank will bring to generations of local people simply can’t be overestimated. Bright welcoming spaces are flooded with natural light, providing welcoming and versatile halls, where a real variety of sports and activities will take place. Meadowbank has been an important part of Scotland’s sporting history for many years and I’m sure the new Centre will build on this legacy.”
Commenting on the announcement, Edinburgh Leisure’s Chief Executive, June Peebles, said: “I’m delighted that the finishing line is in sight, and we are finally able to announce the opening of this new flagship venue. It’s been a long time coming but I promise you it will have been worth the wait.
“The forthcoming weeks before we open, will see Donald Goldsmith, the manager at Meadowbank, and his team getting the venue cleaned, prepped and ready for our public opening, including an extensive staff training programme to ensure that when the public walk through our doors for the first time that they get the best Edinburgh Leisure welcome we are renowned for.
“The new Meadowbank will pick up where the old Meadowbank left off, providing countless opportunities for generations to come to participate in an extensive range of activities. New memories will be created, and we can’t wait to welcome the people of Edinburgh and beyond, into the new venue. This multi-million-pound investment will provide countless opportunities for Edinburgh citizens to be active and will undoubtedly contribute to the wellbeing of our City.”
The new Meadowbank has much to offer the local community and communities throughout Edinburgh and includes the following facilities:
• An outdoor athletics track with a 499-seat stand and outdoor throwing and jumps area
• A 60m six-lane indoor athletics track and jumps space
• Two multi-sport games halls with seating
• A hall particularly suitable for trampolining and dance
• Two fitness studios, which include world-renowned Les Mills programme of classes, smart tech bars and weights
• A gym with Life Fitness equipment, dumbbells up to 50kg, Watt bikes, SkiErg, row and Cybex SPARC machines
• A Cycle Studio with Life Fitness IC7 bikes and ICG myride and Les Mills RPM classes
• Two squash courts
• A combat studio for martial arts
• A boxing gym
• Two 3G (synthetic) pitches, including one with a 499-seat stand
• A hospitality Suite and event-hosting facilities
• There will also be a cafe and meeting rooms
More detailed plans about opening times and how to buy memberships will be announced on Edinburgh Leisure’s website and social media in the coming weeks.
History of Meadowbank
Meadowbank has been the home of elite sport in the Scottish capital since the 1930s. The previous Meadowbank Sports Centre was built for the 1970 Commonwealth Games and was used by various clubs and sporting celebrities. It hosted two Commonwealth Games in 1970 and 1986.
It has also hosted some large-scale music events over the years, including T on the Fringe, an annual music festival. Muse, My Chemical Romance, Snow Patrol, Radiohead, Pixies, Foo Fighters, Nine Inch Nails, Kaiser Chiefs, and Razorlight, all played the venue between 2005 and 2007.
The closure of the venue on 3 December 2017 marked the end of an era and the start a new one as the building was decommissioned to make way for a new sports centre for people in Edinburgh and beyond to enjoy for decades to come.
INFLUENTIAL figures in global health gathered at an event in Westminster to assess the shocking state of children’s access to surgery in many of the world’s lowest income countries.
Kids Operating Room (KidsOR) partnered with the Foreign Policy Centre to host the event to identify steps to strengthen health systems in developing countries and the role the UK can play in supporting such initiatives.
The sold-out event was held in the Commonwealth Parliamentary Association room within the Houses of Parliament [London].
Key speakers included Dr Neema Kaseje – Founding Director of the Surgical Systems Research Group in Kenya and visiting surgeon for KidsOR and for Doctors Without Borders – alongside Ben Simms, CEO of the Tropical Health and Education Trust (THET) and Professor Dina Balabanova, Professor of Health Systems and Policy at LSHTM.
The event addressed the role local surgical capacity and expertise plays in strengthening the wider health system, exploring practical examples from across the developing world of interventions that have helped build the capacity and resilience of healthcare systems.
Dr. Neema Kaseje has played a key role in transforming access to surgery at the first dedicated paediatric operating room within a refugee camp in Kenya by training the surgical team, while leading the procedures that have taken place to date.
She said: “This event has come at a pivotal time as the global challenges related to access to health care require collaboration, learning and investment to deliver sustainable change.
“Surgery is a basic human right which must sit at the heart of any sustainable healthcare system and by providing access to safe paediatric surgery we are breaking new ground to save children’s lives.”
The event also addressed how the UK currently supports global health initiatives, and the extent systems are prioritised compared to disease-specific interventions within current aid spending.
The role of international financial institutions and UN bodies in shaping, investing and implementing health interventions around the world was also a focus.
KidsOR co-founder and Chairman, Garreth Wood, said: “Our vision is a world where every child can access the care they need so that common conditions such as appendicitis or a broken leg do not have to result in a child’s death or a lifetime of disability.
“A great deal has been achieved since starting the charity, however, there is a long way to go and for us this is just the beginning.
“Sustainability is at the heart of our model and we invest in local people, building real capacity and promoting self-reliance in the long-term.”
KidsOR is the only global organisation focused on the single task of providing dedicated operating rooms for children’s surgery. More than a billion children, and their families, need its help. Its research from earlier this year revealed that nine in 11 children globally have no access to safe surgery.
For more information on KidsOR, please visit: www.KidsOR.org
The firm announces that it has expanded the office footprint in its Edinburgh office
Independent UK law firm Burges Salmon announces today that it has expanded the existing office footprint in its Edinburgh office at Atria One on Morrison Street.
In May 2022, Burges Salmon celebrated its third anniversary of launching in Scotland and the firm is now excited to announce this further expansion of its Edinburgh office, which is intended to support future growth.
Having completed a deal with The Law Society of Scotland, Burges Salmon has acquired 3,000 sq ft of additional space in Atria One that is adjacent in the building and now connected to its existing office space. The new space comprises a range of additional agile work spaces, internal meeting space and collaboration areas that are tech-enabled to support hybrid working, and will help the firm accommodate the growth of its team in Scotland as well as provide a flexible space for visitors. The firm has also invested in a range of planting and greenery in the new office space to support the wellbeing of its people and visitors.
Roger Bull, Burges Salmon’s Managing Partner, says: “Our decision to open an office in Edinburgh in 2019 was all about recognising and responding to the needs of our clients, and was (and remains) closely aligned with our key sector strategy. Over the past three years, we have achieved a number of significant milestones – in terms of both the recruitment of fantastic new team members and client successes. During the past 12 months in particular, our presence in Scotland has continued to grow strongly and we now boast a 45-strong team based in our Edinburgh office.
“This exciting office expansion will support our future growth and for it to come only three years after opening in Scotland is testament to the hard work of all those involved in making our Edinburgh office such a success.”
Burges Salmon’s office in the Scottish capital opened in May 2019, in line with the firm’s commitment to meet the needs of its clients and underpin its strong position in the Scottish market.
Further demonstrating the firm’s commitment to a strong Dispute Resolution team in Scotland, this year Burges Salmon welcomed two senior lawyers – Amy Cornelius and Gregor Hayworth – in the firm’s Dispute Resolution team based in Edinburgh.
Burges Salmon’s Corporate team has also expanded with solicitors Claire Withers, Tax and Incentives, and Victoria MacAuley, Corporate Finance, joining the firm, while associate Samir Younes and solicitor Emily Cranston joined the firm’s Banking and Finance team. The firm’s Planning and Compulsory Purchase team was also strengthened with the appointment of associate Patrick Munro.
The past year has seen a number of key client successes for Burges Salmon’s Edinburgh team, having advised on a number of significant transactions across a range of sectors and for high-profile clients. Burges Salmon has also maintained or forged new partnerships with some significant institutions in Scotland, including rewilding, reforestation and carbon-offsetting organisation, Trees for Life, and Edinburgh Zoo’s public art event, Giraffe About Town.
UK and leading Scottish law firm, Brodies LLP, has reported a twelfth consecutive year of growth for the 12 months to 30 April 2022.
The firm reported revenue of £98.5m, up 19.5% from £82.5m the previous year. Operating profit increased from £39m to £46.1m.
Throughout the year, Brodies assisted its clients to navigate a wide range of domestic, international, political and economic factors, against a constantly changing backdrop, with each practice area – banking & finance, corporate & commercial, litigation, personal & family, and real estate – delivering double digit income growth.
The financial year to April 2021 had seen the firm prioritise the wellbeing, roles and financial security of all colleagues at the height of the pandemic. That judgement saw it begin the year to April 2022 with a full complement of colleagues across all areas. Continued investment in people over the last 12 months saw headcount increase from 748 to 771 with all eligible colleagues receiving bonuses in May 2021, January 2022, and June 2022. Seven new partners were promoted, bringing total partner numbers on 1 May 2022 to 116.
Investment in premises saw more than 380 colleagues move into the firm’s new Edinburgh office, Capital Square, in January 2022 – the first office designed to platinum WELL accreditation standards. Brodies also opened its London office in the summer of 2021 and has committed to new premises in Inverness, planned to open in Autumn 2022.
With the full cost of the Capital Square project met, and colleague bonuses and other investments paid in full, cash balances at year end were £26m.
Brodies managing partner, Nick Scott, said: “Our clients, be they businesses, individuals or organisations, continue to seek the support of our firm on new and interesting instructions. We are grateful for their continued support to which our progress this year is testament. Our firm’s management boards remain focused on their core task of delivering the remaining outcomes targeted in our 2021-24 strategic plans.
“Throughout the year, investments continued to be made in people, with recruitment of colleagues in legal and business services teams, the payment of bonuses, and the introduction of new reward structures more closely aligning individual performance with reward. These measures represent the single largest investment in colleagues and colleague reward the firm has, to date, made.”
Work continued to deliver upon the firm’s broader responsibilities, including its commitment to the continuous reduction in its carbon footprint, including investment in more efficient buildings and the adoption of green energy tariffs.
Nick Scott continues: “A new Members’ Agreement was approved by our partners, containing a commitment that our firm be run as a responsible and sustainable business, and openly recognising the commitment we hold to create opportunity for all, regardless of difference.
“We begin the 2022/23 financial year inspired by our clients and our colleagues, aware of the challenges but excited by the opportunities ahead, and conscious of our responsibilities as a business and to the communities in which we work.”
Highlights for the financial year in review include:
• Acted in multiple transactions for Accel-KKR, including a complex, international private equity deal to unite two software leaders (in the US and UK) providing SaaS project-management solutions to the professional services sector.
• Supported Orbital Marine Power Ltd in securing their game-changing strategic partnership with industry player Technip FMC.
• Provided guidance to City of Edinburgh Council on the legislative process in relation to Low Emission Zones.
• Acted for Henderson Park, the European private equity real estate firm, in the Scottish aspects of the acquisition of Silverburn, a 100,000 sqm shopping centre in Glasgow.
• Acted for Apollo Global Management in the Scottish aspects of the acquisition of Miller Homes from Bridgepoint Group. We supported Apollo on all real estate, planning, construction, environmental, banking and tax elements of the transaction.
• Acting for Stornoway Port Authority in the development of its £45 million deep water terminal, which will strengthen transport links, support a range of diverse industries in the Western Isles, and increase capacity for cruise, energy and industrial projects, and see the creation of more than 200 jobs.
• Acting for housebuilders including Tulloch Homes and Pat Munro in the development of hundreds of homes across Inverness and various locations across the Highlands.
• Ranked in the top 30 UK family-friendly employers by work-life balance charity, Working Families.
• The firm reinforced its commitment to mental health and wellbeing signing up to the Mindful Business Charter.
• Funding the pilot phase of the Brain Health Scotland primary schools programme. Brain Health Scotland is an innovative initiative launched in collaboration with the firm’s charity partner, Alzheimer Scotland, and the Scottish Government. One of its aims is to inspire every Scottish young person to create good habits that will have a life-long impact on their brain health.
• Introduced Smart working, allowing colleagues to split their time between working from the office and home.
• Match-funding sums raised by colleagues for charities whose focus was helping those affected by war, including the war in Ukraine.
• Measures for inflation are at the highest levels on record with 2 in 3 (65%) firms expecting to raise prices
and no sign this is levelling off
• More than 4 in 5 (82%) cite inflation as a growing concern for their business, also an historical high
• Three quarters (75%) of firms report no increase to investment in plant/equipment
The BCC’s Quarterly Economic Survey (QES) for Q2 2022 – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – shows key economic indicators flashing red.
The survey of over 5,700 firms revealed a weakening in the proportion of firms reporting increased domestic sales, investment intentions, and longer-term turnover confidence.
Measures for investment and longer-term business confidence have slipped back.
Indicators for turnover and profitability confidence, as well as investment, all worsened from their Q1 positions. Firms expecting an increase in turnover over the next twelve months dropped from 63% to 54%, this is the lowest figure since Q4 2020 when much of the UK was under some form of lockdown.
Confidence in profitability also took a significant knock with 43% predicting an increase, down from 50% in Q1. More than a quarter (28%) are now predicting a decrease in profits.
Unsurprisingly, this declining confidence in business performance has affected firms’ plans to increase investment, with 3 in 4 (75%) saying they have no plans to do so (up from 73% in Q1).
This metric has remained largely unchanged since Q2 2021.
Inflationary pressures continue to exceed record highs
65% of firms now expect their prices to rise in the next three months, up from 62% in Q1, a record high and a 23-percentage-point rise on a year ago. Only 1% overall expect a decrease in their prices.
Expected price rises are being felt most acutely in the retail and wholesale sector, and construction and engineering sector, both at 78%, with production and manufacturing only slightly behind at 77%.
When measured as a net balance (the percentage of respondents reporting an increase minus those reporting a decrease), price expectations are now the highest since records began for this indicator in 1997 for both the manufacturing (+76%) and services sectors (+56%).
When firms were asked which factors were driving price rises, 67% cited utility bills, 66% labour costs, 56% fuel and 53% raw materials.
In the three sectors worse affected (Retail & Wholesale, Construction & Engineering, Manufacturing & Production) all three cited raw materials as the biggest factor.
When asked what external factors were more of a concern to their business than three months ago, 82% of firms cited inflation. This is the highest on record and a rise from 77% in Q1 (the previous record).
The percentage citing interest rates as a concern also rose for the third quarter running; 1 in 3 (33%) reported interest rates as a concern, up from 32% in Q1.
Business activity remains buoyant but on downward trend
41% of respondents overall reported increased domestic sales in Q2, down from 42% in Q1, and the third consecutive quarterly fall. 18% reported a decrease, the same as the previous quarter.
In the services sector, the balance of firms reporting increased domestic sales stood at +24%, compared to +21% in Q1. In the manufacturing sector, the balance of firms reporting increased domestic sales fell to +19% in Q2, the lowest level since Q1 2021.
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:
“This quarter’s survey results clearly point to a weakening economic outlook amid unprecedented cost pressures and falling business confidence.
“Domestic demand continues to show buoyancy, with almost half of respondents reporting increased domestic sales in the quarter.
“However, indicators for structural business conditions such as investment, and cash flow, are showing no sign of improvement for most firms.
“Inflation remains by far and away the top concern, with our survey measures going beyond anything we’ve seen before in the history of the data.
“Businesses face an unprecedented convergence of cost pressures, with the main drivers coming from raw materials, fuel, utilities, taxes, and labour. The continuing supply chain crisis, exacerbated by conflict in Ukraine and lockdowns in China, has further compounded this.
“Some sectors are far more impacted than others. Manufacturers, retailers, and hospitality firms have been sounding the alarm on inflation for 18 months.
“Against this backdrop, it is no surprise that business confidence for the months ahead is waning as we enter a period of heightened economic uncertainty.”
Responding to the findings, Director General of the British Chambers of Commerce, Shevaun Haviland, said:
“The red lights on our economic dashboard are starting to flash. Nearly every single indicator has seen a deterioration since our last survey in March.
“Business confidence has taken a significant hit and fears over inflation and cost pressures are at new record highs.
“But it is not too late for the Government to take action to help businesses through these challenging times and put the economy on a more stable footing.
“A cut in VAT on energy bills to 5%, and other steps to relieve the tax burden on firms to encourage investment are crucial.
“Better infrastructure, a plan to address labour shortages and a unified long-term economic strategy to give businesses more certainty are also needed.
“The Government must swiftly demonstrate that it is on the side of business if confidence to invest is to be restored.
“Only then will we be able to return some momentum to the economy and find a pathway through the current difficulties.”
