Reacting to news of a proposed agreement on the Northern Ireland Protocol, William Bain, Head of Trade Policy at the BCC, said:  

“The BCC has long been calling for a negotiated solution to the trading difficulties caused by the initial version of the protocol. 

“Businesses in both Northern Ireland and Great Britain have been calling for a considerable reduction in checks and documentary requirements to move everyday goods across the Irish Sea. We will be closely considering the legal texts and their full implications, but this appears to be a positive step toward achieving this goal. 

“The Green Lane proposal should offer a green light to future prosperity in Northern Ireland. 

“But more broadly businesses in the UK will welcome the potential for stabilising relations with the EU. 

“There is now the potential to move to a new phase of co-operation on trade, regulation, climate, migration and supply chain issues.   

“With the UK economy teetering on the cusp of a recession this could help drive growth for both Northern Ireland and the UK more widely. 

“We hope the UK Government, EU member state governments, and the EU institutions will seize this opportunity to improve our relationships, cut costs and remove red tape for exporting businesses.” 

Royal Bank of Scotland are holding our Q1 Economic update soon and we’d be delighted if you could join us online.

You’ll hear about the latest economic issues and trends at a very interesting point in the economic cycle, and what that could mean for our local businesses and markets.

After the presentation there will be a chance to ask plenty questions.

Event details
Date: Tuesday, 28th March 2023
Timings: 9:30 – 10:30

Registration
Please register here

Feel free to share this invite within your business and around your network.
We very much hope you will be able to join us.

The BCC is calling on the Chancellor to use his Spring Budget to relieve cost and recruitment pressures on business. It follows the release of new research which reveals how low business confidence has fallen at the start of 2023. 

Among the findings from the survey, of more than 1,000 firms, are:  

• Two thirds of businesses (65%) plan to raise prices due to cost pressures
• Almost half (47%) say paying energy bills will be difficult when the current business support package ends
• More than half (52%) are consistently experiencing difficulties recruiting staff
• Concerns around regulation and taxation are regularly troubling a third of firms (30%)

The survey backs up findings from the BCC’s most recent Quarterly Economic Survey of more than 5,000 companies which found business confidence remains at Covid-crisis levels. 

It found that only one in three (34%) businesses believed their profits will increase over the coming year, and more (36%) expected a decline.   While a quarter of firms reported a decrease in sales in the last quarter of 2022, with hospitality firms the least likely to report improvements.   

Commenting on the findings, Shevaun Haviland, Director General of the BCC, said: 

“This snapshot of the state of play for business at the start of 2023 sets out exactly why the Chancellor must act in his budget to fuel investment in the UK. 

“We know we have a tough year ahead. With costs piling up on their doorsteps and so much uncertainty on Government policies, there is currently little incentive for firms to risk either their dwindling cash reserves or fresh loans on new projects. 

“Firms know that the UK’s finances are tight, but the Chancellor needs to show more faith in the ability and talent of our businesses. 

“If they can see the Government is prepared to invest in them, by taking action on childcare, energy costs, green funding and Solvency II, then the future could soon look a lot rosier and greener.” 

The BCC has set out four key areas where the Chancellor must act in the budget if businesses are to make headway in bolstering the economy in 2023. 

These are: 

•   Unlocking talent and easing pressure in the labour market by making childcare more affordable for cash-strapped parents and guardians   
• Boosting the UK’s start-ups by further reforming the business rates system to remove the upfront financial squeeze they face   
•   Setting a framework for Solvency II investment that helps direct funds to SMEs where they can have the most impact, leveraging the opportunities of green innovation 
•   Funding to help businesses become greener and more energy efficient 

The BCC’s four non-negotiables form part of its wider budget submission to the Treasury. It contains a list of 24 recommendations for the Chancellor that could create the conditions businesses need to power the UK’s economic recovery. 

2022 has been the year when the term VUCA really came into its own. The acronym describes a world which is Volatile, Uncertain, Complex and Ambiguous, and most people would now agree with this description of the systems that we live and work within.

The UK economy has suffered two seismic shocks this year: the war in Ukraine with its effects on energy prices and supply chains; and the UK Government’s September ‘fiscal event’ which led to severe corrections in the economy and a steep hike in interest rates.

Against this background, along with other emergencies such as the climate and COVID-19, bidders are required to adopt both macro and micro views when designing services and importantly pricing commercial risks across tendered contracts.

What are buyers/clients, and therefore bidders, likely to be focused on in 2023?

 

1. Value for Money – Bids that can demonstrate cost-effective delivery, for example by providing efficiencies/savings/added value will be well-received by clients many of whom will be facing financial cuts just to keep the lights on. Look for opportunities to reimagine services and take your proposals to the market/clients ahead of tender processes commencing.
2. Business Resilience – With a recession which may last throughout 2023, there will be many business failures. No client wants to be contracting with the next Carillion, so expect closer scrutiny of bidders’ financial and business resilience.
3. Procurement Bill 2022 – This is due to become law around the summer. Main changes will be some simplification of the procurement regime and a move to Most Advantageous Tender (MAT) to allow authorities to give increased weight to factors other than price e.g. social value. Note, though, this legislation will only apply to England, Wales and Northern Ireland. It is unlikely to apply to the NHS and will not apply at all in Scotland.
4. Sustainability – More robust carbon reduction plans with specific baselining and a clear roadway to net zero with milestone targets along the way will be examined more closely by evaluators.
5. B Corp – Bidders that can evidence their commitments to people and planet as well as profit will be well-placed to win work, especially with the public sector.
6. Cyber Security – Many clients are ramping up their IT/data security expectations. Bidders that move up the data security ladder from Cyber Essentials through Cyber Essential Plus to ISO 27001 Information Security Management will provide buyers with some reassurance around their data, reputation and the safety of what can often be sensitive information.
7. Political Landscape – Clients and bidders alike will have one eye on the opinion polls given that there is now only two years or less before the next UK General Election. If this brings a change of government, then some sectors may undergo fairly significant changes. It is worth scrutinising the change control provisions of long-term contracts particularly if certain services/sectors look to be targets to be brought within state ownership/more direct control.
8. Labour Shortages – Rather unusually, there are currently labour shortages side-by-side with economic recession. How will your new contract be resourced? How responsive is your business to new ways of working and not mandating people to be at a fixed place of employment? What innovative ways do you have to encourage recruitment, including of the over-50s many of whom have exited the labour market in the last three years? Also, how well do you understand Generation Z and what makes young people tick including what attracts or puts them off an employer/workplace?
9. Technology – How quickly are you keeping up with new and emerging technologies? For example, are you deploying Artificial Intelligence (AI) in your work? How are you using data analytics/insights in your contract delivery and to add real value for your clients?
10. Bid Consultancy – An increasing number of businesses are recognising the benefits of external specialist bidding assistance. This can cover all areas of bidding e.g. strategy, process, writing, management, training, recruitment and coaching. Look for consultants that have APMP (Association of Proposal Management Professionals) qualified people. Some bidders are seeing the benefits of hiring graduates (or people with the right attitude and some of the core bid attributes) and providing them with structured training e.g. via the Ultimate Tender Coach digital programme.

 

Andrew Morrison, founder of AM Bid, Co-Creator of Ultimate Tender Coach and APMP Global Thought Leader of the Year (2022).

More information available at:

AM Bid: UK Bid Writing Specialists Creating Winning Bids and Proposals

Bank of Scotland survey shows:

1. Almost two-thirds of Scottish businesses (63%) are confident they’ll have more success in 2023 than in 2022, with 58% expecting a higher turnover
2. 91% of country’s firms are planning to invest in their business in the next 12 months
3. Top of Scotland businesses’ New Year’s resolutions are retaining current staff (42%), improving productivity (39%), and upskilling existing staff (35%)

The majority of Scottish businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.

Almost two-thirds of the country’s firms (63%) said they are confident they would have greater success in the coming 12 months, compared to the past year. A fifth (20%) were not confident about being more successful in 2023, and one in seven (14%) expected their business to perform at the same level in the next year. The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.

Firms in Scotland projected a more upbeat outlook for 2023, with more than half (58%) expecting a higher turnover than in 2022. A quarter (25%) of businesses expect turnover to increase by between 5% and 19%, and almost a fifth (18%) anticipate turnover to increase by more than 20%.

When businesses were asked what they would do to fuel growth, 91% said they were planning an investment drive. Businesses reported that funding would be used to generally grow their business (43%), invest in energy efficiency measures (42%), develop their company (41%), and increase wages for employees (29%).

Alongside investment, Scottish businesses plan on making several New Year’s resolutions. These include retaining current staff (42%), improving productivity (39%) and upskilling existing staff (35%). 14% said they are set to invest in paying bonuses and short-term incentives. A quarter (26%) are intending to target growth from their existing customer base.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “It’s certainly been another year of constant challenges for Scottish firms, but that so many are preparing for greater success and further growth as we approach 2023 is yet another sign of their unwavering resilience.

 

“As well as growth, businesses must also ready themselves for further challenges ahead, including by effectively managing cashflow and reviewing overheads and expenditure to check whether any changes or cuts can be made.

“Whatever their New Year’s resolutions or goals, we will remain by their side to help them to realise their ambitions and overcome any obstacles ahead.”

Edinburgh-based investment syndicate, Archangels, invested £13.4m during 2022 in some of Scotland’s most promising early-stage tech and life science companies.

The total investment for 2022 among 11 businesses marks a 14% increase on Archangels’ investment activity in 2021 (11.8m).

New additions to the portfolio included tech firm Earth Blox who secured £1.5m funding from Archangels to expand its global reach and further develop its no-code Earth Observation (EO) cloud-based SaaS.

Other businesses to receive follow-on funding included Integrated Graphene, Cytomos, Hearing Diagnostics, Administrate and BioCaptiva.

Co-investors on deals totalling £27.0m during 2022 included Scottish Enterprise, Par Equity, Mercia and various Scottish angel syndicates.

Archangels also generated a significant gain on the sale of portfolio company Optoscribe during the year.

 

The world’s longest continually running investment syndicate, Archangels this year marked its 30^th anniversary with a report by the University of Glasgow’s Adam Smith Business School highlighting the value of Archangels’ activity in Scotland.

 

Analysis by the business school found that the £161m invested by Archangels since 1992 has generated up to £1.4 billion Gross Value Added (GVA) for the Scottish economy and directly created 3,647 high-skilled jobs.

 

David Ovens, Joint Managing Director at Archangels, said: “2022 has been a big year for Archangels and our members. Thirty years of investing in and supporting Scotland’s life science and technology sectors is a milestone of which we’re all very proud. Despite ongoing volatility in the economy, we have continued to see strong demand for funding from innovative early-stage businesses with the ambition to grow and scale. While the economic outlook remains challenging for 2023, we are confident that we’ll continue to find opportunities for our members to back exciting and innovative young companies.”

Archangels aims to deliver returns for its investors while harnessing their experience and networks to fuel the success of Scotland’s entrepreneurs and innovators in technology and life sciences. The syndicate currently has around 120 members invested in a portfolio of 21 early-stage companies.

• 7 in 10 people in Scotland watched World Cup on STV
• Tournament streamed 6.2m times on STV Player – almost three times more than 2018 World Cup
• Viewing share across all matches up +3% on UK average

The 2022 FIFA World Cup broke STV audience records – with the broadcaster scoring its best-performing month for viewing share since September 2003.

Huge interest in the tournament helped STV achieve a record-breaking 25% viewing share for November. The figure was also boosted by the well-received latest series of reality juggernaut, I’m a Celebrity… Get Me Out of Here.

Across four weeks of thrilling football action, the World Cup was watched on STV by 7 in 10 people in Scotland (3.3 million).

Reflecting changes in the way audiences watch TV, live streams of the tournament on the broadcaster’s streaming service, STV Player, were almost three times up on the 2018 World Cup (+170%) and +59% on last year’s Euros. A total of 6.2 million streams were clocked throughout the World Cup, beating the broadcaster’s target.

Sunday’s final, which saw Argentina beat France in one of the most memorable clashes in the tournament’s history, reached a peak audience of 604,000 on the STV broadcast channel – but the 10 December France v England game was the most-watched, with a peak audience of 1.6 million.

Despite Scotland’s national team not qualifying for this year’s World Cup, figures suggest Scots embraced the tournament even more than the rest of the UK. Across all matches on STV, the viewing share was up +3% on the UK average*

Bobby Hain, Managing Director of Broadcast, STV said: “We knew Scotland was a country of football fans, but the record-breaking viewing figures for this year’s World Cup kicked our expectations out the park.

“We’re delighted that 7 in 10 people in Scotland enjoyed this one-of-a-kind tournament on STV, and it’s also fantastic to see so many people embracing our streaming service, STV Player, for unmissable live sport.”

 

Urging Government to provide certainty to businesses on energy support ahead of Christmas, BCC Director General, Shevaun Haviland, said: 

“Just over a month ago, the Chancellor promised businesses that they would receive a plan on the future of the energy support package before the end of the year. With 24 hours left until Parliament rises, businesses have one simple question: ‘where is this plan’?   

“According to a recent BCC survey, almost half (47%) of UK SMEs said they will find it difficult to pay their energy bills when Government support ends.  

“Firms deserve far better from Government than broken promises for Christmas during these incredibly difficult times. They now face an anxious and uncertain festive period, unable to plan for the New Year.   

“The Government has repeatedly assured us of their commitment to confidence and stability. However, their failure to stick to their promises and provide businesses with the certainty they need does not fill anyone with confidence, nor does it promote stability. 

“Government is now left with two options. They can pull a rabbit out of the hat and come up with a plan before they break for Christmas. Or they must explain why they are leaving businesses in the dark. 

“Without a clear plan before January, many businesses will be left vulnerable to extortionate prices at the end of March, especially SMEs and energy intensive businesses. Those businesses will have no choice but to start preparing their workforce for potential redundancies, leaving employees vulnerable and weakening the economy further. 

“Now more than ever, we need to provide businesses with confidence so they can invest, grow and power the much-needed recovery of the UK economy in the months ahead.” 

This is an appeal to all of our customers, and all who want to see Lothian Buses thrive again.

As a society we’ve gone from standing on doorsteps, applauding key workers and paying tribute to their efforts, to a much less tolerant approach.  It’s present wherever you look – in shops, restaurants, and most definitely on buses.  It seems many people are less patient, less accepting and much less forgiving.

I know that our service isn’t always delivering for our customers as it should be right now and I’m sorry.  It’s definitely not how we as a company want it to be and I know we still have work to do to get it right. I know how frustrating it is to wait at a bus stop only for the bus not to turn up or to watch the street tracker increase the number of minutes’ wait when it should be counting down.

Please be assured that Lothian Buses is doing everything possible to get back to operating the reliable bus services that the people of Edinburgh expect and need.

To our customers… Please see our people as human beings – people who are at their place of work and are deserving of your respect and courtesy.  Our drivers and other customer-facing people are seeing a huge increase in abusive behaviour.  It’s abhorrent and completely unacceptable. If you are frustrated with our service and feel that we have let you down, please remember that it’s not the fault of any individual colleague.  They are doing their very best in incredibly difficult circumstances.

And to our colleagues… I am truly sorry that your working day looks as it does just now.  I know that you are the people who have remained loyal to Lothian Buses and continue to come to work in very difficult circumstances.  Please know that we are doing everything possible to recruit the drivers we need and to retain the ones we have.  We are running an extensive recruitment campaign, we’ve evolved our training programme, we are adding new benefits to our employment offering, and we are working hard to modernise rotas so that we can offer a better work/life balance.

We are slowly turning a corner with driver shortages, and we will get back to being a service that customers can rely on.

And in the meantime…

Please bear with us, and with our people.

 

Sarah Boyd

Managing Director, Lothian Buses