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  • Writer's pictureEdgar Rayo

Finanze Business Weekly Roundup - 27/11/2022

Here are this week’s highlights in the UK business economy.


UK business activity drop for fourth consecutive month. The S&P Global/Cips UK flash composite purchasing managers’ index fell 48.2 in October. The index, which measures monthly changes in manufacturing and services activity, is on a four-month, below-50 reading that indicates a contraction among businesses.


Sunak pledges more energy support for enterprises. The government is currently developing programs to help curb the impact of energy prices for businesses once the current support expires in April.


Business leaders and colleges call for courses to raise national skill levels. Financial Times reports that 76% of businesses fail at finding the right staff during recruitment, and the UK has one of the lowest levels of technically qualified people. The further education sector will not be receiving any additional budget despite Hunt’s planned increase in school spending.


Royal Mail workers went on strike on Black Friday. As many as 115,00 staff held a strike on Thursday and Friday to disrupt Black Friday sales and deliveries. Most small businesses were affected by the postal strikes since they rely on its delivery services.


Finanze Business Foresights:


Worker strikes are rampant today — from nurses, to train staff and university lecturers — but Royal Mail workers will extend their protests for seven separate days in December, which is crucial for many households waiting for their deliveries to arrive on time. Postal workers are demanding an 18-month pay deal and no compulsory redundancies. For its part, Royal Mail offered a 9% enhanced pay and a more generous voluntary redundancy offer.


Adding to the workers' plight are Sunak’s tax policies, which will drag millions through a fiscal drag that puts them into higher tax bands, with no additional tax allowances until 2027. The tax shock puts many workers at risk, and the growing discontent now affects enterprises as happens in every economic downturn - hence the increasing number of protests.


Small and medium enterprises with online orders are the first to get hit by these service disruptions from the strike, owing to the millions of parcels that will be delayed. Unless these businesses shift to another courier service provider, the massive service disruptions will be another blow to the country’s economy. However, most small companies rely on Royal Mail since it doesn’t apply surcharges based on location for rural orders. This saves them a lot of costs and allows them to offer lower product prices.


But this is where many private couriers have missed the mark. If they learn to adopt the ‘one-price-goes-anywhere’ service, then it can attract SMEs to find an alternative service in times of worker distress that lead to operational disruptions.



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