The Government is introducing a Bill to Parliament today that will, if passed, ensure public sector services…

Published: 10 January 2023

By Suzanne Evans, Director, Political Insight

The government is introducing a Bill to Parliament today that will, if passed, ensure public sector services maintain minimum service levels during strike action. The Bill proposes that some trade union members would be required to continue working during a strike to "protect the public," and that to meet minimum staffing levels - which are still to be announced - employers would be able to issue a "work notice" stating the workforce they need. Any employees named on the work notice would lose their right to protection from unfair dismissal if they then went on strike. Laws requiring a minimum level of service during industrial action were already promised for public transport as part of the Conservative's 2019 election manifesto, the BBC says, and a bill was introduced to Parliament in October. Now the government is now seeking to extend this requirement to five other areas - the NHS, education, fire and rescue, border security, and nuclear decommissioning. Business Secretary Grant Shapps, who will unveil the bill in Parliament later, has argued that the proposed legislation is similar to existing laws in other European economies. "We will never withdraw the right to strike from people but...when there are strikes on, life and limb must come first and there has to be a minimum safety standard put in place for that," he told GB News. Unions, however, have condemned the plans and threatened legal action, while the Labour party says the plans "won't work" and has reiterated its commitment to repealing the law if it comes to power in a national election expected next year. Labour's shadow work and pensions secretary Jonathan Ashworth told BBC Radio 4's Today programme: "The way to resolve these disputes is proper negotiation" and argued that in other countries which have minimum services rules, "it never works". TUC general secretary Paul Nowak described the bill as "an attack on the right to strike", telling BBC News: "It's an attack on working people, and it's an attack on one of our longstanding British liberties."

Jonathan Ashworth, Labour's shadow work and pensions secretary, will unveil plans to encourage older workers and those with medical conditions back into work in a speech today. Ashworth will promise improved support for those who have recently left employment, and outline plans for more flexibility over fitness-to-work tests to help those on sickness benefits to find work, should Labour win the next election. In his speech, Ashworth will warn of a "monumental waste of human potential," with 2.5 million people out of work because of long-term ill-health. He will also pledge that Labour would make it easier for those on sickness benefits to restart their payments if they take a job that doesn't work out. Responding to a preview of the speech, a spokesperson for the Department for Work and Pensions said it was investing an extra £22m in employment support for the over 50s and reviewing workforce participation to see what action could be taken to cut economic inactivity.

The Government yesterday announced plans to scale back energy subsidies for businesses for the next financial year by about 85% to £5.5bn, having previously described the current level of support as "unsustainably expensive". The current six-month programme of energy support for businesses that will expire at the end of March was predicted to cost £18.4 billion pounds when the Office for Budget Responsibility, the Government's budget watchdog, published forecasts in November. However, the new programme will include extra support for some energy-intensive businesses, mostly in manufacturing. The Federation of Small Businessessaid the reduced support was "a huge disappointment". "Many small firms will not be able to survive on the pennies provided through the new version of the scheme," FSB National Chair Martin McTague said. UK Steel - most of whose members will benefit from the extra support for high energy users - gave the programme a cautious welcome, but said it was still less generous than the aid Germany had offered to its steel producers. "The government is betting on a calm and stable 2023 energy market, in a climate of unstable global markets, with the scheme no longer protecting against extremely volatile prices," UK Steel Director General Gareth Stace told Reuters.

A way forward on sharing live data with the European Union on trade with Northern Ireland was agreed yesterday, in a step towards resolving longstanding issues arising from post-Brexit trade rules governing the region. Foreign Secretary James Cleverly and European Commission Vice President Maros Sefcovic said the deal was an important step towards further talks on the trading rules, known as the Northern Ireland protocol.  "They agreed that while a range of critical issues need to be resolved to find a way forward, an agreement was reached today on the way forward regarding the specific question of the EU's access to UK IT systems," a joint statement said. "They noted this work was a critical prerequisite to building trust and providing assurance, and provided a new basis for EU-UK discussions." A spokesperson for Prime Minister Rishi Sunak told reporters the agreement was "an important step forwards".

According to the latest data from the BRC-KPMG Retail Sales Monitor, total retail sales increased by 6.9% last month, compared to 2.1% growth in December 2021, a positive headline figure but one that represents a decline when adjusted for inflation. On a like-for-like basis, they improved 6.5% against a 0.6% rise a year previously. The increase was driven largely by food sales, which jumped 7.7% in the three months to December. Non-food sales rose 1.1% over the same period on the same basis. The strong end to the year helped UK total retail sales increase 3.1% year-on-year in 2022, with food sales ahead 3% and non-food sales up 3.2%. However, a deeper analysis of the statistics shows the increase in sales was driven by higher prices rather than people buying more. KPMG's head of retail, Paul Martin, said the headline data "masks the fact that the volume of goods that people are buying is significantly down on this time last year". Helen Dickinson, CEO of the British Retail Consortium, said: "After an exceptionally challenging year, which saw inflation climb and consumer confidence plummet, the uptick in spending over Christmas gave many retailers cause for cheer. Nonetheless, despite the strong sales, growth remained below inflation, making December the ninth consecutive month of falling volumes”.

Data from Barclays confirms that consumer spending in December lagged inflation, saying spending on its credit and debit cards rose 4.4% in December compared with a year ago, a long way behind consumer price inflation which stood at 10.7% in November. The comparison with last year was also flattered by the fact people in December 2021 cut back on social engagements as the Omicron variant of the coronavirus spread, Reuters reports.

Weak confidence around personal finances and a squeeze on disposable income will hold back growth in food retail sales to around 5% in 2023, according to market researcher NielsenIQ. "We also expect the recession to start to influence shopper behaviour and reframe overall retail spend," Mike Watkins, NielsenIQ's UK head of retailer and business insight said earlier today. He said 2023 will be tough for UK households as 33% only have enough money for essential spending, with just 5% able to spend freely.

Bank of England Chief Economist Huw Pill said yesterday that it is too soon to say that the current economic environment has shifted to one where inflation is persistently higher than it has been in recent decades. He told a gathering hosted by the Money Market Association at New York University that it is "going too far" to argue inflation has become unanchored and central banks have lost the ability to bring price pressures back down. However, he also said that the UK's high gas prices, high employment with high demand but a short supply of workers, together with supply chain problems, has created a "distinctive context that prevails in the UK". In facing three economic difficulties at the same time, there is "potential for inflation to prove more persistent", Pill said.

The first ever attempt to launch a satellite from the UK failed yesterday. Virgin Orbit had planned for a jumbo jet carrying a rocket to blast off out of Spaceport Cornwall, but although the rocket ignited and appeared to be ascending correctly, word came that it had suffered an "anomaly". Consequentially, the satellites it was carrying could not be released and were lost. The 747 carrier jet returned safely to base. Deputy CEO of the UK Space Agency, Ian Annett said it shows "how difficult" getting into orbit actually is - but predicted further launches within the next 12 months. "We get up, we go back, we try again, that's what defines us," he told BBC Radio 4's Today programme. Matt Archer, the agency's launch programme director said the issue occurred in the upper segment of the rocket, and that the failure is “now part of an investigation by Virgin Orbit and a number ofgovernment departments".

Luxury car manufacturer Rolls-Royce (RR) has recorded its highest-ever full-year sales in 2022, delivering a total of 6,021 vehicles. Annual sales performance, up 8% year-on-year, was the first time in the company's 118-year history that sales have exceeded 6,000 in a single 12-month period. RR noted growth in almost all regions, with especially strong performance in the Middle East, Asia-Pacific, the USA, and Europe. RR also said that pre-orders for its fully-electric Spectre, due to go on sale by the end of this year, had exceeded all expectations.

Bentley has also reported record vehicle sales for 2022, with strong demand offsetting a 9% drop in China caused by coronavirus-related lockdowns. It sold 15,174 vehicles during 2022, up 4% from in 2021, which was itself a banner year for British luxury car maker. "In what was another year of unpredictability, the business overcame significant headwinds and demonstrated great resilience to deliver the third consecutive record sales year," Bentley CEO Adrian Hallmark said in a statement. The Bentayga luxury SUV, which has a starting price of around £150,000, remained Bentley's top-selling model in 2022, accounting for 42% of vehicle sales.

Electric car battery startup Britishvolt is in talks to sell a majority stake to ensure its future. According to various press reports, including in the Telegraph and the Financial Times, the company said it was "in discussions with a consortium of investors concerning the potential of a majority sale of the company". The firm, which is planning a £3.8bn 'gigafactory' to manufacture electric vehicle (EV) batteries in Northumberland, managed to head off going into administration late last year after securing eleventh-hour funding from investors at the end of November. Although Britishvolt has been awarded £100m in government funding for the project, none of that money has been released, and bids to release the funds have been refused. Britishvolt has struggled with delays to the project, and founder and CEO Orral Nadjari left the firm last year. Ex-Ford of Britain chairman Graham Hoare has been in charge since August. The firm has not revealed the identity of any possible investors.

PA reports that Amazon has launched a consultation to close down three UK warehouses in Hemel Hempstead, Doncaster and Gourock, in the west of Scotland. PA says it understands that all workers at the sites will be offered roles at other Amazon locations.

Hornby shares have dropped 19% this morning after the toy train maker has warned sales are 'behind budget' due to pressure on consumer finances. The London-listed firm blamed 'the challenging consumer economic climate' as it said that the performance over the three months to 31st December will impact its full-year performance.

Sky News has learnt that prominent British fintech Railsr (known previously as Railsbank) is fielding offers from potential buyers including Flutterwave, Africa's largest payments technology company.  Sky’s sources also said that a consortium comprising a number of existing Railsr investors was also vying to acquire the company, which specialises in so-called embedded finance solutions such as banking services, credit cards and digital wallets. An insider said there was "heavy competition for the asset". News of the rival offers for Railsr comes as expectations grow of a wave of consolidation in the fintech sector as companies struggle to access sufficient standalone funding to survive, Sky says.

FTSE 250 company Capricorn Energy has convened a general meeting on 1st February at the request of activist investor Palliser Capital Master Fundto discuss the potential removal of multiple board members. Capricorn, formerly known as Cairn Energy, said yesterday it will consider resolutions to remove seven of its current directors and to appoint six new directors, selected by Palliser, at the meeting. It added it was ready to add Palliser's nominees to the board "promptly and well before the general meetings". Palliser is also opposing a merger with NewMed Energy, which Capricorn recommended shareholders vote in favour of.  

Sky News says that former Chancellor Sajid Javid is in talks about a role with Centricus, a London-based investment firm with close links to SoftBank, the giant Japanese conglomerate, which manages more than $40bn in assets. Javid recently announced he would not stand for re-election in his Bromsgrove seat. If he does join the firm, Javid would be reunited with a number of former colleagues from Deutsche Bank, where he worked for nearly a decade., Sky says, although ources said the talks between Javid and Centricus are, at the moment, just that.

Hedge funds posted their worst performance since 2018 last year, mainly dragged down by equities, as portfolio managers struggled to place their bets amid market turmoil, industry data provider HFR said yesterday. Overall, hedge funds fell 4.25% last year, according to the HFRI 500 Fund Weighted Composite Index, which tracks many of the biggest global hedge fund performances. Equity hedge funds notched the worst performance in 2022 among the four main hedge funds categories tracked by HFR. Nevertheless, their 10.37% loss still managed to beat the US S&P 500 index, which fell 19.4% in its worst year since 2008. Event-driven hedge funds, including those that bet on company mergers or restructurings, and relative value funds, which trade on asset price dislocations, also ended the year with losses of 5.04% and 0.9%, respectively. Crypto hedge funds suffered the worst losses, tanking 55.08%, after posting positive returns in only three months of the year. Despite their massive losses, crypto hedge funds account for only a tiny part of the industry's $3.8 trillion (£3.11tn) in assets.

Meanwhile, the cryptocurrency industry has begun another round of lay-offs, following a swathe of job-cuts throughout 2022, Yahoo Finance reports. In 2022, nearly 27,000 people lost their jobs in the cryptocurrency industry, according to a report by Coindesk, and now Huobi Global, a Seychelles-based cryptocurrency exchange and one of the industry's major players has announced plans to axe 20% of its workforce. On 5th January, crypto lender Genesis Global Trading laid off 30% of its staff. On the same day, crypto-bank Silvergate Capital axed 200 jobs, about 40% of its workforce.

US biotech Moderna says it sold more than $18bn of Covid-19 vaccines last year. It also forecast for minimum Covid vaccine sales of $5bn for 2023, noting that it expected to secure additional contracts in the US, Europe and Japan.

Former McDonald's CEO Steve Easterbrook has been charged with misrepresenting his November 2019 firing, the US Securities and Exchange Commission said yesterday. Easterbrook has agreed to pay a $400,000 fine, without admitting or denying the claims. He will be barred from serving as an officer or director for any SEC-reporting company for five years, CNBC reported. McDonald’s fired Easterbrook after he had a consensual relationship with an employee, violating the company's fraternisation policy. However, he received a severance package, before further details emerged of other inappropriate relationships with employees, whereupon the fast-food giant sued him, claiming that he committed fraud and lied to cover up other. In December 2021, the two parties settled, and McDonald's successfully clawed back Easterbrook's $105m severance. "When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives," said Gurbir Grewal, director of the SEC's division of enforcement, in a statement. The agency also found that McDonald's violated the Exchange Act, which prohibits companies from material misrepresentations and omissions in proxy statements sent to shareholders, but did not fine the company because of its "substantial" cooperation with the agency during its investigation.

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