Month: September 2023

Offering a four-day working week could help to encourage staff into the office more, according to leading global workplace design experts, Unispace.
Returning for Good, a Unispace Global Workplace Insights report – which combined the results of a survey of 9,500 employees and 6,650 employers from 17 countries worldwide – revealed that 88% of professionals would be interested in trialling a four-day working week, however just 42% of employers would be keen to do so, marking a notable difference between the two groups.
According to the study, 46% of staff would be willing to work from the office every day, rather than on a hybrid basis, if the four-day working model was adopted by their employer. This is in stark comparison to 21% who are happy to do so with a more traditional employment schedule. Ultimately, 74% of employers expect that their staff will return to the office for four or more days per week at some point in the future.
Of the employees surveyed, the top sectors that were open to a four-day working week were technology, media and telecoms, consumer goods, financial services and banking and insurance.
However, the data suggests that professionals and their employers are still at odds over shifts to traditional ways of working.
Lawrence Mohuiddine, CEO EMEA at Unispace, commented:
“It is perhaps no surprise that many employees are keen on a shift to a four-day working week given the increased flexibility in how and where people work. However, we feel that it could also have real benefits for many employers, not least in their ability to encourage their staff back to the office and, in the long term, to retain their talent more effectively.”
“When combined with a return to the office, the shift to working in this way could lead to improved productivity amongst workforces too, so it is certainly something for employers to consider, particularly those who are battling high levels of staff attrition. Obviously, this is not possible for firms in every sector, but for many, it could lead to their staff returning to work from the office on a more regular basis.”
“A study by the World Economic Forum found that 90% of firms that trialled the new working model looked to retain it after the programme was finished and that this way of operating led to improved morale, fewer absences and, notably, lower levels of staff burnout.”
Read more:
Offering employees a four-day working week may encourage people back into the office

How often do you find yourself pulled away from your tasks by distractions throughout the day? The answer for most of us is “many times.”
Picture this: you’re diligently working on a report, and suddenly, an email notification pops up on your screen. It takes a rare individual to resist the urge to peek and wonder about its content. You break away from your current task and dive into something entirely different. After handling the distraction, you return to your report, only to ask yourself, “Now, where was I?”
Multiply this scenario by countless interruptions each day, and then consider the cumulative effect over a week, a month, and an entire year. How much precious time do you estimate you’ve squandered over 12 months? And it’s not just about wasted time; it’s about the quality of your work. Constantly shifting your attention from one task to another disrupts your concentration and hinders your ability to excel in any one area.
So, what’s the solution? Here are some strategies to help you regain control:

Disable Email Alerts: Turn off those distracting email notifications. You don’t have to respond immediately to every message that lands in your inbox.
Screen Phone Calls: Don’t feel compelled to answer the phone simply because it’s ringing. Let it go to voicemail if you’re engaged in focused work.
Practice Saying No: Learn to decline distractions politely. Not every interruption deserves your immediate attention.
Discipline Yourself: Develop the self-control to resist impulsive responses to distractions. Train yourself to stay on track.
Set Internet Time Limits: Implement a 10-minute rule for internet browsing. Allocate specific times for web surfing to avoid mindless scrolling.
Communicate Your Focus: Inform colleagues and acquaintances when you’re engaged in deep, concentrated work. Set clear boundaries and expectations for interruption-free periods.

By adopting these strategies, you can regain control over your attention and productivity, ensuring that you perform at your best while minimising the impact of distractions on your life.
Good luck!
 
Read more:
Unplugging Distractions: Mastering Concentration in the Modern World

In an ever-evolving business landscape, the welfare of employees continues to be at the forefront of responsible leadership.
A recent survey by Pregnant Then Screwed, encompassing the experiences of over 24,000 parents, has revealed the extent of  pregnancy and maternity discrimination. The implications for business owners are clear, and understanding the full scope of legal obligations and potential risks is paramount.
The findings included:

52% of mothers faced some form of discrimination when pregnant, on maternity leave or when returning to work.
20% of mothers left their job following a negative or discriminatory experience.
64% of pregnant women received hurtful comments about their appearance.
10% of women were bullied or harassed when pregnant or returning to work.
7% of women lost their jobs for various reasons.

The Business Risk
The figures above translate to significant business risk exposure. The UK has stringent protections for pregnant women and new mothers, but ignorance or neglect of the legislation can lead to costly Employment Tribunal claims, reputational damage that can affect your brand’s integrity and the loss of valuable talents and skills.
What You Need to Know – Key Rights and Protections

The right to time off for ante-natal appointments.
Up to 52 weeks’ statutory maternity leave regardless of length of service.
The right to return to the same or comparable job.
Depending on length of service and salary, the right to statutory maternity pay or maternity allowance.
Extensive health and safety protection while pregnant or breastfeeding.
Redundancy protection where there is priority for suitable, alternative employment for an employee who is on maternity, adoption, or shared parental leave over other individuals at risk of redundancy where a vacancy exists.
Crucially, the Equality Act 2010 prohibits discrimination, harassment and victimisation in relation to nine “protected characteristics” one of which is pregnancy and maternity. The Act also protects job applicants and recruitment needs to avoid discrimination and conscious or unconscious bias. So, don’t ask about a woman’s plans to have children or about her childcare arrangements or decide not to appoint someone because they are pregnant. No length of service is needed for a discrimination claim and compensation is unlimited. There is also a separate award for injury to feelings.
The Employment Rights Act 1996 protects women from detriment relating to pregnancy, childbirth or maternity and any dismissal for a reason connected with these is automatically unfair. No qualifying period of service is needed unlike an “ordinary” unfair dismissal claim where two years’ service is required.

Employers need to be aware that new rights will be introduced in due course.

The Employment Relations (Flexible Working) Act 2023 is expected to be implemented in summer 2024. Employees will be able to make two requests in each 12-month period rather than one. Employers will have to consult with employees before rejecting a request and will need to deal with it in two months rather than three. Not included in the Act, but expected to be introduced at the same time, is making the right to request flexible working a day one right (26 weeks’ continuous employment is needed currently).
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 will extend the current redundancy protection so that a mother returning from a year of maternity leave can receive six months’ additional redundancy protection. There is currently no date for this change.

Transforming Challenges into Opportunities
While these new findings are disconcerting, they also present an opportunity for forward-thinking leaders. Many employers want to support pregnant employees or those on – or returning from – maternity leave because they value and want to retain their talent and skills. This is increasingly important at a time of a skills shortage and a competitive job market. This proactive approach is not just ethical; it’s strategic and sends a powerful message about your organisation’s values and commitment to employee wellbeing.
Read more:
New Report Sheds Light on Pregnancy and Maternity Discrimination

In recent times, UK businesses have exhibited the highest level of confidence since before the Russian invasion of Ukraine, according to a new survey.
The most recent survey by Lloyds Bank reflects an unexpected surge in business confidence. The Business Barometer measure of confidence leaped by 10 points in August, hitting a score of 41%. This is the highest it has been since February 2022, pre-dating the invasion of Ukraine by Russia.
Interestingly, this increase in business confidence contrasts with other signs of economic slowdown. Last week, a measure of business activity in August plunged to its lowest level since January 2021. This raises questions about the robustness of the UK economy and the sustainability of this buoyant business sentiment.
Senior economist at Lloyds Bank, Hann-Ju Ho, said that businesses seemed relieved at the prospect of interest rates reaching their peak. Furthermore, there is an apparent optimism that measures to combat inflation are yielding results. The Bank of England has raised rates 14 times consecutively, aiming to counter an inflation rate that is nearly 7%.
According to Thursday’s survey, businesses’ hiring intentions were the strongest in 15 months. Additionally, an unprecedented number of firms are planning to raise staff wages, with the highest percentage since Lloyds began asking about pay in 2018.
The Lloyds Bank survey also highlighted that smaller firms were more optimistic than larger ones. This disparity can be attributed to the latter’s higher exposure to the global economy. Furthermore, manufacturing firms were reportedly more pessimistic than other companies, reflecting the sector-specific challenges they face.
The Bank of England has played a crucial role in shaping the UK’s economic trajectory. Its recent decision to increase interest rates for the 14th time in a row is a testament to its commitment to counter high inflation. However, the modest increase of a quarter-percentage-point was smaller than June’s 50-basis-point hike, indicating a possible approach towards a peak in interest rates.
Amidst the prevailing economic climate, financial institutions are also making strategic moves. Nationwide building society, for instance, has reduced the cost of its fixed-rate mortgage deals for new customers. This move reflects the institution’s response to the fall in swap rates, and the stabilisation of economic conditions.
Similarly, other lenders such as Barclays, NatWest, and Santander have also reduced fixed rates on selected mortgage deals. This trend offers hope to borrowers, hinting at the possibility that home borrowing costs may have reached their peak.
Expectations about future interest rates vary. Investors largely expect the Bank Rate to reach its peak at 5.75% this year, up from its current level of 5.25%. However, if inflation does not significantly decrease, the Bank of England may need to increase the Bank Rate further.
In the housing market, Deutsche Bank has forecasted a further 3% fall in average house prices over the remaining months of the year. This predicted fall would result in an annual decrease of 7%, signalling a potential correction in the housing market.
The resilience of the UK economy is evident in the face of global events and domestic challenges. The unprecedented business confidence, despite signs of an economic slowdown, underscores the adaptive nature of UK businesses.
As we look to the future, the trajectory of the UK economy will be influenced by numerous factors. These include the Bank of England’s interest rate decisions, global geopolitical events, and domestic economic policies. For now, however, UK businesses appear to be seizing the moment, demonstrating an optimism that bodes well for the nation’s economy.

Sarah Austin, founder and Director of the www.britishbusinessexcellenceawards.co.uk, commented: “The Lloyds Bank Business Barometer reflects the same positive conversations that we are seeing take place across the British Business Excellence Awards. Brands and company owners are saying that they are finally seeing the green shoots of recovery beginning to emerge across the business landscape. It is clear though, that the UK business economy is still on a knife-edge and unless those green shoots of recovery are carefully nurtured, they could quickly get blown away by the winds of inflation and the danger of fuel price rises that are starting to creep back in.

“The Treasury, Bank of England and Downing St need to work collectively to ensure we continue this return to optimism about the future.”

Read more:
UK business optimism at 18-month high as hope interest rate hikes will be paused

A new survey has revealed the UK’s sentiment regarding pensions and retirement.
The survey, conducted by investment comparison site Investing Reviews, asked over 2,000 users their opinions and attitudes towards retirement, pensions and investments to better understand the nations sentiment around said topics.
Interestingly, as tensions in France continue to rise over the raising of the retirement age from 62 to 64, UK sentiment regarding retirement ages doesn’t seem to differ much from the French. In the survey, 68.71% of respondents believe that the UK retirement age (which currently stands at 66) should be lowered. This sentiment also comes alongside 71.16% of respondents believing that it is harder to retire in the UK now than ever before.
However, this seems to be easier said than done according to the survey by Investing Reviews. In fact, 62.60% of respondents believe that their pension is simply not enough to retire comfortably, citing that they believe they will need additional investments alongside their pension. This may be due to the fact that over half of respondents (55.82%) agree that they are unable to make as many pension contributions as they would like to.
When it comes to employer contributions, well over a third (42.66%) of respondents would consider working in an entirely different sector to their current career if it meant greater employer contributions. In a previous study by Investing Reviews that analysed official government data from ONS, working in ‘public administration and defence (including compulsory social security)’ is the sector that have the highest percentage of employers contributing 20% or more to employees’ pension whilst employers in the ‘wholesale and retail trade (including motor vehicles and motorcycle repair)’ have the lowest percentage of employer contributions of 20% or more at only 1.3%.
What is particularly interesting is that over a third (34.93%) of respondents revealed that they do not know exactly how much money is in their pension, whilst again, over a third of respondents believe they will not be able to retire comfortably in the UK.
This sentiment around the difficulty of retiring comfortably in the UK and the frustration at not being able to contribute as much to their pensions as they’d like are echoed in respondents answers to the question “If I was able to, I would choose to retire outside of the UK” wherein 42.66% of respondents agreed – raising questions over the increasing rate of inflation and cost-of-living that is perhaps not something that those looking to retire, are able to keep up with if they remain in the UK.
Commenting on the findings, CEO of Investing Reviews, Simon Jones said: “There are endless debates to be had regarding the UK retirement age and the state of pensions, especially considering the recent rise in retirement age in France and the backlash that received. These responses offer a fascinating insight into the attitudes that the British public hold towards pensions and retirement ages, particularly the sentiment that it is now harder to retire comfortably than ever before. It will be interesting to see if factors such as the backlash in France to the rise in the retirement age and the increasing difficulty of the cost-of-living crisis have any effect on these sentiments in the future.”
Read more:
Almost 70% of Brits want the retirement age to be lowered, new study shows

UK publishers have urged the prime minister to protect authors’ and other content makers’ intellectual property rights as part of a summit on artificial intelligence.
The intervention came as OpenAI, the company behind the ChatGPT chatbot, argued in a legal filing that authors suing the business over its use of their work to train powerful AI systems “misconceived the scope” of US copyright law.
The letter from the Publishers Association, which represents publishers of digital and print books as well as research journals and educational content, asks Rishi Sunak to make clear at the November summit that intellectual property law must be respected when AI systems absorb content produced by the UK’s creative industries.
Generative AI tools such as ChatGPT – the term for technology that produces convincing text, image and audio content from simple prompts – are trained on vast amounts of data taken from the internet, including work by published authors.
In its letter, the Publishers Association said: “On behalf of our industry and the wider content industries, we ask that your government makes a strong statement either as part of, or in parallel with, your summit to make clear that UK intellectual property law should be respected when any content is ingested by AI systems and a licence obtained in advance.”
Authors have been at the forefront of protests at what they say is unlicensed use of their work to train chatbots. Sarah Silverman, Mona Awad and Paul Tremblay are among those who are suing OpenAI over claims that the company has breached copyright law by training its chatbot on novels without the permission of authors. This week OpenAI filed a response to the lawsuits, claiming that “the use of copyrighted materials by innovators in transformative ways does not violate copyright”.
In the UK, the government has backtracked on an initial proposal to allow AI developers free use of copyrighted books and music for training AI models. The exemption was raised by the Intellectual Property Office in June 2022 but ministers have since rowed back on it. In a report published on Wednesday, MPs said the handling of the exemption proposal showed a “clear lack of understanding of the needs of the UK’s creative industries”.
The letter from the publishers’ trade body said the UK’s “world-leading” creative industries should be supported in parallel with AI development. It pointed to research that estimated the publishing industry to be worth £7bn to the UK economy, while employing 70,000 people and supporting hundreds of thousands of authors.
“This government has rightly recognised the huge growth potential of the creative and tech sectors and that is best achieved as equal partners. We hope you will consider our request and support your relevant government departments in taking action that will put in place the right business conditions for AI development in the UK,” wrote Dan Conway, chief executive of the Publishers Association.
A government spokesperson said ministers were committed to a “balanced and pragmatic” approach to the use of AI in the creative industries.
“To support this, the Intellectual Property Office is working with AI firms and rights holders to produce an agreement and guidance on copyright. This supports our ambition to make the UK a world leader in AI research and development, while making sure our copyright framework continues to promote and reward innovation and investment in the UK’s creative industries.”
Read more:
UK publishers urge Sunak to protect IP from AI systems

Tourist attraction, backdrop to millions of selfies and one of the world’s most easily identifiable landmarks. Cape Town’s Table Mountain is all of these things, but now it has found a new role: as a guide to what will happen to UK interest rates.
For Huw Pill the opportunity was too good to pass up. Invited by South Africa’s central bank to speak at a high-level conference, the Bank of England’s chief economist said there were two ways for Threadneedle Street to bring UK inflation back to the government’s 2% target.
One was the Matterhorn model, named after the jagged 4,478-metre high peak in the Alps, under which interest rates would go up sharply and come down sharply.
Alternatively, the Bank could go down the Table Mountain route. This approach would involve a lower peak (the mountain rises to 1,085 metres) but then stay at a high altitude for a considerable period. The flat plateau above Cape Town is approximately 1.9 miles (3km) from side to side.
Pill said his preference was for Table Mountain over the Matterhorn. The Bank’s prime task, he explained, was to “see the job through” on inflation. But its nine-strong monetary policy committee (MPC) was mindful of the fact that 14 interest rate rises since December 2021 were starting to hurt and it was aware of the risk of causing needless pain.
“There may be multiple paths that get you to where you want to be,” Pill said in his speech. “Some of them have rates rising rapidly and falling rapidly in what is sometimes known as the Matterhorn profile.
“The alternative would be to hold restriction for longer in a more steady and resolute way with a profile for interest rates that looks more like the Table Mountain. I would tend to favour the latter.”
Pill’s comments suggest he will be voting for official borrowing costs to be raised again – from 5.25 to 5.5% – when the MPC meets later in September but then may well opt for them to stay on a plateau for some time to come.
While the headline inflation rate has fallen from a peak of 11.1% in October 2022 to 6.8% in July, Pill said core inflation – a measure of the cost of living that excludes items such as food and energy – remained stubbornly high and was yet to show an obvious downward trend.
“The key element is that we on the MPC need to see the job through and ensure a lasting and sustainable return of inflation to the 2% target,” he said.
“At present, the emphasis is still on ensuring that we are – in the words of the MPC’s last statement – sufficiently restrictive for sufficiently long to ensure that we have that lasting return to target.”
Meanwhile, the latest data from the eurozone showed inflation was higher than expected in August at 5.3%, unchanged from July. Economists polled by Reuters had expected it to fall to 5.1%.
Pill acknowledged the risk of pushing UK rates too high. “Now that policy is in restrictive territory, there is the possibility of doing too much and inflicting unnecessary damage on employment and growth,” he said.
But he said there was no room for complacency and that the Bank needed to see a “lasting and sustainable” reduction in inflation to the government’s 2% target.
Read more:
Bank of England’s top economist offers two routes to beating inflation

High interest rates are continuing to hit demand in the property market as potential buyers pull back from purchases because of increased mortgage costs.
The number of mortgage approvals fell last month to a five-month low of 49,400, below City expectations and down from 54,600 in June, according to figures from the Bank of England.
Housing affordability has been squeezed by real wages stagnating over the past 18 months and property prices remaining very high.
The Bank’s efforts to tame inflation with 14 successive rate rises has added to would-be homebuyers’ woes, with the base rate now at 5.25 per cent, up from 0.1 per cent in December 2021, sending mortgage rates up sharply.
Effective interest rates on new home loans rose to 4.66 per cent in July from 1.58 per cent in December 2021, the Bank’s monthly money and credit survey showed.
Moneyfacts’ data showed mortgage rates had hit a 15-year high of 6.7 per cent, indicating that the effects of the central bank’s rate rises were still to feed through fully.
The economy is showing signs of slowing under the pressure of tighter finance conditions. Purchasing managers’ indices last week showed that the private sector was operating at its weakest level in 31 months, caused by the powerful services sector contracting for only the second time over the same period.
Recession risks had emerged again owing to “the drag from higher interest rates . . . starting [to] weigh more heavily on activity”, Ashley Webb, of Capital Economics, the consultancy, said.
Latest figures from the Office for National Statistics show unemployment rose to 4.2 per cent in the three months to June, above forecasts from the City and the Bank. Britain’s housing market is responsive to the strength of the nation’s labour force, meaning that further rises in unemployment could accelerate the fall in property prices.
Zoopla, the property search site, said sales could slow this year to their lowest level since 2012. According to Nationwide, the building society and a leading mortgage lender, property prices have fallen by 3.8 per cent over the past year, the steepest decline since 2009. It releases its latest market snapshot on Friday, with prices expected to have fallen by 3.9 per cent over the year to August.
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Analysts said the pace of property price falls was set to accelerate because a wave of homeowners would be rolling on to new mortgages with steeper rates as the year progressed.
Thomas Pugh, an economist at RSM UK, said: “Admittedly, interest rates on new mortgages have now stabilised, but they remain at the highest level since the [2007-08] financial crisis. We still expect a peak-to-trough fall in house prices of about 10 per cent.”
Martin Beck, chief economic adviser to the EY Item Club, the forecasting body, said: “The fact that market interest rates have started to retreat following signs that the economy is weakening should take some of the pressure off weak mortgage demand. But while swap rates are lower than their early July peaks, they are still well above the levels seen in early summer.”
Credit card spending has been broadly stable over the past few months, increasing by £600 million in July despite the effective interest rate on cards hitting a record high of nearly 21 per cent. Households added an extra £400 million to their savings accounts in July, a step down from the £3.8 billion increase in June.
A measure of how much money can circulate around the economy, known as “M4 money”, stagnated last month for the first time in more than a decade, sparking warnings from monetarist economists that the country was on course for a recession. Monetarists argue that the Bank has delivered enough damage to the economy via rate increases and should take its foot off the brake.
Read more:
Higher interest rates push down UK mortgage approval rates as buyers delay moves

Car production increased by almost a third last month compared with a year ago taking factory output in the first seven months of the year to 526,000, up 14 per cent year-on-year.
The Society of Motor Manufacturers and Traders, the industry body, said that should put the sector on course to producing 860,000 vehicles in 2023 as a whole. That would be an increase of about 10 per cent on the 66-year nadir of 2022, when Britain’s factories produced only 775,000 cars, the worst performance since 1956, predating the launch of the Mini, the Jaguar E-Type and the Aston Martin DB5.
However, the society believes that the present rate of recovery in British car production will slow and that there is only a “possibility” that output will get back through the one million mark by 2028.
UK volumes fell below that level in 2020, the first year of the pandemic, when production declined by 30 per cent in the year to 920,000.
Before the 2016 decision to leave the European Union, British factories were producing 1.6 million cars a year, with forecasts that they could break through the two million mark. Since then, the Honda factory in Swindon, Wiltshire, has closed; the Ellesmere Port plant on Merseyside has stopped making Vauxhall Astras and has been adapted to produce lower-volume small electric vans; and production has halted at the Jaguar assembly line at Castle Bromwich in the Midlands.
In recent years, the British motor industry has been dominated by three manufacturers: Nissan, which has cut production by about a third at its Sunderland plant; JLR, the Jaguar and Range Rover combination that shifted production of its bestselling Land Rover Defender to Europe; and Mini at Cowley in Oxford, where production of the next generation of electric Minis has been switched by BMW, its parent company, to China.
The production data is a boost for the balance of payments, showing that four in five vehicles are bound for export, with the top destination markets being the EU, US, China, Japan and Australia, accounting for almost 85 per cent of all UK car exports last month.
The statistics also show how much greener British car assembly is becoming. Nearly two in every five cars produced is in some way electrified, such as Toyota’s hybrids made at Burnaston in Derbyshire and pure electrics like those produced by Nissan and Mini.
“Six months of growth shows that British car production is recovering and, with electrified models increasingly driving volumes, the future is more positive,” Mike Hawes, chief executive of the society, said.
Referring to the news that Tata, JLR’s Indian parent, is to build a “gigafactory” in Somerset making batteries for electric cars, Hawes said: “Recent investment announcements have undoubtedly bolstered the sector, but global competition remains tough.
“If we are to attract further investment and produce the next generation of zero-emission models and technologies, we need a coherent strategy that builds on our strengths and supports all aspects of advanced automotive manufacturing.”
The motor industry stands at a crossroads. From January 1, it will face a new zero-emission vehicle mandate that envisages fining manufacturers not selling 22 per cent of their inventory as battery-electric vehicles; and rules-of-origin regulations that entail cross-border tariffs if less than half a car’s components are not produced locally.
In addition, there has been speculation over whether the government is fully committed to its ban on the sale of internal combustion engine vehicles from 2030, talk that Hawes warned was “unhelpful” in attracting long-term investment.
Read more:
UK Carmakers put foot down with over 526,000 new cars produced so far in 2023