Month: February 2024

The latest Prism SME Barometer reveals UK’s small and medium-sized businesses face a massive $42 trillion in working capital trapped in global supply chains. This capital constraint severely limits SMEs’ ability to expand internationally.
It shows access to capital ranks among the top barriers to SME participation in global trade. Over 30% of SMEs surveyed said accessing export finance is a major hurdle.
“The mismatch between domestic and cross-border capital can block SMEs from securing credit for overseas ventures,” said Ali Ansari, Managing Director at Taulia. “SMEs carry higher financial risk in cross-border deals, so they fight for leftover capital after multinationals take the lion’s share.”
Ansari explained how poor financial infrastructure in some regions makes SME lending cost-prohibitive. “When you factor in exchange rate volatility and reliance on a few international financial hubs, costs get too high for most SMEs,” he said.
Supply chain finance (SCF) is gaining popularity as a solution. SCF lets suppliers receive early payment on invoices through third-party financiers. Buyers approve invoices and upload data to the SCF platform. Suppliers select invoices for accelerated payment, receiving funds upfront with a small fee deducted. The buyer pays the financier on the original due date.
“Financing costs are far lower with SCF because they are based only on the buyer’s creditworthiness,” Ansari said. “For SME suppliers, rates can be 90% less than factoring and other financing options.”
The report shows 71% of SMEs expect major benefits from supply chain digitisation in five years. Another 28% aim to capture higher margins through data-driven customer insights.
William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said recent declines in UK trade underline bottlenecks in global supply. “Transport costs, exchange rate swings, uncertainty and rules of origin issues hamper UK exporters,” he says.
The BCC found most firms struggle trading with the EU post-Brexit. Slow adoption of digital customs processes adds friction. “Boosting exports requires convincing more SMEs to trade internationally,” said Liam Smyth, Managing Director at ChamberCustoms.
With tight capital constraining SME growth, unlocking trillions in supply chain inefficiencies is critical. Solutions like SCF and digitisation provide paths to free up working capital and enable SMEs to access the global marketplace.
Read more:
New Research Shows $42 Trillion Locked in Global Supply Chains Stymies SME Growth

Leading economists have cautioned the Lords Economic Affairs Committee that achieving net zero emissions will come with a significantly higher price tag than what the public currently perceives.
Olivier Blanchard, former chief economist of the International Monetary Fund (IMF), emphasized that while transitioning to a low-carbon economy is imperative, the endeavor will be much costlier than commonly assumed. He stressed the substantial fiscal burden associated with achieving anything close to net zero, highlighting the uncertainty surrounding the exact cost of the transition.
Blanchard (pictured), now a senior fellow at the Peterson Institute for International Economics, underscored the need for clarity in communicating the costs to the public. He suggested that governments might need to rely on increased borrowing to finance the transition, as funding solely through higher taxation would not be politically viable.
Pointing to instances in France and Germany where environmental regulations have sparked protests, particularly among farmers opposing the phasing out of diesel subsidies, Blanchard highlighted the political challenges inherent in the net zero agenda.
Sir Dieter Helm, economics professor at Oxford University and former advisor to Boris Johnson, echoed Blanchard’s sentiments, dismissing the notion that the net zero transition would pay for itself. He cautioned against burdening future generations with the debt incurred to replace the existing polluting systems.
Helm emphasized the likelihood of costs exceeding current projections due to potential errors in estimating the costs of new technologies. He criticized the unrealistic nature of the government’s climate targets and reiterated the necessity of acknowledging the substantial financial commitments required for the transition.
Charles Goodhart, a founding member of the Bank of England’s Monetary Policy Committee, echoed concerns about the public’s willingness to bear the costs associated with achieving net zero. He cautioned that while net zero may enjoy broad support, enthusiasm wanes when individuals are confronted with the financial implications.
The warnings from these esteemed economists underscore the imperative for transparent communication and prudent fiscal planning as nations embark on the ambitious journey towards achieving net zero emissions. Balancing environmental imperatives with economic realities remains a formidable challenge that demands careful consideration and strategic policymaking.
Read more:
Experts Warn Net Zero Transition to Be Costlier Than Anticipated, Lords Committee Told

Tagomics, a trailblazing developer of a state-of-the-art platform for comprehensive disease insight and diagnosis, has announced a successful £6.7 million funding round.
This milestone comes on the heels of a £1.6 million pre-seed round led by IQ Capital and Start Codon, supplemented by grant funding from Innovate UK.
The infusion of capital will expedite Tagomics’ scientific research and product development endeavors, aimed at advancing the diagnosis and treatment of various diseases, including cancer. The funding round was spearheaded by Calculus Capital, with participation from prominent investors such as Illumina Ventures, IQ Capital, Agilent Ventures, Mercia Ventures, MEIF Proof of Concept & Early Stage Fund (managed by Mercia Ventures), Meltwind, and OMX Ventures.
Established in July 2020 as a spin-out from the University of Birmingham, Tagomics builds upon pioneering research spearheaded by Dr. Robert Neely, the company’s Chief Scientific Officer. Tagomics has crafted a groundbreaking platform that seamlessly integrates multiple “omics” technologies, including genomics, epigenomics, and fragmentomics, to offer a holistic understanding of human health and disease. By leveraging advanced data analysis and machine learning, Tagomics aims to unearth new disease markers, foster strategic partnerships, and advance drug development and therapy selection.
Since securing investment, Tagomics has secured the distinction of becoming the inaugural tenant of Illumina Ventures’ Labs in Cambridge. This facility provides invaluable resources and support to genomics startups, facilitating their growth trajectory from inception to Series A financings.
Dr. Jack Kennefick, CEO and Co-founder of Tagomics, expressed optimism about the company’s trajectory, highlighting the transformative potential of its multiomic approach in enhancing disease diagnosis and treatment. Elizabeth Klein, Investment Director at Calculus, commended Tagomics’ innovative technology and exceptional leadership team, emphasizing CEO Dr. Jack Kennefick’s expertise and the collective experience of the board members.
Nick Naclerio, Founding Partner at Illumina Ventures, underscored the significance of Tagomics’ inclusion in Illumina Ventures Labs, expressing confidence in the collaborative efforts to expedite the company’s market penetration.
As Tagomics embarks on its next phase of expansion, buoyed by robust investor support and cutting-edge technology, it aims to redefine the landscape of genomic medicine, offering novel insights and solutions to address critical healthcare challenges.
It’s noteworthy that the Midlands Engine Investment Fund, which supported Tagomics’ growth, will soon transition to Midlands Engine Investment Fund II, marking a new chapter in fostering innovation and economic development in the region.
Read more:
Tagomics Secures £6.7 Million to Enhance Disease Diagnosis Technology

The Body Shop has announced plans to close nearly half of its 198 stores in the UK, resulting in significant job losses. The decision comes as part of a broader restructuring effort aimed at revitalising the brand and ensuring its long-term sustainability.
According to the administrators overseeing the restructuring, closures will commence immediately, with affected stores shuttering their doors as early as Tuesday. The move is expected to lead to hundreds of job losses, impacting approximately 2,200 employees across the UK, including 750 staff members at the company’s head office.

The decision to downsize the store network and reduce the size of the head office is driven by the need to streamline operations and optimize resources. By consolidating its presence and reallocating resources, The Body Shop hopes to reinvigorate its brand and adapt to evolving market dynamics.

Notably, the closures will initially target stores in high-rent areas, including four locations in London, as well as outlets in Nuneaton, Ashford, and Bristol. These strategic closures reflect the company’s efforts to mitigate overhead costs and focus on more profitable locations.
Despite the significant restructuring measures, The Body Shop has reassured customers that its remaining stores and online platform will continue to operate as usual. The company remains committed to serving its loyal customer base and maintaining its presence in the UK market throughout the restructuring process.
The announcement of store closures comes shortly after the UK arm of The Body Shop was placed into administration, last week following its acquisition by Aurelius, a German private equity firm. The move underscores the challenges faced by retailers in an increasingly competitive and rapidly evolving market landscape.
As The Body Shop embarks on this journey of transformation, the company seeks to emerge stronger and more resilient, equipped to navigate the complexities of the retail industry and meet the evolving needs of consumers. While the decision to close stores and reduce headcount is undoubtedly difficult, it is viewed as a necessary step towards securing the brand’s future success.
The Body Shop’s restructuring efforts highlight the broader trend of adaptation and innovation within the retail sector, as companies strive to remain agile and competitive in an ever-changing business environment. As the industry continues to evolve, stakeholders will closely monitor the progress of The Body Shop’s restructuring journey and its implications for the future of the brand.
Read more:
The Body Shop Announces Closure of Nearly Half of UK Stores, Leading to Job Losses

Tim Davie, the Director General at the BBC, and his team found themselves under the intense scrutiny of the Public Accounts Committee (PAC) yesterday regarding the corporation’s implementation efforts across the UK.
Among the topics discussed during the session, the issue of IR35, particularly pertinent in light of the recent Atholl House case, took centre stage.
Dave Chaplin, CEO of IR35 compliance firm IR35 Shield and a vocal advocate for self-employed workers, closely followed the proceedings. He noted that during the IR35 discussion between BBC executives and the PAC, alarming revelations surfaced. It was revealed that there are still approximately 100 outstanding and unresolved IR35 cases within the BBC. This revelation prompted Chaplin to question the prolonged delay and the apparent sluggishness of HMRC in addressing these matters over the past seven years since the inception of the new IR35 rules.
Chaplin expressed deep concern for the plight of ordinary taxpayers, particularly freelancers within the BBC like Gary Lineker, who continue to grapple with uncertainty and anxiety due to these unresolved cases. He emphasized that the protracted nature of these disputes is unduly burdensome and stressful for those affected.
Moreover, Chaplin highlighted the broader implications of the flawed IR35 system, arguing that it is hindering the progress of UK businesses and the economy at large. He cited instances of HMRC’s aggressive pursuit of genuine freelancers, such as the prolonged case involving Kaye Adams, which was ultimately resolved in her favour after a decade-long battle.
Central to Chaplin’s critique is the perceived lack of accountability, transparency, and fairness within HMRC’s approach to taxing the self-employed. He criticised the arbitrary nature of HMRC’s assessments, based on ambiguous criteria such as “mutuality of obligation” and “right of substitution,” which often lead to erroneous conclusions.
Chaplin issued a call for urgent reform, urging the government to prioritise the rights and interests of the self-employed. He stressed that addressing the shortcomings of the IR35 system is not only crucial for the wellbeing of freelancers but also essential for fostering a supportive environment for businesses to thrive. As the political landscape evolves, Chaplin warned that failure to address these issues could have electoral ramifications, urging the Conservative Party to prioritise the concerns of the self-employed as they prepare for the next general election.
The BBC’s appearance before the PAC serves as a stark reminder of the ongoing challenges surrounding IR35 implementation and the pressing need for systemic reform to ensure fairness and equity for all stakeholders involved.
Read more:
BBC faces scrutiny over IR35 implementation during government questioning

One of the major trends in business in recent years has been the role of the workplace. Some companies are making the office a destination to encourage employees in, while there have been grandiose exclamations that the office is dead.
Yet it was only eight years ago that the first major report to explore the role of the workplace for employee productivity in extensive detail was published.
The Stoddart Review marked a pivotal moment as the first comprehensive exploration of the office environment in this regard. Since then, the landscape of work has undergone a significant transformation, fundamentally altering our understanding of what constitutes a workplace.
Where are employees productive?
The Leesman Index is a leading employee experience benchmarking tool that was cited in the Stoddart Review. In 2016, it found that 86% of employees agreed that their workplace supported productive work.
By 2021, this figure had dropped to 64%. At the same time, 84% of surveyed home workers asserted that they felt most productive in their home environment, underscoring the shift towards viewing home as a viable work option.
A study by Nicholas Bloom in 2015, at a time when working from home was not the norm, found a 13% boost in productivity for employees embracing work-from-home policies. This suggests that the location of work may not be the deciding factor in productivity; instead, greater autonomy fosters more intelligent and productive work practices.
Is the office too distracting?
The Stoddart Review highlighted noise levels as the primary hindrance to productivity, with only 30% of office workers satisfied with current levels. Nigel Oseland’s recent research, “The Enticing Office,” echoes this sentiment, emphasising that the office still falls short on ‘hygiene factors’ such as noise pollution and visual privacy.
A 2008 study discovered that office workers experience distractions every four minutes, with co-workers, noise, smartphone notifications, and emails being the primary culprits. Furthermore, it takes an average of 23 minutes for employees to regain full focus on a task after an interruption. While no one is suggesting that the home is completely free of distractions, the absence of human interruptions and ambient noise in the home working environment tends to result in significantly fewer distractions.
Despite a recent trend of companies creating more collaborative spaces and using hotdesk arrangements, Oseland suggests that allocated desks can motivate more people to return to the office and cautions against transitioning to hotdesking. Despite the push for employees to return to the office, many are put off if they don’t have their own space.
What are current workplace occupancy levels?
When the Stoddart Review was published it reported that 91% of UK employees worked exclusively from the office. Following the pandemic and the explosion of hybrid working, this is one of the biggest changes since 2016 and there are regular reports about workplace occupancy trends.
The Centre for Cities found that just 14% of workers adhere to a five-day office workweek, yet the Stanford Institute’s WFH research report indicates that only 12.7% of full-time employees work from home, with 28.2% adopting a hybrid model.
This suggests that more than half of UK workers still operate from the office full-time. However, it’s crucial to note that the Stanford Institute’s research did not differentiate between contractors, the self-employed, or part-time workers, acknowledging that the definition of the “office” extends beyond white-collar jobs, rendering this statistic somewhat misleading. One of the researchers told Fortune magazine:
“There are many people in that sample that do frontline jobs, for example in retail, manufacturing, or hotels and restaurants, and they naturally don’t work from home because of the nature of those jobs”.
The ONS states that during the first lockdown in April 2020, fewer than 50% of people in employment did some work at home. It’s always worth remembering that home working is simply not an option for a huge number of the UK workforce.
Is an office redesign the answer?
Many businesses have or are planning to embark on workplace change projects, which can include redesigning the workplace. I cannot understate the importance of engaging employees throughout this process.
The Stoddart Review had a great example of what happens when you fail to take a holistic view. When Coca-Cola introduced “New Cola,” it was only sipped by testers. But you don’t sip a cola once or twice – you drink the whole can. The new recipe was released and met with more than 400,000 customer complaints, forcing Coca-Cola to abandon the recipe.
Similar missteps are happening now when senior decision-makers are pushing ahead without the views of employees. You can spend all the money in the world on aesthetics and furniture, but if a workplace doesn’t offer what your employees need, they simply won’t come in.
Furthermore, it’s not uncommon for employees to be unsure how to utilise spaces following a redesign. Better change management is required as the lack of communication around office redesign impacts productivity and happiness.
A new Stoddart Review?
The human-centric approach advocated by the Stoddart Review remains relevant today. However, so much has changed since 2016 that a new edition would offer fascinating insight into the modern workplace.
It could delve into the realities of working from home, or from flexible offices, and reassess  how we measure productivity. For those who actively choose to work in an office, understanding the reasons behind this decision is paramount.
Ultimately, productivity is a deeply personal aspect, both for individuals and businesses. You cannot create a workplace that caters to the needs and wants of every single employee. But you can work with employees to show that their opinion matters, and this alone can foster a more engaged and happier workforce.
Read more:
How does the workplace impact productivity?

Abrdn, a leading City investment firm, has issued a stark warning, urging the government to double the minimum contribution rate in pension pots to avert a looming retirement crisis.
Currently set at 8 percent of a worker’s salary, the firm argues that this increase is imperative to ensure Britons have adequate financial resources in later life.
Stephen Bird, CEO of Abrdn, emphasizes the urgency of this measure, describing it as a critical step towards fostering a robust savings culture in Britain. He warns of the prospect of millions facing financial hardship in retirement, particularly as the state pension age rises and government support for the elderly diminishes.
Bird advocates for a paradigm shift towards a “savings ladder” mentality, encouraging individuals to prioritize long-term financial security over short-term property ownership goals. He points out a concerning trend where the allure of the property market has overshadowed the importance of pension savings.
A survey conducted by Opinium underscores this sentiment, revealing that only a minority of UK adults view pensions as a superior investment strategy compared to property.
Abrdn’s call to action is part of a broader manifesto aimed at nurturing a healthier savings culture in Britain. In addition to doubling the minimum pension contribution rate, the firm proposes measures such as intensifying the government’s advertising campaign for the upcoming NatWest share sale, enhancing financial literacy, simplifying the Isa system, and abolishing stamp duty taxes on UK shares and investment trusts.
The firm’s recommendations underscore the pressing need for proactive measures to address the looming retirement crisis and empower individuals to secure their financial futures. As the landscape of retirement planning evolves, Abrdn’s manifesto serves as a rallying cry for policymakers and citizens alike to prioritize savings and financial resilience.
Read more:
City Investment Firm Calls for Doubling of Minimum Pension Contribution Rate

The West Midlands has been recognised as one of Europe’s leading regions for FDI strategy, securing second place in a top European investment awards.  
fDi Intelligence’s European Cities and Regions of the Future 2024 report ranks European cities and regions according to their economic, financial, and business strengths.  
Around 330 European cities and 141 regions were assessed during the process, with the West Midlands beating stiff competition to second spot in the ‘Large European Regions of the Future – FDI Strategy’ category.
The West Midlands was second only to Paris Region, which will host the 2024 Olympics later this year, with North-Rhine Westphalia coming third. 
Official government data affirms the West Midlands’ growing reputation as a global investment destination, emerging last year as the UK’s top regional location for attracting Foreign Direct Investment (FDI) outside London. The region also recorded the highest annual growth rate of all UK locations and a greater volume of foreign investment projects than Scotland and Wales combined.  
With 8,252 jobs created by overseas investors in 2022/23– a 48% increase compared to the previous year – the West Midlands also bucked the national trend of a decline in FDI-related jobs. 
Notable investors secured in the region over the past five years include global investment bank, Goldman Sachs; professional services firm Accenture, Indian process management provider, Firstsource; advanced manufacturing heavyweight, TVS Motor Company and customer contact solutions provider, Sigma Connected Group. UK-based investors expanding in the region include the country’s leader in cannabis-based medicines, Celadon Pharmaceuticals Plc and landmark TV and film production hub, Digbeth Loc. Studios. 
The region’s inward investment strategy was developed by the West Midlands Growth Company (WMGC) – the region’s official investment promotion agency – and continues to be delivered through the organisation’s ‘Global West Midlands’ international programme of activity.  
Matt Hammond, Chairman of the West Midlands Growth Company said:  “Against an uncertain global macroeconomic backdrop, the West Midlands continues to grow as a hotspot for foreign investment – last year achieving its best-ever FDI figures and securing more projects than Scotland and Wales combined.  
“Our Global West Midlands plan looks to build on this track record of delivering for the region’s towns and cities through a portfolio of incentive programmes, market-facing campaigns, and a dedicated international strategy that will further enhance the West Midlands’ reputation on the global stage.”  
Andrew Law, Chief Financial Officer at the Birmingham-headquartered Sigma Connected Group added: “Our history is firmly rooted in the West Midlands and we are proud to be a major employer in the region.  
“The region is bursting with talented people who want to build long-term careers, not just jobs. It is also an area with exceptional business credentials, unrivalled transport connections, and a track record of growth and innovation. Those are just some of the reasons we remain committed to the region and why investment from both British and foreign firms has continued at such a great pace despite the challenges in recent years.” 
Read more:
West Midlands named second in Europe for foreign investment strategy at European investment awards  

Skills offered by free government-backed bootcamps can lead to average salaries exceeding £70K, two and half times the UK average, new research published has revealed.
The findings from Beauhurst also reveal that roles in technology overall pay an average of 55% more the national average.
This comes as the Department for Science, Innovation and Technology launches a drive to get more people to sign up to digital Skills Bootcamps in cloud computing, cybersecurity, software development and more.
The research, published by Barclays Eagle Labs and Beauhurst, and funded by DSIT’s Digital Growth Grant, shows that demand for technology talent surged in 2022 after a slump through the pandemic.
While tech job adverts decreased through the last year, demand for junior and entry-level roles persisted as technology companies struggled to recruit the early career talent they needed to match their growth ambitions.
The campaign runs alongside wider Government efforts to reward work and drive growth – such as cutting National Insurance Contributions for millions of workers across the UK, which saves the average worker £450 a year.
Scale-up companies who have already demonstrated high potential and are in their ‘venture-stage’ dominated this demand, with the high-growth group recruiting almost one third of all digital jobs.
After establishing boosting scale-up growth and tackling the skills gap as two of DSIT’s three priorities for the year ahead, Technology Secretary Michelle Donelan today said: “The appetite and potential British scale-ups have for growth is immense, we can no longer allow digital skills shortages to limit their ambition.
“Whether your personal ambition is to secure a comfy pay packet, land a creative role, solve the world’s most pressing challenges, or all three – the Skills Bootcamps we are promoting today can help achieve your own career goals while being part of our superpower sector.”
Each bootcamp will see people take part in courses that last up to 16 weeks and will prepare them for high-tech careers, with each guaranteed an interview on completion. No technical knowledge or educational qualifications are required to secure a place. More information and details on how to apply are available here.
Digital skills is one of several areas where £550 million of funding is aiming to upskill 64000 people through bootcamps by 2024-25.
Launched by DSIT, the campaign is focussed on boosting five priority skills to plug gaps in British tech talent – covering cloud computing, software development, data and analytics, cybersecurity, and web development.
The courses are available part-time and full-time across the country, with many providers offering flexibilities to make sure that everyone can take advantage.
Adie Nunn completed a web development bootcamp with School of Code, which was funded by the Government, and now works at BAE Systems Digital Intelligence.
Before finding the bootcamp, Adie hopped between jobs through what she describes as a “spotty” career. This included working as an event promoter for a pub company and later as front of house for pop-up events.
“I was interested in computers and tech from a young age. But, without a computer science degree – and having failed my highers in maths and computing at school – I never thought a career in tech would be possible”, Adie said.
“After jumping between roles and being made redundant in the pandemic, I gave the School of Code bootcamp a go and have never looked back. The technical and soft skills I developed on the course were crucial in securing my current role as a software engineer at BAE Systems Digital Intelligence where I get to work on fascinating, challenging projects.”
The Skills Bootcamp Adie completed was funded by the Department for Education as part of the same scheme that is receiving a new marketing push from today. The School of Code is still offering Bootcamps as part of this.
The campaign has been supported by the Digital Skills Council, a group of major technology companies including Google and Amazon Web Services (AWS), as well as skills-focused organisations like Future Dot Now and more.
Phil Smith, Co-Chair of the Digital Skills Council and Chairman of IQE, said: “The Digital Skills Council welcomes this research which reinforces just how important the work and goals of the Council are in bringing together government and industry to improve the confidence, capability and leadership of the UK in Digital Skills.
“Digital Skills are vital throughout the economy and existing successful programs such as bootcamps play an important role in providing relevant and focused up-skilling and a proven path into high value enjoyable jobs.”
Katie O’Donovan, Director of Government Affairs and Public Policy at Google and Digital Skills Council Member added: “We’re committed to helping people learn the skills they need to make the most of the country’s digital economy. That’s why since 2015 we’ve visited over 500 locations across the UK and helped more than 1 million people learn new valuable digital skills. Courses like the Google Cloud engineer bootcamps open up a world of opportunities for young people, helping them to kickstart successful careers in tech and increase their earning potential.
“We’re proud to be part of this important initiative, and we look forward to continuing this work with the government to equip more people with the skills needed to drive growth across the UK’s technology sector.”
Read more:
Gen Z offered doubled salary prospects through no-skills-required tech bootcamps