By Max Clarke
Fresh Business Thinking again brings you a selection of the week’s most prominent news.
Monday 4th: Cable urged to act now and save Bombardier
Business Secretary Vince Cable received a heartfelt plea from workers’ unions urging him to save the UK’s last train manufacturer, Bombardier.
The longstanding Derby plant lost out on a contract to replace Thameslink trains to rival German firm, Siemens, resulting in 1400 job losses.
Smaller enterprises, backbone of the UK economy, are ready and willing to boost headcount but are being deterred from doing so by onerous regulation.
“Businesses consistently state that employment regulation prevents them from taking on more staff. If the government wishes to achieve its goal of increasing employment, it must respond to sole traders' concerns, and make changes that encourage them to grow when the time is right,” urged the British Chambers of Commerce.
Wednesday 6th: Jobs growth hits 22 month low
Wednesday’s news, courtesy of a joint KPMG/REC report, highlighted the deceleration of the UK’s labour market. Behind the alarming headline, however, jobs are still being created and the UK’s unemployment rate continues to fall, though the rate of employment growth has slowed.
Thursday 7th: News of the World scandal prompts advertising boycott
As public anger towards the News of the World intensified, companies began pulling advertising contracts with the paper in a bid to appease the public. More and more advertisers announced their distancing from the News of the World, until Murdoch finally announced the paper was to be pulled entirely.
Research by reputable economic think-tank, the National Institute of Economic and Social Research, confirmed repeated warnings from business organisations, that the UK economy is too weak to support a hike in interest rates. This is in spite of mounting pressure to tighten fiscal policy in order to curb runaway inflation.