News

The UK may be spared the worst effects of Donald Trump’s proposed tariffs on global goods trade due to its economic reliance on services rather than goods, according to Andrew Bailey, Governor of the Bank of England.

Trump has suggested imposing tariffs of up to 60% on Chinese exports to the US and 20% on imports from other countries. Economists warn such measures could trigger a global inflationary spiral, but Bailey suggested the UK’s economy is uniquely positioned to withstand the impact.

“The UK is an open economy, but it is also true that more of our trade is in services rather than goods — tariffs don’t work in the same way on services,” Bailey said. Services now account for 54% of UK exports to the US, including finance, insurance, and education, which have grown significantly since Brexit. Unlike goods, services are subject to non-tariff barriers such as regulatory differences, which are less impacted by customs levies.

Bailey acknowledged that the ultimate inflationary effect of the tariffs remains uncertain, depending on how other countries and exchange rates react. However, he highlighted that the UK is less exposed than economies like Germany or Italy, which have larger trade deficits with the US.

Swati Dhingra, a trade economist and external member of the Bank’s monetary policy committee, recently noted that tariffs could have disinflationary effects, as producers might reduce prices to maintain market share in large economies. This contrasts with concerns about tariffs driving up consumer prices.

Other central bankers, including Christine Lagarde of the European Central Bank, have also downplayed the inflationary impact of tariffs on economies outside the US.

Bailey’s comments come amid a slight rise in UK inflation above the Bank’s 2% target. While he expects inflation to stabilise, he noted that uncertainty remains around how businesses will respond to the government’s upcoming increase in national insurance contributions.

As Britain navigates these challenges, the country’s reliance on services and its smaller exposure to US goods tariffs may provide a degree of economic resilience in the face of escalating global trade tensions.

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Andrew Bailey: UK likely to avoid worst impact of Trump’s tariffs

The UK government is exploring the renationalisation of British Steel in a bid to safeguard thousands of jobs at its Scunthorpe site, amid stalled negotiations with its Chinese owner, Jingye, over a £1 billion investment plan.

Business Secretary Jonathan Reynolds is leading discussions with Jingye to determine a funding agreement for the company’s transition to greener steel production. However, with little progress made, sources suggest the government is open to taking over the company, reversing Margaret Thatcher’s 1988 privatisation of the steel industry.

A Whitehall insider noted that nationalisation is a “last resort” due to the substantial financial commitment it would entail. However, unions and industry advocates are urging the government to act decisively to protect the Scunthorpe plant, which employs 4,000 people and remains the UK’s sole producer of steel from iron ore.

British Steel’s blast furnaces at Scunthorpe, which accounted for 0.8% of the UK’s carbon emissions in 2023, are at the heart of the debate. Plans to replace them with an electric arc furnace — crucial to meeting the UK’s net-zero targets by 2050 — have been delayed as Jingye resists committing the necessary investment, leaving the government potentially liable for the full cost.

Renationalisation would not be without challenges. Experts warn that allowing the blast furnaces to cool without proper shutdown measures could render them unusable, while managing operations during a transition to electric furnaces could cost tens of millions.

The decision also carries political implications. Labour leader Keir Starmer has criticised past neglect of the steel industry, pledging to make Britain a leader in steel production. Sharon Graham, general secretary of Unite, welcomed the prospect of nationalisation, stating, “The UK government being an investor of first resort is an important first step.”

Negotiators face a tight deadline, as British Steel is expected to exhaust its current supply of raw materials by the end of January. Unions, including GMB and Unite, have proposed a multi-union plan to protect jobs and production, calling on the government to prioritise nationalisation over taxpayer support for private sector failures.

British Steel, which was briefly nationalised in 2020 before its acquisition by Jingye, has struggled with high costs and increased global competition. The ongoing standoff raises questions about the future of steel production in the UK and its role in national infrastructure and security.

A spokesperson for the Business Secretary emphasised the government’s commitment to securing a “green steel transition” that supports jobs and offers value for taxpayers. Discussions are ongoing, but all options, including nationalisation, remain on the table.

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Ministers consider renationalising British Steel to save thousands of jobs

The OECD has significantly upgraded its growth forecast for the UK, crediting Rachel Reeves’s £70 billion-a-year public spending package.

The UK economy is now expected to grow by 0.9% in 2024 and 1.7% in 2025, up from May forecasts of 0.4% and 1.0%. However, the Paris-based organisation cautioned that this growth comes at the expense of rising public debt and persistent inflation.

The UK’s economic upgrade contrasts sharply with downgrades for France, Germany, and Italy, highlighting stagnation in the eurozone’s largest economies. However, the OECD noted that Britain’s growth is fuelled by an unprecedented increase in government expenditure, pushing debt to an unsustainable level projected to exceed 100% of GDP.

The OECD warned that this fiscal stimulus would keep inflation above the Bank of England’s 2% target for the next two years, driven by wage pressures and elevated public spending. Despite expectations that interest rates will fall to 3.5% by early 2026, monetary policy could remain tighter for longer to counteract persistent price pressures.

The organisation also highlighted the UK’s shrinking labour force as a critical challenge. Britain has seen one of the largest post-pandemic contractions in workforce participation among OECD nations, second only to Costa Rica. The OECD stressed the need for benefit reforms and increased childcare support to encourage more people, particularly women, to return to work.

While Reeves welcomed the growth upgrade, positioning the UK as the fastest-growing European economy in the G7 over the next three years, the OECD urged policymakers to balance fiscal stimulus with sustainable debt management.

The Chancellor’s maiden Budget, funded through £40 billion in tax hikes and borrowing, also included a commitment to reforming planning laws, childcare support, and welfare systems to boost productivity and living standards. However, critics warn that the long-term consequences of higher borrowing costs and structural deficits could overshadow these short-term gains.

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UK growth forecast upgraded after Reeves’s £70bn spending boost

Britain’s top business lobby groups, collectively known as the “B5,” have faced criticism for failing to prevent a significant rise in employer national insurance contributions, announced in Rachel Reeves’ October budget.

The £25 billion increase has drawn widespread backlash from businesses, with some questioning the effectiveness of the Confederation of British Industry (CBI), British Chambers of Commerce, and others in representing the interests of companies, particularly small to medium-sized enterprises (SMEs).

Steve Morley, president of the Confederation of British Metalforming, accused the B5 of being “far too cosy” with government officials and “naive” in their advocacy. “Given their direct access to Whitehall, their failure to deliver for businesses leaves them looking hoodwinked at best,” he said.

The budget has been widely criticised for undermining employment and investment plans, especially in manufacturing sectors already struggling with challenges such as falling electric vehicle sales and emissions targets. Morley warned the “additional burden” on SMEs could stifle optimism around Labour’s proposed industrial strategy.

The government’s consultation on an industrial strategy, focusing on eight high-productivity sectors, has raised hopes for long-term support, but Morley called for SMEs’ voices to be better represented in shaping future policies.

While the B5 declined to comment, Roger Barker, director of policy at the Institute of Directors, defended his organisation’s efforts, saying it had been “deeply critical” of the budget’s impact on businesses. Rupert Soames, chairman of the CBI, recently described the government’s treatment of businesses as akin to viewing them as “a cow to be milked.”

As the government begins to assess responses to its industrial strategy proposals, the pressure is mounting on business groups to prove their value in advocating for industries facing rising costs and regulatory challenges.

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Business lobby groups criticised for failing to block national insurance hike

As we prepare to step into a new year, it’s important to pause and reflect on where we are in our personal and professional lives. Are you working to make a difference?

Are you driven to make a difference? Or are you making a difference at all? Do you want to? Or are you simply working to make ends meet?

These are meaningful questions, each carrying its own significance. Yet, none have a right or wrong answer. Life’s demands are diverse, and so are the motivations that drive us. Taking time to explore these questions can provide clarity and purpose as we look ahead to the year to come.

Working to Make a Difference

If you are working to make a difference, you are likely motivated by the desire to contribute positively to the world around you. Whether it’s within your community, workplace, or personal relationships, striving to create an impact often brings a sense of fulfilment. However, it’s worth asking whether your efforts are aligned with your values and long-term aspirations. Are you directing your energy in ways that truly resonate with you? Reflecting on this can help ensure your work remains both meaningful and sustainable.

Being Driven to Make a Difference

Feeling driven to make a difference is a powerful force that propels us forward. It represents a vision of what could be, providing the motivation to take action. Yet, passion and drive alone are not enough; they require direction. The question then becomes: Are you translating your drive into tangible actions? Taking the time to evaluate how you convert your motivation into practical steps can transform aspirations into achievements.

When You’re Not Sure If You’re Making a Difference

What if you feel that you’re not making a difference—or that your efforts don’t matter? Perhaps the demands of daily life leave little room for bigger ambitions. This is a reality for many, and it’s perfectly valid. Meeting life’s basic needs is an achievement in itself, particularly in challenging times. However, if you feel a desire to do more, the new year offers an opportunity to start small. Making a difference doesn’t have to mean grand gestures; often, the smallest actions can create the most significant ripples.

Working to Make Ends Meet

For those who are simply working to make ends meet, remember that survival and providing for yourself and your family are honourable and vital pursuits. The expectation to be driven by a larger purpose can sometimes feel overwhelming when you’re focused on getting by. Yet, even in the ordinary, there may be opportunities to find meaning—whether through acts of kindness, connecting with others, or taking pride in your daily efforts.

Looking Ahead to the New Year

As we approach the new year, these questions are not meant to judge or categorise but to encourage self-awareness. Understanding where you stand now can help you consider where you want to go next. Whether your aim is to make a profound difference or focus on small, meaningful changes, it all begins with intention.

Take this time to set achievable goals that align with your current circumstances and your aspirations. What will your next step be? Whatever your answers, let them guide you towards a year filled with purpose, growth, and self-discovery.

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Finding Purpose: Reflecting on What Drives You as the New Year Approaches

Flexible Intermediate Bulk Containers (FIBCs), commonly known as fibc big bags, have become indispensable in various industries for the efficient handling, storage, and transportation of bulk materials.

Their versatility and cost-effectiveness make them a preferred choice across sectors such as agriculture, construction, pharmaceuticals, and chemicals.

What Are Flexible Intermediate Bulk Containers?

FIBCs are large, flexible containers crafted from woven polypropylene fabric, designed to store and transport dry, flowable products like grains, powders, and granules. They offer a practical solution for moving substantial quantities of materials, with capacities typically ranging from 500 to 2,000 kilograms. Their lightweight nature, combined with high strength, allows for the efficient handling of bulk goods.

Key Design Features of FIBCs

The construction of fibc big bags is tailored to meet diverse industry requirements:

Materials:
Predominantly made from woven polypropylene, FIBCs can be coated or uncoated, depending on the need for moisture protection.
Lifting Mechanisms:
Equipped with one, two, or four lifting loops, these bags facilitate easy handling using forklifts or cranes.
Filling and Discharge Options:
Features such as top spouts, duffle tops, and discharge spouts enhance the efficiency of loading and unloading processes.
Specialised Designs:
Certain FIBCs are designed with baffles to maintain their shape during filling, optimising space utilisation during storage and transport.

Industries That Rely on FIBCs

The adaptability of fibc big bags makes them suitable for a wide array of applications:

Agriculture:
Used for transporting seeds, grains, and fertilisers efficiently.
Construction:
Ideal for handling materials like sand, gravel, and cement.
Pharmaceuticals and Chemicals:
Perfect for safely moving powders and granular chemicals, with options for food-grade and hazardous material certifications.
Food Industry:
Widely used for storing and transporting products such as sugar, salt, and starch.

Benefits of Using FIBCs

The widespread adoption of FIBCs is attributed to several key advantages:

Cost-Effectiveness:
Their lightweight design reduces shipping costs, and their collapsible nature minimises storage space when not in use.
Durability:
Constructed to withstand heavy loads and harsh conditions, FIBCs ensure the safe transport of materials.
Environmental Benefits:
Many FIBCs are recyclable, and their reusability aligns with sustainable practices.
Ease of Handling:
Integrated lifting loops and compatibility with standard handling equipment streamline operations, reducing labour costs.

Safety and Industry Standards

Adhering to safety standards is crucial when utilising fibc big bags:

Regulations:
Compliance with guidelines from organisations such as the Flexible Intermediate Bulk Container Association (FIBCA) ensures safe usage.
Handling Practices:
Proper training in filling, lifting, and discharging FIBCs is essential to prevent accidents and material loss.
Material Compatibility:
Selecting the appropriate FIBC type based on the electrostatic properties of the contents is vital to mitigate risks.

Future Trends in FIBCs

The evolution of FIBCs continues to align with industry demands:

Sustainable Materials:
Development of biodegradable and more easily recyclable fabrics addresses environmental concerns.
Advanced Features:
Incorporation of smart technologies, such as RFID tags, enhances tracking and inventory management.
Customisation:
Tailoring FIBCs to specific applications, including specialised linings and coatings, expands their utility across various sectors.

Flexible Intermediate Bulk Containers have revolutionised bulk material handling by offering a versatile, durable, and cost-effective solution. Their design flexibility and adaptability across multiple industries underscore their significance in modern logistics and storage.

As technology advances and sustainability becomes increasingly important, FIBCs are poised to play an even more pivotal role in efficient material management. Businesses seeking effective solutions for bulk handling will find these containers invaluable in streamlining operations and reducing costs.

Read more:
Flexible Intermediate Bulk Containers: The Ultimate Solution for Efficient Bulk Material Handling

As a site manager, one of your key concerns will always be ensuring crew safety. Construction sites remain one of the most hazardous work environments in the modern day and age, and it’s essential that managers take these risks seriously.

Luckily, we now have a much larger range of solutions available to us than ever before. From getting the right PPE for your crew to providing in-depth safety training, these are a few important ways that you can work on ensuring crew safety.

PPE

One of the most important elements of crew safety in all construction settings is PPE. Exactly what that PPE looks like will depend on the hazards that are present in the worksite more generally, and the hazards that individual workers will face due to their specific role.

It’s important to ensure that the PPE you buy is high quality. Whether that’s a particle filter for people drilling in stone, or gloves for general labourers moving wood and other materials around, this simply isn’t an area that you want to try to cut corners in.

Create stable pathways

With larger construction sites – especially those large enough to need substantial quantities of building supplies driven through daily – you need to create a network of stable pathways.

You can hire modular roadways from companies like Davis Track Hire, which are designed to provide both a stable path for vehicles and pedestrians and to protect the ground underneath.

Getting the right pathway can be especially important on worksites where the ground is unstable and delicate, such as in more rural construction sites.

Risk assessment

The practical measures outlined above are great examples of solutions for worksite hazards, but first, you need to work on identifying those hazards. For construction site managers, this means taking the risk assessment process seriously.

Following HSE guidelines, go through every process, piece of equipment and project that you expect to be present on the worksite. Try to understand the different hazards that each of these poses, and work on finding the best risk mitigation strategies based on those identifiable hazards.

Employee training

Lastly, you can’t just rely on technologies and equipment to keep your crew safe. Arguably the most important aspect of safety on construction sites is providing safety training. This needs to cover everything from how to use dangerous machinery properly to how to raise the alarm in the event of a serious chemical spill.

This training will need to be closely related to the actual hazards that are present on the worksite, and will likely require regular updating. In some cases, you won’t actually need to provide the training, but you will need to ensure that the worker in question has already completed it within an appropriate historical timeframe.

Crew safety should be a central part of the site planning process, from the very beginning. It will dictate how you proceed, with many aspects – such as pathway hire and employee training – needing to be taken care of long before any of the work can start.

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How can construction site managers ensure crew safety?

Do you ever feel like your business deserves more than a one-size-fits-all outsourcing solution? What if you could partner with a company that not only understands your unique needs but also shares your vision for success?

Imagine a collaboration that combines personalized service with exceptional expertise. Welcome to the world of Eastern European BPO boutique companies—a transformative choice that could redefine your business journey.

The Boutique Advantage – Premium Service Over Standard Solutions

Consider the difference between off-the-rack clothing and a custom-tailored suit. While off-the-rack might suffice for basic needs, a tailored suit offers a perfect fit, superior quality, and attention to detail that standard options simply can’t match. Similarly, traditional BPO companies provide standard services that get the job done but may lack the personalized touch and flexibility your business requires. In contrast, a boutique BPO company offers premium services that deliver excellence, tailored solutions, and a superior experience.

When you choose a boutique BPO company, you’re selecting a partner that prioritizes quality over quantity. These firms focus on a select group of clients, allowing them to offer personalized services that large, traditional BPOs can’t provide. You’re not just another client; you’re a valued partner whose success directly impacts theirs.

By collaborating closely with you, boutique firms can customize their services to fit your specific needs. This means more efficient processes, innovative solutions, and a team that’s genuinely invested in your company’s growth. You gain access to top-tier talent that’s agile and responsive, capable of adapting quickly to market changes and your evolving business requirements.

In contrast, larger BPOs often operate with a one-size-fits-all mentality. Their vast scale can lead to bureaucracy and slower response times, making it challenging to implement changes swiftly. If you’ve ever felt frustrated by the rigidity of a big outsourcing firm, you’ll appreciate the flexibility and attentiveness that a boutique company brings to the table.

Why Eastern Europe Outshines Other Regions

You might be wondering, why choose Eastern Europe over more traditional outsourcing hubs like Asia? The answer lies in a combination of factors that make Eastern Europe an increasingly attractive destination for businesses seeking outsourcing solutions.

First, consider the talent pool. Eastern Europe boasts a highly educated workforce with strong expertise in technology, finance, customer service support, and more. Countries like Romania, Poland, and Ukraine are known for exceptional technical universities and an emphasis on multilingual education. This means you’re tapping into a pool of professionals who are not only skilled but also proficient in multiple languages, especially English.

Time zone compatibility is another significant advantage. Eastern European countries are strategically positioned to collaborate effectively with both Western Europe and North America. With minimal time differences, real-time communication becomes seamless, facilitating quicker decision-making and problem-solving. This contrasts sharply with some Asian regions, where time zone disparities can hinder timely interactions.

Cultural alignment plays a crucial role in successful business partnerships. Eastern European professionals often share similar business values and work ethics with Western counterparts. This cultural synergy fosters better understanding, smoother cooperation, and reduces the risk of misunderstandings that can occur due to cultural differences.

Moreover, the region offers cost-effective solutions without compromising quality. While labor costs in Eastern Europe are competitive, the quality of work often exceeds that of other low-cost regions. This balance of affordability and excellence makes Eastern Europe a compelling alternative to traditional outsourcing destinations in Asia.

Finally, political and economic stability in many Eastern European countries provides a secure environment for your business operations. Strong legal frameworks and adherence to international regulations ensure that your partnership is built on a foundation of trust and reliability.

Choose Your Partner

You deserve a partner who understands your unique challenges and is committed to driving your success. With the boutique approach, you gain tailored solutions and dedicated support, much like opting for a custom-tailored suit over an off-the-rack option.

Embrace the benefits of partnering with an Eastern European BPO boutique company and unlock the potential for unprecedented growth and efficiency. The road to success is clearer than ever—it’s time to take the lead.

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Why Choose an Eastern European BPO Boutique Company?

British company GOR Investment has announced the launch of an innovative production facility in Central Asia. The new plant, located in Uzbekistan, will produce high-purity molybdenum trioxide nanopowder.

One of the project’s initiators, Technano Innovation, led by entrepreneur Ovik Mkrtchyan, believes the enterprise has the potential to boost demand for high-tech industries across the region.

The project is unprecedented in Central Asia. The first batch of finished products has already been produced at the facility in Almalyk, with full-scale production scheduled to begin in February.

Technano Innovation, part of the GOR Investment Limited group founded by Mkrtchyan, developed and implemented this project, introducing a groundbreaking technology. The custom-designed industrial equipment produces molybdenum trioxide nanopowder with particle sizes ranging from 20 to 80 nanometers and a purity level of 99.999%.

Mkrtchyan highlighted the company’s significant prospects and outlined plans to gradually expand the range of products manufactured at the plant. “It is possible to produce nanopowders of rare metals such as tantalum, tungsten, niobium, molybdenum, and vanadium, as well as precious metals like platinum and gold,” he said. The businessman expressed confidence that the plant’s products would find buyers on both local and international markets, including Europe.

Mkrtchyan emphasised that the project aligns with Uzbekistan’s economic interests. The nanopowder production facility supports the “roadmap” of the country’s Innovation Development Strategy for 2024–2025 and fosters increased business activity in the region. He noted that 2025 has been designated the Year of Environmental Protection and Green Economy in Uzbekistan.

Despite actively contributing to Uzbekistan’s economic development and operating in alignment with the nation’s government programmes, GOR Investments has faced a wave of negative media attention. The company’s key figures, including Ovik Mkrtchyan, have been targeted by unfounded accusations. The businessman noted that similar attempts to discredit GOR Investments occurred over a decade ago, prompting the company to enlist top-tier legal expertise to defend its integrity successfully. He emphasised that the current allegations, much like those in the past, appear aimed at undermining the company’s credibility rather than addressing any genuine concerns.

Ovik Mkrtchyan noted that business success can sometimes provoke rivalry and suggested that recent media coverage may be leveraging internal political dynamics in Uzbekistan to intensify efforts to harm his reputation. He described the use of smear campaigns, where misleading information is disseminated on dubious platforms and occasionally picked up and amplified by sensationalist outlets, including some in Europe, which may not always verify the material.

Mkrtchyan firmly rejects the allegations and points to their political undertones. “There appears to be an attempt to drag me and my business into behind-the-scenes intrigue that I really don’t understand. I am a businessman with no political goals or interests,” he stressed.

GOR Investments’ legal team is addressing the defamatory publications, gathering evidence and preparing to file lawsuits. Mkrtchyan expressed confidence in the UK legal systems and anticipates a favourable outcome for the company.

In recent years, Europe has shown increasing interest in Central Asia. The region’s combination of government support for foreign investment and an available labour force makes it attractive to investors. Should Mkrtchyan succeed, Technano Innovation could become one of the first large-scale innovative projects implemented in the region by a foreign company. The experience gained could serve as a model for other investment initiatives.

Ovik Mkrtchyan believes GOR Investments has the potential to pave the way for Western capital in a rapidly growing yet still undervalued region. Projects like Technano Innovation demonstrate the appeal of Central Asia, which urgently needs to develop innovative industries. The businessman expressed readiness to pursue further investment projects that could help the region secure a prominent position in the global economy of the future.

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British Firm Opens Innovative Facility in Central Asia, Led by Ovik Mkrtchyan

A government-supported group is being established to represent the UK’s mid-sized businesses, often overlooked despite their significant contribution to the economy.

According to a NatWest report, these “unsung” firms could add an additional £115 billion to the UK economy by 2030 with the right support, driving growth particularly in regions outside London and the southeast.

Mid-sized businesses account for just 0.5% of UK companies but employ over 7.3 million people — more than a quarter of the private sector workforce. They play a crucial role in areas such as the West Midlands, northeast England, Yorkshire and the Humber, and Scotland, the report found.

However, challenges including skill shortages, poor regional infrastructure, and a lack of representation are holding back their growth. Unlike Germany’s Mittelstand, the UK’s mid-market firms lack a collective identity and advocacy platform, leaving their interests overshadowed by larger corporates and small business groups.

To address this, a “mid-market council” is set to launch in 2025, supported by NatWest and the Department of Business and Trade. The council will act as a unified voice for the sector, representing key industries and addressing critical issues such as infrastructure, planning, and skills shortages.

Paul Thwaite, NatWest’s CEO, stressed the importance of giving mid-sized companies greater visibility: “They don’t have a collective voice. There’s a lot of talk about small businesses, and large corporates have their own platform. These businesses need to be treated as a distinct segment.”

The report highlighted that poor infrastructure — including transport, broadband, housing, and grid connectivity — disproportionately affects mid-sized firms, particularly outside the southeast. A lack of skilled workers and a restrictive planning regime further hinder their ability to expand and innovate.

Jonathan Reynolds, business secretary, welcomed the creation of the council, noting that mid-sized businesses have the potential to outpace other market segments in growth, exports, and productivity. He said the council would “amplify their voice” and unlock untapped potential in the sector.

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Government-backed council to champion ‘unsung’ mid-sized businesses