RISE IN SME MANUFACTURING OUTPUT

Manufacturing output from small and medium sized businesses increased at the fastest rate in 33 years in the three months to July, boosted by a record rise in the volume of new orders, according to the latest survey by the Confederation of British Industry (CBI) (The Times). However there were 'severe cost and price pressures?, the CBI said, with a joint-record high in the proportion of businesses saying they were concerned about the availability of skilled labour.

Meanwhile the Timber Trade Federation said timber suppliers were "working around the clock" to meet soaring demand as the economy reopens and prices increased sharply (BBC News).

TAKEOVER OF UK FIRMS REACHES 14-YEAR HIGH

Takeovers of UK-based firms in the first seven months of 2021 have reached their highest level since 2007 with demand from private equity firms and overseas bidders (Reuters). Data from Refinitv shows that the combined value of takeover attempts of British businesses has so far reached almost $217 billion this year, a 14-year high and up from $58 billion during same period in 2020 (The Times).

NEWS IN BRIEF

151 fraud trials were held in UK courts during the first half of 2021, double the number in the same period last year when the first Covid-19 lockdown closed crown courts temporarily, according to KPMG's fraud barometer. The 2021 cases were worth about £140 million (The Times).

Defaults on government-backed Covid-19 loans could reach around £5 billion, lower than previous estimates, reports the Financial Times.

The UK public expects inflation to be 3.1 per cent for the next twelve months according to a poll by Citi/YouGov published ahead of the Bank of England's monetary policy committee meeting on Thursday (The Guardian).

Ministers are discussing plans to introduce 'sunset clauses? into planning permissions, setting a deadline by which point plots of land must be developed (The Times).

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Thalia Spittall from our Member Relations team outlines the key takeaways from a recent Chief Compliance Officer member network meeting on building diverse and inclusive cultures in financial services.