0:00
you can hear the spin a mile away as the
0:02
Chancellor's team prepares for the
0:04
spring statement the political
0:05
groundwork is being laid the economy is
0:08
struggling and Rachel Reeves is running
0:10
out of palatable options welcome to the
0:12
week in business with me Christian
0:18
May so despite the fact that the
0:20
inevitable consequences of the
0:22
government's multi-billion pound tax
0:24
rate on businesses have been clear for
0:25
months with economic growth suffocated
0:28
sources close to the chancellor are now
0:29
telling the media that the world has
0:31
changed in other words anything
0:33
unpleasant that Reeves has to announce
0:35
at the end of this month is a result of
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unforeseeable geopolitical developments
0:40
it's a convenient line and I don't
0:42
dismiss it entirely but before we let
0:44
the government off the hook let's just
0:45
recap on the situation we find ourselves
0:47
in we now have months and months of hard
0:50
data revealing the impact of government
0:53
policy of ministers choices on employers
0:55
and industries across the country from
0:57
agriculture to family businesses from
0:59
ret retail to hospitality Leisure
1:02
manufacturing and the services sector
1:04
businesses are meeting the imposition of
1:05
higher taxes in a number of entirely
1:08
predictable and rational ways helpfully
1:10
these were outlined this week by Andrew
1:12
Bailey the bank of England governor in a
1:14
letter to Dame Meg hilia the labor chair
1:16
of the treasury Select Committee in
1:18
response to questions from that
1:19
committee the governor outlined the ways
1:21
in which the bank of England expects
1:22
employers to responds to the new costs
1:25
facing them and here's what he said
1:27
firms may choose to absorb this increase
1:29
in costs within their their profit
1:30
margins pass on the cost to Consumers
1:32
through higher prices or mitigate the
1:34
impact by reducing wages or employment
1:37
his conclusion is Stark by far the most
1:40
plausible assumption he says supported
1:42
by the survey evidence is that firms
1:43
will spread the adjustment along all
1:47
simultaneously now the governor was
1:49
talking specifically about employers
1:50
reactions to the rise in the rate of
1:51
National Insurance and the fall in the
1:53
salary Threshold at which firms have to
1:55
start paying it but we can add to that
1:58
the consequences of a simultaneous hike
2:00
in wage costs the impact of inflation
2:02
lingering for longer the burdens of new
2:04
employment law and the knock-on effects
2:06
we're seeing as firms cancel orders pull
2:08
back on investment and generally hunker
2:10
down this week's delivery of data and
2:12
Survey results from the likes of the CBI
2:15
SNP and BDO reveal the impact of
2:18
government policy snp's purchasing
2:20
managers index released on Monday showed
2:22
Staffing levels in the manufacturing
2:24
sector falling in five out of the past 6
2:26
months as a result of weak demand low
2:29
client confidence and rising cost
2:31
pressures while their analysis of the
2:32
services sector released just yesterday
2:35
showed that Services firms are cutting
2:36
jobs at the sharpest rates since
2:38
November 2020 as their fears grow the
2:42
CBI meanwhile predicts that private
2:44
sector activity will fall for a fourth
2:46
consecutive quarter in the three months
2:48
up to May accountants BDO say that firms
2:51
are slashing jobs and consultancy hbur
2:54
strategy has issued a fresh warning on
2:55
the impact of changes to employment law
2:58
with 34% of company boss is PED citing
3:00
the looming employment Rights bill as
3:02
the biggest issue facing their business
3:05
oh and yesterday the British Chambers of
3:07
Commerce became the latest authority to
3:09
slash their growth forecast for the UK
3:11
economy that Chancellor is how the world
3:14
has changed that is why growth remains
3:17
anemic and that is why the most
3:19
comprehensive and independent analysis
3:21
of the different sectors that make up
3:22
the UK economy now shows that business
3:25
activity has been shrinking since last
3:27
year's budget that is why the state of
3:30
the public finances will necessitate
3:32
massive Cuts in the spring statement to
3:34
the welfare budget we're told and good
3:36
luck getting labor MPS on board with
3:38
that one yes Trump's tariffs and
3:40
security concerns now come into the
3:42
equation of course but their impact will
3:45
be to weaken an already weakened economy
3:48
and it is now depressingly easy to cast
3:50
forward a few months and picture the
3:52
chancellor announcing that taxes will
3:54
have to rise because you've guessed it
3:57
the world has changed but listen I've
4:00
decided that I can't just sit here week
4:01
after week making you miserable so I've
4:04
resolved to always end on a high note
4:06
and this week let me offer up a salute
4:08
to Games Workshop the makers of computer
4:10
games and fantasy figurines listed on
4:13
the London Stock Exchange in 1994 and
4:15
then basically did nothing until it
4:17
smashed into the footsie 100 last year
4:19
after its performance and share price
4:21
surged following a pandemic induced
4:24
explosion in the number of customers and
4:26
fans The Firm now has a market cap in
4:28
London north of four and a half billion
4:30
pounds and yesterday its share price
4:32
which has already risen by 50% in a year
4:35
spiked another 8% following their
4:37
beautifully concise 49w trading update
4:40
issued to the market announcing further
4:42
strong results everything about this
4:44
company Delights me it's lack of PR and
4:47
fluff its confidence its relationship
4:49
with customers its closely guarded IP
4:51
its presence on the High Street I don't
4:53
play their games but I am enjoying the
4:55
ride now that's it from me stay up to
4:58
date and in the know with the cityam app
5:00
and cam.com and I'll see you next week
