Business news in brief
Construction declines further after sharp fall in housebuilding
The UK’s construction sector suffered its worst month since May 2020 after a sharp downturn in housebuilding amid rising borrowing costs. The influential S&P Global/CIPS construction purchasing managers’ index scored 48.4 last month, slipping from 48.8 in December. Any score below 50 is considered a decline whereas anything above is seen as growth. The latest reading was marginally worse than the 48.5 reading predicted by analysts.
Dr John Glen, chief economist at the Chartered Institute of Procurement and Supply, said: “The wrecking ball of higher inflation and interest rates has knocked the UK’s residential building output to its weakest since May 2020 as stretched mortgage affordability impacted on the building of new homes.”
The data comes days after the Bank of England lifted interest rates again to 4 per cent in a bid to tackle sky-high inflation.
Rigs ‘migrating’ away from North Sea
Drilling rigs and other equipment are “migrating” away from the North Sea and other European fields for opportunities elsewhere in the world, a trade group has said. The North Sea chapter of the International Association of Drilling Contractors (IADC) called on the UK and Scottish governments as well as the offshore industry to cooperate better with each other.
The IADC said a longer-term outlook is needed to secure a transition to clean energy. It said recently announced drilling opportunities represent only a “fraction” of what is needed to meet energy demand in the UK. IADC regional director Stuart Clow said: “We are already seeing a migration of drilling rigs and equipment to other areas of the world, which in turn reduces drilling and decommissioning capability in the North Sea and other areas.
“Data shows more than 30 jack-up rigs have migrated from Asia, the Americas and Europe to the Middle East over the past year. That is partly why encouraging business, responsibly developing all forms of energy and supporting the offshore supply chain in the North Sea are of the utmost importance.” PA
Strike dates announced at 11 Scottish airports
Industrial action has been announced at 11 Scottish airports over several days this month. Unite has set new dates for industrial action at Highlands and Islands Airports Ltd (HIAL) in a dispute over pay. The union represents security staff, baggage handlers,
ground crew and firefighters at the airports. Three of HIAL’s airports were closed in December during previous strike days.
Union members have rejected the 5 per cent pay rise they were offered by management. On 17 and 20 February, strikes will take place at Dundee Airport. A total of 10 other airports will be affected by strikes on 21-23 February. PA
Australian firm selected as frontrunner to buy Britishvolt
The company that failed to build a battery factory in the northeast of England is on the brink of being taken over by an Australian firm that has as yet unrealised ambitions to build a similar factory of its own. Recharge Industries was selected by auditors for Britishvolt as the preferred bidder to take over the majority of the business. Accounting firm EY said that it had considered “multiple approaches” but had decided to choose Recharge. It did not provide any reason why. The deal is expected to finalise within the next week.
Britishvolt collapsed last month, laying off most of its 200 staff. The business had high ambitions of building a nearly £4bn battery plant in Cambois, outside Blyth in the North East. Hopes had been high for the start-up but it simply never managed to secure enough funding for the project. However, experts say that the site which Britishvolt bought in the North East is a great location for a battery factory. PA
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