Inflation is at a 50-year high in the UK at present, hitting households across the country with financial pressures alongside the simultaneous blanket cost of living increases. Fuel prices have spiked due to a shortage from the Russian invasion of Ukraine, meaning that it’s both more expensive to run an automobile and to heat & light homes. Food prices have followed suit, with inflation and supply issues to blame for widespread price increases on most items.
The reality is no different for businesses either. All of the same pressures are, in one way or another, driving up base costs in various industries. Manufacturing has been hit hard, as has logistics and distribution and all workers are feeling the pinch as wages aren’t seeing a suitable increase in line with inflationary pressures. The bottom line is that base costs are becoming more expensive, margins becoming tighter and either sale prices are increasing or profits are decreasing at the boardroom level. In many cases, it’s the former, leaving some financial experts like Martin Lewis, concerned for the quality of life of the public moving into winter 2022.
One business sector which has continued in its stability throughout financial uncertainty is the iGaming sphere. You can check out some playable Megaway Slots by visiting John Slots here. There are quite literally hundreds of different options to explore.
In the UK at least, Brexit has had a huge political and economic impact on all facets of day-to-day life. Culturally, Britain may not identify as European as wholly as the bulk of mainland Europe anymore, but similarly interesting are the business-focused aspects which have followed from the split.
Recently, there has been concern that many global reaching companies would remove themselves from UK bases. We saw upwards of 400 finance firms remove themselves (or remove jobs from) the UK to flee to the EU. Many moved nearby to EU member state Ireland and the city of Dublin, itself a rapidly growing financial and fintech economy. But in terms of a longer-term outlook, what does this mean for London and the UK?
In 2022, tech companies in the UK have actually received more venture capital investment than the EU states of France and Germany combined. As of May 31st, over 950 UK tech companies had raised £12.4 billion. This is all part of a government-led tech sector drive which is focused on ‘upskilling’ the workforce and creating a new ‘tech superpower’ with 700,000 jobs created.
However, with financial pressures on both domestic and business levels continuing to rise, is this investment of time and money into a technology workforce driving a wise decision?
Some financial experts say so, and with a period of stagnated growth seemingly on the cards – there are suggestions that investment would be better placed elsewhere in order to remedy other more pressing issues.
It’s a complicated picture when looking at the near future for businesses in the UK, with multiple influencing factors at play. The only certainty is that this is something which is unlikely to change.