Surging inflation a key risk to UK growth prospects
Commenting on the inflation statistics for January 2022, published today by the Office for National Statistics, head of economics at the BCC Suren Thiru, said: “Rising inflation highlights both the cost-of-living crisis facing households and the uphill struggle for businesses to keep a lid on price rises amid surging cost pressures.
“While the headline annual figure remains at a 30-year high, the decline in monthly inflation in January offers some hope that we may be nearing the peak in the current spike in inflation.
“Inflation should peak at over 7% in April as reversal of the hospitality VAT cut and the energy price cap rise enters the calculation. However, the current Russia-Ukraine tension could keep inflation higher for longer by triggering a further surge in wholesale energy costs.
“Rising inflation could well be a significant drag anchor on UK economic output this year by weakening consumer spending power and damaging firms' finances and ability to invest.
“Increasing inflation means that a March interest rate rise is expected. However, tightening monetary policy too quickly risks undermining confidence and the wider recovery and will do little to curb the global factors behind the current inflationary surge.
“More needs to be done to limit the unprecedented rise in costs facing businesses, including financial support for those struggling with soaring energy bills and delaying April’s National Insurance rise.”
North Sea contracts worth around £200m landed by ASCO
ASCO has secured a string of contract wins with major North Sea operators, marking a successful start to 2022.
The Dyce-headquartered logistics and materials management company has secured awards for various scopes of work including the provision of quayside logistics, materials management, ship agency, receipt and dispatch services, supply and management of marine gas oil, as well as marine and environmental services.
Several North Sea contracts were secured over the last four months with a combined value of around £200m over the next three years, ASCO said, marking a successful final quarter for 2021 and positioning the company for further success in 2022.
Energy Voice says the details of the North Sea operators were not disclosed.
First Minister under pressure to ditch CV19 approach
Nicola Sturgeon is facing more pressure to ditch her draconian approach to CV19 restrictions, according to the Telegraph.
It’s been reported that analysis showed her stance had not prevented Scottish death rates from rising above England's during the delta and omicron waves.
The Scottish Tories said it was time for the First Minister to trust Scots to take personal responsibility for how they manage the risks of the virus and claimed the data cast doubts over the effectiveness of her strategy of "bringing in restrictions on a whim".
The Financial Times found that, despite the SNP maintaining a legal requirement to wear face coverings in public places last summer and introducing vaccine passports, this did not stop death rates rising above England where the measures were not in place.
England is to end all its CV19 regulations on February 24, while Wales has indicated that its rules are likely to be replaced by guidance next month. Northern Ireland lifted its CV19 laws on Tuesday.
Ms Sturgeon is to set out her plan for "living with CV19" next week, but has previously indicated that mask laws at least will remain for the foreseeable future.
Latest on Aker BP's takeover of Lundin Energy
Proposals have been published outlining the process for Aker BP's takeover of Lundin Energy.
Energy Voice says the merger is aimed at creating Norway's second-largest oil and gas producer.
Aker BP announced it would buy Lundin Energy's exploration and production business via a combination of cash and shares in December, in a deal aimed at creating "the leading European independent E&P".
Plans now published note that Lundin has created a new Swedish listed subsidiary for the purpose of the merger - Lundin Energy MergerCo AB - which will hold all of its E&P business.
Shortly before the completion of the transaction, all shares in MergerCo will be distributed to the shareholders of Lundin Energy through a so-called Lex Asea dividend.