London investment will come roaring back after drop-off, says British Business Bank

London firms will be forced to weather a sharp drop-off in investment in the coming months before it rebounds in full force, a top official at the British Business Bank has warned.

Matt Adey, senior economist at the state-backed economic development bank, said choppy markets in the UK meant that investment into London’s growing firms would slow in the period ahead, but predicted the Capital would come roaring back eventually.

“I would expect to see significantly less deals and there are significantly less deals going on in quarter three by the looks of it,” Adey said.

“But that doesn’t that doesn’t strike me as a long term problem. It’s just part of the volatility of these these markets.

“Fundamentally, London is a strong market with lots of innovative businesses looking for finance, and lots of people looking to finance them.”

The comments come as funding begins to slow for firms … Read more

Charities seek to distance themselves from Michelle Mone after PPE claims

Charities linked to Baroness Mone and her husband are distancing themselves from the couple after they were accused of secretly receiving £29 million by lobbying for a PPE company.

ActionAid has said it will no longer accept any donations from the Barrowman Foundation which was founded by Mone’s husband, the financier Doug Barrowman, and lists her as a trustee. ActionAid is an international agency that aims to tackle poverty and injustice around the world.

The Prince’s Trust and the Royal Marsden Cancer Charity also said they had no plans to receive any future support from Barrowman or Mone. Other charities have said the affiliations on the couple’s websites are out of date.

The Charity Commission had already opened a compliance case into the Barrowman Foundation over alleged unsecured loans before the latest accusations.

The foundation lists ActionAid as a partner on their website. However, the charity said: “The last donation … Read more

Openreach scales back UK ultrafast fibre broadband

Openreach is to limit its investment in the rollout of ultrafast fibre broadband as BT pushes forward with an intense cost-cutting scheme.

The telecom giant’s networking division has contacted suppliers to say it would build the network “narrower and deeper” and tighten timeframes, according to a letter seen by the Financial Times.

“This will by necessity include an element of cancellation or suspension of a job you have received and/or validated”, the letter said. “It is clear that there will be a financial impact to you as we implement these plans.”

It comes after the FTSE 100 firm announced a fresh cost-cutting target from £2.5bn to £3bn by the end of 2025 as a result of inflationary pressure.

Chief executive Philip Jansen said that whilst he backed the current push for efficiency, the firm needed to take “additional action on our costs to maintain the cash flow needed to support … Read more