RSM UK

The Construction PMI results today show industry sentiment. Mobilisation of major projects and an increase in housing transactions play a part in the uptick. While the industry looks forward with optimism there remains concern over how growth is funded and the shortage of labour. 🚧 🏠 RSM UK

The rate of new UK tech companies is slowing. Great to see Jess Jones profile our RSM UK research in City AM today. This is the first time we have seen a stagnation of new Tech incorporations. It is possible political uncertainty, high costs of borrowing and lower levels of investment has blunted growth in UK Tech. Department for Science, Innovation and Technology spend in Tech was cut last week, reported by Zoe Kleinman / BBC News. Whilst on one hand the new government is grappling with a £22bn budget shortfall, on the other, it can’t afford to take a strong tech sector, that contributes around £150bn a year to the UK economy for granted. There is an opportunity for a renewed focus on the bigger picture from government, supporting the sector to develop technology which enables the UK to compete on the global stage. There are many levers to consider including direct funding for deep-Tech innovation, a review of tax incentives and innovations reliefs, streamlining the process for skilled immigration and looking at how education and training can address Tech skills gaps in the workforce. David Blacher | Mandy Girder | Richard Heap | Kirsty Fraser #rsminsights #uktech #tech

Are you confident your business can achieve your sustainability commitment? 69% of middle market UK businesses have a formal strategy in place, with 25% planning to implement one within 12 months. RSM UK launched our report on Sustainability this week. We surveyed middle market businesses to highlight the opportunities and challenges being faced today. The output of a Technology businesses is so often something intangible - for example a software platform or AI powered chatbot service. It's easier, sometimes, to look at physical goods or products and conceptualise how the creation of the item has impacted the planet. One thing area our report covers is how organisations across all industries - including Tech - are setting Sustainability strategies, capturing relevant data, managing stakeholders and complying with increasingly complicated reporting requirements. All whilst making good against their public facing commitments. Rich Hall | Cathy Faria | Kathy Hobbs https://lnkd.in/eawg7uSR #esg #sustainabilty #rsminsights

Interest rates cut to 5%, but the MPC clearly isn't in a rush to cut further. While the MPC has started its policy easing cycle, which is good news for consumers and mortgage holders, it'll probably be November before we get another cut for three key reasons: First, the vote was as close as it could be, with four of the nine committee members voting to keep rates on hold vs five voting to cut. And even for those members that voted to cut, the decision was "finely balanced". Second, Bank Governor, Andrew Bailey, said the committee is cautious about cutting “too quickly or by too much”. And the minutes to the meeting emphasised that at 5% interest rates are still well into restrictive territory and will stay there for “sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term had dissipated further”. Third, even though the latest inflation forecasts show inflation undershooting the 2% target in two and three years if interest rates follow the path implied by markets, and by miles if interest rates are left at 5%, the committee emphasised that “there was a risk that inflationary pressures from second-round effects would prove more enduring in the medium term”. Overall, the policy easing cycle has begun, but it will continue only gradually and only as long as inflation and wage growth continue to show progress is being made. We are expecting one more 25bps cut this year probably in November and have pencilled in four cuts in 2025, but that will partly depend on the degree of tax rises and additional borrowing announced in the budget. #RSMUK #RealEconomy #InterestRates #MPC

An uplift in consumer confidence and sentiment towards personal finances is resulting in more people intending to spend, but the lingering effects of the cost-of-living crisis means consumers are still prioritising value. Loyalty and Buy Now, Pay Later schemes have skyrocketed in popularity among retailers, but which sectors are effective at convincing people to spend their hard-earned cash? See our full insights here: https://lnkd.in/emtUDDxX #RSMConsumerMidYear RSM UK Consumer HQ | Saxon Moseley | Chris Tate | Lisa Alty | Robyn Duffy I Hannah McCarthy

Loyalty schemes have fast become a staple in the hospitality industry, focusing on building a mutually beneficial relationship between operators and customers. Rather than simply offering a one-off discount which is often transactional and risks eroding margins, loyalty schemes encourage repeat spend and enhance the overall customer experience. Loyalty schemes were a focus of our recent consumer outlook survey where we found: 🌱 58% of Gen Z respondents and 48% of Millennials are more likely to go to a restaurant with a loyalty scheme, compared to 42% across all generations. 💷 Those on higher incomes (over £80,000) were most likely to frequent hospitality venues with loyalty schemes, at 66% for restaurants and 56% for quick service outlets. Whereas this falls to 38% for those on incomes below £20,000. 🥨 55% of Gen Z consumers and 52% of Millennials are more likely to choose a quick service outlet such as Pret and McDonalds if they offer a loyalty scheme, compared to 40% across all generations. 🍺 Interest in loyalty programmes is also less appealing in pubs and bars, with 27% and 24% of consumers, respectively, more likely to buy from these outlets if they offer such schemes. 🎫 The rewards that consumers were most interested in receiving at restaurants and eating/drinking outlets were price reductions (50%), bonus points that amount to a free drink or meal (17%) and bonus points to spend (15%). While our findings suggest the success of loyalty schemes differs depending on the target demographic and type of hospitality venue, it’s clear they have a considerable influence over a significant portion of the market. As operators continue to fight to catch the eye of customers, they may benefit from using these schemes to cultivate customer loyalty, raise profile and even potentially increase their market share. They’ll also get access to sought after customer data which they can use to tailor their offerings for maximum appeal. https://lnkd.in/esHEtexx #RSMinsights #hospitality #loyalty RSM UK Consumer HQ | Chris Tate | Jacqui Baker I Robyn Duffy I Lisa Alty I Hannah McCarthy

Such a pleasure to play host to Saeed Atcha MBE DL and his team from Youth Leads UK along with special guest Andy Burnham as they launched their new initiative to support more young people taking on civic roles across Greater Manchester and having real influence and a voice in shaping the future of our region. RSM UK are here to support you wherever we can. https://lnkd.in/diwJu8wP

The latest CGA RSM Hospitality Business Tracker reveals that Britain’s top hospitality groups recorded year-on-year sales growth of 2.9% in June 2024. Pub operators will be disappointed with the modest increase in sales generated by the early stages of the Euros. However, a second month of inflation beating growth for restaurants offers further evidence, and hope, that consumer purse strings are loosening against a backdrop of real wage increases and anticipated interest rate cuts. There was positive news for the industry in the King’s Speech around the apprenticeship levy amendments and night-time safety, but significant headwinds remain with confirmation of zero hours contracts reform and proposed increases to the national minimum wage. Combined with a lack of clarity around business rates, operators will be looking for further certainty from the new government in the second half of the year. Read the full insight – https://lnkd.in/gEc4WQQp #RSMinsights #leisureandhospitality RSM UK Consumer HQ Jacqui Baker Chris Tate Paul Newman Lisa Alty

🎬 Lights, camera, action! We have been putting some of our #35under35 in front of the camera over the past few weeks to understand what makes them tick. In the first part of this series, we explore their journeys into the accounting profession. The discussions reveal diverse pathways and surprising roles that extend beyond traditional number-crunching, emphasising leadership, team management, and client relations. Watch the first video here: https://lnkd.in/eGYRKNgP #Accountants #CareerPath #35Under35 #Leadership #ClientManagement RSM Ensors Chartered Accountants Azets haysmacintyre RPG Chartered Accountants F. W. Smith, Riches & Co. Duncan & Toplis BKL UHY Hacker Young AJ Chambers ®