Consultations continue on a digital pound, why website owners need to check their cookie banners, plus the ONS reveal the latest statistics on the labour market
Welcome to today’s blog post from MLS Accountancy, reviewing the latest business news which may be relevant to you and your company. As always, if you have any queries please get in touch via our website.
No final decision yet on a digital pound
The Bank of England and HM Treasury have published their response to a consultation on a digital pound that was started in February 2023.
The proposals for a digital pound include:
- It would complement the role of cash and give people and businesses more choice in how they make and accept payments.
- The Bank of England would issue it and it would be convenient and widely available.
- It would hold the same value as the equivalent banknote or coin, i.e. £10 of digital pound would always be worth the same as £10 in banknotes or coins.
- It would be easily exchangeable with other forms of money, such as cash.
- The public and businesses would access their digital pounds through digital wallets offered by the private sector through smartphones or smartcards.
- It would be intended for payments online, in-store, and between individuals. It would not be used for savings and it would not pay interest.
- At least initially, there would be restrictions on how much a business or individual could hold.
A digital pound would be a claim on the Bank of England, like banknotes. So, it would have intrinsic value and be stable, unlike cryptoassets that are unbacked.
There has been no final decision to pursue a digital pound, but work will continue to explore its feasibility and potential design choices.
Feedback received from the consultation seems largely to have been supportive, however concerns have been raised about what a digital pound implies for access to cash, privacy for users, and control of their money.
The published response has confirmed that legislation would be introduced to protect and guarantee users’ privacy and control if the decision to go ahead does occur. It also confirms that neither the Bank of England nor the government would have any access to personal data and users would be free to spend their digital pounds as they choose.
While there is no final decision as yet, clearly there is a willingness to continue considering the idea of a digital pound and this is unlikely to be the last word on the subject.
See the response in full at: https://www.bankofengland.co.uk/paper/2024/responses-to-the-digital-pound-consultation-paper
ICO Targets Non-Compliant Advertising Cookies: A Call to Action for Website Owners
The Information Commissioner’s Office (ICO) is intensifying its efforts to ensure compliance with data protection laws regarding advertising cookies, targeting some of the UK’s top websites. In November, the ICO sent letters to 53 of the country’s top 100 websites, cautioning them about potential enforcement action if changes were not made to align with data protection regulations.
The ICO report that the response was positive. Out of the 53 organizations contacted, 38 have already adjusted their cookie banners to comply with regulations. Additionally, four organizations have committed to achieving compliance within the next month.
In line with data protection laws, websites are expected to offer users a fair choice in consenting to the use of advertising cookies or similar technologies. Businesses that disregard these legal requirements will face consequences, as the ICO vows to extend its enforcement beyond the top 100 websites. The regulator is already gearing up to contact the next 100, and the 100 after that!
To speed up their work in this area, the ICO is developing an artificial intelligence solution that will help them identify websites with non-compliant cookie banners. A ‘hackathon’ event scheduled for early 2024 will explore the practical implementation of this AI solution.
The ICO’s advice to all organizations is clear: take proactive measures to achieve compliance now, before they come knocking.
With the ICO taking proactive steps to uphold data protection laws, it may be a good time for you to consider whether your website’s cookie banners are compliant.
For guidance on the use of cookies, see: https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/
AI Opportunity Forum members now appointed
AI continues to be high on the agenda in business and UK government policy. Members for a new forum, the AI Opportunity Forum, have now been appointed to help boost AI adoption amongst businesses.
Microsoft, Google, Barclays and Vodafone are all included in the member ranks, with the first meeting to take place in February.
AI is a hot topic in business, but adoption is slow. Estimates are that only one-in-ten organisations are currently fully prepared to roll out the technology. Whether those promoting AI fully understand the reasons for slow adoption is unclear from the press release. However, it is hoped that the new Forum will help to share best practice and identify measures businesses can adopt to improve their readiness for AI.
Talking about the Forum, Michelle Donelan, who is Technology Secretary, said: “We want to see organisations across the UK tapping into the transformative power of AI to boost their productivity, unlock new opportunities, and drive growth. The AI Opportunity Forum brings together our brightest minds from the worlds of AI and business to drive forward that effort.”
See: https://www.gov.uk/government/news/business-and-tech-heavyweights-to-boost-productivity-through-ai
January 2024 Labour Market Overview highlights
The latest Labour Market Overview by the Office for National Statistics (ONS) showed the following highlights for the final months of 2023.
Vacancies decline yet remain above pre-COVID levels:
The report reveals a continued decline in job vacancies, with the estimated number of vacancies in the UK decreasing by 49,000 in October to December 2023, marking the 18th consecutive quarterly fall. However, despite this prolonged decrease, the current estimate of 934,000 vacancies remains above the pre-coronavirus pandemic levels.
Robust earnings growth:
Annual growth in regular earnings (excluding bonuses) reached 6.6% in September to November 2023. Simultaneously, the annual growth in employees’ average total earnings, including bonuses, was 6.5% during the same period. In real terms, accounting for inflation, total pay rose by 1.3% year-on-year, and regular pay saw a 1.4% increase.
Lowest working days lost due to labour disputes since May 2022:
The report highlights a significant drop in working days lost due to labour disputes in November 2023, totalling 69,000. This marks the lowest number since May 2022. Notably, over half of the labour disputes that did occur were in the transport, storage, information, and communication industries.
Payrolled employees decrease in December 2023:
Estimates of payrolled employees in the UK for December 2023 show a decrease of 24,000 from the November 2023 figure, settling at 30.2 million. However, the number of payrolled employees is well above pre pandemic levels.
Alternative employment estimates introduced:
Due to increased uncertainty surrounding the Labour Force Survey (LFS) estimates, the ONS have introduced an alternative series of estimates for September to November 2023. These figures indicate a 0.1 percentage point increase in the UK employment rate (16 to 64 years), bringing it to 75.8%. The unemployment rate (16 years and over) remained largely unchanged at 4.2%, while the economic inactivity rate (16 to 64 years) decreased by 0.1 percentage points to 20.8%.
What do these statistics mean for you?
The fact that job vacancies have decreased but the number of payrolled employees has also dropped suggests that there has been an overall reduction in jobs available. This may be further supported by the fact that while the unemployment rate has stayed unchanged, it is up on the year and remains higher than pre-pandemic rates.
With the tight economic climate, businesses may well be looking at their workforce and reviewing the value of certain roles, not replacing leavers or even making some roles redundant.
This highlights the value of taking time to think strategically about your business. While no one wants to make an employee redundant, an employee leaving does provide a trigger point for reviewing the requirements of a role. Questioning whether a leaving employee needs to be directly replaced can open the door to savings, or to improving business processes and efficiency.
Strategic thinking about your business often starts with having a plan in place that you can regularly review. If you need help putting together a strategic plan for your business, please get in touch. We will be pleased to help you! See: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/january2024