Business
Poor access to skills and regulatory challenges halts UK innovation

London, UK – A shortage of skills and too much red tape tops the table of barriers to innovation for 1 in 4 UK digital businesses*, according to research by Currencycloud, the leading international payment platform.
As well as access to skills (26%) and regulation and compliance challenges (28%) the research, Fostering innovation: from ideas to action, identified a number of other external and internal obstacles to turning ideas into a market-ready reality, including internal politics (26%) and access to the right technology (26%).
As a result of these challenges, half of businesses (51%) are focusing on innovation that is easiest to execute – meaning that potentially game changing ideas may never see the light of day. When probed further on choosing ideas to progress, 41% of businesses favour incremental improvements over big company-changing ideas, and a third (30%) went with what they thought have the greatest value to the customer.
But while innovation driven internally appears to be missing potential, two thirds (59%) of respondents agreed that collaborating with external parties can lead to the best ideas.
Todd Latham, CMO and VP of Product at Currencycloud, commented: “With UK productivity lagging behind competitors, and in today’s fast-moving market, innovation is no longer a choice but a means of survival. Given the challenges around skills and regulation that may intensify as a result of Brexit, these barriers must be addressed to ensure the success of UK business and the economy now and in the future.”
“For example, companies can upskill their employees, and develop their own technology, or implement complex regulatory processesto futureproof their business. But in reality, this gets complicated as the consumer demand shifts, and regulatory requirements change. Increasingly, we’re finding that our clients want to work with us because we can do that for them, so they can focus on what matters – growing their business.”
While skills to executing innovation are hard to come by,, the research found that the skills to generate ideas comes from more than one source within businesses. The traditional route of the Research and Development department in driving forward innovation is becoming a thing of the past, with only 19% of respondents indicating that they still drive successful innovation. Instead, a third (35%) think that their IT department is the main driver of innovation, closely followed by the board/ management team (32%) and the marketing team (30%).
Todd continued:“The onus to innovate is no longer on one department or individual but is spread across the organisation. While this is good news from an idea generation perspective, businesses are clearly still struggling to turn the best ideas into practice and instead focus on those that are easiest to execute. Collaborating with other businesses with expertise in key strategic areas cannot just help them turn their most lucrative ideas into a reality, but free up time for organisations to focus on client priorities.”
Business
Sunak to raise business tax to pay for COVID-19 support – The Sunday Times

(Reuters) – British finance minister Rishi Sunak is set to increase a tax on business to pay for an extension to COVID-19 support schemes in the budget next month, The Sunday Times reported https://bit.ly/3ujaBcU.
Sunak, in his speech on March 3, will announce he is increasing corporation tax from 19 pence in the pound and will outline a pathway where it rises to 23 pence in the pound by the time of the next general election, the report said. The move will raise an expected 12 billion pounds ($16.8 billion) a year, the report added.
According to the report, at least 1 pence is set to be added to the bill for business from this autumn, at a cost to business of 3 billion pounds, with further rises in subsequent years.
Allies of Sunak clarified he would not increase corporation tax higher than 23%.
These measures will be helpful in paying for an extension to the furlough scheme, VAT cuts and business support loans until at least August.
Unlike the 2010 Conservative-led government, which pursued spending cuts to rebalance the economy after the global financial crisis, Sunak is expected to defer most of the toughest decisions about how to pay for that support in his budget speech.
“The corporation tax hike will be higher than expected and the extension of the support schemes will be longer than most people expect,” the newspaper quoted a source as saying.
Insiders indicated the stamp duty holiday on property purchases would also be extended in line with the other coronavirus support measures, the report said.
Britain’s economy had its biggest slump in 300 years in 2020, when it contracted by 10%, and will shrink by 4% in the first three months of 2021, the Bank of England predicts.
($1 = 0.7136 pounds)
(Reporting by Vishal Vivek in Bengaluru; Editing by Lincoln Feast.)
Business
Foxconn chairman says expects “limited impact” from chip shortage on clients

TAIPEI (Reuters) – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.
“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd
“Therefore, the impact on these large customers is there, but limited,” he told reporters.
Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”
The global spread of COVID-19 has increased demand for laptops, gaming consoles, and other electronics. This caused chip manufacturers to reallocate capacity away from the automotive sector, which was expecting a steep downturn.
Now, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk.
Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch.
However, the research firm predicts Apple will face a minimal impact, due to its large size and its suppliers’ tendency to prioritise it. Apple is Foxconn’s largest customer.
Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating.
He expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make an obvious contribution to company earnings until 2023.
Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.
(Reporting by Ben Blanchard and Jeanny Kao; Writing by Josh Horwitz; Editing by William Mallard and Ana Nicolaci da Costa)
Business
EU seeks alliance with U.S. on climate change, tech rules

By Sabine Siebold and Kate Abnett
BERLIN (Reuters) – Europe and the United States should join forces in the fight against climate change and agree on a new framework for the digital market, limiting the power of big tech companies, European Union chief executive Ursula von der Leyen said.
“I am sure: A shared transatlantic commitment to a net-zero emissions pathway by 2050 would make climate neutrality a new global benchmark,” the president of the European Commission said in a speech at the virtual Munich Security Conference on Friday.
“Together, we could create a digital economy rulebook that is valid worldwide: a set of rules based on our values, human rights and pluralism, inclusion and the protection of privacy.”
The EU has pledged to cut its net greenhouse gas emissions to zero by 2050, while President Joe Biden has committed the United States to become a “net zero economy” by 2050.
Scientists say the world must reach net zero emissions by 2050 to limit global temperature increases to 1.5 degrees above pre-industrial times and avert the most catastrophic impacts of climate change.
The hope is that a transatlantic alliance could help persuade large emitters who have yet to commit to this timeline – including China, which is aiming for carbon neutrality by 2060, and India.
“The United States is our natural partner for global leadership on climate change,” von der Leyen said.
She called the Jan. 6 storming of the U.S. Capitol a turning point for the discussion on the impact social media has on democracies.
“Of course, imposing democratic limits on the uncontrolled power of big tech companies alone will not stop political violence,” von der Leyen said. “But it is an important step.”
She was referring to a draft set of rules unveiled in December which aims to rein in tech companies that control troves of data and online platforms relied on by thousands of companies and millions of Europeans for work and social interactions.
They show the European Commission’s frustration with its antitrust cases against the tech giants, notably Alphabet Inc’s Google, which critics say have not addressed the problem.
But they also risk inflaming tensions with Washington, already irked by Brussels’ attempts to tax U.S. tech firms more.
Von der Leyen said Facebook’s decision on a news blackout on Thursday in response to a forthcoming Australian law requiring it and Google to share revenue from news underscored the importance of a global approach to dealing with tech giants.
(Additional reporting by Foo Yun Chee; editing by Robin Emmott and Nick Macfie; editing by Jonathan Oatis)