📰 UK Startups Stalling, Pizza Hut's Hole, and Bluesky’s Boom

📰 Industry News

• Ford has announced it will cut 800 jobs in the UK over the next three years, after EV sales fall. The move is part of a major restructuring programme, which will see 4,000 posts closed across Europe as a whole. (BBC)

• Discounter Lidl says it is “on track” to increase its investment in British food to £21bn by the end of the year, exceeding its original five-year target by 40%. (Retail Week)

• Dunelm has acquired retailer Home Focus, trading as ‘Home Focus at Hickeys’. The business has 13 stores in the Republic of Ireland and specialises in soft furnishings including curtains and bedding. (The Retail Bulletin)

• Thames Water has £23bn of assets that are in urgent need of repair and the supply of water to its 16 million customers is “on a knife-edge”, a Guardian investigation can reveal. (The Guardian)

😣 Is The UK’s Entrepreneurial Spirit Waning?

It seems the UK's entrepreneurial mojo is waning. According to the Office for National Statistics (ONS), the creation of new businesses in Britain hit its lowest point in over a decade last year. Just 316,000 new companies popped up in 2023 - a drop from 337,000 in 2022 - shrinking the "business birth rate" to 11.0%, the slowest since 2010.

Here’s why this matters:

• Fewer start-ups mean less dynamism. The ONS data shows a decrease in the ‘business death rate’ too - closures fell from 11.9% in 2022 to 10.8% last year. Less churn in the market might sound nice, but it signals stagnation, not stability.

• Productivity in the UK is already lagging. Output per hour worked has barely budged post-pandemic, growing just 2.0% in four years. Without fresh businesses shaking things up, older, less adaptable companies are left holding the baton - and stumbling.

• The one silver lining? A rise in "high-growth" firms (think companies expanding their workforce by 20% annually for three years straight). These gems now make up 4.7% of businesses, a five-year high.

The Bigger Picture

This slowdown isn’t just an economics story, but a lifestyle issue in the UK. Fewer start-ups mean fewer innovations, fewer job opportunities, and potentially a drag on living standards. Meanwhile, the government has grand ambitions to lead the G7 in productivity growth. But with stagnating entrepreneurial activity, it might be time for policymakers to step up their support for small businesses - or watch the UK's reputation as a start-up hub dwindle further.

🌤️ The Great X-odus: Why Everyone’s Heading to Bluesky

The X-odus is well underway. Since the US election, more than 1 million users have signed up for Bluesky, seeking refuge from the increasingly chaotic Musk-owned platform. Amid growing concerns about misinformation, extremism, and bot problems, Bluesky is emerging as the go-to alternative for disillusioned X users. Let’s take a closer look…

What is Bluesky?

Bluesky is essentially a Twitter throwback - a sleek, vertical social media platform where users can post, reply, and scroll to their heart’s content. Initially developed as a Twitter project under Jack Dorsey in 2019, it became independent in 2021. Now run by CEO Jay Graber, Bluesky has grown to over 15 million users, with millions joining in just the past few weeks.

Why Are People Leaving X?

X’s troubles have been piling up since Elon Musk took over, and the recent US election only amplified the dissatisfaction:

• Misinformation Woes: Campaign groups and the EU have raised alarms about unchecked extremism on X.

• Political Fallout: Musk’s close ties to US president-elect Donald Trump alienated a significant portion of X’s user base.

• Spam Overload: Many users complain about the explosion of bots clogging their feeds.

Bluesky has capitalised on the discontent, promising a safer and more moderated experience - something Musk’s platform seems to be moving further away from.

Who’s Already on Bluesky?

From celebrities to MPs, the Bluesky crowd is growing by the day:

• UK Politicians: MPs Jess Phillips, Layla Moran, and Diane Abbott have made the switch.

• Hollywood Names: Jamie Lee Curtis ditched X and shared her decision on Instagram.

• Public Figures: TV presenter Chris Packham, comedian Dara Ó Briain, and Countdown’s Susie Dent are among the platform’s new fans.

With its rapidly growing user base and Jack Dorsey behind the reins, Bluesky has momentum and expertise on its side, but it’s still early days. The question is, can it scale while maintaining the features that make it an attractive refuge? If X continues on its current path, we might be witnessing the start of a major shift in social media power.

🚌 Nationwide ‘London Style’ Bus Roll-Out in £1bn Boosts

Get ready for a ride, because the government has unveiled its grand plan to roll out “London-style” buses nationwide, with a shiny £1bn bow on top. The Department for Transport (DfT) is promising a revamp of local bus services that’s long overdue - but naturally, we’re sceptical.

What’s the Deal?

1. Big Bucks, Bigger Promises
   Nearly £1bn has been earmarked to upgrade bus services across England. Think punctual, frequent, and affordable - yes, like the ones in London. The funding aims to help both urban and rural areas, with Leicester, the Isle of Wight, and Southend among those getting a generous slice of the pie.

2. A “Once-in-a-Generation” Plan
   New powers are on the horizon: local authorities could soon have the ability to franchise buses, meaning they’d decide routes, timetables, and fares. It’s a shift towards public control, with operators bidding to run services - a model that’s worked wonders in the capital.

3. The £3 Fare Cap Lives (Sort of)
   While fares across England are capped at £3 until the end of 2025, critics aren’t thrilled. The Lib Dems have dubbed the cap hike a “bus tax,” arguing it’ll squeeze commuters and businesses alike. The DfT insists the cap saves up to 80% on some routes, but rising costs are leaving passengers sceptical.

This plan might sound like a commuter’s dream, but it raises questions. Will £1bn stretch far enough to fix decades of patchy service? And can rural areas finally catch up, or once again will cities gobble up the benefits? Let’s see how it plays out.

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