UK government announces further funding to help businesses clean up industrial processes and improve energy efficiency

  • £12.4 million government funding is helping some of the most polluting industries find new ways to reduce their carbon emissions and energy bills
  • funding has supported the deployment of a range of new technologies, from heat pumps to hydrogen ready equipment, to help businesses cut fossil fuel use and improve energy efficiency
  • investment is helping to future-proof vital British industries in the transition to a lower carbon economy

Businesses across the UK will benefit from a share of more than £12 million government funding to help energy-intensive industries cut their carbon emissions and energy costs.

The funding for the 22 winning projects will help businesses across England, Wales and Northern Ireland clean up their industrial processes and improve their energy efficiency – benefiting industries including pharmaceuticals, steel, paper, and food and drink.

This £12.4 million funding was awarded as part of the Industrial Energy Transformation Fund (IETF), which has awarded grants to British projects across the country to increase the energy efficiency of their industrial processes, from car manufacturing to steel production and food processing.

The winning bids include sustainably harvesting food in Carmarthenshire, Wales, through a new air source heat pump system, capturing waste heat to dry, heat, crush and grind materials for roadmaking in South Yorkshire and using revolutionary high temperature heat pumps to reduce the energy needed to heat and cool cheese, reducing emissions in dairy farms across the Midlands.

It is estimated that industry is currently responsible for producing 16% of the UK’s emissions and will need to cut emissions by two thirds by 2035 in order for the UK to achieve its net zero target.

Today’s funding will play a crucial role in helping to clean up big-emitting industries as part of the UK’s green industrial revolution – decarbonising their industrial processes and reducing their reliance on expensive fossil fuels, such as gas. This means businesses will not only reduce their environmental impact, but also save on their energy bills and safeguard thousands of British jobs.

Graham Stuart, Minister at the Department for Energy Security and Net Zero said: “Boosting the energy efficiency of industrial processes is a critical step not only in our transition to a lower-carbon economy, but also by helping businesses to cut their energy costs and protect valuable British jobs.

“That’s why the government has stepped in once again to support energy intensive industries, with a fresh funding round to unleash the next generation of green innovators who are re-shaping the way technology can reduce carbon emissions.”

So far, £34.8 million of funding has been awarded through the Industrial Energy Transformation Fund, which was first launched in June 2020.

Today’s winners

Greener food

One of the biggest food companies in Europe, Dunbia, based in Carmarthenshire, Wales, has been awarded funds to upgrade its heating system from a gas oil fired steam boiler to an air source heat pump that is powered by renewably sourced electricity.

This allows the company to harvest edible products and process the food with hot water washing, through a sustainable and energy efficient thermal supply system, reducing carbon emissions each year.

Sustainable roads

Harsco Environmental’s SteelPhalt plant, based in Rotherham, South Yorkshire, has been developing and manufacturing high performance tarmac products for the UK roadmaking industry since the 1960s. 

This energy intensive process of drying, heating, crushing, grinding, conveying currently utilises large volumes of natural gas, gas oil and electricity from the grid, but thanks to government funding, the company is investigating ways to capture the waste heat in the exhaust gases and transform it into electrical power, reducing the fuel demand of the road burners and supporting manufacturing in the local area.

Lighter, safer vehicles

Autotech Engineering / Gestamp is a multinational based in Newton Aycliffe, County Durham, specialising in the design, development and manufacture of metals for lighter and safer vehicles.

Whereby high-tonnage presses of flat metal sheets typically loses lots of energy through heat and noise, IETF has helped to fund the SERPENT project which is actively capturing and reusing this lost energy. With a reduction of almost 10% already seen in peak power usage during tool changeover, this funding is helping to lower energy consumption and the environmental impact of critical car manufacturing.

Say cheese

The Long Clawson Dairy has been producing cheese for over a century, running over 31 farms in the Leicestershire, Nottinghamshire and Derbyshire areas. The production of cheese is an energy intensive process involving both heating and cooling activities.

Through IETF funding, the company has created a new thermal storage system, using revolutionary high temperature heat pumps to reduce overall energy by 27% and saving 34% carbon emissions, with the ambition of moving to a purely electrically powered in the long term.

Today’s announcement builds on the wide-ranging support that is available to energy-intensive industries.

The UK government recognises that businesses are feeling the impact of high global energy prices, including steel producers, which is why the Energy Bill Relief Scheme was launched to bring down costs. This is in addition to more than £800 million of support the government has provided since 2013 to help industrial sectors with energy costs, with many businesses able to bid into government competitive funds worth more than £1.5 billion to support them going green, cutting emissions and becoming more energy efficient.

Niall Browne, CEO, Dunbia (UK), said: “Dunbia (UK), through its parent company Dawn Meats, was the first European beef and lamb processor to make a commitment to the Science Based Targets Initiative.

“We have been working for more than 10 years to reduce emissions internally and more widely across our supply chain and recognise the urgency to adopt even more aggressive measures to reduce emissions.

“We welcome this opportunity to work with the Department for Energy Security and Net Zero to further improve our energy efficiency and cut our carbon emissions.”

A Harsco Metalscompany spokesperson said: “Harsco has welcomed the IETF grant offer from the Department for Energy Security and Net Zero to continue its journey to help continue our commitment to innovation and sustainability.

“With this IETF feasibility funding grant, we have been able to investigate how we can recover heat from our asphalt plant to optimise our use of energy and reduce our carbon footprint.

Phil Potter, the SERPENT Project Manager, said: “The SERPENT feasibility study was a high-risk technology project not aligned with Gestamp’s core business activities and would not be completed without IETF support and funding.

“We have been successful in demonstrating feasibility and initial results look extremely promising with a reduction of almost 10% seen in peak power usage during tool changeover.

“We have yet to process that data and analyse the economic viability but we have already demonstrated that this approach improves manufacturing energy efficiency to reduce waste and carbon footprint and support our drive to Net Zero with no impact on press performance.

Iain Grant, Operations Director, Long Clawson Dairy, said: “The production of our Stilton cheese is an energy intensive process involving both heating and cooling activities.

“With the investment in this project, it has enabled the Dairy to take a more cost-effective approach to energy consumption, alongside a clear carbon emission reduction. This is a substantial investment for a business of our size and would not have been possible without the support of the IETF grant funding.”

New Art Exhibition at Gleneagles Townhouse

Graeme Mortimer Evelyn brings ‘Relics from an Oasis of Good Luck’ to Lobby 37 at Gleneagles Townhouse.

The London artist’s first solo exhibition in Scotland will include pieces made over a 25-year period selected directly from the artist’s London home.

An exhibition featuring Graeme Mortimer Evelyn will run until the 27th February at Gleneagles Townhouse. Made of up of pieces created over Graeme’s long and successful career, the exhibit is titled ‘Relics from an Oasis of Good Luck’.

Many of the works are completely realised studies created during many major commissions and artist-in-residence projects during Graeme’s expansive career, and range from collages, prints, paintings, graffiti stencils, drawings, and painted relief sculpture. Evelyn has exhibited his work across the world, but this will be his first solo exhibition in Scotland.

Graeme Mortimer Evelyn is a musician and curator as well as a multimedia artist. The art he creates comments on cultural social identity, politics, belief, and language. He has created work for major municipal buildings, sites of national memory, and places of worship – subverting the settings and their philosophies to attract new audiences and democratise public spaces by opening them up to more people.

His works have also been exhibited, collected, and displayed internationally by Princeton University Centre for African American Studies, Cornell University, Kensington Palace, The Royal Commonwealth Society, Museum in Docklands, Gloucester Cathedral, Bristol Museums, The Royal Collection Trust, The Church of England, and UNESCO.

One of Evelyn’s most notable works is The Eternal Engine for St Francis Church in Tottenham Hale. Completed in November 2017, it is the largest permanent hand-sculpted contemporary altarpiece in Europe.

St Francis Church sits adjacent to where Mark Duggan, a young black man, was fatally shot by armed police in 2011, triggering London-wide riots. The church was then built to aid to the community’s healing process. The Eternal Engine represents the unifying wonder of our vast Universe and the mystery of its Creator.

Evelyn currently works in his garden studio in South London, continuing to develop his varied and innovative body of works exploring automatic experimental drawing and sculpture informed by his synaesthesia reaction to music and sound, and how these responses then relate to contemporary religious and secular belief structures.

He has recently completed vinyl album cover commissions through this lens for world renowned Jazz Artists. In late March 2023, he will begin his six-week invited Artist Residency for the Foundation for Spirituality and the Arts in Charleston, South Carolina.

Graeme Mortimer Evelyn’s works will be available to view until February 27th in Lobby 37 at Gleneagles Townhouse St Andrew Square to hotel guests, diners at The Spence and Townhouse members.

gleneaglestownhouse.com

Amazon donates to armed forces charity

A Scottish charity for veterans of the British Armed Forces has received a £1,000 donation from the team at Amazon’s fulfilment centre in Dunfermline in honour of Remembrance Day. 

Poppyscotland provides support for current and former members of the Armed Forces, as well as their families, living in Scotland. The charity maintains a safe space for men, women and families with issues linked to their time in the armed forces or with their struggles adjusting from military to civilian life. 

This is the third year in a row that Amazon in Dunfermline has donated to Poppyscotland. This year, the donation will go towards the charity’s welfare services for the Armed Forces community, providing advice and support to those struggling with finances, employment, housing, mobility needs, mental or physical health issues and more.

Speaking on the donation, Jamie Strain, General Manager at Amazon in Dunfermline, said: “Amazon has long been a proud supporter of the UK’s armed forces community and we’re pleased to make this donation to Poppyscotland.

“The work done by the charity’s staff and volunteers does not go unnoticed in our community.”

Megan Wright, an employee from Amazon in Dunfermline, said: “My family has received so much support from the team at Poppyscotland.

I’m happy that Amazon can help the charity with this donation.”

Gordon Michie, Poppyscotland , added: “The team at Poppyscotland and I would like to say a big thank you to Jamie and our friends at Amazon in Dunfermline for this generous donation. We appreciate all the support we can get, and with donations like this, we can provide help to the men and women who need it most.”

“Every penny will help us offer life-changing welfare support to Scotland’s Armed Forces community, helping with housing, employment, finances, mental and physical health issues, and more.”

“We’re also delighted to hear how Amazon is supporting veterans making the transition to civilian life,  assisting them in training for new careers after service.”

The donation to Poppyscotland was made as part of Amazon’s programme to support the communities around its operating locations across the UK. 

Almost a decade ago, Amazon signed The Armed Forces Covenant. The Covenant has a focus on helping the Armed Forces community to access the same support from Government and commercial services as the public.

Last year, Amazon increased its support of the military community by growing its partnership with the Royal British Legion. 

The partnership, which began two years ago, sees Amazon encourage customers to support the Royal British Legion through an official charity store, featuring products that raise money for the Legion. All proceeds from the sale of goods go directly to the charity. Amazon also offers customers the opportunity to support the Royal British Legion through Amazon Smile.

In addition to several support programmes for the Royal British Legion and other services charities, Amazon offers an employment programme for members of the services community called the Amazon Military Programme. The programme offers members of the military community the opportunity to pursue a wide range of exciting new career paths at Amazon.

Amazon offers an employment programme for members of the services community called the Amazon Military Programme. The programme offers members of the military community the opportunity to pursue a wide range of exciting new career paths at Amazon.

Planning for greener communities

New long-term plan and policy comes into effect

Projects returning former industrial or derelict sites to community use will be more likely to be approved following the introduction of long term planning reforms.

Planning Minister Tom Arthur visited the £4.2 million Lochshore development at the former Glengarnock Steelworks in Ayrshire to see progress transforming a former heavy industry site into parkland for the benefit of local people and visitors.

Local authorities are encouraged to support proposals for development that will help restore green spaces under the fourth National Planning Framework (NPF4), as part of local development plans. The policy against which planning applications will be assessed for the next decade comes into effect today.

Policies in the NPF4 will also:

  • enable more renewable energy generation, outside National Parks and National Scenic Areas, to support the transition away from reliance on fossil fuels
  • Regenerate city and town centres to help them adapt to economic change while restricting some out of town retail and drive through developments
  • Support the delivery of good quality, affordable homes in neighbourhoods where people can easily access shops, schools and workplaces within a 20 minute walk or cycle

Mr Arthur said: “The Scottish Government has supported this transformation from a derelict site which was holding back development in North Ayrshire into a significant new visitor attraction and sports facility.

“Our reforms represent a turning point for planning, a strong signal of support for healthier communities and prosperous local economies. They can help promote local renewal at sites across Scotland in line with the National Strategy for Economic Transformation.

“This Framework gives local planners across the country the green light to build the fairer, greener Scotland we want to see to tackle climate change and benefit future generations.” 

North Ayrshire Council Provost Anthea Dickson said: “We are delighted to welcome the Minister and show what an incredible facility we have here in the Garnock Valley.

“Since officially opening late last year, the Lochshore Park Hub has already proven to be a popular destination for local residents and visitors alike. Not only is it an attractive, vibrant facility but as we move on to the next stages of its development, the benefits it provides will become even greater.

 “This wouldn’t have been possible without close collaboration with the local community who have been integral to its development from the very early stages – it’s a real testament to community spirit.”

Find out more about NPF4 here.

Adult Education: SM Geocaching

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Your chance to join in a global treasure hunt, using clues and GPS (global positioning system) to find hidden caches of objects, Improve technology skills in very satisfying, fun way! 

One day course on Saturday 4th March from 10.30am-4.30pm 

Book your place or find out more by ringing 0131 556 7978 or online at www.joininedinburgh.org

Costs £21.75 standard fee and £17.25 for reduced fees.

How to feed your kids on a budget this half term

With food prices going through the roof, parents and carers are being provided helpful ways to feed their children on a budget during half term.

The frugal experts at NetVoucherCodes.co.uk have looked at affordable ways to plan family meals throughout the week-long break.

Many supermarkets, pubs and restaurants are once again offering free or discounted meals for children but there are also ways to help reduce the cost at home.

Going meat free, doing a family meal plan and having a fun picky tea are among the tips for savvy parents.

Ellie Macsymons, online consumer expert from NetVoucherCodes.co.uk said: “We wanted to give parents a helping hand during this half term.  Many will feel the pinch of rising food costs in their weekly expenses.

“There are numerous schemes available during the week holiday with a wide range of pubs and supermarket restaurants offering special discounts for kids to eat out.

“But we also wanted to provide simple ways for parents to save money on making meals at home for their children during the holidays.”

Here are NetVoucherCodes.co.uk’s budget-friendly ways to feed your kid on a budget this half term:

Picky tea

This is all about taking what you find in the fridge, freezer and cupboard and turning it into a help yourself meal. There could be some leftover chicken, oven chips, a few fish fingers – anything goes. Also means avoiding a last minute dash to the supermarket to pick up something for dinner.

Shop around for half term deals

If the local supermarkets are near one another, visit each store to work out which has the best offers. There could be some decent half term deals on.

Discounted pub meals

Local pubs are providing a variety of discounts for kids to eat cheaper this half term. Head down and find out which are available.

Cheap meals at supermarket restaurants

Just like during the summer holidays, many supermarket chains are offering further discounts on kid’s meals to help with the rising food costs. Have a look at who’s offering what.

‘Once a week’ rule

Set some time aside for a family meal out by using the ‘once a week’ rule where you either dine out weekly or you get a takeaway of your choice as a family treat. This way you can plan around your food shops so less food will be wasted.

Social media budget recipes

Everyone has a favourite social media recipe which has become a weekly make. But if you’re unsure of any meals which can be added to your cookbook, explore social media apps for simple recipes which will cost less than a fiver to make.

Family pizza making

Instead of the Saturday night takeaway, try making your own homemade pizzas. It’s a great way to get kids in the kitchen too and experiment with making their own food.

Family meal plan

It’s best to be organised when planning meals to save the extra pennies. To make this more creative, mark each day with a different colour pen and decorate with stickers when it’s time for a special dish or a day when you’re dining out.

Try veggie days

Meats typically cost the most on weekly meals. If you decide to swap the meat for veggie choices it can save around a third on select meals during the week. Have a look at meals which don’t involve meat or try out some delicious veggie options for half the price.

For budget-friendly ways to feed the kids during half term, head over to NetVoucherCodes.co.uk.

Travellers will pay double for car hire in some holiday hotspots this Easter compared with pre-pandemic, Which? research finds

The cost of renting a car on holiday this Easter is 72 per cent more expensive on average than the same period in 2019, according to new Which? research.

Which? examined data supplied by car hire broker Zest Car Rental for over 5,000 rentals in nine popular holiday destinations including Spain, France and the US, and found that seven out of nine destinations the consumer champion examined have seen weekly increases of over £100.

Cyprus has seen the most dramatic price rises, with the average daily rental rate more than doubling this year when compared with before the pandemic. A seven-day rental would now set holidaymakers back £248, up 112 per cent on pre-pandemic rates. Portugal and Greece were not far behind, with increases of 99 and 97 per cent respectively.

The USA was by far the most expensive country, with holidaymakers shelling out £537 per week on average, adding £239 onto the cost of a holiday compared with 2019.

Despite seeing the smallest price increases overall, at 25 per cent, France nonetheless emerged as one of the pricier regions to rent a car, with a week’s rental costing £364 on average.

In the face of widespread vehicle shortages, the cost of car hire rose hugely last year. While companies have now had an opportunity to begin restocking fleets that were sold off during the height of the pandemic, rates have not dropped as much as might have been anticipated, instead settling far higher than travellers were accustomed to pre-pandemic. 

Demand remains extremely high this year, contributing to increased costs. Zest Car Rental reports that advance bookings are up 132 per cent compared to the same point last year. 

Rental firms are also facing increased staffing and insurance costs, while cars themselves are also becoming more expensive – estimates by Zest suggest that the cost of purchasing a Fiat Panda, one of the smallest typical cars in a rental fleet, now costs around £5,000 more on average than in 2019.

Jo Rhodes, Deputy Editor of Which? Travel, said: “High demand combined with a shortage of rental vehicles means prices across Europe and the US are still incredibly high compared with before the pandemic. 

“Shop around and book in advance to lock in the most competitive rates, especially during peak periods. Use recommended companies, or small local firms endorsed by a trusted broker, and always be wary of ‘too good to be true’ prices.  

“Paying in advance, if you can, often works out cheaper overall and helps secure your booking. We also recommend taking out third-party insurance before you travel; in the past, we’ve found hire companies selling inferior policies at the desk at marked up prices.”  

Human Rights at Work inquiry

Westminster’s Joint Committee on Human Rights has launched a new inquiry to examine how human rights are protected at work.

Work is a central aspect of people’s live as it often provides their principal source of income and can provide a sense of purpose. Employment can also contribute to an individual’s feelings of self-respect and dignity. However, the world of work has also been recognised as involving an imbalance of power between employer and workers This imbalance can lead to exploitation, discrimination and other harmful practices.

States have an obligation to protect workers from breaches of their human rights. This can include ensuring employers don’t interfere with their worker’s freedom of association, for example by preventing them from joining a trade union. States also have an obligation to ensure workers aren’t subject to surveillance and workplace monitoring that amounts to a breach of their right to private and family life.

There are a large number of laws and regulations that protect rights at work. This inquiry will specifically look at how the universal protections guaranteed in the European Convention on Human Rights apply to the world of work and the rights of workers.

The Committee is undertaking a separate piece of work providing legislative scrutiny of the Strikes (Minimum Service Levels) Bill.

Committee Chair Joanna Cherry KC MP said: “Employment often has an inherent power imbalance that can leave workers vulnerable to exploitation or discrimination. There is an obligation on the Government to ensure that there is a comprehensive framework in place that ensure the rights enshrined in the European Convention on Human Rights are protected at work.

“The Joint Committee on Human Rights has launched this inquiry to understand how rights are currently protected at work and pinpoint where greater safeguards may be needed.”

Terms of reference

The Committee invites written evidence on the following questions. The deadline for submitting written evidence is 24 March 2023.  Please note, your submission does not need to address every question in the terms of reference. 

Find out how to submit evidence here.

Freedom of association and the right to strike

Does the current law effectively protect the rights of trade unions and workers to take industrial action under Article 11 ECHR? Does the law effectively protect the right to strike for the purposes of other international human rights instruments, such as the International Covenant on Civil and Political Rights and the International Labour Organisation Conventions?

The right to privacy and surveillance at work

  • What forms of surveillance, if any, that are used to monitor workers raise concerns under Article 8 of the European Convention on Human Rights (right to private and family life)? Are there any associated concerns under Article 14 (freedom from discrimination)?
  • What is the legal framework in the UK that governs surveillance in the workplace?
  • Where surveillance is used to monitor workers, does the current legal framework adequately protect their Article 8 right to private and family life? If not, what changes need to be made to ensure it does?

Freedom of thought, conscience and religion and freedom of expression in the workplace

  • Does domestic law strike the right balance between workers’ Article 9 right to freedom of religion or belief and the rights of employers? If not, what changes are needed?
  • Does domestic law strike the right balance between workers’ Article 10 right to freedom of expression and the rights of employers? If not, what changes are needed?
  • Does domestic law provide adequate protection for the rights of workers to be free from harassment at work by third parties on account of their religion or beliefs?

Labour market exploitation

  • What is the current legal and policy framework for tackling labour exploitation in the UK? Is that framework effective to protect workers’ rights under Article 4 ECHR, which prohibits slavery, servitude and forced or compulsory labour?
  • Are there any improvements that could be made to better tackle exploitative labour practices which are contrary to Article 4 in the UK?
  • Do workers from particular groups or in precarious employment disproportionately experience labour market exploitation? Does this raise concerns under Article 14 ECHR (freedom from discrimination)?

Retained EU Law and workers’ rights

  • To what extent is the UK’s compliance with its human rights obligations, in relation to the protection of workers, currently dependent on retained EU law?

International human rights treaties

  • Does the UK effectively comply with its international obligations to protect workers’ rights under the International Covenant on Civil and Political Rights, International Covenant on Economic and Social Rights, and International Labour Organisation Conventions? If not, what improvements should be made?

Closing date for written submissions is 24 March 2023. 

Submit written evidence here.

Scottish private sector remains in downturn in January

  • Private sector activity falls at a quickened pace in January
  • Downturn in new orders extends to seventh month
  • Marked drop in service sector new business

The Scottish private sector reported a further fall in total activity during January according to the latest Royal Bank of Scotland PMI® data.

The Business Activity Index – a measure of combined manufacturing and service sector output – fell from December’s five-month high of 48.3 to 47.1, signalling a quickened contraction in private sector output, and extended the current run of contraction to six consecutive months.

The rising cost of living, supply chain disruptions and a slowdown in the housing market all contributed towards the latest downturn in activity.

At the sector level, January data revealed that service firms led the decline, registering faster rates of reduction in both business activity and new orders compared to their manufacturing counterparts.

New business received across the Scottish private sector posted a further contraction in January. Moreover, the pace of decrease quickened from December’s three month low, signalling a sharp reduction in new work.

The downturn was led by a faster fall in new business received at service providers, while goods producers reported the softest decline in eight months. A slow housing market, transport strikes and squeezed disposable incomes were all in part blamed for the drop in new orders.

Of the 12 monitored UK regions, Scotland registered the sharpest pace of contraction in incoming new business.

After weakening for the second month running, business expectations across Scotland improved during January and printed a six-month high. Optimism largely stemmed from anticipation of new projects and increased activity. That said, the latest reading continued to post below the survey average as worries over the war in Ukraine, energy crisis, slowdown in the real estate sector and the cost-of-living crisis weighed on growth expectations.

Additionally, business sentiment across Scotland registered the third-weakest in the UK, ahead of Northern Ireland and the North East of England.

For the second month running, workforce numbers contracted across the Scottish private sector in January. The rate of job shedding was modest overall and only fractionally quicker than that seen in December. Where a drop in employment was noted, firms cited resignations, redundancies and retirements.

The drop in workforce numbers across Scotland contrasted with the no change seen at the UK-level.

The levels of unfinished work fell during January across Scotland’s private sector, thereby extending the current trend seen since last June. Moreover, the respective seasonally adjusted index ticked down from December’s four-month high, signalling the fastest rate of depletion in the aforementioned sequence. According to anecdotal evidence, lower orders allowed firms to work through previous contracts.

The rate of backlog depletion across Scotland was the fastest of all the 12 monitored UK regions.

Firms across Scotland’s private sector recorded a sharp rise in prices during January, thereby stretching the current run of inflation to 32 months. While the rate of incline measured the softest since May 2021, the latest upturn was still marked and historically elevated. According to anecdotal evidence, the incline in input costs was linked to higher prices for raw material, energy and transport, inflation and higher wages.

The pace of input price inflation across Scotland was the second-softest among the UK regions, behind the North West of England.

Private sector firms across Scotland raised their charges for goods and services for the twenty-seventh month running in January. Though the pace of charge inflation slowed to a three-month low, it remained stronger in context of survey data. The rise in charges reflected increasing cost pressures.

Adjusted for seasonality, the Prices Charged Index for Scotland posted below the UK-wide figure.

Source: Royal Bank of Scotland, S&P Global

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “The start of the year revealed that the downturn in Scottish private sector activity that began last August was extended into 2023.

“Moreover, the latest decline in private sector activity accelerated. It seems unlikely that the sector will bounce back anytime soon as services firms were severely impacted by the depressed demand conditions and the current economic climate.

“The step back in client activity has also resulted in firms trimming their workforce numbers for the second month running. Alongside an ongoing drop in the level of unfinished work, a further reduction in payroll numbers can be expected.

“However, the latest figures indicate that perhaps the worst of inflation has passed. Nonetheless, the current rates of input price and output charge inflation are still elevated and can be detrimental to the health of the Scottish private sector.”