Should leaders have a summer holiday?
Plus, former Google boss says working from home led to losing competitive edge, cybersecurity firm Wiz to open HQ in London and join our Premier League fantasy league
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ONS figures released this morning show that the UK economy grew 0.6 per cent between April and June, building on the 0.7 per cent expansion in the first quarter of the year.
The services sector saw the biggest spike in output, at 0.8 per cent, driven by a string of Taylor Swift concerts and the Euros. This boost offset the production and construction sectors, which both experienced a 0.1 per cent dip.
The news of back-to-back rises shakes off the shadow of the technical recession the UK experienced at the end of last year and is welcome news for the chancellor as she hashes out plans for her October budget. Last month, Rachel Reeves pointed the finger at the previous Tory regime for overspending by £21.9bn and then covering it up. But she still has some tough choices to make.
Another politician facing tough choices in the prime minister. Sir Keir Starmer cancelled his summer holiday plans in response to the riots that broke out in towns and cities across the country last week.
Former prime minister Boris Johnson has said that Starmer should take his holiday as his leadership had made “no difference”. People have been quick to point out that Johnson – then London mayor – didn’t immediately return from a family holiday in Canada at the height of the London riots in 2011.
Politico has pointed out a number of examples where politicians have been caught in a similar situation, but it raises a good point around leaders and taking time off. Martin Kettle, a columnist for The Guardian, argues that cancelling his holiday is Starmer’s first serious mistake as PM.
He says: “Everybody needs a holiday. A proper holiday. A break from routine. A chance to relax and focus on other people and other things. Prime ministers unquestionably need such moments, too – perhaps more than most. There are other competent ministers who can take them and there is Sue Gray to guard Starmer’s back. A prime minister still needs a break, even if it is with his teenage children.”
Business Leader expert and High Performance podcast host Jake Humphrey wrote an article on the power of taking time off for us recently. In it, he highlights the benefits of time off, writing: “The other reason why I wanted to discuss this was to remind people that sometimes you can’t do something new unless you stop doing something old.”
You can read his piece here.
Business Agenda
A summary of the most important business news
1. Deputy prime minister Angela Rayner and business secretary Jonathan Reynolds met with business and union leaders to discuss the government’s proposed Employment Rights Bill, which aims to ban zero-hour contracts and end “fire and rehire” practices. While unions have largely supported the proposals, some business groups have expressed concerns about potential negative impacts on employment and economic growth. The government emphasised the meeting as a step toward a new era of collaboration to drive economic progress. You can read more here.
2. Cybersecurity firm Wiz, which recently rejected a $23bn takeover bid from Google parent company Alphabet, is opening its European headquarters in London. Co-founder Roy Reznik will lead the new office, which plans to significantly expand Wiz’s UK workforce and R&D capabilities. Wiz aims to generate 35 per cent of its revenue from Europe, the Middle East and Africa by the end of next year, while continuing its rapid growth towards a potential $1bn in annual revenue. You can read more here.
3. Amazon has received approval to test drones for package deliveries beyond the operator’s line of sight in the UK, as part of a broader Civil Aviation Authority trial. The programme, involving six organisations, aims to gather safety data for integrating drones into UK airspace, with applications ranging from consumer deliveries to infrastructure inspections. Amazon, which plans to launch drone deliveries in the UK by the end of 2024, views these trials as crucial for establishing clear regulations to scale its drone-delivery services. You can read more here.
4. Mars has agreed to acquire Pringles and Pop-Tart maker Kellanova for nearly $36bn (£28bn). Regulatory challenges are expected to be minimal, but the deal comes as consumers increasingly opt for cheaper own-brand snacks and healthier options amid rising food prices. The acquisition, set to finalise in the first half of 2025, will expand Mars’s snack portfolio and strengthen its market position. You can read more here.
5. Former Google CEO Eric Schmidt criticised the company’s remote-work policy during a talk at Stanford, blaming it for Google’s lag in the AI race. Schmidt argued that prioritising work-life balance over in-office collaboration has hindered the company’s competitive edge, especially compared to start-ups like OpenAI. Google, like many companies, has adopted a hybrid work model, requiring employees to be in the office around three days a week. You can read more here or watch a clip here.
Business Question
Guess the company
- The company was formed through a merger in 1988
- Revenue for this London-listed company in 2023 was £4.86bn
- It employs 19,000 and has 1,500 branches
- It is headquartered in Northampton
- Its brands include Toolstation and BSS
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
By Sarah Vizard
↪️ The anatomy of a corporate turnaround
Rolls-Royce more than doubled profits last year after its new CEO, Tufan Erginbilgiç, took over. Dividend payments are set to resume and its share price is up 60 per cent so far in 2024. The Financial Times takes a look at what it takes to instigate a turnaround, finding that while skill and adaptability are key, so is luck.
💲How to build a dynamic-pricing strategy that works
Companies are increasingly turning to pricing algorithms in a bit to maximise sales – and profits. But there are downsides. Constant changes in price can hit perceptions of a brand and its products. In its strategy podcast, Harvard Business Review lays out how to avoid the pitfalls, sharing real-world examples that show how dynamic pricing can smooth demand and improve customer experience.
🏏 Joe Root: My advice to Ollie Pope? Choose a style and stick to it
Some interesting leadership advice from former England cricket captain Joe Root to the interim captain Ollie Pope. The latter has been handed the captaincy for a tour of Sri Lanka after Ben Stokes was injured. He talks about the difference between standing in as a leader, versus taking it on full time. And offers this advice: “Be clear on the style of cricket… and then find the players to fit that. Don’t alter and change.” Wise words for sports and business leaders.
Business Quote
Inspiration from leaders
“If you really look closely, most overnight successes took a long time.”
– Steve Jobs
Business Leader
The best of our content
Growth Stories: Power couple
Myenergi, founded by Lee Sutton and Jordan Brompton in 2016, began by creating the Eddi, a device that harnessed excess solar energy to heat water, followed by the Zappi, which diverted power to car batteries.
Starting with personal funds and a small operation in Binbrook, Lincolnshire, they scaled up with significant investments, including £1.8m from notable backers and £30m from Energy Impact Partners, leading to a turnover of £67.6m by June 2023.
You can read more here.
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♀️ Let’s narrow the divide on the unfinished business of pay gaps
And finally…
After a blockbuster summer of sport, the new Premier League season kicks off tomorrow evening. We have set up a Business Leader league in the Fantasy Premier League and we need your help.
By joining the league, not only will you join other readers in a game of wits and football prowess, but you will also have a shot at dethroning the defending champion and our editor-in-chief, Graham Ruddick.
Join the league here.
The answer to today’s Business Question is Travis Perkins
