Here are the key business stories making the headlines this morning.

Sturgeon and Burnham look to revive HS2 link north

Nicola Sturgeon and Andy Burnham are plotting to force ministers to spend at least £3bn on making HS2 services run to Scotland, according to The Telegraph.

Ministers last summer culled a section of HS2 designed to allow Scotland to benefit from the controversial high-speed rail line, amid concerns that costs were spiralling out of control.

But it has been reported that the Scottish first minister and the Greater Manchester mayor have held secret talks aimed at forcing ministers to spend “at least” £3bn on a connection north of the border.

Scotland's primary schools shut as teachers strike

Primary schools across Scotland will be closed today as teachers walk out in a dispute over pay.

Last-ditch talks between unions and Scottish Government officials held on Monday failed to prevent strike action.

Further walkouts will take place at Scottish secondary schools on Wednesday. The Educational Institute of Scotland (EIS) told the BBC it was still hoping for a resolution before more strikes go ahead next week.

Shrinking workforce risks prolonging inflation

A surge in early retirement and long-term sickness means Britain faces a prolonged period of inflation compared with the rest of the world, the Bank of England’s chief economist has warned.

Huw Pill said the UK was facing a “distinctive” combination of challenges that meant the “threat” of persistent price rises may remain, even if energy costs fall.

The warning came even as the chief economist said there were signs that the jobs market was cooling, as more companies stop hiring and the economy falls into recession, which will help to keep a lid on price rises.

Landlords hit by £130bn slump in commercial property values

The value of commercial properties in Britain fell by £130billion last year as landlords were hit by rapidly rising interest rates and the prospect of a recession.

Commercial property capital values dropped by 3% last month alone, according to the latest monthly index from CBRE, published in The Times this morning.

The monthly fall in December means that commercial properties lost 13.3% of their value in 2022, wiping about £130billion from the value of Britain’s £1trillion estate of commercial warehouses, shopping centres and offices.

Donald Trump’s Scottish golf courses miss accounts deadline

Donald Trump’s Scottish golf courses have been given more time to file accounts after missing the statutory deadline, The Telegraph reports.

Trump International Golf Club Limited, SLC Turnberry Limited, and Golf Recreation Scotland Limited all had a deadline to file the accounts by December 31, 2022.

However, filings for all three companies are overdue, according to Companies House.

A spokesman for Mr Trump’s three Scottish golf courses insisted that the UK officials had granted the businesses extra time to file financial statements for 2021.

“A standard extension was granted for the submission of our 2021 company accounts,” they said.

Scottish hospitals are almost full, says Nicola Sturgeon

Scotland's hospitals are "almost completely full", with bed occupancy exceeding 95% last week, the first minister has said.

Nicola Sturgeon said services were facing "truly unprecedented" pressures.

Demand for hospital beds had been driven up by "extraordinary" levels of winter flu, rising rates of Covid infections and cases of Strep A.

Ms Sturgeon said more work needed to be done to prevent unnecessary hospital attendances and to speed up discharges.

The BBC says extra funds are being given to health and social care partnerships to book extra care home beds, with the goal of freeing up capacity on wards.

December sales bounce due to price rises not shopping sprees

Retail sales jumped by 6.9% in December but were driven by higher prices rather than people buying more, figures show.

There was also a "healthy" rise in like-for like sales from last December, according to the British Retail Consortium and accountancy firm KPMG.

Mindful of rising household bills, shoppers invested in energy-saving products and warm clothing.

But the overall sales rise "is largely due to goods costing more", said KPMG's head of retail Paul Martin.

Mortgage rates to almost triple for nearly 800,000 homeowners

Almost 800,000 households will see their monthly mortgage payments almost triple this year in a further cost-of-living blow.

An estimated 1.4million homeowners will have to remortgage this year, according to data from the Office for National Statistics. 57% are currently repaying at rates of 2% or below, the ONS said, setting them up for steep increases when they move onto new deals.

Banks are now charging on average 5.75% for a two-year fixed mortgage and 5.57% for a five year fix, according to figures from Moneyfacts.

Current rates mean 798,000 mortgage holders will see the cost of their home loan almost triple when they remortgage, climbing from 2% or below to well over 5%, according to The Telegraph.


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