Here are the stories making the business headlines both locally and nationally this morning.
Matheson warns investors could withdraw from Acorn project over delays
MPs have been warned there is a risk investors may “withdraw” from the Acorn carbon capture and storage (CCS) project in Aberdeenshire as timeline delays continue to rumble on.
The P&J reports that Scottish energy secretary Michael Matheson has now told a Scottish affairs committee meeting continued delays to progress may have repercussions.
Mr Matheson said: “When I was up in St Fergus in August of last year and met all of the partners at the site, it was becoming increasingly apparent to me there was anxiety.”
Further delays could result in “partners who are already investing in this process starting to withdraw from it if there isn’t clarity going forward,” the minister added.
European gas prices slump to 16-month low
Natural gas prices in Europe have slumped to a 16-month low as full stockpiles in China forced buyers to send supplies to the continent.
Dutch futures, the European benchmark, fell as much as 9% yesterday, taking the decline since the start of the year to 22%.
Mild weather in Europe had already left stockpiles relatively untouched and Chinese importers are trying to divert February and March shipments to Europe amid weak prices at home and high inventories.
The Telegraph says it is easing concerns among many in the market that the reopening of the country's economy will boost demand and pull cargoes away from the West.
Rising levels of ill health costing economy £150bn a year
Ill health among working-age people is costing the economy about £150billion a year, the equivalent of 7% of GDP, according to an analysis for The Times.
The cost has increased by about 60% in the past six years, the report suggests. There is an additional cost to the government of about £70billion in lost income tax, benefit payments and NHS budgets.
The study by the economics and finance consultancy Oxera warns of a “substantial risk” of long-term damage to the UK economy if nothing is done to reverse the rising cost of sickness.
Andy Haldane, former chief economist at the Bank of England and head of the government’s levelling-up task force, told the commission: “For perhaps the first time since the industrial revolution, health factors are acting as a serious headwind to UK economic growth. They are contributing significantly to a shrinking labour force and stalling productivity.”
Bank of England governor warns of Truss hangover
There is still a "hangover effect" from the financial instability seen during the prime ministership of Liz Truss, the Bank of England governor has said.
Andrew Bailey told MPs that the cost of government borrowing, which soared after the mini-budget, had normalised. But he said international investors were still wary about lending money to the UK government.
"It's going to take some time to convince everybody that we're back to where we were before," Mr Bailey said.
Matalan founder criticises rescue deal
John Hargreaves, Matalan’s founder, has warned that the rescue deal for the retailer leaves it with too much debt.
The budget chain has been acquired in a debt-for-equity swap by a group of lenders including Invesco, Man GLG, Tresidor and Napier Park after a process run by Teneo, the advisory firm, failed to elicit a satisfactory takeover bid. The consortium of bondholders will take ownership by cutting the debt by between £150million and £200million, and injecting £100million of capital in a deal due to complete on January 26.
The Times says the move will cut Matalan’s gross debt from £593million to £336million and is expected to save 11,000 jobs and avoid closures among its 230 UK stores.
HarperCollins to publish Boris Johnson’s memoir
Boris Johnson has signed a contract with HarperCollins to publish a memoir chronicling his turbulent stint as UK prime minister during Brexit and the Covid-19 pandemic, according to the Financial Times.
The publisher on Monday said that it had acquired Johnson’s autobiography but that the book did not yet have a title or a target publication date.
Both HarperCollins and Johnson refused to comment on the fee for Johnson’s memoir, but industry experts suggested the MP for Uxbridge and South Ruislip was likely to receive a seven-figure sum given his international fame.