Space for Business Program

UK Space Agency Funds Satellite Data Projects for Business Growth

The UK Space Agency has allocated £2.5 million to ten pilot projects under the Unlocking Space for Business program. These projects, receiving up to £400,000 each, aim to integrate satellite data with terrestrial technologies like AI and machine learning to enhance sectors such as transport, logistics, and financial services.

Notable initiatives include Sports City Management's AI-enabled travel demand solution to reduce congestion at Manchester's Etihad Campus and Octopus Investments' partnership with Treeconomy to monitor nature restoration projects using satellite data. These efforts are part of a broader strategy to foster innovation, operational efficiency, and environmental benefits, positioning the UK as a leading space economy.

Public Procurement

UK Government's AI Plans: Potential Financial Boost for Private Sector

The UK government's AI plans could potentially increase procurement opportunities for private businesses, particularly in the technology sector. Despite a steady 20% share of public procurement for SMEs, the central government only allocates 11% of its budget to them. The Tony Blair Institute for Global Change suggests AI integration could save up to £40 billion annually and create fiscal space by reducing benefit fraud and simplifying tax procedures.

Deloitte has secured a £42 million contract to enhance the Gov.uk ID Check mobile app, which verifies user identities for government services. This contract, effective until July 2026, includes developing a new strategic app for the Digital Identity program. The Government Digital Service aims to integrate 145 services with the One Login system by the end of the fiscal year 2024-2025.

Local Council News

Council Approves £91m Cost-Cutting Plan to Avoid Bankruptcy

Cheshire East Council has approved a cost-cutting plan to save £91m over four years, described as a "new and difficult challenge" by leader Nick Mannion. Measures include remodelling library services, changes to waste collection, and reducing high-cost agency staff. Libraries may be run by charities or trusts, and bin collections could shift to a three-weekly schedule.

The council faces significant financial pressures, having already reduced library hours, temporarily closed three tips, and introduced new parking charges. A recent report warned of potential bankruptcy without these changes. Mannion emphasised the importance of the plan, stating it aims to make a meaningful impact while living within means. The approval marks a critical milestone and a transformative opportunity for the council.

Critical Power

Prospects for Grid-Independent AI Data Centers in the UK

The demand for power in AI data centers is surging, with forecasts predicting a doubling of electricity consumption within four years. This poses significant challenges for the UK's aging power grid, which, despite being one of the world's most stable and clean, requires vast expansion to meet these needs. The industry is exploring on-site power generation solutions, such as gas engines and microgrids, to address the lack of grid power availability.

The urgency of developing grid-independent data centers is underscored by the potential for operational facilities within three years. However, complexities like fault current management and the need for substantial infrastructure upgrades present hurdles. The UK government is recognising the critical role of data center infrastructure in economic growth, indicating a shift towards supporting these developments through planning law reforms and potential reconsideration of previously denied projects.

Local Council News

Funding Crisis Could Lead to Disappearance of Local Councils

Peter Oakford, responsible for Kent County Council's (KCC) budget, warns that most local authorities could disappear due to funding issues. He suggests that councils might be replaced by a single mayor and a few larger councils if the current funding model persists. KCC needs to find over £87 million in savings by early 2025.

Oakford proposes a Metro mayor and three unitary authorities for Kent and Medway to ensure local government survival. KCC, the largest local authority in the country, has seen significant staffing cuts, from 19,000 to just over 7,000 full-time posts. The council is consulting on various service cuts and recently increased council tax by 4.9%, the maximum allowed without a referendum.

Public Finance

Sheffield Council Faces £34m Overspend Warning

Sheffield City Council is projected to overspend by £34.3m in 2024-25, representing 7% of its net revenue budget. The overspend spans key service areas, driven by increased demand, rising costs, and reduced funding. The council faces a more challenging financial landscape than the previous year, with limited government support available.

The council's reserves, which funded a £15.6m overspend in the previous year, are now down to £27.6m. Despite a corporate provision of £7.9m, the financial outlook remains difficult. The "Future Sheffield" program aims to transform services for sustainability and efficiency. The strategy and resources policy committee will review the report's findings on Thursday.