Business News Round Up (22/03/2024)
Almost 40,000 UK companies in ‘critical’ financial distress, says Begbies Traynor report
There has been a near 25% increase in the number of businesses in ‘critical’ financial distress, with firms in London and the South East topping the regional rankings, according to the latest Begbies Traynor ‘Red Flag Alert’. Nearly 40,000 companies, or 37,722 across the UK, are revealed to be in a ‘critical’ state in the third quarter this year – up 25% since the second quarter. It comes as firms grapple with the new economic reality of higher interest rates, resilient inflation and weaker consumer confidence. According to the report, London has 137,515 companies in ‘significant’ distress with 12,146 in a ‘critical’ situation. The South East has 83,598 companies, which are described as in ‘significant distress’, with 6,233 in a ‘critical’ state. Across the UK, 478,176 businesses are now classed as in ‘significant’ financial distress – up 8.7% on the prior (second) quarter, at 439,815.
Glasgow sees multi million pound boost to innovation economy
A pilot Innovation Accelerator programme has sparked a recent surge of investment into the Glasgow City Region. Glasgow City Region is seeing an influx of private investment into its local innovation economy, driven by an Innovation Accelerator programme. The initiative is spearheaded by Innovate UK on behalf of UK Research and Innovation and the Department for Science and Innovation (DSIT). Selected as one of three high-potential innovation clusters to pilot the Innovation Accelerator programme, Glasgow City Region joined Greater Manchester and the West Midlands in this endeavour, receiving a third of £100 million allocated funding. The Innovation Accelerator pilot, slated to run until March 2025, aims to showcase the impact of collaborative innovation on regional economies. Full results and impacts will be shared later, underscoring Innovate UK’s commitment to driving innovation and bolstering the UK’s global competitiveness.
https://www.digit.fyi/glasgow-sees-multi-million-pound-boost-to-innovation-economy/
Start-up taskforce establish in North West
A new taskforce has been set up in the North West, to help “ambitious start-ups” in the region. Wired for Growth is led by KPMG Acceleris and brings together investors, advisors, trade bodies, banks, governing bodies, universities, founders, and business leaders, with the aim of helping founders “navigate barriers and identify the opportunities that exist for start-ups.” To mark its launch, the group has released a report and playbook, to guide leaders through business growth and venture funding. According to the group, Manchester is home to the 7th largest concentration of tech talent in Europe, with 531 active high growth companies across Manchester and Liverpool. There are 3,415 scale-ups across the North West. However, just over 38% of companies set up in the North West in 2015 are still active five years later.
https://www.prolificnorth.co.uk/news/start-up-taskforce-established-in-north-west/
Scottish cities rise in global ranking of financial centres
Scotland has scored a notable new success after Glasgow and Edinburgh rose in a ranking of the world’s top financial services locations. Glasgow jumped nine places to 42nd in the 35th edition of the Global Financial Centres Index (GFCI35) while Edinburgh moved up one place to 33rd. The index measures the competitiveness of 121 financial centres around the world and serves as a valuable reference for policy and investment decision-makers. China Development Institute (CDI) in Shenzhen and Z/Yen Partners in London collaborate in producing the GFCI. London continues to lead in Western Europe and is in second place globally behind New York, with six Western European centres featuring in the top 20 in GFCI 35. Although the average rating increase across this region was only 0.9%, Reykjavik, Jersey, Glasgow, and Lugano gained significant ground in comparison with GFCI 34.