Business News Round Up (01/02/2022)
Pandemic narrows the UK’s regional economic divide – but only temporarily, finds latest EY report
The COVID-19 pandemic has helped to narrow the UK’s regional economic divide, but the gap between London and the rest of the country is set to grow again during the post-pandemic recovery, according to EY’s latest Regional Economic Forecast. The report sets out the scale of the task needed to level up the UK economy. When measured by Gross Value Added (GVA), London’s economic activity dipped 3.6% from 2019 to 2021, compared to a slightly smaller 3% average decline for all UK regions. But, between 2021 and 2025, London’s GVA is forecast to grow by 3.1% per year compared to annual average growth of 2.8% across the UK. Only the East Midlands and South West are currently expected to gain any ground on London over the next three years compared to their pre-pandemic performance – although the capital is on course to pull ahead again after 2025. London’s forecasted dominance is even more apparent in the labour market, with the capital one of just four UK regions (out of 12) expected to see their working age population grow – by 4.7% – between 2021 and 2025. The North East, by contrast, is expected to see its working age population shrink by 2% over the same period. London is predicted to regain or exceed its pre-pandemic share of UK employment (30.9%) and GVA (39.1%) in 2025 too.
Northern Powerhouse Investment Fund surpasses £300m investment milestone
The Northern Powerhouse Investment Fund (NPIF) has directly invested more than £300m into 952 businesses across the North of England. The investment is alongside an additional £400m of private sector co-investment, taking its total delivery to in excess of £700m. Launched in 2017, the fund aims to address market gaps and regional imbalances in access to finance. The milestone is a result of 1,280 investments into businesses across a range of size, sectors and locations spread widely across the NPIF region. In total, the fund has provided £122m in equity finance, £162m in debt finance and £19m in microfinance. The most active sector for NPIF investments to date has been advanced manufacturing, with support provided to companies working in a dynamic range of sectors. This includes renewable energy and ecommerce, technology, media and telecoms and health and life sciences. Catherine Lewis La Torre, chief executive of British Business Bank, said: “The Northern Powerhouse Investment Fund is an important source of funding for hundreds of businesses across the North of England. Through improved access to finance, these investee businesses have been able to realise their growth plans, create jobs and achieve their full potential.
Parliament investigates how to save Scotland’s high streets
The Economy and Fair Work Committee has launched an investigation into the impact of the changing nature of retail and e-commerce on town centres. The Scottish parliamentary committee will look at the barriers facing high street retailers and explore the extent to which an increase in online shopping has impacted Scotland’s town centres. The committee’s inquiry has three areas of focus: Keeping town centres alive – including how they have changed over recent years, their strengths and weaknesses, and who or what can drive positive change in Scottish town centres; The new realities of Scottish retail – including how this sector has evolved over the last decade, the impact of these changes on town centres and what role fiscal policy levers should have in supporting this sector; E-commerce in Scotland – including the implications for businesses of increased online shopping and digital activity, and the role of Scottish SMEs in the e-commerce sector. A call for public views closes on 16 March.
https://www.insider.co.uk/news/parliament-investigates-how-save-scotlands-26098062
Green light for £125m Eden Project North which will create hundreds of jobs
The green light has been given to the £125m Eden Project North in Morecambe. Lancaster City Council has approved planning permission for the scheme which includes proposals including shell-shaped exhibition pavilions, indoor and outdoor activities, and extra events through the summer. Councillors on the local authority’s planning committee voted in favour of the long-awaited application on Monday, January 31. Hundreds of jobs are expected to be created with the new seafront venue, which is linked to the Eden Project in Cornwall but will be distinctly focused on Morecambe Bay, according to the Local Democracy Reporting Service. The economic boost of the new development could benefit Morecambe, Lancaster and wider bay region, Eden Project believes. In Morecambe, the new attraction will be built on the seafront at Marine Road. The location is close to various grade II-listed buildings including the restored art deco Midland Hotel and the Winter Gardens, a venue once known as the ‘Albert Hall of the North’ which is currently being renovated as a concert and events hall.
https://www.business-live.co.uk/economic-development/green-light-125m-eden-project-22932206