Business News Round Up (01/05/2025)
IoD: Business confidence moves to its highest level since before the Budget
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, rose slightly for the second month in a row, from -58 in March 2025 to –51 in April – the highest since September 2024 (-38). Business leader confidence in their own organisations also improved from +5 in March to +13 in April. Most of the underlying indicators also saw a modest improvement in April: Headcount expectations recovered for the second month running from -4 to +3, the first positive reading since September 2024 (+6), although still significantly down on the year (+20 in April 2024). Investment intentions rose for a second consecutive month from -8 to -5 but likewise remained sharply down on the year (+21 in April 2024). Cost expectations declined for the second month in a row from +87 to +83 but remained up on the year (+76 in April 2024).
Record-breaking funding set to fix connectivity gaps in remote Scotland
Tens of thousands of homes across Scotland will receive a “huge broadband upgrade” following a £157m-worth contract between the UK Government and Openreach. A total of 65,000 homes and businesses in hard-to-reach areas will have access to lightning-fast broadband for the first time, as part of the government’s vow to end digital exclusion. It is the largest contract ever awarded under Project Gigabit – the government’s initiative to bring fast, reliable gigabit-capable broadband to remote areas. Sites across the Highlands, the Outer Hebrides – where only seven per cent of promises have access to gigabit broadband – and the Inner Hebrides will benefit from the connectivity boost which is expected to turbocharge the local economy. The upgrade is a “gamechanger”, Scottish Secretary Ian Murray said. He added: “Rolling out lightning-fast broadband will equip and inspire local businesses to thrive, enable families to access vital services, and build resilient communities.
North West businesses see annual rise in companies in financial distress
More than 60,000 companies across the North West are now classed as being in ‘significant’ economic distress rising 3.3% from a year before, despite a fall of 9.7% from the previous quarter, according to the latest figures from Begbies Traynor’s ‘Red Flag Alert’, which monitors the financial health of UK companies. Lancashire (+7.0%, Q1 2025 – 11,908), Merseyside (+5.2%, Q1 2025 – 6,328), Cheshire (+4.6%, Q1 2025 – 13,375) and Greater Manchester (+1.1%, Q1 2025 – 26,442) have all experienced increases of ‘significant’ distress in the past year. However, all of these regions experienced a reduction in distressed businesses in the past quarter of 9.9%, 7.6%, 9.3% and 10.1%, respectively. A similar pattern was observed in cities and towns. Liverpool (+5.5%, Q1 2025 – 4,082), Manchester (+2.6%, Q1 2025 – 8,115), Preston (+6.4%, Q1 2025 – 778) and Salford (+15.1%, Q1 2025 – 1,156) increased in numbers of businesses in ‘significant’ distress in the past year.
Knight Frank: Edinburgh and Glasgow shine in retail performance analysis
Analysis by the commercial property consultancy found that Edinburgh achieves a retail sales productivity rate of £560 per sq ft, while Glasgow’s is £499 per sq ft. They place first and fourth, respectively, among the nine cities tracked – Manchester was second at £532 per sq ft and Leeds third at £503 per sq ft – and were well above the average of £432 per sq ft. A higher productivity figure indicates strong sales volumes measured against the city’s amount of retail floorspace, while a low number suggests under-performance and/or an oversupply of accommodation. Both outperformed the UK average of 2.3% for underlying retail rental growth last year, with Glasgow delivering 5.3% and Edinburgh 3.0%. During 2024, Glasgow had the highest prime rent of £295 per sq ft, while Edinburgh has been catching up at £280 per sq ft – a 24.4% year-on-year rise.