Business News Round Up (01/08/2025)
Greater Manchester named productivity growth capital of UK
New analysis from the Northern Powerhouse Partnership has demonstrated that Greater Manchester has seen the biggest increase in productivity of any UK region or mayoralty over the past two decades, cementing its position as the UK’s productivity growth capital. Between 2004 and 2023, Greater Manchester recorded the highest rise in gross value added (GVA) per hour worked, outperforming every other combined authority and city region for growth across the UK. This follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor. The 31% increase in productivity is a huge achievement which has begun to meaningfully close the gap between the city region with London. This follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor.
Fraser of Allander: NIC rise hits Scottish firms as export activity plummets
Scottish businesses are showing tentative signs of recovery, despite tremendous uncertainty in business confidence and economic outlook for the remainder of 2025, according to the Fraser of Allander Institute. The latest edition of its quarterly Scottish Business Monitor, which surveyed over 300 businesses across all 32 local authorities in Scotland, revealed that companies reported an improvement in net balance in the second quarter in 2025 relative to the first quarter across various categories – volume of business activity, volume of new business activity, turnover, employment, and capital investment. While the overall net balances remain in negative territory, businesses reported a recovery after a tough start to the year in the first quarter. The only category where the net balance deteriorated even further from the first quarter was export activity as businesses reported a sharp decline from what was seen as a weak starting point in the first quarter of the year.
Rachel Reeves: UK Government backing Scotland with ‘billions’ in investment
The UK Government is supporting Scotland with billions in investment to boost the economy and generate employment, the Chancellor has declared ahead of her visit to the country. Rachel Reeves stated Labour is “capitalising on the enormous potential and opportunities that Scotland presents” in the defence and energy sectors. She will visit RAF Lossiemouth in Moray and the St Fergus gas plant in Aberdeenshire on Friday, precisely a week after she toured the Rolls-Royce factory near Glasgow Airport. The Chancellor will meet 200 Boeing staff at the military site where three new E-7 Wedgetail aircraft are being manufactured. The UK Government said its plans to increase defence spending to 2.6% will boost Britain’s GDP by around 0.3%, whilst adding 26,100 jobs to the Scottish economy. It also highlighted its £200 million investment for Aberdeenshire’s Acorn carbon capture project, which could generate 15,000 new jobs whilst protecting 18,000 more.
https://www.insider.co.uk/news/rachel-reeves-uk-government-backing-35656157
North West firms’ trading optimism resilient in July, despite three-point drop on June
Business confidence in the North West fell by three points during July to 52%, according to the latest Business Barometer from Lloyds. While firms’ optimism in their own trading prospects remained unchanged at 52%, their optimism in the wider economy fell by five points month-on-month to 52%. Together, this gives a headline confidence reading of 52%, versus 55% in June. Looking ahead to the next six months, North West businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (55%), entering new markets (39%) and introducing new technology, such as AI or automation (36%). Overall, UK business confidence increased one point in July to 52% – its highest level since 2015 and the third consecutive monthly increase. Firms’ optimism in their own trading prospects rose one point to 58%, while their confidence in the wider economy increased two points to 47%