Business News Round Up (01/11/2021)
Scottish businesses see sharp rise in instances of advanced distress
Businesses in Scotland have seen a marked increase in levels of businesses experiencing advanced financial distress in the third quarter of 2021 compared to the previous quarter as the pressures of the pandemic took their toll following two years of restrictions and lockdowns. The latest Red Flag Alert data, published today (29th October 2021) by leading independent business rescue and recovery specialist Begbies Traynor, revealed that for the three months to September 2021, ‘critical’ distress in Scotland was up by 50% on the previous quarter. This compares with a 17% increase across the rest of the UK. ‘Critical’ distress refers to businesses that have had winding up petitions or decrees totalling more than £5,000 against them However, levels of this type of advanced distress in Scotland have fallen by 22% compared with the same period the previous year; and by 3% year on year across the UK. In contrast, Scotland, along with the rest of the UK, has seen a sharp fall in ‘significant’ or early-stage distress as the economy showed signs of recovery following the relaxation of Covid regulations this summer. There was a 15% decline in the number of ‘significantly’ distressed businesses in the country compared to the second quarter of 2021.
NW business confidence dips, but hiring intentions improve
Business confidence in the North West fell five points during October, to 42%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the region reported lower confidence in their own business prospects month-on-month, down three points at 47%. When taken alongside their optimism in the economy, down nine points to 36%, this gives a headline confidence reading of 42%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. A net balance of 47% of businesses in the region expect to increase staff levels over the next year, up eight points on last month. Overall, UK business confidence remained steady month-on-month dipping by just three points to 43% and remaining comfortably above the year-to-date average of 26%. Hiring intentions were unchanged on September’s reading at 37%, while firms’ optimism in the economy – down four points to 44% – and confidence in their business prospects – down one point to 42% – were down marginally. All UK nations and regions reported positive confidence readings for the seventh consecutive month.
Scottish business optimism falls amid fuel and staff shortages
Business in Scotland reported a sharp fall in confidence in October, amid staff shortages and supply-chain disruption, a survey shows. Bank of Scotland’s latest business barometer, published today, shows a tumble in optimism among companies north of the Border about the economy, during a month in which staff shortages and supply-chain woes across the UK fuelled by Brexit figured prominently in the headlines. Business confidence fell in the UK as a whole, although less sharply than in Scotland. The fall in UK confidence, highlighted in a survey published by Bank of Scotland owner Lloyds Banking Group, was also driven by a decline in optimism about the economy. Scottish businesses reported a marginal fall in confidence about their own prospects. Bank of Scotland noted, in spite of the drop in overall optimism among Scottish businesses, the latest confidence reading was nevertheless “solid”. It flagged higher optimism among manufacturers across the UK.
£20m boost to ‘further develop’ Manchester’s tech presence
A multimillion-pound project will “help further develop the tech presence in Manchester”, according to the city council leader. The first tranche of schemes to have secured money from the government’s Levelling Up Fund were revealed as part of the Autumn Budget. Manchester City Council secured almost £19.8m to transform two dilapidated buildings and three railway arches in the city centre into spaces for the tech and creative industries. Lined up is breathing life into the Upper and Lower Campfield Markets as an affordable tech hub with more than 1,000 workspaces. Both are listed but in need of renovation and refurbishment. The city council will work with its development partner Allied London to deliver the repairs and refurbishment works. On completion it will manage the Exchange tech hub workspace as part of the Enterprise City district. The fund will also invest in three railway arches on Whitworth Street which will be converted to create a creative talent development centre for arts venue HOME. It will provide affordable co-working areas, a free rehearsal space and creative skills training for young people.
https://www.insidermedia.com/news/north-west/funding-boost-for-project