Business News Round Up (02/02/2024)
UK drops one spot on Digital Government Index
The UK falls from second to third overall in the latest OECD Digital Government Index (DGI). The DGI evaluates 38 countries based on their digital government capabilities, focusing on six dimensions. The UK’s overall position of third place, while slipping one spot from the previous index, arguably demonstrates an ongoing commitment to digital governance all the same. This year, the UK made notable progress in the ‘digital by design’ dimension, which measures efforts to institutionalise digital government in ways which enable public sector institutions to use digital tools and data in coherent and strategic manners to transform services. The UK landed third overall in this domain, up from fifth in the previous index. However, this year, the UK failed to even crack the top 10 in the ‘data-driven public sector’ category, which highlights the significant gaps in high and low performing categories.
https://www.digit.fyi/uk-drops-one-spot-on-digital-government-index/
Business leaders find reasons to be more optimistic in 2024
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, leapt upwards to -14 in January 2024, up from -28 in December 2023. This represents the Index’s highest value since May 2023 (-6) and the biggest jump in a single month (+14) since this time last year (+30). The index of business leader optimism for the future of their own organisation also rose to +38 in January, from +36 recorded in December. Whilst expectations regarding costs increased to +80 in January from +74 in December, there was a significant reduction in wage expectations from +69 to +56. Expectations in terms of revenue, headcount, exports, and investment intentions for the next 12 months remained broadly similar to December.
New research shows that digital technology could add £520 billion to UK economy by 2030
Accelerated adoption of AI could help the UK to achieve tech superpower status by 2028. However, businesses still struggle to find employees with good digital skills. The UK Government recognises the transformative potential of artificial intelligence (AI) and set out ambitious plans to make the UK a ‘science and technology superpower’ by 2030. At Amazon Web Services (AWS), we share this vision, and commissioned independent consultancy, Strand Partners, to undertake a new study to understand the role that digital technologies, cloud computing and AI can play in unlocking the UK’s digital potential. The study found that the number of UK companies adopting AI has increased by 31% from 2022 to 2023.Thanks to this acceleration in AI adoption, digital technology could add £520 billion to the UK economy by 2030 and help the UK to meet its ambition to become a tech superpower as early as 2028.
https://www.aboutamazon.co.uk/news/aws/uk-digital-technology-report-2024
Bruntwood falls in the red in difficult year for real estate
The property group Bruntwood has fallen into the red in what its boss called one of the most difficult years for real estate in recent memory. Bruntwood said gross profits for the year to October 2 stood at £74.3m, up 18% on 2022, thanks to “improved occupancy levels and rental growth across its UK-wide portfolio”. Operating profits rose 57% to £48.9m. Gross profits rose thanks to strong occupancy levels, rental growth across its UK-wide portfolio, and the completion of lettings at the 400,000 sq ft No.1 and No.2 Circle Square in Manchester. The results cover the period up to 30 September 2023, pre-dating a £500m new investment into the Bruntwood SciTech platform, which saw Greater Manchester Pension Fund become a third shareholder partner and inject £150m new investment, alongside a significant increase in investment from existing shareholders, Legal & General and Bruntwood, through cash and asset transfer.