Business News Round Up (02/10/2024)
Greater stability boosts investment in Scottish commercial property during Q3
Investment in Scottish commercial property firmed up in the third quarter, as interest rates began to fall and a decisive election result provided more certainty over future policy direction, according to new research by Knight Frank. The independent commercial property consultancy’s analysis of Real Capital Analytics (RCA) data found that there were £1.21 billion-worth of deals in the first nine months of 2024. While the figure is marginally down on the £1.26 billion recorded during the same period a year ago, it is a significant improvement on the 19% year-on-year gap seen during the first half of 2024. Investment in hotels rose to a five-year high for the first three quarters, reaching £298 million. It was the only time in the last five years that the sector was the second most active asset type, with only the retail sector ahead at £446 million.
Scottish business confidence takes a downturn
Business confidence in Scotland fell 16 points during September to 48%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 19 points at 47%. When taken alongside their optimism in the economy, which was also down 13 points to 49%, this gives a headline confidence reading of 48% (vs. 64% in August). Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as entering new markets (37%), investing in their team, for example through training (35%) and introducing new technology, for example by implementing AI, automation or digitalisation (30%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. Overall, UK business confidence in September dipped slightly, to 47% down from August’s 50%.
FinTech Scotland announces £50,000 grant up for grabs in UK-wide challenge
FinTech Scotland, in collaboration with SuperTech and eight industry organisations, has announced the launch of a new innovation challenge aimed at enhancing consumer outcomes with technology and data. Industry collaborators NatWest, Lloyds Banking Group, Equifax, PwC, Barclays, Tesco Bank, Secure Trust Bank and Dudley Building Society have come together for this innovation call, with the programme focussing on Consumer Duty Outcomes. Fintech firms from across the globe are invited to apply by the deadline of 25 October 2024. Successful applicants may be eligible for a £50,000 grant to further develop their solutions. The challenge focusses on the best use of data and data analytics to enable greater understanding of consumers and in turn optimise outcomes. It invites enterprising tech businesses to develop and showcase data led tools and services which can support Financial Services organisations to meet their Consumer Duty requirements.
Bruntwood ScitTech launches new £20m Leeds innovation hub
Bruntwood SciTech has launched its latest innovation hub, West Village in the heart of Leeds city centre, following an ambitious £20 million redevelopment project. Already 75% pre-let, West Village offers 230,000 sq-ft of state-of-the-art workspace designed to help innovation thrive and stimulate collaborations between like-minded businesses. To support flexibility and business growth, West Village offers a mix of co-working, serviced and leased spaces with varying lease lengths suitable for businesses of all sizes from startups to large, established businesses. It will support the city’s vibrant culture of knowledge, creativity and innovation and contribute to the economic growth impact from the innovation sector to the city. Lloyds Bank recently named Leeds the fastest growing digital economy in the UK, and businesses already confirmed to make West Village home include global Insurtech innovators QBE, who have located their robotics centre hub there, Australian fintech company, PEXA, and leading coding bootcamp providers Northcoders.