Business News Round Up (03/02/2023)
Bank of England says recession expected to be shorter and less severe
The UK is set to enter recession this year, but it will be shorter and less severe than previously thought, according to the Bank of England. The slump is now expected to last just over a year rather than almost two as energy bills fall and price rises slow. As a result, fewer people are likely to lose their jobs, but the economy remains fragile, warned the Bank. The forecast comes as interest rates were raised to 4% from 3.5%, their highest level in over 14 years. The Bank has been putting up interest rates in a bid to tackle the soaring cost of living. Inflation, the rate at which prices rise, remains close to its highest level for 40 years – more than five times what it should be. Bank governor Andrew Bailey said inflation now appears to be falling but warned there are still “big risks out there” which could continue to have an impact on the economy. On Thursday, the Bank suggested interest rates may be nearing a peak, indicating it will only raise rates further if it sees signs that inflation will remain high. However, the country is not forecast to bounce back to pre-Covid levels until 2026, which Mr Bailey said was “extraordinary”.
https://www.bbc.co.uk/news/business-64487179
All retail destinations benefit from uptick in Scottish footfall
Scottish footfall increased by 12.2% in January year-on-year, 15.6 percentage points worse than December and marginally worse than the UK average decrease of 12.5%. The latest Scottish Retail Consortium (SRC) and Sensormatic IQ data showed that shopping centre footfall increased by 36.4% in January – an 8.5% decrease from December. Footfall in Edinburgh increased by 24.2% year-on-year, while Glasgow increased by 16%. Compared to pre-pandemic 2019 levels, total Scottish footfall decreased by 6.8%, with Scottish shopping centres down by 17.5%, footfall in Edinburgh by 2.9%, and in Glasgow by 2.4%. SRC director David Lonsdale said: “Visits to Scotland’s retail destinations last month increased by an eighth when compared to the same period at the start of 2022, which is positive news for retailers at the beginning of the new year. That said, the comparable month last year was decidedly weak given government instructions then to work from home and socialise less due to the prevalence of Omicron were yet to unwind. “
https://www.insider.co.uk/news/retail-destinations-benefit-uptick-scottish-29115035
Digital skills academy partners with recruiter to ‘widen’ employment opportunities reach for students
Scotland’s national digital skills academy is partnering with a recruitment firm to help its students find work in the tech sector following their graduation. CodeClan, which delivers intensive 16-week software development and 14-week data courses, will work with Eden Scott on matching tech talent with employment opportunities. The academy, which specialises in helping career professionals re-train for the tech sector, hopes the move will add to efforts to tackle the tech skills gap in the Scottish economy. As part of the deal, graduates and alumni will gain access to support and expert advice from 40 recruitment staff based in Eden Scott’s offices in Edinburgh, Glasgow, and Aberdeen. CodeClan has helped up-skill and re-skill 2,000 graduates from 120 immersive cohorts in its Edinburgh and Glasgow campuses, plus remote, since launching in 2015. It has also been increasing its provision of bespoke courses for organisations across the corporate and public sectors, while offering additional courses including in low-code and no-code, one of the fastest-growing areas in software development. Loral Quinn, CodeClan’s CEO, said: “The partnership with Eden Scott will widen the reach of employment opportunities for our students, while we can lean on the firm’s understanding and relationship-driven approach across industry.” Michelle Lownie, CEO, Eden Scott said: “Eden Scott is proud to work with CodeClan to help organisations find the best tech talent they need to grow. We know how important the right people are to a business, and with so many of Scotland’s start-ups now scaling, the demand is only growing. We also work with many public sector organisations, like the NHS, who also need access to tech talent to keep delivering vital services.”
Record film and high end television production spend for 2022
Spend on film and high end television (HETV) production reached a record £5.37bn in the UK last year – an increase of 6% from 2021. The latest figures from the BFI show that international feature film production in the UK was £1.74bn and HETV inward investment grew to £3.63bn. Some of the titles contributing to the levels include Lord of the Rings: The Rings of Power Season 2; Sex Education Series 4; Fast X; Barbie; Anansi Boys; and Mission: Impossible – Dead Reckoning Part 2. “As today’s figures demonstrate, the UK inward investment film and TV industry continues to experience remarkable growth in production, generating billions of pounds for the UK economy and thousands of new jobs in production hubs throughout the UK’s nations and regions,” said Adrian Wootton OBE, Chief Executive of the British Film Commission. It’s a real testament to the strength of our regional as well as metropolitan offer that so many major film and High-end TV productions choose to base themselves through the length and breadth of the UK. With the right levels of ongoing investment in skills, support and infrastructure, the UK is well-positioned to attract major international film and TV productions for many years to come.’’