Business News Round Up (03/03/2025)
Jobs boost for region as more than half of businesses hope to recruit
Business confidence in the North West rose by 16 points during February to 61%, according to the latest Business Barometer from Lloyds, with half of firms expecting to take on more staff in the year ahead. Companies in the North West reported higher confidence in their own business prospects month-on-month, up nine points at 60%. When taken alongside their optimism in the economy, up 23 points to 62%, this gives a headline confidence reading of 61% (vs. 45% in January) – the joint second-highest reading of any UK region or nation in February, tied with the East of England (61%). 50% of businesses in the region also expect to increase staff levels over the next year, up 21 points on last month. Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, introducing new technology, and evolving their offering.
UK launches new defence industry hub for SMEs
The UK Government has announced a major initiative to support SMEs in the defence sector, ensuring they benefit from the country’s historic increase in defence spending. A new Defence SME Hub will be established to help small businesses access the defence supply chain, with the Ministry of Defence (MOD) setting direct SME spending targets by June this year. The move follows the Government’s commitment to increasing defence spending to 2.5% of GDP by 2027, with a further ambition to reach 3% in the next Parliament. The Government has stated that this investment will bolster national security, create new jobs, and drive economic growth across the country. The initiative aims to increase SME involvement in the UK defence sector, which has historically been dominated by large contractors. Currently, only 4% of MOD spending goes to SMEs, despite nearly 70% of overall defence spending supporting businesses outside London and the South East.
https://ukdefencejournal.org.uk/uk-launches-new-defence-industry-hub-in-scotland
Northern Ireland climbs two places in PwC’s Women in Work Index
Northern Ireland has moved up from fourth to second in the UK’s nations and regions for women’s employment outcomes, according to PwC’s annual Women in Work Index, also recording the lowest gender pay gap in the UK. The region’s Index score improved between 2022 and 2023, driven by an increase in female labour force participation. The gender pay gap remains at 7.5%, the lowest across all UK regions, significantly below the UK average of 14%. Northern Ireland also boasts the lowest female unemployment rate in the UK at 1.6%, compared to the UK average of 3.5%. Additionally, the female full-time employment rate stands at 60.7 per cent, higher than the UK average of 58.6%. However, the region still has the lowest female labour force participation rate at 71.8%, although this improved by 2.1% from 2022’s rate of 69.7%.
Northern leaders back new institute to tackle ill health
Northern leaders have backed plans for a virtual institute to tackle preventable ill health across the North of England, which aims to improve health and boost the UK economy. The Northern Health Science Alliance (NHSA) has launched its proposal to establish the Institute for Preventative Health Research – a virtual collaboration hub dedicated to transforming healthcare through a shift to a prevention-led health system. The Institute proposal was announced as one of five ‘gamechanger’ policy propositions at the Convention of the North in Preston this week. It has been supported by the steering group of the Convention, including the northern combined authority metro mayors. Building on the North’s existing areas of excellence in health research, innovation and delivery – combined with local government insights – the Institute would drive research to directly improve patient outcomes and the economy in regions where intervention is needed most.