Business News Round Up (03/10/2023)
Seven Scottish towns to share £140 million to improve long-term future
Seven Scottish towns have been named by the Prime Minister as part of £1.1 billion levelling up investment being provided to 55 towns across the UK. Clydebank, Coatbridge, Dumfries, Elgin, Irvine, Greenock, and Kilmarnock will each receive £20 million from the UK Government as part of a long-term investment plan for towns that have been overlooked and taken for granted. The money will be provided directly by the UK Government to the relevant local authority, and we will work with them and the Scottish Government to take a place-centred approach which maximises investment and opportunity. Under the new approach, local people will be put in charge, and given the tools to change their town’s long-term future. They will: Receive a ten-year endowment-style fund to be spent on local people’s priorities, like regenerating local high streets and town centres or securing public safety; and set up a Town Board to bring together community leaders, employers, and local authorities to deliver the Long-Term Plan for their town and put it to local people for consultation. More than half the UK population live in towns, but half-empty high streets, run-down town centres and anti-social behaviour undermine towns in every part of the UK. Today’s announcement marks a change in approach that will put an end to people feeling like their town is ignored and empower communities to take back control of their future, taking long term decisions in the interests of local people.
Pay confidence fuels worker optimism and skills crisis
Surge in UK worker confidence poses inflation challenge during skills shortage, suggesting that the post-pandemic war for talent is far from over yet. Increasing confidence in the UK is leaving employers facing a perfect storm of a wage inflation spiral during a worsening skills crisis. There has been an increase of 70.1 points in pay confidence among the UK workforce, marking its return to positive territory for the first time since Q2 2022, according to the latest Robert Half Jobs Confidence Index (JCI). This boost is attributed to the growth in real wages, positive for the first time since Q1 2022. Consequently, 60% of employees reported last month that they are confident about their job security for the upcoming six months. An economic confidence tracker, produced in partnership with the Centre for Economics and Business Research (Cebr), also points to a broader context of positive consumer confidence and healthy business optimism in Q2 2023. With a reading of 30 considered high, the latest figure of 47.2 represents the highest recorded level since Q1 2022 when optimism surged as COVID-19 restrictions eased. The current level of optimism seems poised to continue, with 41.9% of respondents to an August survey expressing confidence in their future career prospects. Additionally, Cebr has upgraded its economic growth forecast for 2023 from 0.2% to 0.4%.
Scotland ‘top in UK’ for gaming sector jobs growth, according to new research
Scotland has seen the largest increase in gaming sector employment, according to new research from a leading property firm. Knight Frank’s (RE)Play report found that the number of people employed in gaming grew by 60% between 2017 and 2019 – the latest available data, which is sourced from the Office for National Statistics. The sector is estimated to be worth around £350 million to the Scottish economy. The report identified Dundee, Edinburgh, and Glasgow among the UK’s top 20 gaming industry hubs. Dundee has the fourth highest concentration of gaming companies among the UK’s major towns and cities, and a new £60 million Esports arena with up to 4,000 seats is set to be completed in the city in 2025. During the first half of 2023, Edinburgh featured in the UK’s top three cities for leasing transactions in the gaming sector, measured by number of deals. Glasgow is also included among the top five areas for gaming skills, with 76,719 professionals having relevant core skills. The growth of the industry in Scotland has been supported by the delivery of gaming-specific courses. Abertay University, which has consistently been ranked number one for video games education in Europe, offers six accredited by The Independent Game Developer’s Association (TIGA) – the second most of any academic institution in the UK. Six more universities offer games-related degrees, while 11 colleges offer HNC and HND-level qualifications.
Business rates set to add £1.56bn to bills
Firms are urging the chancellor to freeze business rates in his autumn statement to stop an extra £1.56bn being added to bills. Firms will pay an extra £1.56bn on their bills from next year unless business rates are frozen again, according to Colliers International. Business rates are due to rise from April 2024. However, under the government’s ‘multiplier’, the rates will increase in-line with this September’s inflation as measured by the Consumer Price Index (CPI). CPI is estimated to be at around 6 per cent for September – down 6.7 per cent from August. Analysis from Colliers International forecasts that business rates will rise from £26bn in 2023/24 to £27.56bn in 2024/25. John Webber of Colliers International said that the rises are unsustainable: “All sectors are suffering from increased costs, from increased wage bills, materials or fuel,” he said. “They cannot cope with a hike in rates bills too.” Forty-four British retailers have written to the chancellor ahead of his autumn statement in November, urging him to freeze rates again. They estimate that an extra £400m could be added to their cost base from next year if the rates aren’t frozen.
https://smallbusiness.co.uk/business-rates-set-to-add-1-5bn-to-bills-2574080/