Business News Round Up (04/11/2024)
North West sees subdued M&A activity with drop in deal volume and value – Experian MarketIQ
The North West M&A market has yet to return to the volume recorded last year, according to Experian MarketIQ, which found that deal values also fell, despite the completion of a mega deal. Their report, which also unveiled the most active advisers in the region, noted that 654 deals completed in the first nine months of the year, down 7% on the prior year. While this mirrors the UK trend, deal value also dropped by 22% to £13bn, unlike the rest of the UK where values were on the up. A closer look at deal value unveiled a robust mid-market, with a 30% increase in volume and large deals. However, the small market continued to struggle. Overall deal value was impacted by the scarcity of mega deals. Only one has completed in the region so far this year, which is Iberdrola agreeing to buy 88% of Electricity North West.
Chancellor’s budget sparks concern in UK energy sector
Rachel Reeves has unveiled a budget aimed at driving economic growth, but it has raised concerns within the energy sector. The government will increase and extend the energy profits levy (EPL) on oil and gas production to a headline rate of 78% and remove the associated investment allowance. This move has been met with scepticism from industry leaders, who fear it may hinder investment in the energy transition. The budget includes several significant measures affecting the UK energy industry. The EPL will be extended until March 2030, with plans for a consultation on a successor regime in early 2025. Additionally, £125 million has been allocated to establish Great British Energy in Aberdeen, along with £500 million for hydrogen production and infrastructure. A carbon capture usage and storage (CCUS) decommissioning fund will be created, with tax relief for oil and gas companies making payments into the fund.
https://scottishbusinessnews.net/chancellors-budget-sparks-concern-in-uk-energy-sector
More than 1,000 UK employees trial four-day working week without pay cut
Seventeen UK businesses, including Crate Brewery in Hackney and the British Society for Immunology, are launching a six-month trial of the four-day working week with over 1,000 employees participating. Organised by the 4-Day Week Campaign, this trial lets workers maintain full pay while working only four days each week. This follows a successful trial in 2022, where 56 out of 61 participating companies permanently adopted the shorter week after reporting improved staff morale, reduced stress, and no negative impact on performance. The trial will run until April, with data on employee wellbeing, productivity, and burnout collected by researchers from Cambridge University, the Autonomy Institute, and Boston College. Findings will be presented to the government next summer, offering further insight into the feasibility of a four-day work model. Labour has shown interest in flexible work options, with Deputy Prime Minister Angela Rayner stating that it poses “no threat to the economy.”
Data centre sector could be fastest growing UK industry
The data centre sector has the potential to become one of the fastest growing industries in the UK, according to a new analysis by technology trade association techUK. According to the Foundations of the Future report, commissioned by techUK and developed by Henham Strategy, data centres are currently contributing £4.7 billion in Gross Value Added (GVA) annually to the UK economy. The report also shows that the sector has created 43,500 jobs across the UK economy, contributing £640m in tax revenue to the exchequer. However, as technology continues to evolve, with significant advancements in AI and emerging technologies, the demand for data centres is set to increase at a much faster rate than it ever has before, with projections of future growth at between 10-20% a year. The report estimates the construction and operation of data centres will contribute an additional £44b in GVA between 2025 and 2035.
https://www.digit.fyi/techuk-data-centre-sector-could-be-fastest-growing-uk-industry