Business News Round Up (05/01/2024)
Scottish exports to Europe plunge 25% post-Brexit
Scottish exports to the EU fell by up to 25% two years after Brexit as trade with the rest of the UK rose, according to new figures from the Scottish Government.The figures indicate that the value of Scotland’s exports has dropped by nearly £2 billion since the UK exited the UK from £16.950bn in 2019, to £14.970bn in 2021 – a 12% drop in two years. It comes as exports to the rest of the UK rose by an almost equivalent amount – £1.89bn – from £46.695bn to £48.585bn. The highest value drop in sales to the EU has come in the nation’s biggest export – refined petroleum products, coke, chemicals, and chemical products which includes motor fuel. Exports dropped by £625 million to £2.48bn – a drop of 20%. Scotland’s second biggest export to the EU was food products, beverages and tobacco products valued at £2.275bn in 2021.
https://www.scottishfinancialnews.com/articles/scottish-exports-to-europe-plunge-25-post-brexit
UK economy to hit 2% inflation target by spring in upgraded outlook
The UK economy is set for a spring boost as inflation falls below the 2% target, the Bank of England cuts interest rates and the current period of stagnation comes to an end, according to forecasts by Bloomberg Economics. Inflation has fallen faster than expected and wholesale gas and electricity prices have continued to tumble, setting the UK up for “modest, if unspectacular, growth” in the second half of the year, UK economists Dan Hanson and Ana Andrade wrote in a report published Thursday. The improved outlook and rapidly falling inflation will give the BOE “ample space to start easing.” Hanson and Andrade expect a first quarter-point rate cut from 5.25% in May and for the BOE to take rates down to 4% by the end of the year.
December rounds off ‘drab’ final quarter for Scottish retailers
A drop in footfall recorded in Scottish shops during December rounded off a “drab” final quarter of 2023 for retailers. Footfall in Scottish stores was down 2.2% year-on-year during the month of December, according to data from Sensormatic IQ and the Scottish Retail Consortium (SRC). This was worse than the 0.9% year-on-year decrease seen in November. Meanwhile, footfall across the UK was down by 5% in December, compared to the same period in 2022. Analysts blamed the exceptionally wet weather during the month, alongside ongoing spending caution from consumers. SRC director David Lonsdale said: “Visits to Scotland’s stores slipped back in December compared to the same period the year before, during what traditionally is seen as the busiest trading month of the year. This was the third successive monthly decline, rounding off a pretty drab final trading quarter of the year for Scottish stores.”
https://www.insider.co.uk/news/december-rounds-drab-final-quarter-31812130
Gender pay gap in UK tech sector improves but more female leaders needed
Data shows that most companies in the UK’s technology, media, and telecommunications (TMT) sector have improved their gender pay gap since 2017, but low representation of women in senior leadership roles and dissatisfaction amongst female employees in the industry remain the key underlying causes of the pay gap. Analysis by Pinsent Masons has found that most companies in the TMT sector have improved their median hourly gender pay gap by up to 3% since the reporting obligation was introduced in 2017, but the gap is reducing slowly. The sector as a whole has also performed slightly better than other industries such as infrastructure and financial services. Approximately 605 TMT employers have reported their gender pay gap for year 2022-23, which is a higher number than companies who reported in other sectors. Of those reported, women working for large TMT companies are paid around 15.6% less per hour than men.