Business News Round Up (05/04/2024)
Edinburgh and Glasgow move up Savills’ list of resilient cities
Both Edinburgh and Glasgow have moved up the rankings of the world’s most resilient cities, placing 36th and 45th respectively out of a list of 490 cities worldwide. Whilst London remained the top-ranked city in Europe and third overall behind New York and Tokyo, the latest Resilient Cities Index from Savills sees both Scottish cities punch considerably above their weight. In fact, Glasgow moved up the list by 12 places and Edinburgh by 9 since 2021. Savills top-ranking UK cities were judged using metrics around four core areas: economic strength, knowledge economy and technology, ESG, and real estate investment. In turn, it supports the wellbeing and success of its residents and workers against the backdrop of economic, social, environmental, and technological change, and is attractive to real estate investors and occupiers, particularly as investment and business expansion criteria encompasses a wider range of factors, including ESG.
UK services sector growth slows amid fears of resurgent inflation
The pace of growth in the services sector slowed last month, amid fears of ‘sticky inflationary pressures’. However, Tim Moore, economics director at S&P Global Market Intelligence, claimed the services sector was still helping the UK economy ‘to pull out of last year’s shallow recession’. The UK’s services sector continued to grow last month, but undershot expectations, according to a closely watched survey. The S&P Global UK services PMI survey reached a score of 53.1 in March. This was lower than February’s 53.8, but remained above 50, which means the sector is growing. Analysts had expected the reading for March to come in at 53.4. At 52.8 in March, the seasonally adjusted S&P Global UK PMI Composite Output Index, encompassing the manufacturing, construction, and services sectors, eased slightly from February’s nine-month high of 53.0, but remained indicative of a ‘solid upturn in private sector business activity’, according to the report.
Retail footfall shows signs of stabilising as early Easter break provides a modest rise from February
March witnessed a modest rise in retail footfall across Scotland, with an increase of +2.7% compared to February, which is an improvement on last year when it rose by +1.2% for the same time period. This suggests that footfall trends are starting to stabilise in all retail destinations. Retail parks led the charge witnessing an overall rise of +2.9% month on month compared with marginal rises in high streets (+2.7%) and shopping centres (+2.6%). Much of the uplift was driven by activity in retail parks largely boosted by the final week of the month; the week leading up to Easter which also coincided with payday and the start of the Easter school holidays. However, turbulent weather conditions throughout the month, alongside shifts in key holiday dates including Mothers Day and Easter led to footfall remaining steady.
New Brexit border tax triggers UK business backlash
Details of new post-Brexit charges for food and plant imports from the EU have been described as a “hammer blow” for businesses, leaving them with less than a month to prepare before the checks take effect. The U.K. government on Wednesday outlined how much the checks — delayed five times — will cost businesses importing produce from the EU. The fees, which will apply from April 30, range from £10 for “low risk” goods up to £145 for “mixed consignments.” Trade bodies were quick to express their anger over the plans, which were dropped during parliament’s Easter recess. Businesses fear the charges will push up prices and lead to less consumer choice as European suppliers withdraw from the U.K. While the U.K. does not levy tariffs on EU goods, the flat “common user charge” is meant to pay for the cost of veterinary and health inspections on animal and plant products.
https://www.politico.eu/article/uk-details-new-charges-for-post-brexit-food-and-plant-imports/