Business News Round Up (05/06/2023)
UK retains crown as Europe’s top destination for financial services investment
France and Germany have failed to topple the UK’s dominance in financial services investment as the latter sees a double-digit gain in new projects. With 76 projects, the UK remained the most attractive European destination for financial services foreign direct investment. In 2022, UK financial services investment projects climbed 17% compared with 2021, according to EY’s Attractiveness Survey for Financial Services. France claimed the second spot after attracting 45 financial services investment projects, down 25% year-on-year. Both Germany and Spain secured third place with 31 projects. The report highlights a major contribution from newly launched financial services investment projects in the UK’s dominance across Europe. Out of the 76 projects, 68 were new, up 26% year-on-year. The UK also witnessed an uptick in the number of jobs created by the financial services investment projects — 2,603 jobs were created in the sector, a jump of 4% from 2021.
HSBC unveils £15bn SME lending fund
HSBC has unveiled a £15 billion lending fund for UK SMEs. The bank, which acquired struggling Silicon Valley Bank UK in March for just £1, said the HSBC SME fund will look to lend up to £3 billion to small companies in London, with £3.3bn to firms in the North and £2.7bn earmarked for the Midlands. SMEs in the South have been allocated £4bn, with £1bn for Scotland, £750m for Wales and £250m for Northern Ireland. However just £500m of the total £15bn funding is dedicated specifically to the tech sector. £2bn will be put into overseas trading firms, £1.2bn into agriculture and £500m into franchise businesses. “SMEs are the lifeblood of the UK economy. During the pandemic, many businesses had to act fast to successfully adapt, and we’re seeing the same resilience again now,” said Peter McIntyre, head of business banking at HSBC UK. “The UK is home to many fast growing, robust and innovative businesses who, together with the support of their banks, can seize opportunities and become stronger. HSBC UK package of support is designed to give businesses access to the help they need to weather the current challenges they are facing.” Business and Trade Minister Kevin Hollinrake commented: “British SMEs are vital to our communities, creating jobs and opportunities, and they have shown great resilience in the face of challenging circumstances. “Through the British Business Bank, the government is helping more businesses to access the finance they need to start, scale, and grow. It is great to see HSBC doing their bit to back business through their SME lending fund and other support services.”
Youth worklessness due to ill-health has almost doubled in a decade
Youth worklessness due to ill-heath has almost doubled in a decade – and is heavily concentrated among those with poor qualification levels. Economic inactivity due to ill health among 18-24 year-olds has nearly doubled over the past decade, and is heavily concentrated among those struggling with education, with four-in-five young people who are too ill to work having only qualifications at GCSE-level or below, according to new research published today (Monday) by the Resolution Foundation. The Foundation’s report Left behind, funded by the Health Foundation as part of the young people’s future health inquiry, notes that overall levels of worklessness among young people are low. In early 2023, the number of young people not in education, employment, or training (NEET) stood at 720,000, far below the post-financial crisis peak of 1.1 million. However, beneath this welcome headline lies a far more worrying trend – a near doubling of the number of young people not working due to ill health, from 94,000 in 2012 to 185,000 in 2022. Today, almost one-in-four (23 per cent) workless young people are inactive because of ill health, up from less than one-in-ten (8 per cent) in 2012.
Deposit return deadline looms as scheme faces uncertainty
The deadline for the removal of UK Government conditions on Scotland’s Deposit Return Scheme (DRS) is due to expire today, with it potentially being scrapped if ministers do not back down. Scotland’s First Minister set the timeline in a letter to Prime Minister Rishi Sunak on Saturday, saying a failure to revoke the conditions would put the scheme in “grave danger”. Last week, UK ministers approved a partial exemption to the Internal Market Act for the deposit scheme, but stipulated glass cannot be involved north of the border. Speaking to the PA news agency on Saturday, Humza Yousaf said: “I struggle to see it going ahead, and therefore the UK Government have a real choice here. They either agree to the full exemption, which is of course the regulations passed by the Scottish Parliament, or they’re in danger of sinking this scheme in its entirety.” The deadline was set to allow for the Scottish Cabinet to discuss a response on Tuesday during its regular weekly meeting and provide an update to Holyrood. However, the chance of the conditions being revoked seemed unlikely on Sunday, when Scottish Secretary Alister Jack said the Prime Minister should not back down. Asked if the UK Government should reverse course, Jack said: “No – we’ve given the exclusion – there are four conditions in that exclusion which allow the scheme to work across the United Kingdom.”
https://www.insider.co.uk/news/deposit-return-deadline-looms-scheme-30154427