Business News Round Up (05/10/2023)
Launch of Investment Fund for Scotland provides £150m boost for small businesses
The British Business Bank is launching its new £150 million Investment Fund for Scotland, unlocking additional funding to help smaller businesses to prosper and thrive. The fund will drive sustainable economic growth by supporting new and growing businesses across the whole of Scotland through investment strategies that best meet the needs of these firms. It includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale up or stay ahead. The Bank’s Investment Fund for Scotland will be the first solely UK government-backed investment fund for smaller businesses in Scotland, helping to increase the supply and diversity of early-stage finance by providing options to firms that might otherwise not receive investment. Funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment. Three fund managers have been appointed to manage the fund. DSL Business Finance will manage the smaller loans part of the fund (£25,000 to £100,000), The FSE Group will be responsible for larger loans (£100,000 to £2 million) and Maven Capital Partners will manage equity deals (up to £5 million).
Logistics confidence falls to second lowest level on record, as operators take a ‘reality check’ – new study finds
Confidence in the logistics sector has fallen to its second lowest level on record, only slightly above that seen during the first COVID-19 lockdown in 2020, a new industry report has found. According to the Barclays-BDO UK Logistics Confidence Index 2023, this year’s score is 47.3, down from 50.4 in 2022. In 2020, the confidence index stood at 47.1. Any index figure below 50 indicates overall pessimism in the logistics sector – a sector that is integral to the functioning of our society at many levels and regarded as a useful barometer of the state of the wider economy. The latest figure is in contrast to the marked optimism seen in 2021, which produced an index reading of 62.5, as the sector bounced back from the effects of the pandemic – a time of increased levels of home delivery and higher rates for global logistics services. The latest study from Barclays Corporate Banking and accountancy and business advisory firm, BDO LLP, found that three quarters of operators (75%) feel business conditions are more difficult now than a year ago, with levels of demand the number one concern for 71% of logistics businesses.
Proposed Orkney wind farm would ‘reinvigorate’ Scotland’s supply chain
Offshore consent applications have been submitted to the Scottish Government for the build of the West of Orkney wind farm. The build, which is earmarked for 30km west of the Orkney mainland and 25km north of the Sutherland coast, is promised to ‘reshape’ and ‘reinvigorate’ Scotland’s supply chain with it bringing up to 125 turbines on fixed foundations and an expected capacity of around two gigawatts. Rights to the area of seabed were secured from the Crown Estate Scotland during the highly competitive ScotWind leasing process. The proposed wind farm is being developed by a joint venture comprising Corio Generation, TotalEnergies, and Renewable Infrastructure Development Group (RIDG). West of Orkney wind farm development manager, Jack Farnham, said, “Our vision is to develop a world-leading offshore wind farm that will spearhead the decarbonisation of the Scottish economy and play a pivotal role in fostering growth, empowerment, and prosperity for local communities. Any project which intends to power around two million homes cannot be undertaken in isolation from the communities in which it will operate. Over the last two years we’ve organised 33 public events, reaching over 2,400 residents across Caithness, Sutherland, and Orkney. These events have served as a platform for the community to actively participate and engage with the project’s design, ensuring that we develop an environmentally responsible and socially beneficial project that resonates with local needs and aspirations.”
UK businesses investing in modernising payment security
UK businesses are investing in modernising their payment systems to boost efficiency and protection against fraudulent activity. According to new research released by American Express. The new study surveyed financial leaders across sectors on challenges and priorities related to payment digitisation and automation with a focus on fraud prevention and security. American Express surveyed 750 professionals from all sizes of UK businesses. Respondents include senior financial decision makers and finance professionals responsible for payments. As expected, security topped the list of the most important considerations for organisations when exploring new business-to-business (B2B) payment methods. This was prioritised by 60% of respondents followed by cost (48%) and accuracy (45%). Over the last 12 months, almost a third (29%) of the surveyed UK businesses reported an uptick in payments fraud. Almost half (45%) of the firms reporting an increase in fraudulent activity have introduced new security and anti-fraud measures, while one third (34%) have taken steps to bolster current payments security capability. Respondents indicated they spend an average of 7% of annual turnover on fraud protection. Businesses continue to show an appetite for modernising and diversifying their payment processes to unlock a range of benefits. Customer demand is driving this innovation, with just over half (51%) of the businesses surveyed emphasising the importance of offering their B2B customers a choice of ways to pay when purchasing goods and services from them.