Business News Round Up (05/11/2021)
FSB warns rising overheads are affecting Scottish business confidence
The cost of running a business in Scotland has been highlighted as a factor in a decrease in business confidence, according to new research from the Federation of Small Businesses (FSB). Around three quarters of Scottish businesses said the cost of running their business has increased for the same period since last year, according to the new statistics, while only one in 20 businesses have seen a decrease in costs. The FSB’s Scottish Small Business Confidence Index fell steeply to +1.2 points in the third quarter of 2021, from +20.5 points in the second quarter. The equivalent UK-wide figure fell to +16.4 points from +18.4 points over the same period. The data from the survey means Scottish business owners are now less optimistic than the UK average, a reversal to the situation seen over the summer. The FSB surveyed 1,370 small firms between 21 September and 1 October, with 168 from Scotland. A net balance of only 2.3% of Scottish businesses reported a growth in revenue over the third quarter, with only 2.9% expecting revenue to grow in the following three months.
https://www.insider.co.uk/news/fsb-warns-rising-overhead-costs-25380216
Hiring activity rises sharply across North of England
The latest KPMG and REC showed strong hiring activity across the North of England during October, although growth momentum faded as candidate numbers continued to shrink. Both permanent placements and temporary billings increased sharply over the month as rising workloads and stronger business confidence supported greater recruitment. There were also further steep increases in job vacancies, but with labour supply deteriorating sharply, strong competition for staff kept pay pressures at an elevated level. The KPMG and REC, UK Report on Jobs: North of England, which is compiled by IHS Markit, is based on responses to questionnaires sent to around 100 recruitment and employment consultancies in the North of England.
https://www.insidermedia.com/news/north-west/hiring-activity-rises-sharply-across-north-of-england
COP26: Scottish businesses among those leading world to net zero
Major Scottish businesses SSE, Royal Bank of Scotland/Natwest and Abrdn, have committed to eliminating their contribution to carbon emissions by 2050. As the world gathers together at the UN COP26 climate summit, the UK Government is calling on the global private sector to follow the UK’s example and join the UN Race to Zero. Scotland’s largest businesses are among those across the UK leading the way in the global transition to net zero emissions. SSE, Royal Bank of Scotland/Natwest and Abrdn are part of a group of FTSE 100 businesses committing to eliminating their contribution to climate change by 2050. As of today, 60 of the UK’s FTSE 100 companies have signed up to the United Nation’s Race to Zero campaign – the largest ever global alliance committed to achieving net zero carbon emissions by 2050 at the latest, backed by independent experts and organisations to ensure everyone in the Race is following through on meeting their targets – signally a strong shift in the UK economy to a greener future.
https://www.gov.uk/government/news/cop26-scottish-businesses-among-those-leading-world-to-net-zero
North West deals market stabilises after sharp decline during pandemic
The North West M&A market looks to have stabilised after the sharp decline in volume seen during the pandemic, says the latest Experian M&A Review year-to-date for 2021. In the first nine months of 2021 there have been a total of 645 transactions, an increase of 30% on last year, with activity normalising in Q2 and Q3 after an exceptionally strong start in the first quarter. In terms of value there was an increase of almost 32% on a year-on-year basis, with a total so far this year of £12.3bn – the highest Q1-Q3 figure in several years. This was a result of the increase in the number of large and mega deals, up by 42% and 50%, respectively. Meanwhile, small transactions have remained relatively stable, increasing to 79 deals from 72 at this point last year, while the mid-market has seen the most improvement in terms of volume, with a 57% increase to 74 transactions. The North West was the fourth most active region in terms of deal making so far this year, providing 13% of the total volume of UK deals and five per cent of their value. The largest recorded transaction for the North West so far this year was the public to private £1.1bn investor buyout led by Vista Funds of Blue Prism Group of Warrington, developer of Robotic Process Automation (RPA) software and headed by chief executive, Jason Kingdon.