Business News Round Up (06/03/2025)
HIE: labour shortages and economic uncertainty challenge Highland businesses
Scotland’s development agency for the Highlands and Islands has published a report on its latest survey of more than a thousand businesses across the region. Fieldwork was carried out by Ipsos in November and December 2024. There were 1,013 responses received from enterprises across the Highlands and Islands region operating in a wide range of sectors. The results show that most businesses in the region (72%) still performed well or steady (31% and 41%) during the six months leading up to the survey, down slightly from 34% and 44% respectively since the same period the previous year. The proportion of businesses reporting they had struggled increased from 21% to 28%. Most (81%) had taken action to improve their working environment. Those actions include making processes more efficient (49%), reviewing supply chains (42%), reducing emissions (37%), and using more technology or automation (35%).
UK service sector sheds jobs for fifth month running after autumn budget
UK service businesses have cut employment for the fifth successive month, according to the S&P Global PMI for February. The survey’s data highlight what economists describe as a “loss of growth momentum” since the autumn budget, with some firms citing the Chancellor’s £25 billion increase in employers’ national insurance as a key factor. This prolonged spell of job losses is the most extended period of contraction since early 2011, excluding the Covid-19 downturn. Tim Moore, Economics Director at S&P Global Market Intelligence, says reduced optimism and ongoing cost pressures “led to net job shedding across the service economy in February.” Despite these figures, some analysts urge caution over the PMI’s apparent gloom. Rob Wood, Chief UK Economist at Pantheon Macroeconomics, points out that the index “asks only how many firms are cutting output or employment, rather than by how much.”
Northcoders secures £1.5m finance agreement to support growth – new AI and machine learning bootcamp launched
Technology training business Northcoders has secured a £1.5m finance agreement with NatWest to support its next stage of growth, and launched a new bootcamp focused on data engineering, AI, and machine learning. The funding includes a £400,000 refinance of the existing 11 per cent loan with Creative England, secured over three years, at a significantly improved fixed rate of 3.5 per cent above base and £1m over four years, at a fixed rate of 2.5 per cent above base. The terms have been secured against the group’s internal IP and the additional funds will be available to support the next stage of Northcoders growth as the company continues to diversify its revenue streams. Alongside the finance agreement, Northcoders has launched a new bootcamp, which aims to provide the technical expertise, problem-solving mindset, and project experience needed for a successful career in the tech space.
Grant Thornton launches new Entrepreneurial and SMES Services offering in Scotland
Leading business and financial adviser Grant Thornton UK LLP has launched a new team to deliver its national Entrepreneurial and SME Services offering. Located in the firm’s Glasgow office, Lynne Bicket and Colin Park, Audit and Tax Partners, will be responsible for heading up the Entrepreneurial and SME Services team in Scotland. The new offering is designed to provide entrepreneurs and fast growth businesses with the support they need to achieve their goals. Businesses will benefit from regular meetings with a local Partner to understand their strategic challenges and shape Grant Thornton’s advice accordingly, bringing the full breadth of the firm’s expertise to the client’s benefit to help super-charge growth. The variety of skills and local expertise in the team combined with Grant Thornton’s connections across its international network will provide fast growth businesses, start-ups and entrepreneurs with access to valuable financial and business advice tailored to their requirements.