Business News Round Up (06/09/2024)


Further funding awarded to support innovation in Greater Manchester’s foundational economy

The second phase of Greater Manchester’s Foundational Economy Innovation Fund has awarded a total of 15 projects with grants of up to £60,000 each. The foundational economy – also known as the “everyday economy” – refers to the parts of the economy people depend on for their daily needs, including the adult social care, early education and childcare, retail, and leisure and hospitality sectors. It accounts for about 40 per cent of jobs in Greater Manchester, a higher proportion than most other places in the UK. The fund aims to help these sectors become more productive, sustainable and resilient by investing in and supporting innovation. It recognises that policy and investment has not tended to focus on foundational economy sectors, which are made up of lots of social enterprises, micro-businesses and self-employed people, and they face barriers and challenges to developing innovative ideas.

IMF says the UK will be the fastest growing major economy in Europe next year

The UK economy is set to stage a modest recovery next year thanks to falling inflation, new forecasts from the International Monetary Fund (IMF) suggest, but growth will remain sluggish this year. In its latest World Economic Outlook, it expected the UK economy to grow 0.5% this year before picking up to 1.5% in 2025, both 0.1 percentage point downgrades on its January round of forecasts. The projections suggest the UK economy is unlikely to generate much momentum this year and will lag all G7 economies apart from Germany. Next year, however, the UK will be the fastest-growing major economy in Europe. This would come after a weak performance in 2023 when the UK economy grew just 0.1% due to the influence of stubborn inflation and high interest rates. The IMF noted the improvement in 2024 would come as “the lagged negative effects of high energy prices wane”.

https://uk.finance.yahoo.com/news/imf-says-uk-fastest-growing-124323929.html

New report shows the extent of universities’ role in driving economic growth in Scotland

New data reveals the economic impact delivered by Scotland’s 19 universities and higher education institutions at £17.1 billion and highlights that Scotland’s higher education sector offers a better economic return on public investment made in research and innovation than anywhere else in the UK, except London, with a benefit-to-cost ratio of nearly 11:1. As the Scottish Government focuses on its priority of economic growth with a purpose and attracting external investment, Scotland’s universities are a major economic asset and partner in this agenda. In a report commissioned from London Economics by Universities UK, the economic impact of the UK university sector’s teaching, research, and innovation activities was evaluated, with a detailed disaggregation by UK nation and region. The data focuses on the 2021-22 academic year.

https://www.universities-scotland.ac.uk/lescotland/

Innovation Zone funding worth £1.8m set to back health tech firms of the future

A new centre aimed at commercialising Health and Life Science research will be set up at the Science and Technology Facilities Council (STFC) Daresbury Laboratory thanks to £1.8m in Innovation Zone funding from the Liverpool City Region Combined Authority. Led by UKRI’s Science and Technology Facilities Council (STFC), the Health Tech Business Incubation Centre (Health BIC) will provide a major boost to the city region’s health and life sciences sector. The Health BIC will drive innovation and commercialisation of research, providing much-needed tailored support to nurture new and early-stage businesses derived from the region’s wealth of assets in Health & Life Sciences. The programme is one of an initial 21 projects that, as part of the city region’s ambitious Investment Zone plan, are designed to supercharge the economy by creating new hi-tech facilities, providing business and innovation support and training the next generation of talent.

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