Business News Round Up (07/01/2022)
Plan B blows UK economic recovery off course
The imposition of Plan B in a bid to flush out a wave of Omicron cases whacked the British economy last month, reveals a closely watched survey released today. Brits were encouraged to work from home and limit socialising in December, igniting a mass exodus from city centres and high streets, dealing a heavy blow to the UK services economy. The British services industry notched its worst month for growth in nearly a year, according to IHS Markit and CIPS’ latest purchasing managers’ index (PMI). Activity plunged to 53.6 in December, down sharply from 58.5 in November. The news came as City analysts today warned the British economy will struggle to get out of the mire in 2022. Experts at Capital Economics, a consultancy, hiked their forecasts for inflation to peak at seven per cent this April, more than triple the Bank of England’s target. Worryingly, inflation will not even come close to the Bank’s two per cent target in 2022, staying at four per cent next Christmas, and could even remain above target next year.
Plunging Scottish footfall prompts another plea for support grants
Scottish retail footfall decreased by 22.8% in December, compared with the same month pre-pandemic – and was also 3% down on November. This is below the UK average decline of 18.6% and for the fifth consecutive month, Scotland saw the deepest decline in footfall out of the four nations. The latest Sensormatic IQ and Scottish Retail Consortium (SRC) figures also showed that Scottish shopping centre footfall declined by 31.9% in December, compared with 2019 figures, down from 28% from November. In December, footfall in Glasgow decreased by 21.8% compared with 2019. SRC director David Lonsdale said that government instructions to work from home and socialise less, coupled with the reintroduction of physical distancing in stores, exerted a heavy toll. “December saw the weakest monthly figures for store visits since July and the biggest deterioration since June. It rounded off a profoundly worrying ‘golden quarter’ for Scottish shopkeepers, many of whom traditionally need strong pre-Christmas trading in order to tide them over the fallow winter months.”
https://www.insider.co.uk/news/plunging-scottish-footfall-prompts-another-25871106
University achieves increased income, despite big fall in overseas student numbers
The University of Liverpool has published annual figures which it said are “very positive” against the background of the pandemic which saw a reduction in enrolment of overseas students. Total income for the year ended July 31, 2021, increased by 3.7% to £597.6m, boosted by £17.4m, or 18.3%, growth in research income. The surplus before tax of £47m compared with £67.2m the previous year. Tuition fee income reduced by £12.9m (4.1%) to £304.4m. The university revealed that overall student numbers were down 4.4% compared with last year. Strong demand from home students following changes to A level results (up 4.0%) was offset by a reduction in overseas students of 23.6% due to the pandemic. Research grants and contracts income increased by £17.4m (18.3%) to £112.5m, which, the university said, is a very positive result and is linked to significant increases in awards over the past two years, along with additional research activity in relation to COVID-19.
Confirmation of £65 million recovery fund for Scottish culture and events
A budget of £65million has been allocated for the benefit of Scottish cultural businesses, organisations, and events. This money is said to help the country get back on its feet, following the devastating effects of the coronavirus pandemic. Included in the money is the £20million of business support that was promised culture and events that First Minister Nicola Sturgeon announced on December 14, not forgetting the £27million for culture and £17million for events announced last week. “These additional funds will help protect the livelihoods of the people working in the sector – and allow us to give further support to freelancers, culture organisations, venues and our national performing companies,” said Culture Secretary Angus Robertson. The Scottish government has also confirmed an additional £1million of underspend. Additionally, Creative Scotland has also launched a “Cancellation Fund for Creative Freelancers”, which is set to open today (January 6) at 2pm.