Business News Round Up (07/03/25)
Construction suffers fastest downturn in five years
Urgent action is required to address the fastest downturn in construction output since the start of the pandemic, says a trade group. The S&P Global/CIPS UK Construction PMI data for February confirms an “alarming trend” that builders have been experiencing for months, said Brian Berry, chief executive of the Federation of Master Builders (FMB). “We’re seeing construction output falling at its fastest rate in almost five years, and with input cost inflation also rising fast, already fragile market confidence is likely to take yet another hit,” he said. “This echoes the FMB’s State of Trade Survey for Q4 2024 which found workloads, enquiries and employment numbers were all down, and that materials costs are rising fast. With new work down sharply, particularly in the housebuilding segment, the government needs to take urgent action to reassure builders and consumers if they are serious about meeting their targets.”
EY: Mounting urgency to address Scotland’s low productivity as growth forecast downgraded
Scotland’s economy outperformed the UK in 2024, however, a sharp slowdown in consumer-facing sectors during Q4 signals growing household caution amidst economic uncertainty, according to EY. The latest EY ITEM Club Scotland forecast projects a GVA growth of 0.9%. While GDP data suggests a favourable outlook with growth in Scotland outperforming the UK in 2024, it masks the quarterly profile of growth which shows a slowdown throughout 2024, with GDP growth of 0% in Q4. This downturn coincided with rising inflation, which surged from 1.7% in September to 2.5% by December, and then 3% in January. Q4 of 2024 impacts the growth prospects for 2025 as it takes time to unwind, but the report forecasts growth to return at a GVA of 0.9% in 2025. However, it suggests growth expectations are weaker than previously anticipated, with an expected GVA growth of just 0.9%, 1.5% in 2026 and 1.3% in 2027.
Female founders in the North West boosted by £50m of Start Up Loans support
The British Business Bank’s Start Up Loans programme has provided 5,820 loans worth over £50m to female-owned businesses in the North West. With 36% of loans provided in the North West going to female entrepreneurs, the milestone underscores the Bank’s commitment to supporting underrepresented founders in the UK. This compares to government data showing just 18% of smaller companies with employees were female led in 2022. This North West milestone follows the news that female-owned businesses in Greater Manchester have received £20m in funding. Greater Manchester was also recently announced as the most entrepreneurial place outside of London. Recent female Start Up Loan recipients in the North West include Lauren Rowland and Hannah Muir, founders of pottery painting studio and bar, Craft + Common, who secured £25,000 each of Start Up Loan funding to open their studio and purchase equipment to get started.
Government confirms £102 million apprenticeship funding
More than £100m of funding to support Modern and Foundation Apprenticeships in 2025-26 has been confirmed by Education Secretary Jenny Gilruth. Contracts will now be issued by Skills Development Scotland to employers, training providers and colleges for Modern Apprenticeship starts and learning providers for Foundation Apprenticeship starts. Funding for Modern and Foundation Apprenticeship starts is part of the £202.3m provided to SDS in the 2025-26 budget, approved by the Scottish Parliament on 25 February. Around £102.5m of this will be deployed to maintain the existing numbers of apprentices of approximately 25,500 Modern Apprenticeship starts and around 2,500 Foundation Apprenticeship starts. This is in addition to a further 2,500 Foundation Apprenticeships and around 1,200 Graduate Apprenticeships funded through the Scottish Funding Council. This should ensure that as much demand as possible for Modern Apprenticeships is met from within the SDS budget.
https://www.insider.co.uk/news/government-confirms-102-million-apprenticeship-34814447