Business News Round Up (07/08/2023)
Third of Scottish offices ‘unusable’ under new rules
Nearly a third of Scotland’s office space is at risk of being unusable if the Scottish Government follows new energy efficiency guidelines being introduced in England and Wales. According to analysis from property agent Knight Frank, 29% of Scotland’s office stock has an Energy Performance Certificate (EPC) rating of E or below. Under rules brought in on 1 April in England and Wales, non-domestic properties that fail to meet this standard cannot be let to an occupier. The Minimum Energy Efficiency Standards (MEES) rules will be tightened twice more in the coming years. From April 2027, commercial properties will need at least an EPC rating of C to be lettable, while in 2030 this will rise again to only buildings that achieve an A or a B rating. If Scotland follows a similar path, more than half – 55% – of office space will need to be brought up to a C rating or better. Just one-fifth, 21%, of current office space in Scotland is rated B or above – with 8% achieving A or A+. Edinburgh has the highest percentage (53%) of properties rated C or better. Aberdeen has the highest percentage of space with an A or B rating at 24%. The Scottish Government is aiming for the country to be net zero by 2045 – five years ahead of the UK. Interim goals of reaching 75% and 90% of the overall target have been set for 2030 and 2040, with the built environment responsible for 39% of global energy-related carbon emissions according to the World Green Building Council.
SME confidence stronger in NW than national peers
Small business confidence in the North West is proving to be more resilient than the national average, according to the latest Small Business Index from Blackpool-based the Federation of Small Businesses (FSB). While the NW SBI for Q2 2023 remains in negative territory at minus seven, that’s up from -11 recorded in the previous quarter. And with the comparable national average SBI score at -14, small businesses here in the North West appear to be less pessimistic than their nationwide counterparts. However, the sharp UK-wide increase in confidence recorded by FSB in the first quarter of 2023 has not carried through to Q2, with businesses hit by stubbornly high inflationary pressures and economic uncertainty, but there are some reasons to be positive. In all, while 43% of respondents in the North West reported a decrease in revenues over the past three months, more than a third (36%) have seen an increase. In addition, revenue performance is significantly worse in other regions. A net balance of 13% in the region expect growth in profits in the coming quarter, and future revenue expectations are significantly more positive than the net national average. However, in other areas the North West is lagging behind. Fewer businesses in the region are planning to grow and investment aspirations have fallen significantly compared with the previous quarter, standing at three per cent from the net 18% recorded in Q1. The North West underperforms the nationwide average (seven per cent).
London extends gap as Britain’s top investment hub
London has widened its gap as being the most attractive area for investors in Britain, a new study found. Boroughs in London secured nine out of 10 positions in a competitiveness index conducted by the University of Cardiff and Nottingham Business School, which analysed 362 regions across England, Wales, and Scotland. The City of London, Westminster and Camden ranked at the forefront, underlining their economic appeal, with the study noting that the home counties have fortified their dominance, with only East Anglia and Cambridgeshire managing to match the capital’s pace. “The east of England regions are becoming increasingly decoupled from the rest of the nation. It is clear that a location’s proximity to London is becoming an important determinant of its competitiveness and future economic growth,” said the University researchers. Camden received recognition for its cultural vibrancy, appealing to entrepreneurs and high-skilled professionals, while Hackney surged 10 places in the rankings due to a rise in start-up activity. On the contrary, regions with weaker competitiveness, such as East Lindsey, were often characterised by reliance on agriculture, Brexit-related labour challenges, and the decline of certain economic sectors over the past two decades.
Permanent Scottish job placements rise for first time since January
There was a fresh expansion in permanent placements across Scotland at the start of the third quarter, according to the latest Royal Bank of Scotland survey. The upturn marked the first rise since January, amid reports of improved confidence at clients and business expansion plans. However, recruitment consultancies recorded a contraction in temporary billings for the 10th successive month, albeit one that was mild overall. Turning to pay, rates of starting salary and temp wage inflation were sharp in July, with recruiters often mentioning that competition for scarce and skilled candidates had pushed up pay. Recruitment agencies in Scotland signalled a fresh expansion in permanent staff appointments in July, thereby marking the first month of growth since January. According to panellists, greater confidence at clients and increased demand for staff supported the renewed upturn in permanent new joiners. The expansion in Scotland compared with a sharper drop in permanent placements at the UK level, that was the quickest for just over three years. The availability of candidates to fill permanent positions across Scotland deteriorated sharply during July, thereby stretching the current run of reduction to two-and-a-half years. The rate of decrease was the most pronounced in four months, amid reports that people were more hesitant to seek new roles.
https://www.insider.co.uk/news/permanent-scottish-job-placements-rise-30628356