Business News Round Up (08/07/2024)
Reeves in pledge to ‘fix foundations of economy’
Business leaders from Britain’s key industries will hear Rachel Reeves vow to “fix the foundations of the economy” and make every part of the country better off. Delivering her first speech as Chancellor, Ms Reeves will say there is “no time to waste” on delivering change, pledging to reverse “the legacy of 14years of chaos and economic irresponsibility”. The first woman to hold the role will tell the gathering that had the UK economy grown at the average rate of OECD economies since 2010, it would have been over £140 billion larger. “This could have brought in an additional £58 billion in tax revenues last year alone to sustain our public services,” she will say. “It falls to this new Government to fix the foundations.” Ms Reeves will add: “Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people.
https://dailybusinessgroup.co.uk/2024/07/reeves-in-pledge-to-fix-foundations-of-economy/
Taylor Swift and Euro 2024 boost Scottish retail footfall
In June 2024, Scotland witnessed a notable increase in retail footfall, driven by significant events such as Taylor Swift’s Eras Tour concerts and the commencement of the Euro 2024 football championship. This positive trend marks a welcome change for the retail sector, which had faced challenging conditions earlier in the year. Overall retail footfall in Scotland increased by 0.2% year-on-year in June, a marked improvement from the 5.4% decrease observed in May. This growth stands out even more when compared to the UK average, which saw a 2.3% decrease in footfall during the same period. Shopping centres in Scotland experienced a 1.2% rise in footfall, outperforming the national average. Edinburgh and Glasgow were among the cities that saw significant increases in footfall, with Edinburgh experiencing a 2.4% rise and Glasgow a 2.2% increase.
UK economy expected to ‘bounce back’ on services strength after April’s stagnation
A recovery in the UK’s all-important services sector is expected to help push the economy back into growth, resuming the recovery from last year’s shallow recession. City economists expect the economy to grow 0.2 per cent in May thanks to a solid expansion in services and a recovery in construction. This would mean the economy returned to expansion after stagnating in April. Economists pointed to figures released last month, which showed that consumers spent much more than expected on things like clothing and furniture in May. The construction sector is also likely to perform better due in part to better weather. Analysts at Capital Economics said they expected the “economic recovery to resume in May” while Deutsche Bank said growth would “bounce back”. After falling into a technical recession at the end of last year, the UK recovered and was the fastest-growing G7 economy in the first quarter.
New labour government urged to prioritise economic growth, say leading business groups
In his inaugural press conference as Prime Minister on Saturday, Keir Starmer committed to chairing new “mission delivery boards” to “drive through change” and fulfil Labour’s manifesto promises. These include boosting economic growth, investing in clean energy, and enhancing opportunities through a revised skills agenda. Louise Hellem, Chief Economist at the Confederation of British Industry (CBI), commented: “Businesses view the general election results and the clear mandate given to the new government as a pivotal moment for the economy. The government must hit the ground running and remain steadfast in delivering growth. Early tough decisions are crucial to attracting investment, seizing growth opportunities, and enhancing our appeal to global investors.” The CBI’s latest survey indicates solid growth in financial services in the second quarter, following a robust rebound in the first three months. Financial firms anticipate even faster growth in the next quarter.