Business News Round Up (08/08/2023)
UK’s retail footfall rises 1.8% in July 2023
The retail landscape in the UK showed signs of resurgence in July, as the latest figures from British Retail Consortium (BRC) Sensormatic IQ highlighted an overall increase in footfall. July witnessed a promising 1.8 per cent growth in total footfall year-on-year (YoY), bouncing back from the previous month’s decline of 1.9 per cent. High streets led the recovery with a 1.6 per cent YoY increase in footfall for July, marking a leap from June’s modest 0.6 per cent growth. Retail parks, which had suffered a decline of 2.6 per cent in June, bounced back with a 1.4 per cent rise in July. Meanwhile, shopping centres, despite facing a significant dip of 4.2 per cent in June, managed a turnaround with a modest 0.2 per cent increase in July, as per BRC. Adding to the trend, other retail destinations, such as outlet sites, reported a significant spike. They experienced an 8.6 per cent increase in footfall, shedding light on evolving consumer shopping behaviours. Delving into regional specifics, Scotland emerged as the front-runner in footfall improvements. It boasted a robust 5.9 per cent YoY increase, outpacing other UK nations. England and Northern Ireland followed suit, posting increases of 1.8 per cent and 1.4 per cent respectively. In contrast, Wales experienced a slight decline, with footfall dipping by 0.1 per cent YoY.
GM Combined Authority reaches £1bn investment milestone
Greater Manchester Combined Authority has reached a significant milestone after making investments of more than £1bn, resulting in thousands of jobs and new homes.So far, Greater Manchester’s investment funds have injected £1.2bn into projects, including the Housing Investment Loan Fund, which is on track to bring forward 10,000 new homes across the city region. A total of £700m has been deployed for residential property, with schemes including the renovation of Alexander House in Old Trafford. Meanwhile, £110m has also been invested into businesses across sectors ranging from digital to manufacturing, supporting the creation of 8,347 jobs, while £350m has been used by commercial property schemes and businesses. This includes Citylabs on Oxford Road, which is increases the supply of lab space in Greater Manchester. Councillor David Molyneux, GMCA lead for investment and resources, said: “Greater Manchester’s investment funds are a fantastic example of devolution working in practise. Through the funds, we are able to maximise the impact of public sector funding. The funds have helped to unlock the delivery of thousands of new homes and have secured more than 200 properties for vulnerable people such as those experiencing homelessness or survivors of domestic violence. We have also been able to use funding to support business growth and the creation of thousands of jobs.”
https://www.insidermedia.com/news/north-west/gm-combined-authority-reaches-1bn-investment-milestone
‘Devastating’ impact of LEZ on Glasgow’s nighttime economy revealed
New data released by CGA Neilson has shed light on the challenges faced by Glasgow’s nighttime economy over the past year. The combination of the Low Emission Zone (LEZ) being implemented while businesses continue to struggle with debt burdens from the pandemic – and rising cost inflation – has resulted in a 9% decline in the number of nighttime businesses in Glasgow from June 2022 to June 2023. In contrast, Edinburgh experienced just a 2% loss during the same period. The Night Time Industries Association (NTIA) argued that while environmental considerations are essential, the abrupt shift in regulations has strained the financial resources of many city centre businesses. Club and pub closure rates witnessed in Glasgow – the highest among the top 20 cities in the UK – are indicative of a systemic issue that requires immediate attention, noted a statement from the industry body. It encouraged Glasgow City Council to collaborate with nighttime industry stakeholders in developing a balanced strategy that promotes both environmental sustainability and economic recovery. Measures such as financial aid, tailored assistance for compliance with the LEZ scheme, and initiatives to stimulate consumer activity could help mitigate the current challenges. Gavin Stevenson, vice chair of NTIA Scotland, said: “While it is clear that businesses across Scotland continue to face severe economic headwinds, Glasgow’s devastating business closure rate is around 400% higher than that of Edinburgh and local factors such as the LEZ being enforced without sufficient public transport alternatives being put in place beforehand are largely to blame. Glasgow City Council must now work with the sector to mitigate some of the worst impacts from policies that have significantly worsened the safety of staff, footfall into businesses, and economic viability, as the current appalling business failure rate not only threatens jobs and livelihoods, but also Glasgow’s reputation for culture and a vibrant nightlife – and of course – the tax base that is vital to pay for essential services.”
https://www.insider.co.uk/news/devastating-impact-lez-glasgows-night-30651750
These are the UK regions most affected by the business rate rise
Following the rise in small business rates in March, official figures have revealed the UK regions where the cost of renting a commercial property has skyrocketed since 2018. BPI, an online auction platform for commercial assets, analysed data obtained from 155 local councils to discover the average annual increase in rates, and how the added costs might be impacting today’s SMEs. According to their findings, business rates rose by an average of 18% in 2022, compared to 2021. Companies based in North West Leicestershire have been the most affected, with costs rising almost 30% in this area. SME profits have already slimmed during the cost of living crisis, as consumer appetite wanes. Combined with the surge in energy prices, the business rate rise represents a substantial tax for many companies to factor into their reduced bottom lines. Of those councils that responded to the FOI request, BPI reports that firms in North West Leicestershire saw the biggest percentage increase in rates, with a reported 29% uplift across the last five years. Great Yarmouth Borough Council saw a 22.19% increase across the same time period, followed by the London Borough of Lambeth with 19.27%. On average, SMEs in all ten councils saw an increase of 16.62% in business rate payments, representing an astonishing financial strain on SME cash flow reserves.