Business News Round Up (09/01/2024)
Scottish commercial property investment drops during 2023, but market poised to rebound
£1.5 BILLION of commercial property assets changed hands in Scotland during 2023, as the market adjusted to the sharp rise in interest rates seen since December 2021, according to research from Knight Frank. The independent commercial property consultancy’s analysis of Real Capital Analytics (RCA) figures found that total investment volumes dropped by around 33%, broadly in line with the rest of the UK. Edinburgh continued to prove its attractiveness to investors by bucking the trend with a 23% rise in investment between 2022 and 2023, from £558 million to £686 million. Glasgow and Aberdeen saw drops of 72% (£1.2 billion to £330 million) and 63% (£229 million to £84 million), respectively – however, they both had a strong year in 2022 to compare with.
North West to benefit from major investment in high-tech nuclear fuel
The UK is investing about £300m in high-tech nuclear fuel in a move which will boost the North West of England’s nuclear fuel production hub, supporting local industry and jobs. The government said the UK will become the first country in Europe to launch a high-tech high-assay low-enriched uranium (HALEU) nuclear fuel programme. The funding will support domestic production of HALEU – the specialist fuel required to power the next generation of nuclear reactors. Most advanced reactors require this fuel that is currently only commercially produced in Russia. The £300m investment is part of plans to help generate up to 24GW of nuclear power by 2050 – a quarter of the UK’s electricity needs. An additional £10m will also be provided to develop the skills and sites to produce other advanced nuclear fuels in the UK.
Rising Scottish business use of AI, although ‘many feel unsupported’
More organisations are currently using artificial intelligence (AI) tools than six months ago, rising from 26% to almost a third (32%), according to research from recruiter Hays. A survey with nearly 15,000 responses from employers and professionals – including 886 from Scotland – found that whilst AI usage in the workplace is on the rise, the number of people who do not feel their employer is helping them to prepare for its use is also on the increase, at 61%. The majority of professionals in Scotland (80%) are also not using AI in their current role. There are still only a small number of professionals who believe AI will negatively impact their job, dropping in the last six months from 12% to 6% – while a small number of organisations in Scotland have already banned the use of AI in the workplace.
https://www.insider.co.uk/news/rising-scottish-business-use-ai-31833305
New data shows NW experiencing biggest growth in life sciences sites outside London
The rise of health tech has seen employment in life sciences increase 61% in the North West in the past five years, according to analysis of new government statistics by tax services and software provider, Ryan. Bioscience and health technology sector statistics released by three government departments show the number of people in the region employed at R&D sites associated with life science businesses has reached more than 7,675. The region has also seen 28% growth in the number of life sciences sites conducting R&D. Cheshire East is home to the most life sciences sites in the region with 167, followed by Manchester with 139, Halton, with 63, and Liverpool, with 60. Overall, the number of people employed by life sciences businesses in the UK increased by 117% in the five years to 2021/22, with 304,190 employees in the latest data.