Business News Round Up (09/08/2024)
Improved conditions needed if Scotland is to achieve a more circular economy, research finds
Systemic changes are needed if Scotland’s businesses are to accelerate the growth of circularity in Scotland, says new research published today. A report by the University of Stirling and Zero Waste Scotland has found that systemic challenges are preventing businesses from adopting the practices necessary to achieve a circular economy at a greater scale. The report, based on in-depth interviews with representatives from trade, business and financial support organisations, knowledge centres and academia, explores the ways in which conditions need to improve if Scotland’s economy is to become more circular and businesses are to achieve the resultant benefits, such as increased competitive advantage, resource resilience, reduction in CO2 emissions and waste. As part of its findings, the report found a lack of shared understanding and language across the economy and society regarding circular economy practices (CEPs).
Government R&D spending is vital to rectify UK private R&D investment stagnations, says NCUB
New data released by the ONS has revealed that the total spend on research and development (R&D) across the UK reduced from 2.81% of GDP in 2021 to 2.77% of GDP in 2022. The level of investment dropped by 0.11%, an £80-million reduction in real terms between 2021 and 2022. NCUB are calling on the Government to ramp up R&D investment to help rectify this issue and to help spark business spending. This comes as new NCUB analysis reveals that government R&D spending leverages almost twice as much business investment as previously thought. Rosalind Gill, Head of Policy and Engagement at NCUB said: “The ONS has revealed that spending on R&D dropped by 0.11% between 2022 and 2021. This is hugely concerning and should be ringing alarm bells for the new Government. It equates to £80-million less being spent on R&D in the UK than in the previous year.”
UK Fintech investment has nearly tripled this year
A bi-annual report on fintech investment trends has uncovered that total UK fintech investment has nearly tripled so far this year, hitting $7.3bn (£5.7bn) in H1 2024, compared to $2.5bn (£2bn) in H1 2023. However, despite the almost threefold increase, high levels of inflation, the high-interest rate environment, and geopolitical uncertainty have all contributed to more subdued levels of UK fintech investment compared to 2021’s record highs. KPMG’s latest Pulse of Fintech report discovered that H1 24’s investment total was largely bolstered by the size of many of the deals, not least the $4bn (£3.1bn) buyout of financial software company IRIS Software Group by Leonard Green, and the $999m (£800m) VC round by Abound, the loan provider. In total, 198 UK merger and acquisition, private equity, and venture capital fintech deals were completed in H1 2024, down from 284 in H1 2023.
https://www.digit.fyi/uk-fintech-investment-has-nearly-tripled-this-year/
UK’s economic recovery from COVID-19 stronger than first thought
The UK economy recovered from the COVID-19 pandemic faster than previously believed, according to new revision from the Office for National Statistics (ONS). The statistics authority upgraded their estimate for GDP growth for 2022 rise from 4.3% to 4.8%, which is a little larger than usual. The ONS said this reflects the more comprehensive annual survey responses – that take a while to collect and process. Nevertheless, the figures show that the economy did better than its initial estimates suggested, as well as the sizeable changes in the way the economy now operates since the COVID-19 pandemic. If the revisions are compared as a proportion of growth in the relevant year, the revision in 2022 is only slightly larger than the historical average. In addition, the ONS has updated its assumptions about the ‘weight’ it gives each industry within GDP for the first time since the COVID-19 pandemic.