Business News Round Up (09/09/2021)
FinTech Scotland reports 50% surge in financial tech firms during pandemic
Scotland’s fintech sector has boomed during the pandemic with a surge in the number of smaller financial technology businesses amid wholesale changes in consumer behaviour. The number of fintech-focused small and medium-sized enterprises (SMEs) has increased by more than 50 per cent during the past 18 months with the FinTech Scotland entrepreneurial community growing from 119 in March 2020 to 181 today. The growth is said to reflect the increase in demand for financial technologies as more and more of the economy and society adapts to a digital environment driven by the challenges of the Covid crisis. News of the growth came as industry body FinTech Scotland announced an SME advisory board made up of leaders from the fintech entrepreneurial community. Initially, the new board will focus on providing impetus on skills development, experience when it comes to accessing funding and commercialisation opportunities.
BCC Forecast: Business investment set to be left behind
UK business investment is expected to decline this year despite the prospect of record economic growth, according to the British Chambers of Commerce (BCC) economic forecast. The leading business group predicts UK GDP growth for 2021 of 7.1%, which, if realised, would be the strongest outturn since official records began in 1949.1 Following robust GDP growth in the second quarter, the UK’s economic recovery is projected to slow into the autumn as staff shortages and supply chain disruption partly limit the gains from the lifting of restrictions in July. Consequently, the UK economy is only expected to return to its pre-pandemic level in Q1 2022 with growth of 5.2% forecast for 2022. The UK’s economic recovery is expected to be driven by historically strong consumer and government spending. Despite signs of renewed consumer caution amid rising Covid cases, the momentum from the ending of restrictions is projected to deliver the strongest growth in household spending in 33 years as consumers rundown some of the savings built-up during lockdowns. Government spending is expected to grow by 13.1% in 2021, which would be the strongest growth on record. This includes covid related expenditure such as the vaccine rollout and the test and trace programme.
Scotland record unprecedented upturn in hiring activity
The Scottish labour market saw an unprecedented surge in hiring activity during August, according to the latest Royal Bank of Scotland Report on Jobs. Both permanent placements and temporary billings increased at the most marked rates in the survey’s history, amid reports that firms were stepping up hiring efforts due to the easing of Covid-19 restrictions. August data also highlighted a survey-record upturn in demand for both permanent and short term-staff, but candidate availability dropped steeply again. The report, compiled by IHS Markit, is based on a monthly survey of around 100 recruitment and employment consultants, with the latest data showing that some people were still wary of moving roles, with the pandemic, Brexit and strong demand also attributed to candidate shortages. Subsequently, upwards pressure on pay intensified in August.
https://www.insider.co.uk/news/scotland-records-unprecedented-upturn-hiring-24937083
Internationals contribute £28.8bn to UK economy yearly
International students in the UK contribute £28.8 billion to the country’s coffers annually – an equivalent of every citizen being on average of £390 better off – new analysis has revealed. The costs and benefits of international higher education students to the UK economy report found that international students add a net economic benefit of £25.9bn across every part of the UK, along with a total £2.9bn spend on the use of public services. The research was compiled by London Economics and published by the Higher Education Policy Institute and Universities UK International. The estimated net economic impact by a ‘typical’ EU-domiciled student in 2018/19 was £71,000 and £102,000 per non-EU domiciled student. “This report confirms higher education is one of the UK’s greatest export earners,” said HEPI director Nick Hillman. “The benefits reach every part of the UK, from Land’s End to John O’Groats.” The paper breaks down international students’ contributions in the UK’s 650 parliamentary constituencies. International students in Sheffield, Nottingham, London, Cardiff, Glasgow, and Newcastle are among those to deliver the greatest financial contributions, the paper noted.