Business News Round Up (10/01/2025)
UK leads Europe in fintech funding despite 20% global drop
Last year saw global fintech investment fall 20%, raising $43.5 billion (£35.4 billion) across 6,464 deals, according to the latest analysis from UK industry body, Innovate Finance. However, the new figures, released as part of Innovate Finance’s FinTech Investment Landscape 2024 report, shows that despite a global slowdown, the UK attracted $3.6 billion (£2.9 bn) across 576 deals last year – ranking second worldwide and first in Europe for fintech funding. According to the study, rising interest rates, geopolitical instability, and a recalibration in VC fund-raising led to tighter funding environments in key markets, despite which the UK secured more capital than the next five European countries combined. France raised $1.1 billion (£894m) from 127 deals, followed by Germany with $0.9 billion (£731.5m) from 149 deals, with smaller markets like Switzerland (£406.3m) and the Netherlands (£325.1m) rounding out Europe’s top five investment markets.
https://www.digit.fyi/uk-leads-europe-in-fintech-funding-despite-20-global-drop
Scottish retail sales saw ‘solid’ growth during December
Scottish retail sales saw “solid growth” last month, but retailers will still be hoping for a “brighter” 2025. Data from the Scottish Retail Consortium and KPMG showed that total sales in Scotland increased by 0.8%, compared with December 2023, when they had grown 1.9%. This was above the three-month average decrease of 0.8% and above the 12-month average decrease of 0.4%. Adjusted for inflation, there was a year-on-year increase of 1.8%. On a like-for-like basis, Scottish sales increased by 2% compared with December 2023, when they had increased by 1%. This is above the three-month average of 0.0% and above the 12-month average decline of 0.3%. The figures showed that total food sales were flat versus December 2023, when they had increased by 5.5%. December this year was above the three-month average decline of 0.1% and below the 12-month average growth of 0.7%.
https://www.insider.co.uk/news/scottish-retail-sales-saw-solid-34450095
Number of companies in administration rises as firms face ‘challenging environment’
More than 100 West Country companies collapsed last year as firms battled with tough trading conditions and an uncertain economic backdrop. South West businesses accounted for 6% of administrations in 2024 – the eighth highest region in the UK – according to analysis of public records by law firm Shakespeare Martineau. More than 1,700 UK businesses, 106 of which came from the South West, filed for administration over the period – a 28% and 5% increase compared to 2022 and 2023. Retail, construction, hospitality, manufacturing and real estate were the worst-hit sectors for the second year in a row, collectively accounting for 55% of the 1,718 administrations. Greater London led the way with 23% of the filings, followed by the North West (14%) and the South East (11%).
https://www.business-live.co.uk/enterprise/number-companies-administration-rises-firms-30745772
Engineers demand action to avoid skills ‘disaster’
Scotland’s engineering companies are warning of the disastrous impact of a widening skills gap unless the government invests more to support work-based learning and apprenticeships. Trade group Scottish Engineering says skills shortages could seriously restrict the existing industry and new opportunities in offshore wind, energy transmission renewal and other potential growth areas. A survey identifies the need for a 58% expansion in engineers by the end of 2027 across 31 key roles, over three-quarters of which are delivered by apprenticeship programmes. The group says “this is more than a skills crisis; this is a potential economic disaster and jeopardises the entire economic programme of the Scottish Government. The group warns that inward investment, while always welcomed, “should not accidentally become a state supported wrecking ball to our existing manufacturing base which for decades has invested, developed, and grown our Scottish economy”.