Business News Round Up (11/03/2025)
£70 million Growth Deal signed for Argyll and Bute
The Scottish and UK governments have signed a £70million investment programme with Argyll and Bute Council to deliver vital economic growth for the area. The 10-year Rural Growth Deal will see the Scottish and UK Governments each contributing £25million to the programme, and the council and its partners providing at least £20million of match funding. The Rural Growth Deal is designed to deliver at least 300 additional jobs, training opportunities for more than 6,000 people, support for business growth, new housing and worker accommodation, and more than 70,000 additional visitors to the area every year. Deputy First Minister Kate Forbes said: “We are providing £25million through this Deal to create jobs, attract investment and secure the region’s economic future. The Deal will support projects to drive innovation in marine science, support training that enables local people to access jobs and boost tourism to deliver sustainable economic growth.”
https://www.argyll-bute.gov.uk/news/2025/mar/ps70-million-growth-deal-signed-argyll-and-bute
Permanent starting salaries down in the North West for first time in four years in February
The latest KPMG and REC, UK Report on Jobs: North of England survey pointed to a continued downturn in hiring activity across the region during February. However, the rates of decline for both permanent placements and temp billings eased from January. Vacancies for both permanent and short-term staff also fell at softer, but still sharp rates. The latest survey also indicated that starting salaries fell for the first time in four years during February, in part due to a substantial rise in permanent staff availability. The number of people placed into permanent roles decreased for the twentieth month in a row across the North of England in February. Recruitment companies linked the sustained decline in appointments to client hesitancy and a subsequent drop in vacancies, in part due to the incoming National Insurance increase. Although still marked, the downturn eased notably from January’s 55-month record.
Labour plans reform of skills to tackle shortages
Scottish Labour has set out how it will reform the skills system to “unlock opportunities and grow the economy” as businesses warn of workforce crisis. The party said its analysis of the latest Business Insights survey showed nearly one in four (24%) Scottish businesses are experiencing recruitment challenges. More than one in five (22.6%) also warned they are facing a “workforce shortage”. A “lack of qualified applicants” has consistently been given by businesses as the primary reason for difficulty recruiting, said Labour. However, in 2023/24 Modern Apprenticeship starts hit their lowest point outside the pandemic since 2014/15, with starts 10% below where they were 2019/20. Scottish Labour warned that under the SNP, skills shortages are harming businesses and holding back Scotland’s economy. The party has made a series of pledges ahead of the 2026 Holyrood election as part of its Skills for Scotland plan.
UK investors see GenAI as key to growth but prioritise workforce upskilling, PwC survey finds
Investors in the UK anticipate strong returns from the deployment of GenAI but expect companies to balance automation with workforce investment, according to PwC’s latest UK Investor Survey. The survey, which gathered responses from more than 100 investors and analysts covering UK businesses, highlights optimism regarding GenAI’s potential for efficiency and revenue growth. The findings indicate that 74% of UK investors believe GenAI will improve productivity in the companies they support, surpassing the global average of 66%. Additionally, 58% expect revenue growth from GenAI implementation, while 60% foresee increased profitability. These figures are slightly below global expectations of 63% and 62%, respectively. Beyond financial gains, investors see value in AI’s ability to scale businesses (61%), measure return on investment (42%), influence stakeholder perception (43%), and enhance workforce capabilities (43%).