Business News Round Up (12/05/2023)
Signs of optimism for businesses as UK narrowly avoids recession
The UK’s economy saw weak growth in the first three months of the year according to the Office for National Statistics. The economy grew by 0.1% in the first three months of the year but shrank in March as a result of strike action. “Across the quarter as a whole, growth was driven by IT and construction, partially offset by falls in health, education and public administration, with these sectors affected by strikes,” said Darren Morgan, director of economic statistics at the ONS.” Neil Rudge, head of Enterprise at Shawbrook, said: “A drop in monthly GDP figures signals a longer-term period of slowflation, but a 0.1% growth in the three months to March means we have narrowly avoided a technical recession. “Regardless, we are still seeing lots of optimism. While traditional exits and M&A activity has slowed, we’ve seen an increase in SMEs seeking funding to fuel growth opportunities, which suggests business owners are confident. Of course, there remains challenges for SMEs in terms of managing cash-flow, particularly in the shadows of the cost-of-living crisis, recruitment difficulties and cost of debt pressures, so it’s crucial business leaders work with a funding partner that can provide flexible and bespoke solutions to enable them to act nimbly and efficiently.” Meanwhile, concerns about the pressure on businesses have been raised after the Bank of England raised interest rates for the 12th time in a row, taking borrowing costs to the highest point since October 2008.
£350m data centre planned for Manchester
Kao Data, the specialist developer and operator of high-performance data centres, have unveiled plans for a £350m new data centre to be built in Reddish, Greater Manchester. Following the acquisition of two new data centres last year, the move represents the next phase in the continued expansion of the Kao Data platform, with Manchester named as the first of its new Tier II locations in Europe. The latest phase of Kao Data’s platform expansion has seen the company secure a 39,000m2 ex-industrial site for sustainable redevelopment at Kenwood Point, Manchester. The new data centre, which is planned to become operational in late 2025, will provide space for nine data halls, creating a leading infrastructure hub to support Greater Manchester’s growing technology ecosystem and the UK’s largest high performance computing (HPC) and artificial intelligence (AI) sectors outside of London and the Oxford-Cambridge arc. Kao Data’s first data centre in the North of England will deliver an industry-leading PUE of 1.2, be powered by 100 per cent renewable energy, and utilise hydrotreated vegetable oil in its generators – providing the highest-grade, sustainable data centre capacity in the region. Furthermore, the data centre will be precision-engineered to incorporate heat re-use capabilities, supporting local communities in its immediate vicinity with a valuable resource in the wake of the cost-of-living crisis.
High-quality skills as a means of attracting FDI and reducing regional inequalities
The UK’s economic growth and its global position as a leader of science and innovation cannot be secured without skills. National policy articulates the importance of the UK attracting foreign direct investment to ensure growth of the economy in cutting-edge industries and, in parallel, ensuring citizens can gain the skills they need to progress in work at any stage of their lives. A refreshed approach to Foreign Direct Investment within the sector, such as the one advocated in HEPI’s recent report on FDI into UK Research and Development, provides an opportunity for universities to unite their civic and global missions to address these concurrent priorities. As has been pointed out elsewhere in this series, the narrative that universities do not, or are unwilling to, work together no longer holds water. Regionally motivated collaboration is the key element of working across universities, local and regional organisations, and government departments to deliver investment and growth opportunities.
Coworking worth millions to Scotland’s town and city centres
European Coworking Day highlights huge potential for growing network of hubs – with people staying and spending more in local economies. A growing network of coworking hubs across Scotland hold the key to unlocking millions of pounds worth of spending in town and city centres, experts believe. Research shared as part of European Coworking Day today (Weds, May 10) shows the base from which hubs are beginning to extend their reach throughout the country. It highlights how even the smallest of communities can encourage collaboration – unlocking innovation and investment – by creating coworking spaces, where all kinds of people come together to work in a shared space. The study has been carried out by The Melting Pot, the pioneering Edinburgh coworking complex known as Scotland’s Centre for Social Innovation. And Scotland’s Towns Partnership (STP), the collective which champions the nation’s towns and places, is sure that growth will trigger investment, while also helping respond to the climate emergency and the cost of living crisis. Claire Carpenter, founder, and executive director of social innovation at The Melting Pot, has been speaking with the people behind coworking hubs across the country – many of them not-for-profit organisations – to learn more about the opportunities and challenges they face.