Business News Round Up (13/01/2023)
UK economy beats expectations with November growth
The UK economy unexpectedly grew in November, helped by a boost from the World Cup, official figures show. The UK’s gross domestic product (GDP) – a key economic measure of services, construction and manufacturing output – rose by 0.1%. The Office for National Statistics (ONS) said pubs and restaurants contributed to growth as people went out to watch the football. However, growth slowed sharply from October due in part to strike action. Rail workers and Royal Mail staff staged walkouts in November. Darren Morgan, director of economic statistics at the ONS, told the BBC’s Today programme: “We definitely saw the impact of industrial action in today’s figures. We saw reasonably large falls in rail transport, postal work and warehousing and this sector had the biggest drag on the economy in November.” There was continued strike action in December which widened to include NHS workers as well as Border Force staff at six UK airports. Despite the rise in November, it is not clear if the UK will avoid a recession this year. The 0.5% growth recorded in October was largely as a result of a bounce back from businesses shuttering to mark Queen Elizabeth II’s funeral in September.
https://www.bbc.co.uk/news/business-64238309
Fifth of SME owners report battling depression in face of cost-of-living crisis
Following a tumultuous two years of lockdowns, restrictions and uncertainty, new research has revealed that the challenges facing owners today are proving no less difficult to navigate for small business owners. In the midst of the cost-of-living crisis, many describe how their mental health has worsened with afifth (20%) reporting battling depression. The survey of over 600 small business owners, commissioned by small business insurance provider Simply Business, has revealed the key challenges facing SME owners in 2023. With a fifth (22%) rating their mental health as (18%) ‘bad’ or (4%) ‘very bad’. Over half (51%) reported feeling stressed, two fifths (39%) have been experiencing anxiety, while over one in five (22%) struggled with insomnia. Over four in five (81%) small business owners are worried how the cost of living crisis is affecting their business, with two thirds (65%) seeing rising costs as the biggest challenge to their business heading into 2023.A quarter (26%) are worried they simply won’t be able to pay their bills in 2023. As a result, 15% have no confidence in their business heading into the New Year with the reality of the cost of living crisis also affecting the way that SMEs can prepare for 2023. Three in ten (28%) say they’re unable to plan or budget due to uncertainty, a tenth (10%) have been unable to order stock and three in five (60%) say their profit margins are down.
Greater Manchester Institute of Technology to open in September 2023
A new multi-million-pound technical education institute in Greater Manchester will open to students in September 2023, after being granted a licence by the Department for Education. The Greater Manchester Institute of Technology (GMIoT) will specialise in construction, engineering, health, and digital skills. Led by the University of Salford with Wigan & Leigh College as the lead FE partner, the GMIoT brings together a number of colleges and employers in the city region. The partners – University of Salford; Ada, the National College for Digital Skills; Bury College; Tameside College; Wigan & Leigh College; GCHQ; Laing O’Rourke; Siemens; and Talk-Talk – have been working together on the proposal for the last two years. The GMIoT will offer a range of courses, including new Higher Technical Qualifications, Higher National Diplomas and apprenticeships, as well as digital and technical skills boot camps and short courses designed to fast track learners into jobs in growth sectors for Greater Manchester. Institutes of Technology (IoTs) are the government’s flagship programme designed to spearhead the delivery of level 4 / 5 higher technical education in STEM subjects. The first wave of 12 IoTs have already opened across the country. The Greater Manchester bid was submitted as part of wave two of the funding competition.
Foresight announces £60 million SME fund
Foresight Group has announced the launch of a new fund dedicated to investment in Scotland. The first close, at more than £60m, was supported by cornerstone commitments from Strathclyde Pension Fund and British Business Investments, a wholly owned commercial subsidiary of the British Business Bank. This is Foresight’s eleventh regional fund, replicating the strategy already deployed in other regions of the UK. It is also the private equity and infrastructure investment manager’s second fund dedicated to Scotland, having launched the £32m Foresight Scottish Growth Fund with the support of the Scottish Government in 2019. The Fund will target debt and equity investments of £1m to £5m in established small to medium-sized enterprises (SMEs) with growth potential. It will be managed by Foresight’s private equity team, with new additions being made to the existing team in Scotland. The fund aims to support the Scottish economy, creating local jobs. Since 2016, Foresight’s regional funds have created thousands of jobs in regions throughout the UK. It should also enable companies to achieve their growth potential. Notably, last summer, Foresight exited Edinburgh-based Codeplay, generating a 16x return for investors.
https://www.insider.co.uk/news/foresight-announces-60-million-scottish-28936492