Business News Round Up (13/02/2025)
UK economy unexpectedly grew in final months of 2024
The UK economy unexpectedly grew in the final three months of last year following a boost to the construction and services sectors. The economy expanded by 0.1% between October and December, according to official figures, external, despite analysts predicting it would contract. Growth in the quarter was driven by a range of industries, from pubs and bars to machinery manufacturers, having a strong December. However, the figures also indicated living standards last year were slightly lower than in 2023 on average. With tax rises coming into force in April, concerns remain that economic growth will remain sluggish for some time. Businesses have warned that paying more in National Insurance, along with minimum wages rising and business rates relief being reduced, could affect the economy’s ability to grow, with employers expecting to have less cash to give pay rises and create new jobs.
https://www.bbc.co.uk/news/articles/c1jg4enkr3lo
NW insolvency-related activities fall, but are still second highest in UK
Insolvency-related activities in the North West fell to their lowest level for 12 months, according to new research from R3, the UK’s insolvency and restructuring trade body. R3’s analysis of data, provided by Creditsafe, shows there were 313 new cases of insolvency-related activity – which includes liquidator appointments, administrator appointments and creditors’ meetings – in the North West in January, the lowest recorded figure since January 2024’s total of 303. Insolvency-related activity also fell by 25.5% in January when compared with the previous month’s total of 420. Fran Henshaw, Chair of R3 in the North West, said: “Insolvency-related activity in the North West remained high throughout much of 2024, as businesses grappled with tough trading conditions, rising costs and economic uncertainty. Despite the decline, the North West had the second highest number of insolvency-related activities in January among UK regions and nations, second only to Greater London, which recorded 384 cases.
£30bn to flow into north east Scotland, says report
The North-east of Scotland will be transformed by more than £30 billion of investment over the coming decade, according to a report published today. Research by Aberdeen & Grampian Chamber of Commerce forecasts a wave of capital spending not seen since the oil boom of the 1970s and 1980s as renewable energy projects power ahead. The Aberdeen City Region – soon to become home to Great British Energy, the UK’s new state-owned energy firm – is expected to undergo an economic renaissance as clean energy projects move from planning into North Sea reality. Up to £22.2 billion of energy projects are detailed in the seventh edition of the Investment Tracker, which is being launched in the city. While energy is the key driver of investment, more expenditure is planned in transport infrastructure, commercial and residential property, new health and education facilities and sport, leisure and culture venues.
Extra £10m for SFC ‘to provide funding for another 100 UK startups
The UK’s most active seed-stage investor has received an additional £10m commitment from British Business Investments, a commercial subsidiary of the British Business Bank. SFC Capital has received the money through the British Business Bank’s Regional Angels Programme, which is designed to reduce regional imbalances across the UK. The commitment is expected to provide funding for 100 early-stage businesses across the UK, unlocking a total of £100m in new funding for startup and scaleup businesses. This comes after a £15m commitment from the programme in 2020, which SFC fully deployed across more than 150 companies. SFC has previously achieved several successful exits from the commitment, including Peopleforce, an HR software business which SFC exited to a leading European HR tech investor in a deal that returned 5x the original investment.
https://businesscloud.co.uk/news/extra-10m-for-sfc-to-provide-funding-for-another-100-uk-startups