Business News Round Up (15/02/2024)
UK inflation remains unchanged at 4%
The UK’s Consumer Price Index (CPI) inflation has remained unchanged at 4% in January. Despite the Ofgem energy price cap rise and base effects, Martin Beck, chief economic advisor to the EY ITEM Club believes inflation will dip to, or even below, the Bank of England’s 2% target in the coming months. The sustained drop in wholesale gas prices indicates a more significant reduction in energy bills than previously anticipated. Wages growth has seen a notable decline in recent months. Ongoing geopolitical tensions are expected to have a limited inflationary impact. These factors position the Monetary Policy Committee (MPC) for potential interest rate cuts in the next few months. Core inflation, excluding volatile food and fuel, stayed at 5.1%, while services inflation edged up to 6.5%, slightly below the Bank of England’s forecast of 6.6%.
https://www.scottishfinancialnews.com/articles/uk-inflation-remains-unchanged-at-4
Probe into claims of investors ‘snubbing’ Scotland
Organisers of one of Scotland’s biggest investor events are keen to discover if there is market resistance to backing the country’s growth companies. EIE24, which matches investors with promising tech firms, returns as an in-person event this year after a two-year gap amid perceptions that Scotland lacks investment opportunities. Early and mid-stage companies are now being questioned to determine whether they are struggling to get finance and how they perceive the political climate. EIE has helped 540 companies raise more than $1.5 billion since it was established in 2008, but it was not held last year as funding became more difficult in a high interest rate and low growth environment. EIE24 will bring together investors from around the world for two days of networking, discovery, and fuelling the deal-making pipeline with some of Scotland’s most innovative companies from partners from across the ecosystem.
https://dailybusinessgroup.co.uk/2024/02/probe-into-claims-of-investors-snubbing-scotland/
UK invests £20m in partners to tackle regional inequality
UK Research and Innovation has announced that it has awarded millions of pounds of funding to address regional inequalities across the United Kingdom, whilst driving local growth. Four Local Policy Innovation Partnerships in Northern Ireland, Scotland, Wales, and Yorkshire have been allocated almost £20 million of funding to bring together stakeholders and ‘harness the power of research’ as they address the regional disparities that may be holding the UK back. The partnerships will see collaboration between devolved governments, local authorities, local businesses, and communities to create new opportunities and improve outcomes. Funding for the programme comes from UKRI, and the Economic and Social Research Council, the Arts and Humanities Research Council, and Innovate UK, with it being allocated after a two-phase competitive process.
https://www.publicsectorexecutive.com/articles/uk-invests-ps20m-partners-tackle-regional-inequality
Scottish salmon named UK’s top food export for 2023
Scottish salmon has been named as the UK’s top food export in 2023, following the publication of annual HMRC figures. Sales of the nutritious fish grown in the waters off the Highlands and islands increased by 0.5% to £581 million in the calendar year – equivalent to £1.6m every day. France once again led the global demand; however the US and Asian markets saw sharp growth, with the popularity of premium high-quality Scottish salmon increasing among chefs, restaurants, and consumers. Scottish salmon exports were far higher than the UK’s second largest food export, Cheddar cheese, as well as other popular British products like lamb and beef. Salmon is also by far the most popular fish among UK shoppers, with sales running at around £1.25 billion a year. But while the market demand is soaring, the sector is facing several business challenges.
https://www.scottishfinancialnews.com/articles/scottish-salmon-named-uks-top-food-export-for-2023