Business News Round Up (15/03/2024)
PwC: Scottish stores closure rate remains below UK average
Scotland witnessed a net closure of one store per day in 2023, according to a report by PwC and The Local Data Company (LDC).While 1,069 stores closed, 732 new outlets opened, resulting in a net loss of 337 shops and outlets belonging to chains with five or more locations.The bi-annual research tracks over 200,000 outlets in over 3,500 locations to gain a picture of the changing landscape of high streets, retail parks, shopping centres and standalone outlets.With the overall reduction at -2.1%, Scotland’s closure rate in 2023 is around one third higher than the 2022 rate of -1.4% but remains lower than the period between 2017 and 2021 (when closures peaked at a rate of -4.1% in 2021) during a difficult period for retailers. It is also marginally lower than the UK average of -2.3%.
Volunteering generates a £4.6bn productivity boost each year, research finds
Volunteering generates a £4.6bn productivity boost to the UK economy each year, new research has found. A study by the think tank Pro Bono Economics, commissioned by the Royal Voluntary Service, estimates the UK benefits from annual productivity gains of more than £4,500 per volunteer working in professional and managerial occupations. The report, called A Pro Bono Bonus: The Impact of Volunteering on Wages and Productivity and published today, says white-collar workers who volunteer with charities typically benefit from learning new skills and developing existing ones. This results in increased productivity for the individual and typically leads to them earning more, the report finds. “Through their increased productivity, the average volunteer will earn approximately £2,300 more than they did before they began volunteering,” it says. The additional National Insurance contributions from this increase amounts to more than £320m a year in revenue for the public purse, the report says.
Number of Scottish tech start-ups rises by a fifth
The number of new technology companies incorporated in Scotland jumped by more than a fifth (21%) last year to 1,553. This puts Scotland’s tech sector just behind the UK national average of 22% and suggests the Scottish tech sector remains resilient despite broader economic challenges. The national data shows a total of 51,017 tech companies were incorporated in the UK last year, up from 41,972 the year before. Key sub-sectors that saw significant growth included software developers, data businesses and IT consultancies. All regions in the UK saw an increase on the previous year, except for Wales which incorporated 1,150 businesses, a small decrease from 2022. Tech incorporations in London rose by more than a quarter (26%) on the previous year’s figure to 26,060.
https://dailybusinessgroup.co.uk/2024/03/number-of-scottish-tech-startups-rises-by-a-fifth/
Scottish Government must spend 18% of budget to meet net zero target
The Scottish Government would need to spend an average of £1.1bn a year to meet its net zero targets – around 18% of its capital budget. That’s according to the Scottish Fiscal Commission, which analysed the implications for the Scottish public finances of meeting the statutory emissions target to reach net zero emissions by 2045. It warns that unmitigated climate change would have “catastrophic impacts on individuals, businesses and the public finances”, so these costs are still cheaper than doing nothing. The figure does not include the spending required on adaptation and damage from climate change, and it based on the balanced pathway scenario set out by the Climate Change Committee. The challenge of achieving net zero is also shared between the Scottish and UK governments, with Holyrood funding largely dependent on Westminster policy decisions, including how the costs of the transition are split between the private and public sectors.
https://www.insider.co.uk/news/scottish-government-must-spend-18-32354793