Business News Round Up (15/10/2024)
UK government sets out industrial strategy priorities
Life sciences, clean energy and advanced manufacturing are among eight “growth sectors” on which the UK government’s new industrial strategy will focus, ministers have announced. The strategy will also focus on the creative industries, defence, digital and technologies, financial services, and professional and business services, with universities integral to its delivery. In a green paper, the government said the strategy would build on “UK strengths, including world-class network of universities, research institutions, Catapults, deep venture capital pool and trade openness. Our Industrial Strategy will channel support to eight growth-driving sectors—those in which the UK excels today and will propel us tomorrow,” the green paper states. “Our strategy is unreservedly pro-business, engaging on complex issues that are barriers to investment, like skills, recruitment of international talent, data, R&D, technology adoption, access to finance, competition, regulation, energy prices, grid connections, infrastructure and planning—all through the lens of promoting investment.”
Scottish Chambers of Commerce survey reveals widespread tax worries among businesses
Over half of the participants in a pivotal business survey have expressed fears about potential hikes in taxes. The Scottish Chambers of Commerce (SCC) has released its Quarterly Economic Indicator report, with the Fraser of Allander Institute think tank, based on responses from 450 firms that collectively employ upwards of 50,000 staff across Scotland. With the UK Government’s tax and spending plans for the upcoming year due to be announced shortly, an alarming 55% of survey participants flagged up worries around taxation. Particularly nervous sectors include tourism and retail, where as many as 77% and 70% of businesses, respectively, voiced anxiety over tax matters. These taxation woes come at a contentious time for both the Scottish and UK administrations, as they grapple with their budgets amidst prior cutbacks.
https://www.insider.co.uk/news/scottish-chambers-commerce-survey-reveals-33891783
International Investment Summit ‘secures £63bn and 38,000 jobs for UK’
Nearly 38,000 UK jobs are to be created across the UK after a total of £63 billion of investment was announced around International Investment Summit. The record-breaking total figure more than doubles the £29.5bn committed at last year’s Global Investment Summit and spans partnerships across the infrastructure and tech sectors. The government says the investments follow its actions to reform planning, focus on AI and data centre expansion, and set a clear commitment to net zero by almost doubling the funding for renewable energy projects. Alongside the tech deals announced by international firms, Imperial College London revealed a £150 million investment to secure a new R&D campus to add to its rapidly expanding DeepTech ecosystem in West London. Blackstone confirmed a £10bn investment in Blyth, Northumberland to create one of the largest artificial data centres in Europe, creating 4,000 jobs, including 1,200 roles dedicated to the construction of the site.
https://businesscloud.co.uk/news/international-investment-summit-secures-63bn-and-38000-jobs-for-uk
Recession fears lift as data shows UK in ‘good health’
An indication that the UK economy is returning to “good health” has emerged from labour market data showing the threat of recession has receded. Unemployment fell to 4% from 4.1% in the previous quarter and economic inactivity is down 21.8%. Scotland’s unemployment rate estimate (16+ years) was 3.9%. Annual wage growth has slowed to 3.8% from 4%. Regular earnings growth which strips out bonuses, although still higher, also declined and matched estimates, to 4.9% from 5.1%. The number of people in employment also rose for a fourth consecutive month to 373,000 significantly higher than the 250,000 markets had expected. However, the number of people making unemployment related benefits edged up and the government is taking measures to encourage these people back into the workforce.