Business News Round Up (16/01/2025)
UK inflation drops to 2.5% in December, surprising analysts & industry reactions
UK inflation fell unexpectedly in December, with the Consumer Prices Index (CPI) dropping to 2.5% from 2.6% in November, according to the Office for National Statistics (ONS). The slight decrease defied most analysts’ predictions that inflation would remain unchanged last month. The unexpected dip was driven primarily by a 1.9% fall in hotel prices and slower price increases across restaurants and cafes. Additionally, airfares rose at a much slower pace compared to the same period last year, further easing upward pressure on inflation. However, rising fuel and second-hand car prices partially offset these reductions, the ONS reported. Despite the decline, inflation remains above the Bank of England’s 2% target, raising ongoing concerns for policymakers. The broader measure of services inflation, closely monitored by the Bank, dropped to 4.4% in December from 5% in November.
Northern Powerhouse Investment Fund boosts economy with £50m since launch
The Northern Powerhouse Investment Fund II (NPIF II) has made more than 130 investments totalling £50m into businesses in the North of England, following its launch in March 2024. The £660m Northern Powerhouse Investment Fund II covers the entire North of England, providing loans from £25,000 to £2m and equity investment up to £5m to help a range of SMEs to start up, scale up or stay ahead. The Northern Powerhouse Investment Fund II aims to build on the success of the first fund, with the purpose of driving sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. Ken Cooper, managing director at the British Business Bank, said: “From youth outdoor education providers to cloud support services, NPIF II is already having an impact across all parts of the North of England.”
Joint investments in Scottish City Deals now more than £3 billion
The Secretary of State for Scotland, Ian Murray, has confirmed that, following the Chancellor’s Autumn Budget, the total UK Government investment specifically on City Region and Growth Deals in Scotland has now reached £1.5 billion. The Scottish Government is also investing £1.6 billion in the City Region and Growth Deals programme. That means that total investment now tops £3 billion in total. Of the UK Government contribution, £527 million was part of a nearly £1.4 billion package of local growth investment signed off by the Chancellor in her Autumn Budget. That means that the UK Government is also, separately, investing £840 million in some two dozen local growth projects and programmes across Scotland. Driving growth and improving living standards across the UK is a key part of our Plan for Change, and these investments are an important part of that.
https://www.gov.uk/government/news/joint-investment-in-scottish-city-deals-now-more-than-3-billion
£600k smart data prize launches to drive innovation
Innovators from across industry are being called to enter unique smart data solutions to solve real problems faced by people and businesses by empowering them in new ways. The Department for Business & Trade, Challenge Works, the Open Data Institute and Smart Data Foundry are calling on innovators to enter the new Smart Data Challenge Prize. The prize will award up to £600,000 to accelerate the most innovative apps and technologies to empower consumers and SMEs through new smart data enabled services that will increase competition and grow the economy. Successful teams will gain exclusive access to the new Smart Data Sandbox, built especially for the prize, to test and develop their technologies. The Smart Data Sandbox brings together synthetic data on people and businesses across 11 broad data domains – including banking, insurance, investing, property, energy, and retail – each encompassing multiple datasets.
https://www.digit.fyi/600k-smart-data-prize-launches-to-drive-innovation