Business News Round Up (16/03/2023)
UK Budget 2023 – our first look at what it means for Scotland
After the frenzied Autumn 2022 of UK Budget Statement chaos, we all expected a much calmer outing for the UK Chancellor today. However, it wouldn’t be a UK Budget without few big announcements. Pretty much all the announcements had been trailed before the statement, and there were no rabbits coming out of any hats today. But the signal of intent on childcare and changes to disability benefit rules are significant, even if they will take a while to come into effect. Underneath the surface, there are some interesting implications for Scotland, including some crunchy Fiscal Framework implications to work through on social security and a fairly hefty inflationary increase in alcohol duty for non-draught products due to take effect in August. As usual though, there is a real lack of detail in the published documents on the implications for the Scottish Budget with respect to Barnett consequentials. This is something we will need to return to. The backdrop to the budget and the decisions made are the forecasts provided by the Office for Budget Responsibility (OBR). These tell the Chancellor what the outlook is for the economy and the extent of fiscal headroom available for new announcements.
Budget: £10m Manchester prize for AI, more devolution for Manchester, integrated technical education city region, Northern investment zones
Chancellor Jeremy Hunt has announced the creation of the Manchester Prize, an annual prize of £1m a year for the next 10 years for ground-breaking AI research. Hunt announced the prize during his spring budget which he is currently announcing in the House of Commons. Hunt also set out his plans to improve the UK’s AI sector and for the country to become a “world-leading quantum-enabled economy by 2033” with a £2.5bn research and innovation programme. He promised £900m of funding will go to an exascale computer, while the £1m Manchester prize will be awarded every year for the next 10 years to a person or team that does the best AI research. In a major boost to regional financial autonomy, Hunt announced he would be agreeing a multi-year single settlement for the Greater Combined Manchester Authority at the next spending review. This would also be extended to the West Midlands. Intriguingly, the increasing financial freedom for Greater Manchester came just after Mayor Andy Burnham had signed a ‘trade deal’ between the city region and North Carolina in the US.
Greenock Ocean Terminal gears up for record cruise ship year
One OF Scotland’s main cruise ports is set to experience its busiest year since records began. Greenock Ocean Terminal has 91 cruise liners booked into the Inverclyde town’s new dedicated pontoon across 2023 – a rise of over 25 per cent on last year. As many as 150,000 passengers and 38,000 crew members are expected to pass through the port over the course of this year. It’s more good news for the terminal in its second full season since Covid effectively closed down the cruise industry. Jim McSporran, Clydeport Port Director at Peel Ports said: “We’re extremely proud to be announcing a record cruise year for Greenock Ocean Terminal. Welcoming cruise liners to Greenock is a hugely important aspect of our port offering and we’re delighted that we continue to attract and grow cruise numbers to the region. This increase in tourism will benefit visitor attractions and businesses across Inverclyde and central Scotland, and we look forward to welcoming these visitors across the season. In an effort to showcase the port as the cruise gateway to the West Coast of Scotland, this year we are also investing in a promotional campaign to feature at the global cruise industry’s key annual gathering in the U.S.” Councillor Stephen McCabe, leader of Inverclyde Council, said: “The cruise sector here in Inverclyde continues to go from strength to strength and I’m delighted that this year is set to be the busiest yet with record numbers of ships and passengers, as well as a substantial number of crew visiting these shores.
Chamber says Aberdeen should become Investment Zone – and warns UK Government ‘must wake up to damage being done to oil and gas industry’
A key business group in the North East of Scotland says Aberdeen should be ‘first in the queue’ for investment zone status – and has warned that the UK Government needs to act to protect the region’s oil and gas industry. Ryan Crighton, policy director at Aberdeen & Grampian Chamber of Commerce, says the windfall tax on the sector has had a negative impact and is placing major investments at risk. Now he is urging the UK government to act to support the sector and the tens of thousands it employs. That includes support for the Aberdeenshire-based Acorn carbon capture and storage (CCS) project. He said: “We welcome the £20bn funding for the development of carbon capture projects – and the Acorn Project on the Buchan coast must be one of the beneficiaries of this additional investment if we are to transform our region into the net zero capital of Europe. “Aberdeen should also be first in the queue for the Scottish Investment Zone proposed today. This region has proven time and time again that it can work with government and academia to tackle the big challenges facing the UK. The commitment to making the UK as attractive as possible for the life sciences sector, one of growing importance to this region’s economy, is another positive step. However, after months of campaigning and lobbying, the Chancellor is yet to recognise the corrosive impact the windfall tax has had on jobs and investment in the North Sea. The energy profits levy, as it stands, is a tax too far – and his failure today to implement a price floor continues to place major investments at risk.”
https://www.insider.co.uk/news/chamber-says-aberdeen-should-become-29468900