Business News Round Up (17/01/2022)
UK factories pay up to keep staff amid acute labour shortages
British factories are agreeing larger-than-usual pay settlements in an effort to retain workers against a backdrop of mounting skills shortages. Make UK, a manufacturing lobby group, revealed that almost half the pay settlements agreed in the three months to November were 3% or more and about one in seven was at least 4%. Companywide pay deals have tended to be around 2% in the past, but this year was “unusual.” Almost one in 10 settlements was above 5% and one manufacturer raised pay by 14%. Last year, the largest deal was 5.8%. U.K. companies are under pressure to raise wages, with inflation surging, job vacancies at record highs and over half a million people missing from the workforce since the pandemic. The overall participation gap — the number of people who might have been available to work had the pandemic not happened -– is closer to a million.
Late payments rise as Scottish business optimism plunges – FSB
A third of Scottish business owners say that late payment increased in the last three months of 2021, according to the Federation of Small Businesses (FSB). The organisation is warning that this trend could lead to more firms closing their doors for good, as it releases the latest findings from its quarterly Scottish Small Business Confidence Index. FSB surveyed 1,271 small businesses at the start of December, including 159 respondents in Scotland, finding that 12% of Scottish firms say late payment is now threatening the viability of their business. In the final quarter of 2021, the confidence index for Scotland dropped to -22 points from +1.2 points in the previous three months – meaning that more Scottish small firms now expect their performance to worsen over the coming three months than expect an improvement. By comparison, the UK index fell to -8.5 points at the end of last year, meaning that a typical Scottish business is less confident about the future than the UK average. The UK figure fell in every quarter over 2021, having stood at +27.3 points in the first quarter. Across the UK, FSB found business confidence to be lowest in the retail and accommodation and food industries. The vast majority of Scottish small businesses (82.5%) say costs are rising, with fuel, utilities and other input costs all cited by firms.
https://www.insider.co.uk/news/late-payments-rise-scottish-business-25965590
BGF head expects ‘strong’ North West investment activity
A boss at growth capital investor BGF expects strong investment activity across the region to continue into 2022 after a successful 2021. Neil Inskip, head of BGF in the North West, said there is a “good pipeline with new investments and exits already well progressed”. Inskip’s comments come after the business invested £70m in the North West in 2021, backing some of the most exciting entrepreneurial businesses in the region. Now they are pledging to invest more in 2022. “We’re extremely fortunate in the North West to have an abundance of excellent entrepreneurial companies that are defying the current challenges, and committing to ambitious growth plans,” said Inskip. “We expect strong investment activity across the region to continue into 2022 and have a good pipeline with new investments and exits already well progressed.” During 2021, BGF successfully exited five businesses in the North West, including Kids Planet, supporting the nursery group’s rollout from 17 to more than 80 sites.
https://www.insidermedia.com/news/north-west/bgf-invests-70m-in-the-north-west
Debut of new forum aimed at harnessing Scot finance sector to help boost recovery
A new forum has been launched to help Scotland’s financial services sector tackle key challenges facing the nation including stalling economic growth.The Financial Services Growth and Development Board, which will have its first meeting today, will look to strengthen links with the Scottish Government to maximise the potential of the sector that employs around 160,000 people in Scotland and is the biggest contributor to its economy. Sandy Begbie, chief executive of Scottish Financial Enterprise (SFE), said the launch of the board comes at a critical time given that Scotland faces significant hurdles with economic growth faltering and a cost-of-living crisis affecting households across the country. “Financial and related professional services have a central role to play in helping to mitigate these challenges and create new opportunities for growth and development, and I’m confident that if we do, Scotland has all ingredients to thrive in 2022 and beyond,” he said.