Business News Round Up (17/07/2023)
Scottish business confidence remains higher than European average
Confidence among Scottish businesses that activity will continue to grow over the coming year is higher than the European average, according to the latest Accenture and S&P Global UK Business Outlook. Plans to increase investment, including in research and development, helped to offset concerns surrounding high inflation and staffing costs. The net balance of firms expecting activity to increase over the coming year stood at +22%, falling from +35% in February this year. This was lower than the UK average (at +40%), however Scottish businesses remain more confident than their European counterparts, where optimism is at +19%. The latest results show that inflation expectations from Scottish companies remain high (+53%), but these have eased from earlier in the year (+61%) and continue to decrease from the peak of +69% last June. This is especially true of staffing costs, where a net balance of +38% of businesses predict wages to rise over the next 12 months, again down from +44% in February. The number of firms in Scotland expecting a net gain in profits stood at +20%, five points higher than in the rest of the UK (at +15%). Planned research and development spending also rose to +6% in Scotland, up from 0% in February. UK companies overall were more likely to be planning to invest in artificial intelligence (AI) in June, jumping to 29% of respondents from 18% in early 2022. Services firms were particularly keen to add AI capabilities over the coming year, linking this to a need to streamline costs amid sticky wage inflation.
https://www.insider.co.uk/news/scottish-business-confidence-remains-higher-30468092
Focus on international growth would bring jobs and revenues surge for SMEs
Up to 45,000 jobs could be created in the Manchester region if SMEs were able to access more markets beyond the UK. But Manchester companies say there are many barriers to a successful switch to overseas trading, such as different laws and regulations and challenging trade logistics. Research carried out by banking group Santander UK has looked at the benefits of expansion to international markets. Overall, it says the UK could generate an extra 1.9 million jobs and businesses could add a third to their revenues if they were able to boost their international trade. In Manchester alone, this could see a potential £1.6bn revenue benefit with 45,000 jobs being created, according to Santander’s ‘Unleashing UK businesses’ international growth potential’ report. UK companies say the main benefits to international trade are an increase in profits followed by a diversified client base, improved business resilience and an enhanced brand. In separate research, Santander’s Spring Trade Barometer, 59% of companies that trade internationally report an improved performance over the past year compared with just 46% of those which do business solely in the UK. They are also more confident about increased growth, with 78% of these companies optimistic about growth over the next three years versus 69% of domestic only businesses.
UK can unlock £57bn economic boost by 2030 from green transition, CBI claims
Britain could unlock as much as £57bn of economic growth by turbo charging the journey to decarbonising production, a new report out today has claimed. Calculations by the Confederation of British Industry (CBI), who until recently was embroiled in a fight for its survival amid a string of sexual misconduct claims, found the UK is primed to benefit from the global race to Net Zero. The business lobby group said the UK needs to create an industrial strategy akin to the US’s inflation reduction act and Europe’s green support scheme to avoid losing out on tens of billions of pounds of growth. “Other nations have recognised the prizes on offer and are rapidly ramping up their own plans and spending to attract the green industries of the future,” Rain Newton-Smith, director general of the CBI, said. “Businesses believe that the US’ Inflation Reduction Act, the EU’s Net Zero Industry Act, and other nations’ ambitious incentive packages developed in their wake, have changed the game,” she added. Among the lobby group’s recommendations was forcing the Treasury and Office for Budget Responsibility to estimate the impact on the climate from government tax and spending decisions. Mandating government departments to test policies against the UK’s climate commitments could also curb emissions, the CBI said. The economy legally must reach net zero emissions by 2050.
Plans for £1.7bn innovation district up for public consultation
Public consultation has been launched for the £1.7bn innovation district, ID Manchester. New plans for the University of Manchester’s bold development were unveiled last month. Now, local residents, businesses and stakeholders are being invited to review the plans online from today, (July 14). Throughout the summer, the public will have the opportunity to ask questions and share feedback through online channels and in-person community consultation events run by the ID Manchester partnership, a joint venture between The University of Manchester and Bruntwood SciTech. The ID Manchester partnership will be popping up in the city centre over the summer and holding a community event at Brunswick Parish Church on Wednesday, September 6. More information on the project and consultation activities can be found on the ID Manchester website, along with an online questionnaire to submit feedback. The newly published draft Strategic Regeneration Framework (SRF) sets out the scale, ambition and opportunities that ID Manchester brings to the city and includes a series of place-based principles that will guide detailed plans for development and future planning applications and ensure the vision for ID Manchester to be recognised as one of the world’s leading applied innovation districts is realised.