Business News Round Up (17/09/2020)
Scottish economy hit by near 20 percent contraction in second quarter
The Scottish economy contracted 19.4% in Q2, according to the latest figures, slightly less than the UK economy as a whole. GDP figures for April to June released today highlight the impact of the coronavirus lockdown, with the UK economy as a whole shrinking by 20.4% over the same period. All industries contracted in the second quarter of the year, with construction showing the largest fall at 41.5%. The distribution, hotels and catering sector had the next largest fall at 33.9%. Scottish GDP in the first quarter of the year shrank by 2.5%.
https://www.insider.co.uk/news/scottish-economy-hit-near-20-22692132
One third of UK small businesses admit not providing cyber security training
New figures released by SharpUK found a third of SMB owners admit to providing no training or resources for employees. Despite this, two-thirds of those surveyed said that human error was a worry for the welfare of their business’ digital infrastructure and security. Sharp undertook the research to better understand the efforts made by small business owners to reinforce their cyber security in the aftermath of Covid-19 and lockdown, and the impending return to the office for some staff. The results of the research show that a proportion of the SMB community, a sector that is reportedly the focus of 43% of all cyber-attacks, may be unprepared.
Scottish retail sales stagnate in August reinforcing the challenges faced on the High Street
Retail sales stagnated in August, with the picture looking slightly less bleak than that experienced in July. The Scottish Retail Sales Monitor showed the rate of decline standing at 7.5% year on year, slightly up from July’s 8.3% drop. Food sales significantly slowed during the month, albeit remaining in positive territory, with growth of 1.5% the lowest of the coronavirus period – excluding the effects of Easter in April 2019, which heavily distorted this April’s figure. Non-food sales on the other hand continued their recovery in August, with an online-adjusted decline of 1.7% in the Monitor which is a partnership between the Scottish Retail Consortium and accountants KPMG.
Plans for £75m banking HQ ‘temporarily paused’ over ‘future ways of working’
Changes to working practices due to pandemic lockdown measures have been blamed for the suspension of a £75 million development by banking group Santander. The UK arm of the Spanish bank was granted planning permission almost a year ago to build “a new high-quality and highly sustainable office, together with a new public park and new pavilions, which are available for public use” at it Bridle Road site in Bootle, North Merseyside. But the bank has now decided to put its plans on hold, following drastic changes to working practices following the coronavirus pandemic. Most of its staff have been working from home since the second quarter of the year, which raises questions on how necessary a new, £75 million office scheme is in the ‘new normal’ following the pandemic.