Business News Round Up (17/10/2024)
Cautious optimism returns as more North West businesses use external finance
The British Business Bank’s fourth Nations and Regions Tracker finds usage of external finance has increased overall across the North West. However, challenges remain as sentiment on economic opportunity remains subdued among the region’s smaller businesses. Usage of external finance among smaller businesses in the North West saw considerable growth in 2023, with 45% of businesses now leveraging it, up 10 percentage points from the previous year. The UK economy followed a similar trend, with 46% of smaller businesses using external finance, a nationwide increase of 10 percentage points. Despite this uptick in the usage of external finance by smaller businesses, sentiment remains low across the North West, with 63% seeing more threats than opportunities in the trading environment in 2023. Persistent inflationary pressures are also continuing to impact smaller businesses across the region as 73% of smaller businesses reported having been impacted by rising costs over recent months.
Scotland edges ahead in SME equity deal activity
Scotland was one of only two areas of the UK to see a rise in equity deal activity among smaller businesses in the first half of this year, according to the British Business Bank. Its annual Nations & Regions Tracker records a 6% growth in the number of equity deals north of the border, with only the north east of England, up 7%, also seeing an increase on 2023. The UK recorded an average fall of 15% in transactions during the first six months of this year relative to H1 2023 – though, there were signs of stabilisation. The pick-up in activity in Scotland follows a 21% fall in the number of deals and a 50% decline in investment value between 2022 and 2023. This was broadly in line with the UK trend (down, 25% and 48% respectively).
UK Government speeds up ‘skills passport’ to help oil and gas workers move to renewables
The UK Government is accelerating the rollout of a “skills passport” aimed at enabling oil and gas workers to transition into renewable energy roles. During a visit to Aberdeen, which has been officially chosen as the base for Great British Energy, Energy Secretary Ed Miliband is expected to ink an agreement with the Scottish Government that will bolster the state-owned entity’s work in supporting clean energy supply chains and infrastructure. Great British Energy, bolstered by an £8.3 billion investment earmarked for this current Parliament, plans to forge partnerships with a variety of Scottish public organisations to expedite the country’s array of clean energy ventures. This includes enterprises focused on floating offshore wind. Additionally, the Government has declared its intent to fast-track the debut of the skills passport for professionals looking to pivot from the oil and gas sector to the burgeoning renewable energy field.
https://www.insider.co.uk/news/uk-government-speeds-up-skills-33909969
SRC: £13m potential business rates hike for Scots shop
A new analysis from the Scottish Retail Consortium has suggested shops in Scotland could see a £13 million hike in their business rates bills from April.The latest ONS Consumer Price Index reveals that inflation stood at 1.7% last month. September’s inflation rate is what UK Ministers traditionally use to calculate the business rate for the coming financial year. If Scottish Ministers follow suit – as they often do – then retailers in Scotland could potentially face an extra £13m on their annual business rates bills from April 2025. Retail accounts for about a fifth of all rates. It comes as Scottish retail sales continue to flatline and retailers face greater outlays to run their business including additional statutory obligations on sustainability and recycling, obesity, and the national living wage.