Business News Round Up (17/12/2024)
UK remains world’s largest net exporter of financial services, new analysis reveals
With a trade surplus of £92.2bn, the UK remains the largest net exporter of financial services globally – larger than Singapore, Switzerland and Luxembourg combined, research by the City of London Corporation shows. New figures by the ONS show a £11.3bn rise in UK financial services net exports in 2023 – up 14%. The increase was largely driven by a rise in exports to the US which saw the largest absolute increase to any one country (£5.7bn). The figures come as the Government consults on its new financial services strategy. The City of London Corporation has urged the Government to ensure the strategy prioritises services trade, preserves the UK’s open and global nature and promotes this abroad. In 2023 UK exports of financial services grew for the 4th year running, reaching a record high of £120.3bn. This increase of £16.8bn (16%), was driven by both financial service (+£11.1bn) and insurance activities (+£5.8bn).
Wage growth rebounds, but sign point to ongoing job market weakness
UK wage growth has risen for the first time in more than a year, but signs point to an ongoing cooling off in the jobs market amid mounting uncertainty, following recent Budget measures. Official figures show regular earnings growth jumped to 5.2% in the three months to October, up from 4.9% in the previous three months and the first time it has risen since August last year. Earnings growth also outstripped inflation by 3% in the three months to October. The Office for National Statistics (ONS) estimated the number of people on UK payrolls fell by 35,000 to 30.4 million between October and November, although this is subject to revision. It added that the number of vacancies fell by 31,000 to 818,000 in the three months to November. Figures showed the unemployment rate remained unchanged at 4.3% in the three months to October.
https://www.insider.co.uk/news/wage-growth-rebounds-signs-point-34327085
New survey reveals 3/4s of Scottish SMEs are confident about future, but 60% plan to increase prices
A new annual business tracker has revealed that SMEs in Scotland are feeling confident about their future, with almost three-quarters (74%) expressing confidence in their prospects in the next year. Business Baseline – which surveyed more than 610 SMEs, entrepreneurs and business owners across Scotland – also found that while over half of respondents (60%) anticipate growth in their business* in the next 12 months, 60% also expect to raise the price of their products or services. As 2024 comes to a close, the survey reaffirmed the challenges of the last few years, with ‘economic uncertainties’, rising costs’, and ‘the cost-of-living crisis’ noted as key concerns. Support needs were more common in less established businesses; among respondents who had not yet started their business, 70% anticipated needing financial support and 88% needed business support in the next year.
Government launches Industrial Advisory Council to boost growth and living standards
Business leaders from across the UK have been brought together to offer government independent advice and recommendations as it develops a new, modern Industrial Strategy to support the growth mission. The strategy will help maintain a pro-business environment to capture a greater share of internationally mobile investment and motivate domestic business to boost their investment and scale up their growth. It will channel support to sectors and geographical clusters that have the highest growth potential for the next decade. This government wants the UK to be a prime investment opportunity for business. The Industrial Strategy, and the Industrial Strategy Advisory Council, will be key to giving investors the solid foundation on which to build. An integral part of the government’s Plan for Change to kickstart economic growth, the Industrial Strategy will focus on promoting the UK’s key growth-driving sectors.