Business News Round Up (18/02/2025)
Wage growth continues to outpace inflation
Average wages are continuing to outpace inflation for both public and private sector workers, according to official figures that unexpectedly showed barely any change in unemployment. Weekly earnings between October and December rose 6%, while real wages grew 5.9%, despite economists expecting a 5.8% rise. Even when inflation is factored in wages are still rising. The UK’s unemployment rate remained effectively unchanged at 4.4%, although the Office for National Statistics has advised that its jobs figures should be treated with caution because of low response rates to its employment survey. The figures follow warnings from businesses that they are planning to cut workforces and raise prices ahead of higher employment costs in April. Scotland’s employment rate estimate (16-64 years) was 74.2%. The unemployment rate estimate (16+ years) was 3.8%, continuing to be below the UK average, and the inactivity rate estimate (16-64 years) was 22.8% in the same period.
Annual office take-up levels soar as Manchester enjoys 29% increase
Office take-up in Manchester reached 1.22 million sq ft in 2024, reflecting a 29% increase on 2023, while sitting 17% higher than the five-year annual average. This is according to the latest research by Savills, which notes that the city also saw a strong end to the year with Q4 office take-up 35% up year on year at 281,000 sq ft. More broadly, Savills reports that office take-up across the Big six regional office markets – Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester – collectively totalled 4.36 million sq ft across 2024, which is 26% up year-on-year, and the highest full year take up since 2019. In terms of where the demand is coming from in Manchester, Savills says that the TMT (technology, media and telecommunications) sector was the most active, accounting for 23% of total take-up across the year.
Scottish company insolvencies down 15% year-on-year
There were 75 company insolvencies registered in Scotland during January, 15% lower than the same month last year. The total number of company insolvencies was comprised of 37 creditors’ voluntary liquidations, 32 compulsory liquidations and six administrations. There were no company voluntary arrangements or receivership appointments. The latest official figures from Accountant in Bankruptcy, Scotland’s insolvency service, also revealed that the total insolvency rate in Scotland in the 12 months to January 2025 was 51.3 per 10,000 companies on the effective register. This was down by 1.3 from the preceding 12 months ending January 2024. Also, between 26 June 2020 and 31 January 2025, there were three restructuring plans and one moratorium in Scotland.
https://www.insider.co.uk/news/scottish-company-insolvencies-down-15-34699052
Next phase of Manchester’s £1.7bn Sister innovation district revealed
Manchester’s new £1.7bn innovation district and neighbourhood, Sister, has announced plans for the next phase of its transformative redevelopment as it launches a new public consultation. Sister’s first major development plot, Zone C, will mark a significant step in the masterplan, bringing forward a large amount of new commercial space and public realm and driving the next stage of Sister’s vision following the opening of its first building, the Renold Innovation Hub, in Autumn 2024. Located between London Road and Altrincham Street, on the edge of Manchester city centre, Zone C will see the creation of over half a million sq ft of flexible commercial space across two new buildings. Designed by architects Allies and Morrison, the 12-storey and 20-storey buildings will offer a mix of cutting-edge workspaces and flexible leisure and community spaces, with a central atrium connecting the two buildings.
https://businesscloud.co.uk/news/next-phase-of-manchesters-1-7bn-sister-innovation-district-revealed