Business News Round Up (18/05/2023)
UK pay growth speeds up as unemployment rate rises
The UK unemployment conditions are a headache to the modern economic market. The unemployment rate in the UK ticked up simultaneously with the total pay growth. Apart from that, the public pay growth rose to a level which is signifying the largest amount since 2005. Focusing on the UK unemployment rate, from December 2022 to February 2023, a growth of 0.1% is seen. The Office for National Statistics (ONS) showed a 3.8% unemployment rate in that particular quarter. This data is driven by the people who have been unemployed for more than six months. However, the total pay is also increasing simultaneously with the growing unemployment rate in the UK. The total pay grew from an annual rate of 5.7% to 5.9% within three months to February 2023. Excluding bonuses, the pay growth rose to 6.7%, which is a record growth compared to 2001 (excluding the coronavirus pandemic). Comparing the public and private sector pay growth is necessary to provide the appropriate data. Considering the public sector pay growth from December to February, a significant 5.3% was seen. Whereas in the private sector, the pay growth strikes at 6.9%. Notably, the public sector pay growth is the highest pay growth in the public sector since 2005 (excluding the coronavirus pandemic).
Dip in North West VC investment
The value and volume of VC investment in North West businesses dipped in the first quarter of 2023, KPMG’s latest Venture Pulse report has found, as momentum dropped and economic challenges continued.In the opening three months of the year, a total of £67.25m was raised by North West businesses, down 15 per cent from the £79.2m raised in Q1 2022, according to the report compiled by PitchBook. Cheshire firms landed the majority of investment – totalling £46.4m – while Manchester businesses secured £16m, with Liverpool companies bagging £380,000. Life sciences firm NeoPhore, based in Altrincham, completing a £21.5m Series B financing, with a £6m financing extension, was named as the largest regional deal. Life sciences and artificial intelligence firms secured the largest values of investment in the region, accounting for 70 per cent of North West VC investment in Q1 this year. Warren Middleton, office senior partner for the North West at KPMG UK, said: “Following the pandemic, 2021 and early 2022 saw huge appetite for VC investment into UK innovation and fast-growth businesses, and it really was an outlier period. What we are starting to see now is VC investment starting to return to more normal levels but being compounded by a challenging economic environment. This is not just an issue confined to the UK, as our data shows market uncertainty has seen VC investment plummet globally. However, the UK remains the innovation crown jewel of Europe attracting more VC investment than France, Germany and Spain combined in the first quarter of the year.”
https://www.insidermedia.com/news/north-west/dip-in-north-west-vc-investment
New report identifies challenges to creating an investable Scottish hydrogen industry
Scotland is in a strong position to exploit the potential of low-carbon hydrogen, but only if the right decisions are quickly made on production locations and demand models, according to a new report. The potential of hydrogen as a low-carbon alternative to traditional fuels has increasingly hit the headlines, but the report – ‘Building an investable hydrogen value chain in Scotland’ – has identified the practical obstacles to making that ambition a deliverable reality in the face of intense international competition. Published by international law firm Addleshaw Goddard and Equitix, a leading international investor in infrastructure, the report outlines significant hurdles that need to be overcome across the value chain to establish the business case for investors to support the creation of a significant hydrogen industry here. Suzanne Moir, Partner in the Infrastructure, Projects, and Energy team at Addleshaw Goddard, said: “This report provides valuable insight from individuals on the frontline of the emerging hydrogen economy in Scotland and highlights the need for bold and decisive actions from government, industry, and funders to bring the picture together. While discussions are ongoing regarding the promising prospects of a Scottish hydrogen industry, competition for funding, equipment, and skills continues to intensify in an emerging global industry so we must act swiftly. Making informed decisions regarding production locations and demand models is crucial for Scotland to maximise its potential and gain a competitive edge in the international race to build a new industry.”
Greater Manchester sets next chapter towards being a world-leading digital city region
Greater Manchester has set out how, over the next three years, it will build on its increasing status as a world-class digital destination – with data and technology playing a crucial role in making the city region a greener, fairer, and more prosperous place. Originally launched in 2020, Greater Manchester Combined Authority (GMCA) along with stakeholders and communities from across Greater Manchester’s digital and tech sector have come together to refresh Greater Manchester’s Digital Blueprint for 2023-26. The 2023-26 blueprint has been launched against a backdrop of Greater Manchester’s world-class digital ecosystem and economy that is going from strength to strength, with unprecedented growth in investment and recognition of Greater Manchester as a global hub and digital city of the future. Inward investment in Greater Manchester’s tech companies has leapt forward since 2017-8, increasing by over one thousand percent by 2022, and the city-region is in the vanguard of work nationally and internationally in the areas of digital inclusion, AI, security, infrastructure, and digital public services. This blueprint will embed and accelerate that progress, refreshing the region’s strategic commitments to put people, our environment, and place firmly at the heart of plans. It outlines how GMCA and partners will improve the lives of Greater Manchester’s residents and for people and communities to feel empowered by the opportunities a digitally fuelled city-region brings.