Business News Round Up (18/06/2021)
UK economy to return to pre-Covid levels by the end of 2021, CBI predicts
The UK economy is set to return to pre-Covid levels by the end of 2021, a year earlier than expected, the CBI has predicted. The business group said the economy is expected to grow by 8.2% this year and 6.1% in 2022, while the peak in unemployment will be lower than was previously forecast, the PA News agency reports. But business investment will remain 5% below levels seen before the pandemic struck. The economy is poised for “considerable” growth over the coming months despite the delay in ending the lockdown, said the CBI. Its report pointed to the rapid rollout of vaccines and the “unleashing” of pent-up demand, although the CBI warned that stagnant productivity and business investment remained a problem. The extension of the Job Retention Scheme into the autumn and expectations of a stronger economic recovery will lead to a lower peak in unemployment, it was predicted.
https://www.business-live.co.uk/economic-development/uk-economy-return-pre-covid-20837988
Scotland’s tech sector accounts for almost half of investment in small firms
Scotland’s tech sector accounted for almost half of all equity investment in small firms last year, according to new figures. Digital companies secured £124m from investors – a 44 per cent share of the equity market for SMEs – new data from the British Business Bank has revealed. In total, 110 deals were struck with eastern Scotland securing the biggest share – 71 – compared to the South West (33), north east (5) and Highlands and Islands (2). In terms of how that split between subsectors, software secured 40 deals totalling £43m, life sciences (32 deals) at £44.6m, ‘other’ tech (32) totalling £24.2m and hardware (6) totalling £11.9m. Overall, analysis from the British Business Bank found that smaller companies in Scotland saw a total of £284 million in equity deals last year. The number of deals in the tech sector grew by 16% in 2020 – exceeding the UK’s 12% increase.
https://futurescot.com/scotland-tech-sector-half-equity-investment/
UK businesses confident of growth but need employees with new skills
The gradual lifting of COVID-19 lockdown restrictions and opening of key sectors has left 86% of UK businesses feeling confident about growth prospects for H2 of 2021, according to the latest quarterly Demand for Skilled Talent report by recruitment specialist Robert Half.Overall business confidence levels have increased by 10% compared to January 2021, with 28% of employers now saying they feel ‘very confident’ and over half (58%) are ‘somewhat confident’ of growth this year in the report which analyses trends in demand for specific talent.The biggest factor standing in the way of growth is employers struggling to find employees with the right mix of skills, with the majority focused on reskilling and upskilling employees to meet evolving business needs and opportunities brought on by the pandemic. The most in demand employee skills for H2 2021 are hybrid skills (a combination of soft and technical), digital and data capabilities, change management and communication.
CBRE sells Glasgow office building
Leading real estate advisor CBRE has announced it has completed the off-market sale of an office building in Glasgow city centre on behalf of Patrizia for in excess of £5.5million. 84-94 St Vincent Street, which is home to a wide range of occupiers including Pizza Punks on the ground floor, and Interstate Hotels, Crawford & Co and Visit Scotland, on the upper floors, has been purchased by a private investor. It comprises 42,343 sq ft of office and retail space over basement, ground and seven upper floors. Strategically positioned within the Central Business District, the Category A listed building occupies a highly prominent location on the north side of St Vincent Street between its junctions with Renfield Street and West Nile Street. Commenting, Martyn Brown, director from CBRE, said: “We can confirm that we have successfully sold 84-94 St Vincent Street in Glasgow on behalf of our client Patrizia. It is a well-known building located in the heart of the city centre, with a range of value-add management opportunities. Despite the wider economic effects of the pandemic, we are seeing strong interest for quality investment opportunities from a range of buyers and expect this to continue as office workers return to the workplace.”