Business News Round Up (18/07/2024)
Nearly a third of UK businesses have no sustainability strategy
Almost a third of UK middle market businesses don’t yet have a sustainability plan or strategy in place – highlighting a worrying lack of formal commitment to outline targets, track progress and deliver actions to improve the impact that business has on its community and the environment. According to RSM UK’s latest ‘The Real Economy’ findings, 30% of businesses said they didn’t have a sustainability strategy in place. This includes a quarter (25%) planning on creating one in the next 12 months and another 5% stating they had no plans to create any formal strategy. In addition, 24% still haven’t set net-zero targets to reduce emissions produced by their business despite key efficiencies and cost savings this could deliver. Encouragingly, almost three quarters of businesses (74%) have set net zero targets, but of these businesses, 21% don’t have a strategy or transition plan in place to reach these targets.
Scotland’s economic growth outpaces some UK regions despite challenges
The Scottish economy is predicted to grow more this year compared with last year, with real GVA expected to be 0.9% higher across 2024 – according to the latest PwC UK Economic Outlook. While considered subdued, the rate of growth north of the border is greater than that predicted for the West Midlands (0.7%), North East and South East (both 0.8%); and in line with rates for Yorkshire and Humber, South West and East Midlands. However, it lags behind other UK nations and regions, particularly London and Northern Ireland at 1.2%, the North West and Wales at 1.1%, and the East of England at 1.0%. Scotland’s growth rate is also marginally lower than the projections for the UK’s real GDP, which is expected to grow by 1.0% in 2024. The continuing regional disparities highlight strong growth in business activity and the public sector impacting London and Northern Ireland, respectively.
https://www.digit.fyi/scottish-economy-growth-2024/
UK pay growth slows but remains high for Bank of England
Wages in Britain grew a bit more slowly but still increased at a pace that would normally be too strong for the Bank of England, leaving in doubt the possibility of an interest rate cut in two weeks’ time. A day after official data showed stubbornly high inflation pressure, Britain’s statistics office said earnings excluding bonuses grew by an annual 5.7% in the three months to May. That was down from 6.0% in the three months to April and represented the slowest growth in core pay since the summer of 2022 when employers scrambled to increase salaries to hire and retain staff amid a shortage of candidates. But it remained close to double the rate that would be consistent with the BoE’s 2% inflation target.
https://www.reuters.com/world/uk/uk-regular-pay-grows-57-three-months-may-2024-07-18/
Scottish Enterprise commits £8m to Dundee Life Sciences Innovation Hub
Deputy First Minister of Scotland Kate Forbes today joined Scottish Enterprise Chief Executive Adrian Gillespie to announce an £8 million grant contribution to the construction of the University of Dundee’s Life Sciences Innovation Hub during a visit to the site. The new £40m Hub, scheduled to open early next year, will anchor new high-growth spin-out companies in Dundee, enhancing the city’s reputation as a global leader in health and life sciences research. The facility will provide world-class laboratory and office space to spinouts from the University’s School of Life Sciences and spin-ins looking to partner with the University and benefit from the use of its facilities as they grow and scale. It is set to be the centrepiece of the Tay Cities Biomedical Cluster project, to which the Scottish Government has invested £25m as part of the Tay Cities Region Deal.