Business News Round Up (18/10/2022)
Digital transformation could grow the UK economy by over £413 billion by 2030
New research shows the impact digital technology can have in driving economic growth and higher living standards in the UK. This year, the UK Government published its Digital Strategy 2022, with a mission to strengthen the country’s position as a “Global Science and Tech Superpower”, and to encourage investment and innovation so that the UK can continue to compete on a global stage. At Amazon Web Services (AWS) we share this vision, and we commissioned independent consultancy Public First to undertake a new study to understand the role that cloud computing can play in unlocking the UK’s digital ambitions. According to Public First’s report, digital technology could grow the economy by over £413 billion by 2030. That is the equivalent of around 19% of the entire UK economy – or bigger than the entire regional economy of the South East of England, and more than twice the annual output of the UK’s manufacturing sector (£183 billion). The research also revealed that both citizens and businesses see digital technology as one of the biggest areas of growth for the country after health, with cloud computing playing an integral role in underpinning the technology stack that will enable the UK’s digital future. Yet while the UK has the ambition to strengthen its position as a global science and tech superpower, the research shows many organisations are still not equipped with the right tools, skills, and digital infrastructure to take full advantage of the digital opportunity. As such, Public First’s report shows that the UK will need to focus on increasing digital adoption, strengthening digital skills, and continuing to invest in digital infrastructure to unlock its full digital potential.
Edinburgh best place outside London for a career in finance – new study
London may be the country’s banking hub, yet there are 15 places across the UK and several unexpectedly finance-friendly towns that offer surprisingly good career prospects. A new study has found that Edinburgh offers the next best opportunities for a career in finance after London. Meanwhile, big districts like Cornwall, Bradford and Wiltshire disappoint in terms of the pursuing a finance career, barely competing with much smaller places, like Stockport, Solihull, Elmbridge, and Windsor and Maidenhead. The research, carried out by UK trading company CMC Markets, analysed the latest data from the Office for National Statistics, published in March 2022, for finance enterprises in 342 UK districts, excluding London, and the latest available population statistics. It found that 63% of British firms offering financial services alone, excluding insurance and pension funding, are located outside London. Edinburgh tops the list for best places outside London for a career in finance, with around 310 firms and 527,620 residents calling it their home. It is also the only other place outside London that hosts large firms with over a thousand employees each. With a population of 1,144,900, Birmingham ranks second for finance enterprises, with around 265 firms located here, although none hire more than 250 staff.
UK economy expected to be in recession until summer 2023, says latest EY ITEM Club forecast
High energy prices, elevated inflation, rising interest rates and global economic weakness mean the UK economy is expected to be in recession until the middle of 2023, according to the new EY ITEM Club Autumn Forecast. Following a forecast 0.3% decline in GDP in Q3, the UK economy is expected to contract around 0.2% each quarter from Q4 this year through to Q2 2023, resulting in GDP falling 0.3% in 2023 as a whole. This is a significant revision from the 1% growth forecast for 2023 in the EY ITEM Club’s July Summer Forecast – although the scale of the upcoming downturn is expected to be shallow relative to previous recessions thanks, in part, to the Government’s intervention on household and business energy bills. As the squeeze on real incomes from high inflation eases, tax cuts take effect, the cheap pound boosts net exports and the tightening cycle for interest rates ends, GDP should return to growth in the second half of 2023. The economy is then expected to expand 2.4% in 2024 (unchanged from the Summer Forecast) and 2.3% in 2025.
https://www.ey.com/en_uk/news/2022/10/uk-economy-expected-to-be-in-recession-until-summer-2023
People are the key to business agility
Digital growth continues to accelerate across the public and private sectors. Organisations of all shapes and sizes rely on technology more than ever for business continuity and innovation to better understand and engage with customers. Keeping up with the pace of acceleration for digital solutions and products – and ensuring there is tech talent with the skills to match this level of output – remains a critical challenge. Unsurprisingly, the drive to increase digital capabilities has led to an unprecedented demand for digital skills. This gap in capabilities and skills is not new, however. It has been a challenge for more than a decade, but due to the combined need for speed and growth, it is now holding back organisations from building agility in their teams which is required to realise their digital ambitions. What can companies do to act now? The digital skills gap is more than tech skills. At AND Digital, we have identified a unique set of attributes that organisations need to adopt to make meaningful progress. Implementing agile ways of working, embedding a digital-first culture, and providing talent with continuous learning opportunities, are some of the ground rules. We believe every business is now a tech business, with software and data at its core. However, tech alone is not enough, it is still a human activity. We believe businesses need their own people to innovate, successfully compete and delight their customers. That’s why we work very hard to build and nurture a mindset and capabilities to enable high performance. This investment in people has delivered great speed and agility for us.