Business News Round Up (19/01/2023)
Confidence among UK SMEs drops sharply as government cuts back support
About one-third of small to medium-sized enterprises feel less confident in their ability to grow this year after the government’s Autumn Statement, in a sign of the pessimism spreading among many of the UK’s more entrepreneurial companies. The number of SMEs planning to expand has fallen from 38 per cent in summer last year to 17 per cent now, according to a survey by the Association of Chartered Certified Accountants and the Corporate Finance Network. The accounting groups also found that only a fraction of companies intended to recruit new staff in 2023, ranging from about 10 per cent among businesses in London to just 1 per cent in the east of England. Measures introduced by ministers to reduce the impact of inflation and mitigate an impending recession and rising energy costs have fallen short, according to the groups, which polled accountancy professionals on the financial outlook of about 12,350 SME clients. The survey’s findings highlight concerns among many smaller businesses, some of which are under pressure to repay debts accrued during bruising pandemic-related lockdowns. Company bosses flagged energy prices as one of their main concerns, with costs expected to remain high after state support with bills is cut back in April. Higher energy costs have added to wider inflationary pressures. On Wednesday, official data showed that UK consumer price inflation was at 10.5 per cent in December, down slightly on a 41-year high of 11.1 per cent in October. Separate figures this week revealed that corporate insolvencies rose sharply at the end of 2022.
https://www.ft.com/content/47a860b1-f488-4cd6-aef7-9b5f938f7f47
Levelling Up Fund: North West secures £355m
Eden Project Morecambe, an AI university campus in Blackpool, and the restoration of Haigh Hall in Wigan were among the projects awarded a share of the government’s £2.1bn pot. After months of delays, the second round of Levelling Up Fund winners has been announced. More than 100 projects were victorious in their bids, including 15 based in the North West. “We are firing the starting gun on more than a hundred transformational projects in every corner of the UK that will revitalise communities that have historically been overlooked but are bursting with potential,” said levelling up secretary Michael Gove. “This new funding will create jobs, drive economic growth, and help to restore local pride,” Gove continued. “We are delivering on the people’s priorities, levelling up across the UK to ensure that no matter where you are from, you can go as far as your talents will take you.” The North West claimed 17% of the cash, totalling £355m – the largest award win for a region, based on the government’s award breakdown which lists London and the South East separately.
Levelling up funding boosts 10 projects across Scotland
The UK Government has announced 10 projects in Scotland will share £177m of levelling up funding. Almost £27m will be sent to Shetland for a new ferry for the Fair Isle, £20m will help turn Arbuthnot House in Aberdeenshire into a museum and library, as well as modernising Macduff Aquarium, and £20m will refurbish the Palace Theatre in Kilmarnock. Prime Minister Rishi Sunak said his government aims to “build a future of optimism and pride in people’s lives”. Previous Westminster levelling up attempts have been criticised by the Scottish Government, with accusations of undermining devolution by passing funds directly to local authorities. Sunak said: “Through greater investment in local areas, we can grow the economy, create good jobs and spread opportunity everywhere. “That’s why we are backing a number of projects with new transformational funding to level up local communities in Scotland. “By reaching even more parts of the country than before, we will build a future of optimism and pride in people’s lives and the places they call home.” Levelling Up Secretary Michael Gove said the announcement marks the government “firing the starting gun” on projects across the UK, with more than 100 others announced, while Scottish Secretary Alister Jack said it is “fantastic to see real momentum gathering as we level up across Scotland”.
https://www.insider.co.uk/news/levelling-up-funding-boosts-10-28994130
Made Smarter backs 250th North West manufacturer
Made Smarter’s technology adoption programme has marked its fourth anniversary by helping its 250th SME manufacturer invest in new technology. Totalling 275 projects funded, the investment is worth £18m, including £5m funded by the government-funded and industry-led initiative and £13m from the businesses themselves. Made Smarter, which was launched in 2019 to help SME manufacturers digitalise, decarbonise and drive growth, is now looking towards further success in 2023. Manufacturers are forecasting their investments will create almost 1,300 new jobs, upskill 2,400 existing roles, and provide an additional £209m in gross value added (GVA) for the North West economy during the next three years. Made Smarter has helped manufacturers adopt technologies which enable them to integrate systems, capture and analyse data, and even create simulations of their plants and processes. Others are now using 3D-printing, automation, and robotics to solve business challenges and meet increased demand.
https://www.insidermedia.com/news/north-west/made-smarter-backs-250th-north-west-manufacturer