Business News Round Up (19/04/2024)
Scottish Businesses look to the future after tough start to 2024
Scottish businesses have delivered their top priorities for any future UK government, according to the latest Addleshaw Goddard Scottish Business Monitor (SBM) report. The survey of around 400 firms from across the economy found that “delivering long-term economic growth” was top of the wish list, selected by 72% of businesses, followed by “tackling labour and skills shortages” (45%), “reducing UK business taxes” (43%), and “investing more on infrastructure” (39%). Produced in partnership with the University of Strathclyde’s Fraser of Allander Institute, the report on the first quarter of 2024 reflected a difficult period for business in Scotland as across almost every measure firms reported deteriorating business conditions. All of the survey’s regular activity measures – sales, new business, turnover employment, capital investment and exports – were in negative territory for the first time since the end of 2022.
Retail sales stagnant in March despite improving prospects for UK economy
Retail sales remained flat in March, according to the Office for National Statistics (ONS), in a sign that the strength of the consumer might be waning after a strong start to the year. The latest figures undershot economists’ expectations. Analysts had been expected retail sales volumes to rise 0.3% in March. Although overall sales volumes were flat, there were substantial changes within different categories. Fuel sales rose 3.2% with some economists suggesting consumers were more focused on travelling than spending on goods. Non-food store sales also rose 0.5% as better weather enticed consumers onto the high street. In contrast, sales in food stores and non-store retailers fell 0.7% and 1.5%. “Retailers suggested that increased prices were affecting consumer spending habits,” the ONS said. Over the year as a whole, volumes rose 0.8% but remained 1.2% below the pre-pandemic level in February 2020.
NW industrial and logistics sector remained flat in the first quarter, but expected to improve
Take-up of industrial and logistics units across the North West was relatively flat in the first quarter of the year. However, the sector is expected to pick up as the year progresses. New analysis by property specialist Knight Frank has revealed that deals for 485,000 sq ft of space were agreed during the period, with just six over 50,000 sq ft. The Manchester Knight Frank team delivered three of the deals – including the reassignment of a client’s existing lease in Haydock totalling 88,113 sq ft and two pre-lets totalling circa 200,000 sq ft at the World Freight Terminal at Manchester Airport. Availability remains strong with approximately 6.9 million sq ft of space available including 14 big shed spaces of more than 200,000 sq ft. A further 2.3 million sq ft is currently under construction.
Scottish Government accepts 2030 climate change target is ‘out of reach’
The Scottish Government has formally ditched a key climate change target, with Net Zero Secretary Mairi McAllan accepting the goal of reducing emissions by 75% by 2030 is now “out of reach”. She confirmed the target, which was included in legislation passed by the Scottish Parliament in 2019, was being abandoned. Ministers will bring forward legislation to ensure the climate change target “better reflects the reality of long-term climate policymaking”, McAllan told MSPs. This will also see the Scottish Government move away from legally binding annual targets – which it has missed for eight out of 12 years. While progress in reducing emissions will continue to be reported annually, the Net Zero Secretary said that Scotland would move to a “target approach based on five yearly carbon budgets” – saying by making this change the country would be adopting the same approach as the UK and Welsh Governments.
https://www.insider.co.uk/news/scottish-government-set-out-climate-32613846