Business News Round Up (19/05/2023)
Number of UK sectors hiring hits six-month high
The number of UK sectors hiring new staff reached the highest level for six months in April, according to the Bank of Scotland UK Sector Tracker. In April, 10 out of the 14 UK sectors monitored by the tracker increased headcount – four more than in March, and the highest level since October 2022. The property sector hired at the fastest pace (59.1), followed by software and services (58.5), as greater availability of labour and stronger expectations of future output growth drove recruitment. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. In April, mentions of staff shortages by businesses surveyed by the Tracker fell to a 14-month low. Meanwhile, the measure of future output growth expectations over the 12 months across the economy rose to its highest level in 13 months (71.4), as businesses were less concerned about the effect inflationary pressures will have on output over the coming year. Automobile and auto part manufacturers reported the strongest output growth expectations (83.3), followed by software and services (82.5) and food and drink manufacturing (81.3). However, reports of wage pressures increased further during April – a factor that could impact the trajectory of inflation.
https://www.insider.co.uk/news/number-uk-sectors-hiring-hits-30011770
Manchester, Bristol lead way for spinout growth
Manchester and Bristol have the highest growth in the number of new spinouts in the UK, a report has revealed. Manchester is home to 58 spinouts, up from 52 last year, while 47 spinouts are based in Bristol, up from 42 – the highest proportional growth in spinout creation. The data, compiled by research firm Beahurst, shows that spinout growth is expanding beyond the ‘golden triangle’ of universities in London, Oxford, and Cambridge. Edinburgh is home to 78 spinouts, with the report citing the city’s “strong research institutions, funding ties, and access to top talent”. Recent spinouts from the University of Manchester include Apini Therapeutics, AI company Imperagen and online water managment platform Nexsys. “The remarkable growth of university spinouts outside the ‘golden triangle,’ exemplified by Manchester, Bristol, and Edinburgh, presents a compelling case for nurturing innovation hubs across the country,” said Maria Dramalioti-Taylor, partner at Beacon Capital LLP. In total, there are 1,166 active spinouts in the UK, according to the report by the Royal Academy of Engineering Enterprise Hub and Beauhurst. Over half (56.5%) of these are at the seed stage. Average investment into spinouts has risen by 187% since 2013 up to last year, with the average deal size standing at £3.91m.
https://www.uktech.news/news/industry-analysis/manchester-bristol-spinouts-20230518
Scotland’s shops see 10% drop in business rate bills
Scotland’s shops are seeing a fall in business rate bills of nearly 10%, following revaluation from the start of last month. New figures from the Scottish government reflect changed rental values, on which bills are based. These have been updated by council assessors for the first time in six years and form the basis for levying £3.86bn in tax. Most pubs and restaurants are also seeing an average 5% drop in bills. Within that, smaller premises are gaining from more of a cut, while the largest ones are seeing their bills go up. Larger shops have bigger cuts than small ones. For those with a rental valuation between £100,000 and £1m, retail bills are down 13%. Many smaller shops do not have to pay business rates, due to the Scottish government’s Small Business Bonus Scheme. Nearly two-thirds of hotels – including guest houses, hostels, and some self-catering properties – have seen valuations rise slightly. A system of transitional relief has been applied, to reduce volatility of business rates, and that means the average bill for hotels is down. For factories, rateable values are up 10% and bills up by 8%, with the largest industrial sites facing a much higher increase. The biggest increase in total costs is in the category of “designated utilities”, which often cross council boundaries. These include power transmission lines, pipelines, railways, waterworks, telecoms, and docks. The bill for these has risen 13%, to £840m.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-65615356
Greater Manchester sets next chapter towards being a world-leading digital city region
Greater Manchester has set out how, over the next three years, it will build on its increasing status as a world-class digital destination – with data and technology playing a crucial role in making the city region a greener, fairer, and more prosperous place. Originally launched in 2020, Greater Manchester Combined Authority (GMCA) along with stakeholders and communities from across Greater Manchester’s digital and tech sector have come together to refresh Greater Manchester’s Digital Blueprint for 2023-26. The 2023-26 blueprint has been launched against a backdrop of Greater Manchester’s world-class digital ecosystem and economy that is going from strength to strength, with unprecedented growth in investment and recognition of Greater Manchester as a global hub and digital city of the future. Inward investment in Greater Manchester’s tech companies has leapt forward since 2017-8, increasing by over one thousand percent by 2022, and the city-region is in the vanguard of work nationally and internationally in the areas of digital inclusion, AI, security, infrastructure, and digital public services. This blueprint will embed and accelerate that progress, refreshing the region’s strategic commitments to put people, our environment, and place firmly at the heart of plans. It outlines how GMCA and partners will improve the lives of Greater Manchester’s residents and for people and communities to feel empowered by the opportunities a digitally fuelled city-region brings.