Business News Round Up (20/05/2021)
Scottish business confidence hits highest level for almost seven years
A new survey from chartered accountancy body ICAEW, published today, found optimism had improved markedly at 29.4 on the quarterly index – marking its highest point since 2014. The organisation’s latest business confidence monitor put the sharp rise in confidence down chiefly to the vaccine rollout and expectations of a strong rebound in economic growth as lockdown restrictions ease. The boost in confidence follows a tough 12 months for Scottish businesses, which experienced a fall in domestic sales and little export growth in the year to the start of the second quarter of 2021. The business monitor found that domestic sales were expected to grow at their fastest rate since the survey began in 2004, while the rate of export growth was anticipated to outpace the rest of the UK over the coming year.
UK inflation more than doubles as post-lockdown price climb begins
British inflation more than doubled in April, the start of a likely climb in prices this year as rich economies recover from pandemic lockdowns, but one that the Bank of England hopes will prove temporary. After U.S. inflation last week hit its highest level since 2008 and prompted Federal Reserve officials to say they were in no rush to raise interest rates, Britain’s consumer price index rose by 1.5% in April. That was a sharp jump from the 0.7% rise seen in March and marked the highest CPI reading since March 2020, driven by higher power and fuel bills as global oil prices climb from their pandemic lows of 2020. April’s inflation reading was, however, only a touch above the 1.4% rise seen in a Reuters poll of economists and was still below the Bank of England’s 2% target.
https://www.reuters.com/world/uk/uk-inflation-more-than-doubles-15-april-2021-05-19/
Fears for Scottish businesses as nearly 10 per cent of UK hotels shut
Hotels in Scotland risk being decimated as the effects of the pandemic cast a long shadow over the fortunes of owners and investors. Hotel businesses that are struggling with unsustainable debts, losses and staffing problems could decide to close permanently, a leading restructuring expert warns. Derek Forsyth, head of restructuring with Azets, said it is entirely possible that 10% of Scotland’s hotels could be forced to shut permanently by 2023. He pointed to a recent report by trade association UKHospitality that said the sector has £2.5 billion in rent arrears alone due to the pandemic, further compounding the debt accrued from the millions of pounds borrowed through the various Covid loan schemes made available last year. Furthermore, a new survey by the Scottish Tourism Alliance pointed out that 89% of hotels have up to 10 staff vacancies, highlighting the scale of the recruitment problem. In addition, the latest survey from Market Recovery Monitor has disclosed that nearly 10% of UK restaurants have closed since the pandemic.
Majority of North West employers struggle to fill digital vacancies, reveals new skills audit
More digital and tech jobs have been created in the North East during the pandemic, yet most employers struggle to fill technical vacancies. These findings were revealed by the North East Digital Skills Audit 2021. Delivered by Sunderland Software City as part of the national skills audit, the North East report surveyed 240 individuals and businesses to understand the impact the pandemic has had on the region’s digital skills landscape. The audit revealed that 51% of North East employers have posted at least one vacancy during the pandemic but 57% of those recruiting had been unable to fill a new job posting. The majority of unfilled job postings related to technical developer roles, showing the real skills gap in the region. While the North East shines in nurturing cross-sectoral talent, with many transitioning into the tech/digital sector from non-digital jobs such as sales, technical talent is still falling behind.