Business News Round Up (20/09/2024)
Strong levels of M&A activity expected in UK manufacturing
Strong levels of M&A activity are expected across UK manufacturing for the remainder of 2024, as dealmakers see a rise in business confidence. According to BDO, M&A activity looks set to gain momentum in the final quarter of the year, as long as the political and tax backdrop remains conducive to dealmaking. However, reports of a potential rise in capital gains tax in next month’s Autumn Budget could impact sentiment towards M&A transactions. BDO’s latest Manufacturing Deals Review shows that in the first half of 2024, 307 deals were completed in the sector, across the likes of engineering services, food & drink, building products and packaging and materials. Of these, 18% were buy-outs, with cross-border deals representing a third of transactions (34%). In 2023, manufacturing saw a 25% increase in circular economy deal volumes, combined with the total deal value soaring to over £400 million of invested capital.
Scottish workers most optimistic about their job prospects
Employees across Scotland are more optimistic about their job prospects than the UK national average. That’s according to the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr). According to the latest iteration of the report, two thirds (66%) of workers across Scotland are confident about their job security in the next six months, above the national average of 61%. Given the strength of the country’s renewable energy market – with GB Energy set to be headquartered in Aberdeen – and amid growing speculation that Scotland will be named the host of the 2026 Commonwealth Games, this confidence is understandable. Employees were also more optimistic about the impact that the New Deal for Working People will have on their daily working lives.
UK consumer confidence tumbles in anticipation of ‘painful’ Budget
Consumer confidence in Britain fell sharply in September, wiping out the progress made so far this year, as anticipation of a “painful” Budget sapped household morale and threatened the UK’s spending recovery. The GfK consumer confidence index — a measure of how people view their personal finances and broader economic prospects — fell 7 points to minus 20, taking it back to January’s level, according to new data from the research company. The month-on-month fall was the largest since October last year, when offered mortgage rates were at a near-peak. And it comes despite cheaper home loans becoming available, rising real wages and the retreat of inflation, and will reinforce concerns that Sir Keir Starmer and his ministers have been too downbeat about the economy.
https://www.ft.com/content/8d3c1ec2-361f-43af-bda7-68a45c0e4f1c
UK government announces measures to end ‘bad payment culture’
The UK government has unveiled new measures to support small businesses and the self-employed by tackling the scourge of late payments, which is costing small businesses £22,000 a year on average and leads to 50,000 business closures a year. The government will consult on tough new laws which will hold larger firms to account and get cash flowing back into businesses. In addition, new legislation being brought in the coming weeks will require all large businesses to include payment reporting in their annual reports – putting the onus on them to provide clarity in their annual reports about how they treat small firms. This will mean company boards and international investors will be able to see how firms are operating. Enforcement will also be stepped up on the existing late payment performance reporting regulations which require large companies to report their payment performance twice yearly on gov.uk.