Business News Round Up (21/03/2024)
Scotland contributes £14.2bn more tax to the UK economy
The latest analysis by finance experts, RIFT, has revealed that Scotland’s annual tax contributions to the UK have increased by £14.2bn over the last decade, with income tax, capital gains tax and taxes on productions such as environmental levies driving this increased contribution. However, while the Scottish people and Scottish businesses are contributing more almost across the board, government-backed public corporations have seen a reduction in the level of tax contributed to the economy. RIFT analysed the latest figures from the ONS on the revenue generated by public sector finances across Scotland and how these contributions have changed over the last 10 years. The analysis shows that the Scottish public sector generated an annual revenue of £73.3bn during the last financial year*, a 24% increase versus a decade ago, equating to an increased contribution of £14.2bn to the UK economy.
Manufacturers say UK is getting more competitive
More than half of Britain’s manufacturers are now viewing the UK as a more competitive place to locate their activities, compared to just 31% one year ago. While less than one-fifth believe the UK is not a competitive place in which to manufacture. These findings come from Make UK and PwC’s Executive Survey 2024, which polled more than two hundred senior manufacturing executives. It shows that after a very difficult few years through the pandemic and the shock to energy prices, there are optimistic signs with companies more bullish about the prospects for manufacturing in 2024. Just over 44% believe that conditions in the sector will improve, with only one in five believing the contrary. While an increasing number also believe the UK is becoming more competitive than its European rivals.
NPIF II launches to build on success of first fund
The British Business Bank has launched its new Northern Powerhouse Investment Fund II (NPIF II), a £660m fund set to cover the North of England. The new fund has greater flexibility and higher investment limits, the bank’s Ken Cooper told Insider. Since the launch of the first Northern Powerhouse Investment Fund in 2017, the bank said it has supported about £570m of direct and private sector co-investment into 608 businesses in the North West, creating close to 3,500 jobs. Aiming to build on the success of the initial fund, Northern Powerhouse Investment Fund II will also drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. It will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment.
https://www.insidermedia.com/news/north-west/npif-ii-launches-to-build-on-success-of-first-fund
Is lack of tech investment hampering UK business growth?
Most mid-sized enterprises are actively seeking to integrate technologies such as cloud and AI into their business posture. UK technology company ANS recently surveyed IT decision makers to investigate how technology impacts the growth of UK enterprises. The report, conducted in partnership with YouGov, revealed 48% think not having access to the latest technology is limiting their business growth. It also found that 81% believed limited investment in technology restricts the wider growth of UK businesses, with lack of budget, staffing issues, and access to new technologies as key concerns. Most mid-sized enterprises are looking not only to embrace the potential benefits of nascent technologies like generative AI, but to fully leverage widely-available solutions such as cloud. However, many are being hampered in their ability to integrate these technologies as a result of affordability and access to talent that can fully utilise and maintain these kinds of technological solutions.
https://www.digit.fyi/is-a-lack-of-tech-investment-hampering-uk-business-growth/