Business News Round Up (21/10/2021)
Scotland’s commercial property market on ‘road to recovery’ after investment rebound
Scotland’s commercial property market has begun its “road to recovery” thanks to strong investor appetite for industrial and retail warehousing assets, new figures reveal. Research by global property consultancy Knight Frank found that £1.2 billion has been invested in Scottish commercial property in the first three quarters of 2021, up by almost 21 per cent on the equivalent period last year as the sector rebounds from the pandemic. By way of comparison, investors spent nearly £1.7bn during the same nine-month period in 2019, prior to the Covid crisis. The latest research shows that overseas investors remained the most active buyers of commercial property assets in Scotland, accounting for just over £500 million of overall volumes. Private property companies represented a further £322m, equivalent to just over one-quarter of total investment.
How cities across the UK have been impacted by economic issues
Addition, the outsourced finance solution for SMEs and start-ups, has published a new national report revealing the cities most impacted by economic issues over the last 12 months. Leicester-based businesses have been most impacted, with 40% stating revenue has decreased over the last year. Manchester was second with 35%, and London was sixth – with 26% of businesses reporting a loss in revenue. The survey also highlighted which cities are struggling most to recruit, demonstrating that skill shortages and economic fluctuations are impacting massively on the job market across the UK. Bristol based businesses were most impacted by the ongoing issues, with 39% of all businesses struggling to recruit the right talent. One in four (25%) of firms in London are finding it hard to recruit, while Newcastle is the least impacted – with only 13% of businesses with concerns about recruiting. The extensive survey of businesses gives detailed insights into how economic factors such as the pandemic, Brexit, and other issues such as skill shortages are impacting firms across different cities throughout the UK.
ESG rules and regulations will hamper business growth and wider societal change – RSM UK
RSM UK has warned that confusion with Environmental, Social and Governance (ESG) rules and regulations will hamper business growth and wider societal change. The audit, tax and consulting firm carried out research, which found that nearly a quarter of business leaders are not making any attempt to measure the potential impact that their ESG goals might have on the environment or society, and in turn the benefits a robust ESG approach could have on business and society. The survey by RSM UK revealed that almost half (44 per cent) of the 416 UK middle market business leaders questioned are unfamiliar with ESG. The research was carried out by The Harris Poll, who surveyed 416 senior executives from UK middle market businesses; defined as companies with a turnover between £10m and £750m or financial institutions with assets under management of £200m to £7.5bn.
https://www.insider.co.uk/news/esg-rules-regulations-hamper-business-25265333
Inflation could surpass 4% by early 2022 say think tanks
The National Institute of Economic and Social Research (NIESR), Britain’s oldest independent economic research institute, has said inflation will surpass 4% next year. The NIESR claimed that short-term pressures, such as soaring energy bills, supply chain issues and worker shortages will increase consumer prices over the coming months. Their latest figures suggest that inflation “will peak above 4% in the first half of 2022 and that the Bank of England will consider a rate increase to prevent a wage & prices spiral from de-anchoring inflation expectations.” Responding to ONS consumer price inflation figures for September 2021, Julian Jessop, economics Fellow at UK-based free market think tank the Institute of Economic Affairs, agreed that inflation could soar beyond 4 per cent by the end of the year.