Business News Round Up (22/05/2023)
Nearly half of UK firms to defer investment due to tax rises, survey finds
Almost half of medium-sized British companies plan to delay investment plans due to last month’s rise in corporation tax, a survey published on Monday found. Low business investment is one of the reasons economists give for the weak growth in British productivity and living standards over the last decade, and businesses have complained that higher tax rates reduce their incentive to invest. Britain’s headline rate of corporation tax rose to 25% in April from 19% the year before, under the enactment of a policy announced in March 2021. Accountants BDO said 46% of businesses surveyed with a turnover of between 10 million and 300 million pounds ($12 million – $379 million) reported that the rise in corporation tax would delay investment, while 39% said it would slow hiring or lead to job losses. To try to limit the impact on investment, finance minister Jeremy Hunt said in March that businesses would be able to immediately offset investment in plant and machinery against tax, a policy known as full expensing. “The recent rise in the headline corporation tax rate will dampen current business investment plans although the positive reaction to the new full expensing capital allowances regime suggests this may only be a short-term effect,” said Paul Falvey, a tax partner at BDO.
Key priorities for international growth
International Scotland, an initiative led by law firm CMS and the Fraser of Allander Institute, has launched a new report setting out key business priorities to be addressed to ensure the nation’s economy can thrive. Focused on providing a platform to promote economic growth, International Scotland was launched last year with an initial report setting out the opportunities for growth across key sectors such as sustainable tourism, food & drink, life sciences and renewable energy. This was followed by a series of engagements across the nation with business leaders, Scottish Government ministers and policy groups including Royal Society of Edinburgh’s Economics and Enterprise Committee, Scottish Development International, and Women’s Enterprise Scotland. The latest report, which reflects the core viewpoints raised within these discussions, sets out the potential benefits of Scottish Government ministers implementing focused policies to support the nation’s key sectors. This includes considering the reinstatement of tourism as a key remit for the Scottish trade minister. The industry had been at the heart of the former trade minister Ivan McKee’s brief but was removed from any form of ministerial representation when First Minister Humza Yousaf carried out his first cabinet reshuffle in March. The International Scotland report also highlights the need to address barriers in the planning system to ensure Scotland can deliver key infrastructure projects, build more housing, and fully maximise the opportunities of the green economy. It says current planning rules are presenting a key challenge in attracting investment into the green economy.
Eurovision boosts Liverpool One footfall and sales
Liverpool ONE benefitted from a £19.9m boost across the Eurovision period, new figures have found, as footfall reached record-levels. For the week of 7 to 13 May, which included the song contest’s two semi-finals alongside the final, footfall in the shopping complex climbed by 31.5 per cent versus the same week in 2022. The figure exceeded the predicted uplift of 25 per cent and was significantly higher than the UK average of 5.7 per cent. For the entire Eurovision period, which covers 5 to 14 May, footfall jumped by 17.3 per cent, with Liverpool ONE recording 680,000 visits. As a result, CACI, the consumer and location intelligence specialist, calculated an additional £19.9m of customer spend. Restaurants in particular enjoyed the uptick in visits, with sales soaring by 78 per cent across the whole period, peaking on the day of the final with a rise of 87 per cent compared to the prior year. The destinations’ Eurovision period performance is its most successful to date in 2023, breaking post Covid-19 record figures, outside of the holiday season. Analysis by CACI also found that Liverpool attracted visitors from five times more countries than usual, with the most arriving from Switzerland, the US, Uzbekistan, the Netherlands, and Ireland.
https://www.insidermedia.com/news/north-west/eurovision-boosts-liverpool-one-footfall-and-sales
Scottish salmon sees further surge in demand
Scottish salmon exports are enjoying a boom in popularity in Asia markets where sales have doubled, new HM Revenue and Customs figures show. Sales to the European Union have held up, while North America has also seen a surge in demand. North America and Asia accounted for nearly half (47%) of all sales in the first three months of this year, driven by strong demand from China, Taiwan, Singapore, and South Korea. The value of exports to Asia has soared by £12 million, to £24m. Trade body Salmon Scotland said the figures show that farm-raised salmon “generates vital income for the country”. It comes amid a backlash to Scottish Government plans to introduce Highly Protected Marine Areas (HPMAs) which the industry warns will threaten jobs and investment. Salmon farmers are also calling for an overhaul of the cluttered regulatory and planning system, and for more of the revenue from licence fees to be ring-fenced for rural housing. Farm-raised salmon directly employs 2,500 people in Scotland and a further 10,000 jobs are dependent on the sector. Fresh, whole Scottish salmon export sales between January and March reached £134 million, an 18% increase from the same period in 2022.
https://dailybusinessgroup.co.uk/2023/05/scottish-salmon-sees-further-surge-in-demand/