Business News Round Up (23/01/2025)
EU considers UK joining pan-Europe customs area
Britain could be invited to join a European customs area as part of developing closer relations with the EU. Maros Sefcovic, the bloc’s trade chief overseeing post-Brexit talks, said the Pan-Euro-Mediterranean Convention (PEM) allows manufacturers to take advantage of tariff-free trade. The previous Conservative government chose not to pursue PEM as part of its post-Brexit trade deal, but some businesses say it would help Britain rejoin complex supply chains that have been hit by customs barriers. Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea has not been “precisely formulated” by London yet and the “ball is in the UK’s court”. In addition, he said that a veterinary agreement to ease farm and food trade should be reviewed.
More funding needed to fuel ambitions in the North West – new report finds
Demand for funding is set to rise in the next 12 months, as North West businesses set out their growth ambitions for 2025 – a new report has found. An overwhelming 80% of regional businesses surveyed as part of Ambition 2025 are actively seeking funding to facilitate growth, with angel investment and growth capital the most favoured types of investment for North West decision-makers (21% each). Unsurprisingly, attracting external investment is the number one priority for regional businesses aiming to achieve their ambitions. This focus is especially strong among younger decision-makers (16-34-year-olds), with 56% of respondents identifying external investment as key to executing their growth strategy.
UK Government confirms ‘no plans’ for Scottish graduate visa scheme following First Minister’s call
The UK Government has confirmed that there are “no plans” for a dedicated visa for international graduates from Scottish universities or colleges who want to stay in Scotland after their studies. Officials dismissed the call by First Minister John Swinney yesterday for a Scotland-specific visa scheme that will help businesses to attract and retain talent to boost population and economic growth. Mr Swinney, speaking at JP Morgan Chase & Co in Glasgow, said that a ‘Scottish Graduate Visa’ would be linked to a Scottish tax code and be based on a requirement to live and work in Scotland. It would be granted for up to two years and would act as a bridge between Study and Graduate visas and the Skilled Worker Visa, giving international students an additional two years to gain the professional experience required to qualify for roles on the Skilled Worker Visa route.
British Business Bank celebrates 250,000 job creation over first decade
The British Business Bank has revealed its business funding programmes have supported the creation of 250,000 jobs in its first 10 years. The Sheffield-headquartered bank was set up in 2013, with then-business secretary Vince Cable describing the state-owned economic development bank as providing “long term support for long term investment and growth in the UK”. The Bank’s creation was based on an identified gap in the market and the measure of its success has always been tied to how its funding underpins private investment to accelerate growth. It has put £6.3bn into smaller businesses around the country, which has been deployed alongside £10.0bn of guaranteed lending and £16.1bn of private sector capital. The Bank published Power of 10, an impact report into its first 10 years, which says that funding will ultimately result in 250,000 new jobs, business turnover increasing by £97bn, and adding £43bn of gross value added (GVA).