Business News Round Up (23/04/2024)
Scotland urged to fast-track investment zones and freeports amid foreign investment dip
Wright, Johnston & Mackenzie is calling for accelerated progress on investment zones and freeports to bolster economic growth, after its analysis showed a concerning downturn of foreign interest in Scottish businesses. In 2023, only 23 Scottish businesses were subject to overseas deals, compared to 36 in 2022. The research says foreign investment in the UK is increasingly concentrated in London and the South East, with these areas accounting for 42% of deals in 2023, up from 35% in 2019. Investment zones and freeports aim to drive investment and innovation across the UK, offering a favourable environment for businesses to grow. The UK government says it is committed to establishing 13 investment zones across the UK and last summer, together with the Scottish government, it announced the Glasgow City Region Regional Economic Partnership and the North East of Scotland Regional Economic Partnership.
UK exports of services have grown 9 times faster than goods since 2010
UK services export volumes have risen nine times faster than goods since 2010, according to official data, further underlining the economy’s shift away from manufacturing, which some economists said was accelerated by Brexit. Figures published by the Office for National Statistics on Monday showed a 63 per cent real terms growth in the export of services in the 14 years to the end of 2023, compared with just a 7 per cent rise for goods. “Trends in UK trade have been a long-run shift from goods exports to services exports, as competition from both the EU and other manufacturing centres has pushed UK comparative advantage towards services,” said John Springford, of the Centre for European Reform think-tank. “Brexit has accelerated that shift.” The latest data shows that although services exports have recovered strongly since the pandemic, goods export volumes have not and were in fact still below 2013 levels.
https://www.ft.com/content/e4a66eb7-1cc4-45ad-ab2c-ae2141d71dab
Government urged to improve conditions for foreign investment into North West
The Government should continue its support for Investment Zones and Freeports to tackle a fall in overseas investment in the North West. That’s the view of specialist business lawyers at Irwin Mitchell following analysis of industry data. This showed that, although the UK continues to drive significant interest from foreign buyers, the number of UK firms which were targeted in an overseas deal, such as an acquisition or management buyout, fell to 51 last year compared with 58 in 2022. The research says London and the South East accounts for four out of 10 foreign investment deals into the UK and also reveals that its dominance has increased in the past five years. It says in 2019, 35% of the companies targeted by foreign investors were based in the capital or the wider region, but by 2023 this stood at 42% of total deals.
Scottish administrations reach highest level since pre-pandemic
The number of companies in Scotland filing for administration hit the highest first quarter rate since before Covid-19, according to figures from Interpath Advisory. Analysis of notices in The Gazette showed there were 12 administrations in Scotland during the first three months of this year – double last year’s corresponding figures. This also represents the highest number of administrations for the first quarter of the year since before the pandemic struck – when there were 21 cases in the first quarter of 2020. The jump in cases, albeit from a low benchmark, was significant above the trend seen across Britain, which saw a modest rise from 321 in the first quarter of 2023, to 328 in the first quarter of 2024. Sectors impacted in Scotland by administrations include business services, professional services, construction, and retail.
https://www.insider.co.uk/news/scottish-administrations-reach-highest-level-32644195