Business News Round Up (23/05/2024)
UK inflation falls to its lowest level in three years
Inflation has fallen to its lowest level in the UK for three years according to official figures. The rate of inflation fell from 3.2% in March to 2.3%. According to the Office for National Statistics, falling gas and electricity prices were a big part of the reason behind the sharp fall. Inflation peaked at 11.1% in October 2022, its highest for 40 years – the government pledged to halve the rate in 2023. The latest data shows the cost of electricity, gas and other fuels fell by 27.1% in the year to April. Rishi Sunak welcomed the news: “Today marks a major moment for the economy, with inflation back to normal. This is proof that the plan is working and that the difficult decisions we have taken are paying off. Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.”
Scottish Enterprise on track to reach 500 employee owned companies by 2030
A new census commissioned by Scottish Enterprise has revealed that the agency is on track to meet the Scottish Government’s goal of growing Scotland’s employee-owned business (EOB) community to 500 companies by 2030. The census, conducted by academics from the University of Leeds, University of New South Wales, and the White Rose Employee Ownership Centre, is the second of its kind, following the first in May 2022. Since then, the EOB community in Scotland has grown by 47% or 91 companies – an average of 45 new EOBs per year. With this trend continuing, Scottish Enterprise will meet the 2030 target, which the Scottish Government set out in its 2021 Programme for Government. Latest figures show there are currently 286 EOBs operating in Scotland (up from 195 in 2022) – comprised of 177 Scottish-registered EOBs, 25 Scottish-registered workers’ cooperatives and 84 EOBs with trading/production operations in Scotland, but which are registered elsewhere.
North West’s most active M&A advisers in Q1 unveiled
The most active legal and financial advisers in the North West’s mergers and acquisition sector during Q1 of 2024 have been revealed in a new report by Experian Market IQ. Mills & Reeve was the most active firm in the legal adviser rankings, working on ten deals. Napthens Solicitors (9), the most active firm in 2023, was in second ahead of Gateley (8), Shoosmiths (7) and Brabners (7). Addleshaw Goddard (5), Browne Jacobson (5), Hill Dickinson, DWF and Schofield Sweeney (4) completed the top ten. With eight deals, K3 Capital Group topped the financial adviser rankings by volume ahead of Azets (5), Altius Group (5), Grant Thornton (4) and Benchmark International (4). RSM, KPMG, Cavendish, DTE Corporate Finance, Cowgills and PKF made up the top ten. The largest transaction was the £200m investment by Octopus Energy Group into Deep Green Technologies, in return for a minority shareholding in the company.
https://www.insidermedia.com/news/north-west/north-wests-most-active-ma-advisers-in-q1-unveiled
Scottish borrowing increased
The UK Government has announced that it has increased the amount that the Scottish Government can borrow, as it looks to fund vital public services. Through the approval of the Scotland Act Order, Scottish borrowing powers are to increase in line with inflation, meaning that more investment can be put into schools, hospitals, and the infrastructure that is central to growth. This move will see the resource borrowing limit increase from £1.75 billion to £1.78 billion, and the increase of the capital borrowing limit from £3 billion to £3.05 billion. As part of the new Fiscal Framework agreement, the limit of annual resource borrowing has been doubled from £300 million to £600 million, as well as the removal of limits on how much of Scotland’s reserve can be withdrawn for future spending.
https://www.publicsectorexecutive.com/articles/scottish-borrowing-increased