Business News Round Up (23/06/2022)
Flexible working has ‘hugely positive impact’ on Scottish workers
New ways of working are becoming the norm, and more than half of Scots (54%) are now working in home and hybrid roles. The Chartered Institute of Personnel and Development’s third annual Working Lives Scotland report revealed that more than three quarters of Scots (76%) who work flexibly say that it has had a positive impact on their quality of life. Those working flexibly are also more likely to be satisfied with their job, report better relationships with their managers and higher levels of job autonomy. CIPD commissioned YouGov to survey 6,262 workers – including 1,035 in Scotland – between January and March. The report shows that many of those who worked full-time from home during the pandemic have now switched to hybrid working, with 15% of employees in Scotland working fully from home and 39% working in a hybrid pattern – with the majority of these workers working from home for 50% or more of their time. However, 31% of Scots work in roles that cannot be done from home – for example those in lower-paid roles in caring, leisure and other services – and a further 14% say that they do not want to work from home at all. The CIPD is warning that organisations need to consider offering a variety of forms of flexible working, to make sure that they can retain employees in a challenging labour market, and to ensure fairness by enabling everyone to reap the benefits that flexible working affords.
https://www.insider.co.uk/news/flexible-working-hugely-positive-impact-27299729
North West SMEs attracted £872 million in equity investment in 2021
SMEs in the North-west secured £872 million in equity investment, triple the previous year’s figure, in 2021 according to the latest data released by the British Business Bank. Across the whole of the UK, smaller businesses attracted over £18 billion in equity investment, an increase of 88% on the previous year, according to the government-owned development bank’s Small Business Equity Tracker. The tracker data also revealed investment in North-west SMEs to be up 213% on 2020 figures. While the economic downturn in 2020 driven by the Covid-19 pandemic did contribute in part to sizeable increase in equity investment, North-west SMEs saw a 20% increase in previous performance for the two-years from January 2020 to the end of 2021. In the North-west, business services businesses represented the majority of the 160 SMEs to secure equity investment in 2021, while nationwide it was tech companies that saw the biggest growth in finance secured. Greater Manchester was the main centre for SMEs securing investment, accounting for 74 deals, and the fourth most active area in the UK in the 2019-21 period, with Cheshire and the Liverpool City Region also making the top 20.
Productivity stalled in 2021, figures show
Labour productivity in Scotland stagnated in 2021, new figures show. Output per hour in Scotland’s industries did not grow at all during last year, when the country was still struggling with the Covid-19 pandemic and some businesses were subject to closure. By comparison, there was a 0.2% increase in 2020. However, the final quarter of last year saw a 2.3% increase in output per hour, compared to the same time the previous year and 1% more than in 2019 – before the pandemic hit. Business minister Ivan McKee said the figures show Scotland’s productivity to be the third highest of UK regions – although such a breakdown is not available in the Scottish Government publication. “These statistics show that despite the vast and complex challenges that Scotland’s economy has faced in recent years, from the pandemic to Brexit and the ongoing cost-of-living crisis, the economy is resilient and continues to maintain and drive productivity,” he said. “Scotland continues to record the third highest productivity levels in the UK, below only London and south-east England, representing significant progress and welcome evidence that long-term economic actions are paying dividends. Our national strategy for economic transformation will further stimulate productivity and business growth by investing in skills, training, innovation, infrastructure, and entrepreneurship and expanding opportunities internationally.”
https://www.newschainonline.com/news/financial-news/productivity-stalled-in-2021-figures-show-276971
Northern Powerhouse tech sector wins £45 million investment
After a successful London Tech Week, the UK’s thriving tech sector is celebrating more good news as American tech consultancy firm Credera has announced a £45 million investment in the Northern Powerhouse. £20 million will be invested into Manchester to create 150 graduate roles over three years, for those looking to kickstart their career in tech. Manchester has a proven track record for innovation and development and has a strong reputation of being a great place to work. In 2020-2021 alone, Foreign Direct Investment (FDI) projects created over 4,000 new jobs in the North West, building on our ambitions to level up the UK and create more highly skilled jobs across the country. In the same time period, FDI projects created over 1,300 jobs in the North East, where Credera will invest £25 million into the heart of Newcastle to create 160 of an eventual 200 high-skilled positions for locals building their career in the UK’s budding tech sector. Newcastle’s growing tech scene will open the door to new and exciting opportunities thanks to the investment and will create jobs, boost the local economy and level up the UK.
https://www.gov.uk/government/news/northern-powerhouse-tech-sector-wins-45-million-investment