Business News Round Up (23/06/2023)
Tech sector driving foreign direct investment into Scotland
The tech sector is driving foreign direct investment into Scotland, according to new economic figures released this week. Edinburgh and Glasgow, in particular, are focal points for investment in digital technology alongside utility supply, including renewables. The cities are ranked in the top 10 in the UK, with Edinburgh at 2nd, Glasgow 4th, and Aberdeen joint-5th, for FDI projects outside London, according to an annual tracker. EY’s attractiveness survey showed that Scotland outpaced both the UK and Europe for the second year in a row, maintaining its position as the top performing area of the UK outside of London for the eighth year. Inward investment projects grew by 3.3 per cent in 2022, compared to 1.4 per cent growth across Europe and a 6.4 per cent fall across the UK. Scotland’s share of UK FDI projects reached a record high of 13.6 per cent – up from 12.3 per cent the previous year – while a record 19.2 per cent of investors responding to the EY survey said they were planning to establish or expand operations in Scotland, indicating strong investor sentiment. Trade Minister Richard Lochhead said: “These results show Scotland once again outpacing the UK and Europe when it comes to the pace of growth in securing Foreign Direct Investment. This is in spite of the significant challenges in the economy caused by Brexit, Covid and the geopolitical instability which triggered the current the cost of living crisis. Attracting inward investment is critical to shaping and growing our economy and ensuring we thrive in the global marketplace. These findings clearly demonstrate Scotland’s attractiveness as an investment destination and highlight the phenomenal progress being made to grow our international reputation as a dynamic, open nation with an outward facing economy. From being at the forefront of the energy transition to the rapidly emerging cutting-edge technology such as in the space sector, there is a tremendous opportunity for us to capitalise even further.”
Boosting training could add £200m to UK economy, study suggests
Increasing investment in training and education could boost the UK economy by more than £200m, a study from a North East firm suggests. The report from Durham-based national training company Learning Curve Group said that training in areas such as digital skills, leadership and management, and STEM could boost the country’s economic growth by up to 1.4% by easing labour shortages. There would also be a boost to the public wellbeing by getting people into better jobs, while business investment is likely to increase if companies have more skilled workforces, the report says. As well as boosting individual pay and increasing business confidence, the Learning Curve study said that increased skill levels would improve productivity, one of the key challenges that has been facing the UK economy for a number of years. The report – which has been endorsed by Apprenticeships and Skills Minister Anne Milton – says that “policymakers should acknowledge that further action is required to boost training throughout the UK so that these various benefits are captured to the greatest extent possible.”
https://www.business-live.co.uk/economic-development/boosting-training-could-add-200m-27178478
Scotland ‘losing £3 billion a year of public revenue’ due to Brexit
Brexit has led to an expected loss of £3bn a year to public revenues in Scotland, the Scottish Government has claimed. It has published a new paper to mark the seventh anniversary of the referendum on the UK’s membership of the European Union, which sets out the consequences of the vote. While almost two thirds of Scots voted to remain in the EU, the UK as a whole narrowly opted to leave. As well as the loss of public revenue, the Scottish Government paper stated that leaving the EU is responsible for about a third of the “rampant” food price inflation currently being experienced across the UK. Meanwhile, more than two fifths (44%) of Scottish businesses named Brexit as the main cause of trading difficulties they have with overseas customers. Some 45% of tourism businesses in the Highlands and islands are dealing with staff shortages as a result of the UK quitting the EU, the paper claimed. Constitution Secretary Angus Robertson also highlighted the “hundreds of millions of pounds” of European funding that have been lost to Scotland’s rural and research sectors.
https://www.insider.co.uk/news/scotland-losing-3-billion-year-30303111
Amazon to increase investment in UK production skills
Amazon has announced plans to fund 350 apprenticeships and traineeships across television, film and books. The announcement comes as new research shows that Amazon has invested in excess of £4.2bn in the UK creative industries since 2010, supporting 16,000 jobs. The independent macroeconomic consultancy Capital Economics showed that this had contributed £4.8bn of gross value (GVA) to the UK economy since 2010. Regionally Amazon stated that 50% of the direct and indirect jobs were outside of London and the South East. The North West accounted for 840 roles, Yorkshire 660 and the East of England 930. “The UK has long been a creative powerhouse, brimming with some of the world’s most talented authors, musicians, actors, designers, technicians and more,” said John Boumphrey, VP and UK Country Manager at Amazon. “Amazon is unique in the breadth of creative industries we support, from TV and music, to fashion and publishing, and new data shows that our investments in these industries have contributed more than £4.8bn to the UK economy since 2010. We are committed to supporting this vital sector, and we have more than doubled our investments in UK-based productions, skills programmes, production facilities, and more to power the UK’s creative sector today, and support the creators of tomorrow.”