Business News Round Up (24/10/2023)
High interest rates ‘preventing investment in Scottish economy’
The latest Scottish Chambers of Commerce quarterly survey has revealed concern over interest rates – rising from 37% to 50% of firms – which is a five-year survey high. Worries about inflation also remain high, but have eased generally over the quarter, down to 70% from 75%. Less firms are indicating that they will raise prices this quarter compared to last, with just under half (48%) stating they will raise prices, compared to 55% last quarter. While more firms continue to report rises in investment than falls on balance, 55% have reported no changes to total investment – which is a five-year survey high. Over half of firms (57%) have also reported no changes to training investment levels, which is another five-year survey high. This survey was conducted from 21 August to 18 September, with 380 firms responding – of which 93% were SMEs; defined as businesses with less than 250 employees. Stephen Leckie, president of the Scottish Chambers of Commerce, said: “These results indicate challenging trading conditions for firms, with inflation, interest rates and labour shortages preventing growth and delaying investment. Whilst business confidence is starting to pick up from the low levels of 2022, this renewed optimism is not translating into sustained performance and output from firms necessary to get our economy firing again. If Scotland is to maintain its competitiveness domestically and internationally, direction and impetus is needed from government north and south of the border in upcoming budget statements.”
https://www.insider.co.uk/news/high-interest-rates-preventing-investment-31257426
Manchester office take-up almost doubles in Q3
Occupiers signed for a total of 351,000 sq ft during July, August, and September, 172,000 sq ft more than the previous quarter, according to Manchester Office Agents Forum. Letting activity in the city centre in the third quarter of 2023 was also up year on year; the same period in 2022 saw 326,000 sq ft transacted. A total of 59 deals were completed in the last three months, with two education providers taking the most space. Arden University signed for 43,000 sq ft formerly occupied by Deloitte at 2 Hardman Street – a deal first revealed by Place North West – and UA92 snapped up AO’s former 37,000 sq ft office at Bruntwood’s Riverside. Elsewhere, flexible workspace provider Cubo made its first foray into Manchester, becoming the first company to commit to M&G’s Lincoln, taking 31,000 sq ft. Q3 also saw Manchester reach record headline rents in the city centre with Relentless Development’s pre-lets to Pinsent Masons and Hill Dickinson at No.1 St Michael achieving £43/sq ft. The law firms both signed 10-year leases for a combined 45,000 sq ft. “Grade A space continues to let well, especially as supply of quality space is diminished in the city centre,” said Rosie Veitch, associate at Sixteen Real Estate. “The take-up we’ve seen over the last three months is hugely positive, and we expect this level of level of activity to continue as we look ahead to the final quarter.”
Unemployment rate points to softening market
Unemployment came in largely unchanged at 4.2% and companies employed 82,000 fewer workers in the last three months, according to delayed and adjusted figures from the Office for National Statistics. The data was held back by a week due to changes in the labour force survey, and the ONS said it has used extra data sources to estimate the figures based on new metrics. Indications of a softening of the jobs market has added weight to the case for the Bank of England to leave interest rates unchanged. “Because of the increased uncertainty around the Labour Force Survey (LFS) estimates, today we are publishing an alternative series of estimates of UK employment, unemployment, and economic inactivity as experimental statistics,” said the ONS. Darren Morgan, ONS director of economic statistics, said: “Today we have produced a new metric, produced by adjusting our headline survey estimates using robust administrative data sources that we receive from other Government departments. This maintains the accuracy of our key statistics. This is part of our transformation of the way we measure the labour market where we are introducing an improved Labour Force Survey, asking more people in different ways about their employment status.”
https://dailybusinessgroup.co.uk/2023/10/unchanged-jobless-rate-points-to-softer-market/
Expert regional innovation hubs given £75 million boost to local research, businesses and economies across UK
Regional clusters of world-class innovation across the UK are being backed by a share of £75 million that will boost local economies and pioneer game-changing solutions from healthcare to net zero, UK Science Minister George Freeman has announced today (Monday 23 October). Following pilots in Liverpool and Teesside, launched earlier this year, a further 8 Launchpads, facilitated by Innovate UK, will be rolled out across every nation of the UK. These initiatives will build on existing clusters of high-tech innovation in each region, such as renewable energy in Southwest Wales, Agri-tech in East Anglia, and digital health in Yorkshire. Launchpads is a programme that supports emerging clusters of small and medium-sized enterprises (SMEs) by providing each Launchpad up to £7.5 million from Innovate UK to fund innovation projects led by local businesses. The £7.5 million bespoke funding from each Launchpad will allow SMEs in each region to bid for support that is tailored to the unique needs of each business cluster, helping them drive innovation, expand operations, and boost their local economies. Launchpads concentrate their support in specific areas of the UK with strong innovation capabilities. This approach encourages close collaboration with local leaders and provides tailored support, including funding for research and development, access to specialised innovation resources, and opportunities for SMEs to connect, share ideas, and participate in joint ventures.