Business News Round Up (24/10/2024)
High Streets pay more than third of UK business rates
High Streets are paying over a third of all business rates in the UK despite only accounting for 9% of the economy, according to new research. Analysis from the British Retail Consortium (BRC) and UKHospitality found that in 2023/2024 retail and hospitality businesses paid nearly £9 billion in business rates, or 34% of the overall rates bill. Retailers and hospitality companies are expected to pay even more after business rates relief ends on 31 March next year. The BRC warned that this would cost the sectors a combined £2.5 billion, taking the overall bill up to £11 billion, or 44% of the total rates bill. The trade association said that all other UK industries, including manufacturing, construction, transport and storage, accommodation and food, info and communications, finance and insurance, science and tech, admin and support, and wholesale, are currently paying much less in business rates than the retail sector.
https://www.retail-systems.com/rs/High_Streets_Pay_More_Than_Third_Of_UK_Business_Rates.php
Scotland faces rising corporate insolvencies amid economic challenges
In recent months, Scotland has witnessed a notable increase in corporate insolvencies, reflecting broader economic challenges. According to recent data, there has been a 10% rise in the number of companies entering administration or liquidation. This trend highlights the financial pressures faced by businesses across various sectors, exacerbated by factors such as inflation and changing consumer behaviours. The recent statistics on corporate and personal insolvencies in Scotland reveal contrasting trends that underscore the complex financial landscape businesses and individuals are navigating. In the second quarter of 2024-2025, corporate insolvencies, including liquidations and receiverships, rose by 10.6% compared to the same period in the previous year, reaching a total of 313 cases. This increase is also evident when compared to the previous quarter’s total of 283 cases (April-June 2024). In contrast, personal insolvencies, encompassing bankruptcies and protected trust deeds, saw a decrease of 9.1% from the previous year, totalling 1,891 cases.
Business leaders’ profit expectations at three-year low, new research shows
Company profit expectations are at a three-year low, with confidence in their funding positions on a downward trajectory, claims the latest Grant Thornton Business Outlook Tracker. It found that 39% of respondents expect their businesses’ profits to increase over the next six months. This is the lowest level seen since December 2021, and a significant -30 percentage point (pp) drop compared with February this year (69%). With interest rates remaining high at 5%, despite inflation falling, businesses’ confidence in their funding position also continued a steady decline in October. Confidence dropped -3pp compared with July, and -9pp compared with February. While overall confidence in the economy remains stable, there has been a slight increase in businesses’ pessimism about the outlook of the UK economy across this year. As the new government’s first Budget approaches, 13% of businesses are pessimistic about their outlook, a +4pp increase compared with February 2024.
Amazon invests £3.5bn in Scotland since 2010
Amazon has invested over £3.5 billion in Scotland since 2010, generating an estimated £3bn for the Scottish economy, according to its latest Economic Impact Report. The figures are taken from the latest Amazon Economic Impact Hub, which details the investments made by Amazon across the UK since 2010. The 2024 Amazon UK Economic Impact Hub features data on the number of jobs Amazon has created regionally and the level of the company’s economic activity supported by its investments. The figures also show the number of local, independent SMEs supported by Amazon and the export sales achieved by businesses who sell products on Amazon. Since 2010, Amazon has invested over £2.6bn in Eastern Scotland and more than £3.5bn in the Scotland. This investment led to the production of goods and services that contributed over an estimated £3bn to the region’s GDP.
https://www.scottishfinancialnews.com/articles/amazon-invests-ps35bn-in-scotland-since-2010