Business News Round Up (25/01/2022)
Scottish cities highlighted as UK innovation hubs
Edinburgh is the UK’s top innovation city outside of London by a considerable margin, with Glasgow second, according to new research from Knight Frank. The property consultancy’s UK Cities 2021 report found the Scottish capital’s innovation infrastructure was the best of the 39 major UK cities analysed – buoyed by the research outputs, spin-out formation, and patent generations at its universities, as well as its research institutions attracting funding estimated at £2.24bn since 2015. The city also scores highly for its thriving start-up community, quality of life, and retention of a highly skilled workforce. More than half (53%) of students in Edinburgh intend to stay in the city post-graduation, according to Knight Frank’s research. Glasgow ranks higher than the likes of Manchester, Bristol, and Cardiff, demonstrating innovation infrastructure, with three universities benchmarked against global standards – the University of Glasgow, University of Strathclyde, and Glasgow Caledonian University. Scotland’s largest city also placed highly for its entrepreneurial ecosystem. Aberdeen is ninth in the index of Knight Frank’s markets, placing well for its innovation infrastructure, along with good scores for its quality of life and start-up community. The index combines 32 variables and more than 1,200 data points across the 39 UK cities to deliver its findings.
https://www.insider.co.uk/news/scottish-cities-highlighted-uk-innovation-26032205
Manchester’s 2021 economy rebounded the second fastest of the largest European cities
According to the latest research from Avison Young, Manchester is well on the road to recovery, after 2021 saw its economy grow by 8%, the second fastest* of 30 major European cities. In 2022, Manchester’s economy is predicted to grow by 6.5%, a significant increase compared to a ten-year, pre-Covid average of 3.4%, with the growth driven by a rebound in the sectors which were hardest hit during the pandemic. In the offices sector, demand for workspace continues to be robust and 2021 saw a healthy proportion of grade A take-up, of which there is a limited supply. This is contributing to the relatively muted levels of rental growth and is underpinning prime rents at the top end of the market, but overall, there is more available space than at any point over the last five years. Of particular interest is the growing tech sector in the city, with Roku and Cloud Imperium both committing to grade A space last year and due to occupy space during the course of 2022, bringing with them hundreds of new jobs.
Inflation surge sends UK interest payments higher
Interest payments on government borrowing last month hit a record high for December as surging inflation increased the cost of debt. The Office for National Statistics (ONS) said interest on government debt hit £8.1bn last month – up from £2.7bn a year earlier. The increase came as soaring energy costs sent inflation to a 30-year high. Official borrowing – the gap between spending and tax receipts – last month was a lower-than-forecast £16.8bn. The figure was down £7.6bn from the same month a year earlier, with the Treasury’s coffers bolstered by more income from housing stamp duty and fuel taxes. But public debt interest payments are linked to the Retail Prices Index of inflation, which hit 7.5% last month, the highest rate since March 1991. For the financial year to date, borrowing has now reached £146.8bn, the second-highest figure for the period since records began in 1993.
https://www.bbc.co.uk/news/business-60117150
“Record” year for North West industrial property market
The North West industrial property market experienced “another record year”, according to specialist agency B8 Real Estate. The business said investment deals broke through the £1bn barrier for the first time and occupier take-up was at “unprecedented levels”. Its latest market update shows there were 106 investment deals with a total value of £1.3bn during the year – 86 per cent higher than in 2020. Lettings also rose by 16 per cent year on year to 6.2m sq ft. With rising demand and limited supply, land values doubled during the 12 months. Prime sites are now bringing more than £2m per acre, while prime rents have reached £7.25 per sq ft, an increase of £0.50 per sq ft on the previous year. Key investment deals included the £29.6m sale of the Venus 217 warehouse in Knowsley and the £32m sale of Kingsway 216 in Rochdale, both occupied by Amazon. Others included the £34m sale of Blackburn’s Walker Park Industrial Estate and the £15.5m sale of Element, at Knowsley’s Alchemy Business Park.
https://www.insidermedia.com/news/north-west/record-year-for-north-west-industrial-property-market