Business News Round Up (25/04/2024)
Scotland outperforming UK-wide sales growth slump
A boost in small business hiring has been offset by slow sales growth across the UK, according to a new report.The first quarter of 2024 has witnessed 1.4% year-on-year (YoY) rise in employment among UK small businesses, the most substantial growth in two years. This is according to the latest data from Xero Small Business Insights (XSBI), which also noted commendable increase in wage growth, reaching 3.3% YoY. However, this achievement was dampened by the sluggish sales noticed in the same quarter, with only a 0.5% YoY increase. This tepid growth was primarily attributed to a 4% YoY decline in March sales, partly influenced by the early Easter bank holiday. Scotland and the North of England emerged as frontrunners in bolstering economic growth this quarter, with small businesses in these regions showing a more robust performance than the rest of the UK.
https://www.digit.fyi/scotland-outperforming-uk-wide-sales-growth-slump/
Nature depletion is slowing the UK economy and poses major risks, report finds
Damage to the natural environment is slowing the UK economy and could put a larger dent in economic output than was seen during the 2008 financial crisis or pandemic lockdowns. Sectors such as agriculture, utilities and manufacturing are highlighted as facing higher levels of nature-related financial risk, while some banks could see 4-5% reductions in the value of their domestic portfolios. This is according to research from the Green Finance Institute (GFI) working with researchers and economists from the universities of Oxford and Reading, the National Institute of Economic and Social Research (NIESR) and the UN. Deterioration of the UK’s natural environment in combination with climate change could result in UK gross domestic product being 8% lower than it would otherwise by 2030, or by 12% lower due to a scenario involving an antimicrobial resistance-pandemic scenario, according to the report.
Occupier demand for Scottish commercial property rises
Overall occupier demand for commercial property in Scotland rose in Q1, driven by strengthening demand for office and industrial space. The latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor showed a net balance of 11% of surveyors in Scotland noted a rise in overall demand for commercial property; the highest since Q2 of 2022, and the second highest balance across all UK regions, after central London. Occupier demand for both office and industrial space saw a rise – net balances of 17% and 33% respectively – and both were stronger than the previous quarter. Occupier demand for retail space remained in negative territory, with a net balance of -17% of surveyors reporting a fall. However, this was an improvement on recent quarters. Overall investor demand remained in negative territory for the seventh consecutive quarter, with a net balance of -16% of surveyors in Scotland reporting a decline.
https://www.insider.co.uk/news/occupier-demand-scottish-commercial-property-32660883
Scots firms going bust at highest rate for a decade
Scottish business are failing at their highest rate for more than a decade as creditors chase unpaid bills in an attempt to balance their own books. High costs of rent, energy, and raw materials, together with higher wage demands, contributed to a 3% year on year rise in corporate insolvencies to 1,168 for 2023-24, the highest since 2012 (1,369). Figures from the Accountant in Bankruptcy show last year’s figure was up 23% compared with pre-pandemic 2019-20. The data for Scotland also showed an increase last year in personal insolvency numbers, relating to bankruptcies and protected trust deeds. There were 8,085 personal insolvencies in 2022-23, up 1 per cent on the 8,001 in the preceding year. The annual rise in corporate insolvencies has been partly driven by an increase in compulsory liquidations, which have grown by almost a third from last year.
https://dailybusinessgroup.co.uk/2024/04/scots-firms-going-bust-at-highest-rate-for-a-decade/