Business News Round Up (25/06/2024)
Study finds cities need a bespoke growth strategy to win fair share of funding
A new study examining the growth and performance of 11 regional cities in the UK has declared that Manchester is a ‘booming city’, while Liverpool is a ‘solid performer’. The research is by Belfast-based OCO Global, which works with companies to help international business thrive and with governments to design and deliver growing, sustainable, future-focused economies. The cities were marked on a range of 37 datapoints over a decade that highlight strengths or challenges in each city. It resulted in four groups emerging when cities were clustered by overall scores. Edinburgh stood apart as a Top Tier city that performed strongly across all areas. Close behind were the three Booming Cities of Belfast, Bristol and Manchester which were leaders in many pillars but still had areas for improvement. The third group, Solid Performers, typically ranked in the top five in their strongest pillars but were ranked lower in other areas.
UK universities’ financial stability at risk
UK universities risk financial instability and worsening outcomes for all students due to overreliance on international fees warns think tank. The Social Market Foundation (SMF) says recent restrictions on international students have not addressed universities’ dependence on them for core funding. In two reports published today, the cross-party think tank recommends ways to reduce this overreliance while maintaining the UK’s appeal to foreign students. At present, international student fees account for 23% of English universities’ total income, forecast to rise to 28% by 2026/27. Universities make an average profit of 31p for every pound spent teaching international students while losing 8p per pound on domestic students. The SMF inform that government-driven reductions in postgraduate international numbers could seriously disrupt the sector, potentially leading to job losses and impacting all students’ educational experiences.
83% of UK firms increasing wages for AI skills amid challenges
According to the new Fiverr Future Workforce Index, 83% of UK businesses are willing to pay a higher wage to those with AI skills amid hiring challenges, with many moving their search away from full-time staff. While 80% of UK businesses are planning to make new hires in the next six months, over 4 in 10 have found finding full-time, permanent new hires this year to be difficult. In light of this, 93% of businesses will consult the support of freelancers and self-employed solopreneurs, particularly for AI skills and tasks (32%), that they do not have the skills for in-house. However, as business decision-makers believe there are significant growth opportunities for freelancers in the UK market, freelancers are still facing challenges with late payments and integration into companies. Fiverr’s latest Index continues to show how the make-up of the UK workforce is evolving away from full-time, 9-5 workers.
https://www.digit.fyi/83-of-uk-firms-increasing-wages-for-ai-skills-amid-challenges/
£1.3bn JV acquires Greater Manchester site in first deal
Chancerygate and Hines have entered a new strategic joint venture (JV) to develop multi-let urban logistics schemes. The JV, which is backed by £1.3bn, has acquired a Greater Manchester site in its first deal. Funded by Hines European Real Estate Partners III (HEREP), the JV has acquired a site in Oldham where it intends to speculatively develop 166,500 sq-ft of Grade A sustainable urban logistics space on a 7.5-acre site. Located at Broadway Green on the Lydia Becker Way spine road in Oldham, the site is six-and-a-half miles north east of Manchester, close to junction 21 of the M60. The JV has acquired the last commercial site on Broadway Green. It will be Chancerygate`s second scheme there, having completed a 108,000 sq-ft, development called Broadway Central in March this year. Subject to planning, the new JV scheme will comprise 18 leasehold units ranging from 4,700 sq-ft to 20,500 sq-ft.
https://www.insidermedia.com/news/north-west/1.3bn-jv-acquires-greater-manchester-site-in-first-deal