Business News Round Up (25/10/2022)
Stark divide’ in UK’s regional tech sector could hold back growth
Future economic growth could be held back because of the ‘stark regional divides’ in the UK’s technology sector, says techUK in a new report published today. The technology trade association has published the second iteration of the Local Digital Capital Index (LDC Index), which measures the strengths of the UK’s regional digital ecosystems and concludes that a technology sector concentrated and reliant on the South of England isn’t sustainable for the wider UK economy. The trade body has called on the government to work with the industry in order to secure future growth in the sector, create jobs and invest at a local level. The LDC Index assessments are made across six components: digital infrastructure, finance and investment, skills, digital adoption, research and development, and trade. The findings present a picture of a nation digitally divided; techUK notes that there is a split between rural and urban areas but also between the South and the North and UK nations. techUK’s Index found that Greater London and the South East scored consistently well across the various components. More localised data also found that the biggest tech investment hubs such as London, Oxfordshire, Gloucestershire, Bath, and Bristol predictably show a strong digital ecosystem across multiple components.
Profit warnings issued by North West listed companies double year-on-year in Q3 2022
Profit warnings issued by UK-listed companies in the North West of England in Q3 2022 doubled year-on-year, according to EY-Parthenon’s latest Profit Warnings report. In total eight warnings were issued throughout the region in Q3 2022, up from four in Q3 2021 and six in Q2 2022. The third quarter’s eight warnings represent the region’s highest third-quarter profit warnings total since 2019. Consumer-facing industries and the retail sector saw the highest volume of profit warnings issued across the region for Q3, as cost-of-living pressures continued to squeeze spending habits. Sam Woodward, EY-Parthenon UK&I Turnaround and Restructuring Partner in the North West, said: “The volume of profit warnings in the North West had cooled since last winter, but challenges for businesses have increased over the last few months, leading to rising numbers of warnings. Given the impact of the cost-of-living crisis on consumers, it‘s unsurprising to see consumer-facing businesses among the most affected across the region. We’re approaching the important ‘golden quarter’ of Q4, during which retailers have traditionally looked to maximise seasonal sales opportunities. However, with ongoing geopolitical challenges and disruptions in supply chains skewing working capital for many, businesses in the North West and further afield could be facing another difficult period.”
Tourism action plan aims to boost Glasgow’s green credentials
A new plan, developed by Glasgow Life, VisitScotland and The Travel Foundation, has been launched to help Glasgow achieve its aim of becoming the UK’s first Carbon Neutral City by 2030 and create a more circular economy. Aligned to the Glasgow Declaration announced at COP26, the Sustainable Tourism and Conventions Action Plan is designed to support Glasgow in meeting Scotland’s net zero emissions target and the United Nation’s Sustainable Development Goals. These objectives underpin the People Make Glasgow Greener Strategy, with the new plan setting out the actions being undertaken to accelerate the incorporation of sustainability into every aspect of Glasgow’s tourism and conventions sectors. At a time when recovery from the impacts of the pandemic continues to be a priority, the plan also aims to support economic renewal to boost industry performance. Helping industry partners reduce the environmental impact of their practices, products and services should enable them to benefit from the many advantages of supporting responsible tourism – such as capitalising on major forthcoming events in the city by ensuring alignment to their sustainable mission. Glasgow Life’s head of tourism and conventions Aileen Crawford said: “Glasgow is renowned as a leading destination for sustainable business tourism – our Convention Bureau was the first to gain Green Tourism accreditation and sign up to the Tourism Declares a Climate Emergency initiative.
https://www.insider.co.uk/news/tourism-action-plan-aims-boost-28316275
Progress on access to finance but more support still needed for NW entrepreneurs
Further progress on accessible finance for North West entrepreneurs is needed, a new report claims. In July 2020, North West Business Leadership Team (NWBLT) published a key report looking at the steps needed to deliver more investment-ready businesses and a stronger finance pipeline for every stage of business growth across the North West. Two years on, an update report concludes that, while significant progress had been made in the region to increase the levels and types of finance available to support entrepreneurs and scale-up businesses, more and better coordinated support remains a priority. Outside of the dominant finance sector in London and the South East of England, the pool of investors is always going to be more limited, which means firms located in regions such as the North West will need to work hard to present their business and its potential to financers. With a lower density of innovative businesses and finance providers in the region compared with London, the networks that can connect the two become more important. The research finds that these ecosystems of sector clusters, support organisations and funders are fragmented across the region. Pockets of good practice, notably in Manchester, are helping to make more efficient and effective connections between entrepreneurs and investors, but many would-be finance seekers continue to struggle to navigate the available support and have been frustrated by too many wrong doors.