Business News Round Up (26/02/2021)
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Xero calls for urgent action as UK small business revenue continues to fall
Xero, the global small business platform, is calling for urgent action to put small businesses at the centre of the UK economic recovery – after new Xero Small Business Insights (XSBI) data finds revenue slowed further in January to 9.3% below levels seen a year ago. The XSBI programme is produced in partnership with Accenture and is based on analysis of the records of hundreds of thousands of small businesses, (anonymised and aggregated for privacy). The January data shows that revenue has continued to fall since September 2020 across all sectors. Revenue amongst hospitality businesses was down 46% year-on-year, while arts and recreation is down 34% over the same period. Small business jobs were found to be 2.4% below pre-crisis levels in January, but saw a 1.5% increase since December, as the furlough scheme continues to help with job retention.
Confidence increases among Scottish businesses
Business confidence in Scotland rose 15 points during February to -17%, according to the latest Business Barometer from Bank of Scotland Commercial Banking. Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 16 points at -11%. When taken alongside their views of the economy, up 15 points to -22%, this gives a headline confidence reading of -17%. The Business Barometer questions 1,200 businesses monthly, with the overall ‘balance’ of opinion weighing up the percentage of firms that are positive in outlook against those that are negative. When it comes to jobs, a net balance of 4% of businesses in Scotland expect to reduce staff levels over the next year, down 24 points on last month. Across the UK, overall business confidence rose in February as both governments announced their ‘roadmaps’ out of lockdown. Confidence increased by nine points to 2%, the first net positive reading since March 2020. Firms’ economic optimism also jumped 12 points month-on-month to 2%.
https://www.insider.co.uk/news/confidence-increases-among-scottish-businesses-23569239
UK’s global fintech leadership bolstered by new review
An independent review has set out a plan for the UK to retain its global leadership in fintech by helping the country’s financial technology firms to scale up, access the talent and finance they need, and deliver better financial services. The UK has more than 10% of the global market share in fintech and the sector is now worth more than £11 billion a year to the UK economy. The independent review, led by Ron Kalifa OBE, finds the UK is at a pivotal moment and presents a wide-ranging strategy and delivery model to build on its existing attractiveness to start-ups firms and become the best place for a fintech business to reach global scale. The review highlights the opportunity to create highly skilled jobs across the UK, boost trade and extend a competitive edge over other leading fintech hubs.
https://www.gov.uk/government/news/uks-global-fintech-leadership-bolstered-by-new-review
North West firms report biggest confidence increase of all UK regions in February
Business confidence in the North West rose 18 points during February to 13%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the North West reported higher confidence in their own business prospects month-on-month, up 13 points at 10%. When taken alongside their views of the economy, up 23 points to 16%, this gives a headline confidence reading of 13%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. When it comes to jobs, a net balance of 5% of businesses in the region expect to reduce staff levels over the next year, down five points on last month. Across the UK, overall business confidence rose in February as the Government announced it would be creating a ‘roadmap’ out of lockdown. Confidence increased by nine points to 2%, the first net positive reading since March 2020.