Business News Round Up (27/02/2024)
Net zero economy grew 9% in 2023 to be worth £74 billion
The “net zero economy”, from renewables and electric cars to green finance, grew 9% in 2023 to contribute £74bn to the UK. Net zero businesses, supply chains and spending by employees were worth 3.8% of the overall UK economy, the study commissioned by the Energy and Climate Intelligence Unit (ECIU) said. The sector supported the equivalent of 765,700 full-time jobs, the report by CBI Economics, with analysis from The Data City, found. The green sector is also a major player in areas with high levels of deprivation and in key electoral battlegrounds, according to ECIU, which urged politicians to make sure net zero could deliver more growth. The study looks at the value of businesses, ranging from renewables, recycling and low emissions vehicles to carbon capture, heating, building technologies and agritech, as well as supply chains and their wider economic impact.
https://www.insider.co.uk/news/net-zero-economy-grew-9-32215247
High costs and access to capital stifle North West business growth
High costs and difficulty accessing capital continue to stifle growth for North West businesses, according to new data from accountancy and business advisory firm, BDO. BDO’s latest bi-monthly Economic Engine survey of 500 mid-sized businesses has revealed that cost pressures will remain a significant challenge for regional companies over the next six months, with half of businesses (50%) concerned about higher operational costs, including rent, energy bills and the cost of borrowing. More than a third of regional businesses (34%) admit that sourcing new capital from private and public sources is a top concern, with nearly one in three (31%) stating that they will struggle to expand their business in the coming months, through entering new markets, or increasing their physical footprint. Ahead of next month’s Spring Budget, North West businesses are calling on the Government to address ongoing issues around costs, skills and taxes.
Glasgow and Edinburgh are innovation clusters with ‘high cross-county collaboration’, per government report
Glasgow and Edinburgh have been identified as examples of innovation clusters within the UK with a high degree of collaboration. The two central belt cities were mentioned in a UK government report which has analysed innovation and research and development (R&D) activities across the country. The findings were contained in the Analytical Report Identifying and describing UK Innovation clusters, published by the Department for Science, Innovation and Technology (DSIT). The report aims to use regional data on innovation and R&D clusters to provide an ‘interactive mapping tool’ for use by businesses, members of the public and potential investors. It found that the highest collaborations are between Greater London and Hampshire but singled out Glasgow and Edinburgh as exemplars of “high cross-county collaboration”. The report said that ‘internal collaboration’ is often strongest where there is a strong university or research base, such as Oxford, Cambridge, Manchester and Edinburgh.
UK to establish world’s first UN-backed centre for circular economy research
The UK will establish the world’s first United Nations-backed International Centre of Excellence on Sustainable Resource Management in the Circular Economy, Resources Minister Robbie Moore announced. Recognising world-class British academic expertise and cutting-edge scientific research, UNECE will support the establishment of the centre in the UK. A circular economy is one in which resources are kept in use for as long as possible, rather than being taken from the earth, used once, and disposed of in landfill. The centre will develop sustainable approaches to the circular economy and resource efficiency to enable carbon reduction and the transition to a greener future. The UK will help countries across the world to maximise the environmental and economic opportunities the circular economy offers. Opening formally in April 2024, the centre will comprise five institutions: University College London (UCL), University of Exeter, Brunel University London, Swansea University, and the British Geological Survey.