Business News Round Up (27/02/2025)
Scottish business exports reach £42m in less than a year
The boosting of Scottish exports is a key part of the UK government’s Plan for Change. Businesses behind Scotland’s most emblematic exports have been able to grow thanks to £42 million in UK Export Finance deals brokered so far since the summer. Enabling companies such as Ferguson Whisky and manufacturing of fire and rescue vehicles Emergency One, which the government of Iraq has contracted to replace some of its fleet of fire engines, to expand to markets abroad helps to grow the economy and create jobs, delivering on the Plan for Change. The latest Scottish business to benefit from support is Aberdeen-based First Tech – one of many offshore services firms in Scotland driving the energy transition and making the country a world-renowned centre of engineering skills. Scotland’s marine economy generated around £4.9 billion in 2022.
https://www.digit.fyi/scottish-business-exports-reach-42m-in-less-than-a-year
UK services exports shine amid economic gloom
UK consulting firms are bracing for another year of challenging economic conditions, with many pushing hard to attract overseas clients as services exports continue to outperform the wider economy. Last year, Britain’s consulting market as a whole failed to grow for the first time since 2020 as concerns over the resilience of the economy and political tensions led companies to cut back on hiring outside experts. But when it comes to exports, consultants seem to be doing much better. According to the Office for National Statistics, total services exports grew 74 per cent between 2016 and 2024, over the first to third quarter period, while management consulting services exports rose 114 per cent (data for the fourth quarter of 2024 will be released in April). This has left experts wondering if the consulting sector can punch above its weight and unlock growth for the UK.
https://www.ft.com/content/7a434266-8ae2-4b70-875c-265a5798d72d
North West sees 16% growth in 2024 deal-making – but fears of slow start to 2025
Merger and acquisition (M&A) deals soared by 16% in the North West during 2024, with a total of 1,904 transactions conducted. However, the latest report by Experian, showed that the overall value remained largely unchanged, compared with the 2023 levels. The North West was the UK’s fourth most active M&A market last year, with the region’s businesses having a part in 15% of total UK deal volume, while contributing 7% of total transaction value. October 2024 marked the busiest month for deal volume in the region, with 199 transactions. This surge reflects a broader UK trend, as companies rushed to finalise deals ahead of budget changes concerning capital gains tax and carried interest rules. Deals in the sub-£10m price range saw a 20% decline in both volume and value compared with 2023.
Most UK businesses to ‘rethink their plans’ as tax rise takes toll
The British Chambers of Commerce (BCC) has warned that 8 in 10 UK companies will be forced to reconsider their future strategies when the proposed increase in employers’ national insurance contributions takes effect, bringing a “powder keg of costs” for businesses. In a recent poll, 82% of BCC-member companies said the higher tax burden will prompt them to revisit their operational plans, while 58% expect a negative impact on recruitment and 54% anticipate hiking their prices. More than a third (36%) believe the rise will hold back investment. Chancellor Rachel Reeves announced in October’s budget that employers’ national insurance contributions will go up by 1.2 percentage points to 15% from April, alongside a reduction in the annual salary threshold at which businesses start paying national insurance, from £9,100 down to £5,000. Ministers forecast these moves will raise £25 billion a year by the end of the decade.