Business News Round Up (27/04/2023)
Scottish firms fold at highest rate in a decade
Scottish companies are being wound up at the highest rate in more than a decade, according to official data. The Accountant in Bankruptcy, Scotland’s insolvency service, said 1,132 firms became insolvent in Scotland over the 12 months to March this year. That represents a rise of 32.6% on the previous year (854) and the highest since the 1,369 recorded in 2011-12. It is 19.4% higher than the pre-pandemic level in 2019-2020 (948). Personal insolvencies increased 3% (8,004) from the last financial year. Richard Bathgate, chair of insolvency and restructuring trade body R3 in Scotland and restructuring partner at Johnston Carmichael, said: ““The Covid hangover continues to hit Scotland’s businesses hard. Creditors’ Voluntary Liquidation levels rose once again – to nearly double 2019’s figures, and to the highest levels on record. This suggests that more and more company directors are choosing to close their businesses before that choice is taken away from them, and that businesses who made it through the pandemic with support from the Government are considering whether the debt they’ve taken on is sustainable.
https://dailybusinessgroup.co.uk/2023/04/scottish-firms-fold-at-highest-rate-in-a-decade/
UK workers clocked zero productivity growth in last year continuing long trend of sluggishness
British workers clocked no improvement in the amount of goods and services they can produce per hour over the last year, official statistics released today show. According to the Office for National Statistics (ONS), output per hour worked in the three months to December last year was no different compared to the same period in 2021. The numbers indicate the UK’s long-running trend of sluggish productivity growth since the global financial crisis of 2008 is poised to carry on. Workers did register some improvement to their output per hour capacity when compared to the period before the Covid-19 pandemic, with productivity up a little over two per cent compared to the final quarter of 2019. City workers pegged back supply growth over the last year. The ONS said output per hour worked among the Square Mile’s banks, brokers and insurers contributed a 0.4 percentage point contraction to the overall productivity figures. Construction staff notched the biggest gains, adding 0.7 percentage points to the total. The ONS calculates productivity growth by measuring changes in gross value added and hours worked in the UK economy. It said the former improved just 0.5 per cent over the last year, which was offset by the latter jumping 0.6 per cent.
IoD Scotland survey: SMEs have low confidence in finding solution to skills gap
New figures published today (26 April) by the Institute of Directors (IoD) Scotland reveal the state of play for Scottish businesses in 2023. The annual IoD ‘State of the Nation Directors Survey’ asked cross-sector leaders from businesses big and small for their current position on a range of issues facing Scottish businesses today. The 2023 survey revealed continued concern about skills shortages in organisations, with 44% of businesses reporting they do not currently have the right number of skilled people in their workforce. The report also highlights that 43% of SME’s are not confident in being able to recruit the right people for the vacancies they need to fill over the next 12 months – an 8% fall in confidence from the 2022 survey results. This coincides with low levels of awareness of the Scottish Government’s Fair Work Principles Framework – a key workforce policy launched in 2016 aimed at driving security, opportunity, and respect in the workforce. 53% of respondents stated they haven’t adopted the framework, and 48% reported they were unaware of the policy. Catherine McWilliam, Nations Director – Scotland at IoD Scotland, commented: “These new statistics provide real insight into Scottish boardrooms in 2023. While concerns remain high around the skills gap across organisations, we are committed to working with the government to ensure new ways to develop the necessary skills are reached. While the Fair Work Principles remain central to IoD’s vision for the Scottish workforce, today’s figures highlight there is more work to be done. We have always been at the forefront of tackling challenges facing Directors, so our job now is to work hard with leaders and create an open dialogue with government to ensure they are relevant. Which may, in turn, support recruitment efforts.”
Innovate UK launches £100m AI fund for UK business
Innovate UK has unveiled BridgeAI, a new programme which aims to drive growth and competitiveness in the UK economy through the adoption of artificial intelligence and machine learning. The £100m investment comes partly from Innovate UK & the Technologies Mission Fund and will bring together businesses from priority sectors with AI experts and developers to foster an AI innovation network in the UK. “The BridgeAI programme marks a significant investment in UK business,” said Will Drury, executive director, digital and technology at Innovate UK. “We aim to unlock the untapped potential of AI and drive greater productivity and efficiency across key sectors. By nurturing AI innovation at the grassroots level, we’re confident that this programme will enable thousands of businesses to add even greater value to the UK economy and compete more effectively on the global stage.” The programme will focus on businesses in sectors with high growth potential such as agriculture, construction, transportation, and creative industries, to help them enhance productivity and efficiency through AI. These four sectors have been identified as industries which showed high potential for transformation, alongside currently low AI adoption rates. Innovate UK is part of UK Research and Innovation (UKRI), a public body sponsored by the Department for Science, Innovation and Technology (DSIT).