Business News Round Up (27/08/2024)
Fall in small business confidence as employment costs take their toll
Small business confidence fell back into negative territory in the second quarter of this year, losing the ground made up by Q1’s welcome return to positive sentiment among small firms. Blackpool-based SME champion, the FSB’s Small Business Index (SBI) for Q2 2024 saw the headline confidence reading tumble to -10.8 points, a fall of 16.3 points from Q1’s +5.5 points. Construction was the least optimistic of the main sectors, with a score of -20.7 points. The wholesale and retail sectors were not far behind, on -19.5 points, a tumble from the +2.1 points registered in Q1. Accommodation and food services businesses saw their score slip from -11.8 points in Q1 to -15.9 in the most recent survey, while manufacturing firms went from a healthy +19.2 points in Q1 – the most positive main sector in that report – to -12.7 points in Q2, the biggest sectoral swing between the two quarters.
Scottish hospitality businesses urge new UK Government to cut VAT
A survey of Scottish hospitality businesses has revealed that despite the uplift from Euro 2024, 62% reported that trading is down versus the same time last year. From June to August, the outlook is slightly more optimistic, with less outlets expecting a major decline – overall, only 52% are opening in line with their trading plan. The latest Scottish Licensed Trade Association (SLTA) snapshot survey – with responses from just over 400 pubs, bars, restaurants and hotels – showed that they think 19% of visitors are leaving earlier, 16% are only coming for events, and 64% of respondents highlighted less spend, fewer visits and less time in the venue. Rising rates continue to be a challenge across the sector, with 42% of outlets seeing an increase of 10% or more, alongside wider costs, with 77% of venues seeing increases of more than 10%, versus 30% in the SLTA’s January survey.
https://www.insider.co.uk/news/scottish-hospitality-businesses-urge-new-33540130
Bruntwood SciTech expands Female Founders Incubator
Bruntwood SciTech has expanded its Female Founders Incubator, bringing the scheme to Alderley Park. The initiative is provided in partnership with venture capital firm Lifted Ventures. The Female Founders Incubator at Alderley Park aims to support the next generation of female entrepreneurs by offering 30 early-stage female founders the opportunity to take advantage of more than £20,000 worth of specialist business support. The six-month programme includes tailored mentoring, access to a range of industry events, complimentary workspace in Glasshouse, and extensive networking opportunities designed to foster growth. Participants will also benefit from personalised support from industry leaders and experts. Alderley Park is home to more than 250 companies and 4,000 people working within science, technology and innovation. The campus is also the site of the Life Science Accelerator, which supports early-stage life science companies.
https://www.insidermedia.com/news/north-west/bruntwood-scitech-expands-female-founders-incubator
Wet summer sees first fall in shop prices for three years
Shop prices have fallen for the first time in nearly three years as retailers discounted heavily to shift unsold stock, particularly for fashion and household goods during the soggy summer. Aside from the impact of poor weather, prices also fell as a result of the continued pressure on household budgets. Prices were 0.3% down in August after rising by 0.2% in the previous month. Food inflation slowed to 2% from 2.3% in July. Helen Dickinson, chief executive of the British Retail Consortium, said: “Retailers will continue to work hard to keep prices down, and households will be happy to see that prices of some goods have fallen into deflation. The outlook for commodity prices remains uncertain due to the impact of climate change on harvests domestically and globally, as well as rising geopolitical tensions. As a result, we could see renewed inflationary pressures over the next year.”
https://dailybusinessgroup.co.uk/2024/08/wet-summer-sees-first-fall-in-shop-prices-for-three-years/