Business News Round Up (27/10/2023)
See more of the latest trends and top business news.
Hydrogen export plans receive economic boost from Scottish Government
Scotland’s Net Zero Technology Centre (NZTC) has received a £200,000 fund from the Scottish Government to research the value of exporting hydrogen to Germany. Researchers will explore several export-import scenarios, examining their technology and regulation requirements as well as their end-use by various sectors. Martyn Tulloch, director of energy transition at NZTC said: “Analysis from the International Energy Agency shows that Scotland has vast potential for green hydrogen production from offshore wind. At the same time, it’s widely recognised that Germany will have the greatest demand for low-carbon hydrogen as Europe moves towards net zero. This funding marks a significant step forward in strengthening cross-border ties and will position Scotland and Germany at the heart of an integrated North Sea pipeline system.” Last July, a strategy published by the German Government revealed the country aimed to reach net zero by 2045 – the same target as Scotland. The scheme also outlined that to meet this objective, the country would have to import at least 50 per cent of its hydrogen energy – a demand Scotland hopes to satisfy. The Scottish Government’s Hydrogen Action Plan estimates that developing a hydrogen economy could create more than 300,000 jobs and have a GVA impact of up to £25m per year by 2045.
Report finds Birmingham and the West Midlands is a magnet for investment
Birmingham and the wider West Midlands is proving a magnet for record levels of foreign investment and visitor numbers, despite rising inflation and increased labour costs. The annual Birmingham Economic Review paints an upbeat picture of a city viewed by the outside world as a “great place to invest” – and 65 per cent of businesses across Greater Birmingham expect an increase in turnover over the next few months. But the review produced by the City Region Economic and Development Institute (City-REDI) at the University of Birmingham and the Greater Birmingham Chambers of Commerce – also warns that recovery post-pandemic has been slower in the West Midlands than in other UK regions. The region’s slow fightback from the UK’s worst medical emergency for 100 years has been offset by a rebound from the city’s Business, Professional and Financial Services sector, which has “adapted well,” only shrinking by 1.1 per cent between 2019 and 2021. The report reveals that the West Midlands attracted the largest share of foreign direct investment outside London, with 181 FDI projects in 2022-23, an increase of 171 per cent on the previous 12 months. Overseas investors created a total of 8,252 jobs, a 48 per cent increase compared to 2021-22, with the Commonwealth Games playing “a key role” in the upsurge.
Scotland, UAE to foster collaboration across clean energy
The Scottish Government and the Government of the UAE signed a memorandum of understanding (MoU) that will see the two governments fostering collaboration across clean energy opportunities. In addition, the MoU will deepen cooperation ties surrounding bilateral trade, collaboration on breakthrough technologies and education and research (involving AI, Quantum, and clean technology). Focusing on five key areas of cooperation, the MOU will strengthen the economic relationship between Scotland and the UAE, further enhancing the government-to-government relationship through increased bilateral engagement, collaboration across clean energy opportunities, as well as cooperation on new breakthrough technologies such as AI, while promoting increased educational links between the two countries. The wide-ranging MoU was announced at a special ceremony that took place at the Ministry of Economy in Dubai. Neil Gray, Scotland’s Cabinet Secretary for Wellbeing Economy, Fair Work and Energy and Dr Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade, were in attendance to sign the MoU on behalf of their respective governments. This MOU cements an existing framework based on a Scotland – UAE task force that was formed in early 2023 and builds on a strong partnership with the Ministry of Economy. As the relationship strengthens one of the key outcomes to look forward to in 2024 will be the delivery of a dedicated business forum that brings together businesses from both Scotland and the UAE, in order to drive forward key economic opportunities.
SME funder launches £45m facility to help firms through tough Q4
Altrincham-based small businesses funder, Capify, is offering up to £45m in a new SME Loan Fund to address funding issues in the sector. The company’s latest business confidence survey found that 76% of SME owners are now worried about the cash they hold, an increase of 25% on the second quarter of 2023. On top of this, business owners in the UK are finding it harder than ever to access funding – whether looking for external finance to grow, or simply to keep operations running smoothly. According to the latest survey, 57% of business owners said they would not be confident that their bank would accept an application for a loan. To address this, Capify has launched a new £45m SME Loan Fund, designed to support businesses through the final quarter of 2023. Loans are available from between £5,000 and £500,000 and can be used for any business purpose, from preparing extra stock and staff for a busy festive period, to investing in New Year marketing campaigns to get 2024 off to a flying start. The loans are fixed rate with no early settlement fees, giving SME owners greater confidence to plan ahead and the flexibility to adjust if they want to pay it back early.https://www.thebusinessdesk.com/northwest/news/2123137-sme-funder-launches-45m-facility-to-help-firms-through-tough-q4