Business News Round Up (27/11/2023)
High growth company creation at decade low
Creation of new companies in high growth sectors has fallen to its lowest number in almost a decade, according to figures obtained by Scottish Labour. The number of registered enterprises in 2022 in areas of the economy with the biggest potential declined for the third consecutive year to the lowest since 2014.There are now 6,990 fewer enterprises in these sectors registered in Scotland compared to 2019 – a fall of 9%. This includes a decline in the number of registered enterprises in energy and renewables, which is also at its lowest point in eight years. These Scottish Government statistics monitor businesses in high growth sectors such as energy, financial services, creative industries, food and drink, tourism, and life sciences.
https://dailybusinessgroup.co.uk/2023/11/high-growth-company-creation-at-decade-low/
Global businesses pledge £29.5bn investment into UK
The UK has secured £29.5 billion of new investment from global businesses to boost thriving UK sectors including tech, life sciences and renewables. Prime Minister Rishi Sunak unveiled the funding pledges as global CEOs and investors arrive at the Global Investment Summit at Hampton Court Palace. The government said the investment will create more than 12,000 jobs and drive growth across the country. It follows the government’s new £4.5bn Advanced Manufacturing Plan, a £2bn investment from Nissan which will secure thousands of jobs in Sunderland, and a new Investment Zone in the North East which will create 4,000 jobs. Nearly 26,000 jobs were created last year alone in the North West and North East from inward investment projects, with over 7,000 in Yorkshire and The Humber and 11,000 in the Midlands.
Construction starts tumble as sector suffers ‘general decline’
Construction starts have plummeted across the board as the sector battles a sluggish economy, with the only cheer coming from a modest rise in planning approvals. The November issue of Glenigan’s quarterly construction review shows that project starts fell 27% in the three months to October, to stand 59% down on last year. Main contract awards also declined by 27% on the preceding quarter, down 51% on the same time a year ago, the construction data company said. There is a glimmer of hope as detailed planning approvals registered a modest 1% rise, representing a 17% increase compared with the year before. But the sector-specific and regional index – measuring underlying project performance – paints a picture of “general decline”, Glenigan said, with project starts plummeting across every vertical. Residential starts-on-site fell significantly during the three months, dropping 23% during the index period to stand 30% lower than a year ago.
Food industry key to supporting growth of the UK economy: IGD
The food industry is key to supporting growth of the everyday economy in the UK, according to a new report by the IGD. IGD’s latest Economics Viewpoint report, Powering the Everyday Economy – the role of the food system, explores the value of the UK food industry to support growth and resilience at a local and national level. Food and drink remains the largest private sector employer in the country, accounting for one in eight jobs and 40% of all UK retail sales, data showed. Food and consumer goods stores represent 40% of all UK retail activity. The food and drink industry is critical to powering both local economies and wider infrastructure as it is the largest manufacturing sector, valued at £25 billion annually.