Business News Round Up (28/01/2020)
Private finance schemes costing public sector four times their value, says Audit Scotland
The cost to the public sector of private finance funding schemes in Scotland has been criticised after it was revealed that £9 billion of projects will cost four times that amount to pay off. In a new report Audit Scotland revealed £13.1 billion in annual payments have been made by the public sector, with a further £27 billion to be paid between now and 2047/2048. Audit Scotland called for more clarity on the use of private finance. Its study looked into the use of the Private Finance Imitative (PFI), Non-Profit Distributing (NPD) and hub contract models.
https://www.insider.co.uk/news/private-finance-schemes-costing-public-21374416
North West sees rise in levels of financial distress among businesses
The North West of England has witnessed a rise in the number of companies displaying signs of ‘critical’ financial distress in the final quarter of 2019, according to the latest Red Flag Alert Report by accountancy firm Begbies Traynor. The report showed that almost 47,653 companies experienced significant financial distress, with the real estate and property sector showing the biggest year-on-year increase (15%), followed by the sports and health clubs sector (9%), and the leisure and culture sector (5%).
European recognition for Scotland’s fintech cluster
Scotland’s growing FinTech sector has become the first in the UK, and only the third in Europe, to receive formal accreditation as a cluster of excellence. The accreditation will increase Scotland’s international profile and increase its reputation amongst investors across Europe, the USA and the Far East. The number of Scottish FinTech companies has risen by 60% in the past year, and directly employs more than 84,000 people.
https://dailybusinessgroup.co.uk/2020/01/european-recognition-for-scotlands-fintech-cluster/
New £3.9m project will close the digital gap between SMEs and larger businesses
Five leading research centres are to deliver £3.9 million of SME digital strategy to try and close the skills gap with larger businesses in the Liverpool City Region. LCR4 START is to launch this month and is part funded by the European Regional Development Fund (ERDF) specifically for Liverpool City Region SMEs. The initiative is to be led by the Virtual Engineering Centre and delivered in partnership with Liverpool John Moores University, Sensor City, Science and Technology Facilities Council and the Growth Platform.