Business News Round Up (28/03/2023)
Humza Yousaf elected SNP leader and prospective First Minister
Humza Yousaf is set to become Scotland’s youngest first minister and the first person from a minority ethnic background to hold the post after he was elected SNP leader. After a sometimes fiery and divisive leadership contest, SNP members chose Yousaf, 37, as their party’s new leader, succeeding Nicola Sturgeon. The current Scottish Health Secretary is expected to be declared Scotland’s sixth first minister after a vote in the Scottish Parliament on Tuesday. Sturgeon, who was Scotland’s longest-serving first minister, announced last month she was stepping down after more than eight years in the job. Yousaf succeeds her after defeating the current Scottish Finance Secretary Kate Forbes and former community safety minister Ash Regan in what was the SNP’s first leadership contest for almost 20 years. The result was announced at the BT Murrayfield Stadium in Edinburgh, after the ballot of SNP members closed at noon, with a turnout of 70%. For first preferences in the single transferrable vote system, Yousaf took 24,336 (48%), Forbes took 20,559 (40%) and Regan took 5,599 (11%) of the vote. When second preferences were distributed in the second stage, Yousaf took 26,032 (52%) and Forbes took 23,890 (48%).
https://www.insider.co.uk/news/humza-yousaf-elected-snp-leader-29561310
Privacy standards facing more upheaval
An updated Data Protection and Digital Information Bill has been introduced into Parliament aimed at positioning post-Brexit UK as a desirable base for digital economy businesses. Time will tell whether these changes will impact positively on the economy or save it more than £4 billion over the next 10 years, as stated in the gov.uk press release. Sceptics respond that in the current economic climate, both in the UK and elsewhere, few businesses are eager to move away from the current GDPR standard because to do so would require them to commit limited resources to overhaul their current data protection compliance which they have invested time and money in implementing. Also, since the EU GDPR has extraterritorial effect, for many UK and international businesses trading with the EU, it remains commercially advantageous to maintain that standard. Any significant lowering of standards by the UK runs the risk of removal of adequacy status when reviewed by the European Commission in 2025, which would only lead to unwelcome compliance complications impacting on UK-EU trade at an already challenging time for economic growth. In the last twelve months there have been a range of pro-business initiatives from the UK’s Information Commissioners Office (ICO), aimed at boosting current compliance standards. These have focused on issues identified by the regulator’s three-year strategic plan, published in July 2022.
https://magazine.dailybusinessgroup.co.uk/2023/03/27/privacy-standards-facing-more-upheaval/
University of Glasgow and GE HealthCare to enter innovation collaboration
The University of Glasgow has signed a Memorandum of Understanding (MOU) with GE HealthCare, a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator. The two organisations will work together to identify opportunities for collaboration in research and development, and innovation focused on people-centred healthcare and outcomes. The collaboration builds on GE HealthCare’s expertise in medical tech innovation and the University’s research excellence alongside its strong links with the NHS. Scottish Government has, today, also announced the Glasgow Riverside Innovation District (GRID) as Scotland’s first whole-system demonstrator, committed to supporting the establishment of a series of real-world innovation testbeds. This major initiative, known as ‘GRID Discovery’ will identify a number of R&D collaboration projects with industry partners, govt bodies, academics and communities. The exciting new programme will draw on the University’s world-leading research capability and expertise to help drive impactful innovation, at pace. The Discovery programme is aimed at attracting inward investment, creating access to good quality jobs, and in developing a skills pipeline to build on the region’s strengths and support productive, thriving places. To this end, the close involvement of communities in the area will be critical success factors.
North Sea oil and gas losing investments – report
The energy windfall tax, political uncertainty and increased costs are pushing away investment in North Sea oil and gas, a report has warned. Industry body Offshore Energies UK estimates that 90% of offshore firms are cutting spending worth billions. It says a continued lack of investment would see production fall by 80% by 2030, increasing reliance on imports. Environmental group Uplift says oil and gas firms need to invest more in renewables. The Energy Profits Levy – which the industry opposes – saw headline tax rates increase last year from 40% to 75%. But companies have still been recording record profits with BP making $27.7bn (£23bn) in 2022. The report says inflation, material costs and a lack of access to finance are also hampering investment decisions. These combined factors mean the sector is likely to produce 500 million fewer barrels of oil, which is about the same as a year’s production from the North Sea.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-65093274