Business News Round Up (28/06/2021)
UK business investment enters COVID-19 recovery with positive outlook, says the EY ITEM Club
The outlook for UK business investment is potentially very positive as the economy recovers from the impact of COVID-19, according to a new report by the EY ITEM Club. Following a 10.2% contraction in UK business investment in 2020, April’s EY ITEM Club Spring Forecast predicted investment will climb 7.1% in 2021 and 10.5% in 2022. The latest EY ITEM Club analysis finds that, despite the economic impact of the pandemic, some sectors increased investment in 2020. Further, a number of factors have now aligned to create the potential for strong future UK business investment growth. While the impact of lockdown restrictions and the pandemic contributed to some economic sectors – such as mining and quarrying (-52%), construction (-39%), and engineering and vehicles (-35%) – seeing significant falls in business investment in the fourth quarter of 2020 compared to a year earlier, other sectors delivered sizeable growth.
Scottish food and drink sector has all the key ingredients for success
Scotland’s rich spirit of entrepreneurship and innovation has been a major linchpin for the country’s economy during the pandemic, with businesses adapting to the crisis as required. This has not been limited to established firms – across our network, Business Gateway has helped 6,684 new start-ups north of the border, including 2,146 in the north-east since March 2020. These figures are to be welcomed, considering the unmatched scale of Covid-19. Entire sectors have been shut down, and across the board people and businesses have been fighting for survival. However, Scotland’s ability to be resilient, innovative, and quickly adopt new ways of working has been nothing short of astounding.
UK kickstarts Europe’s first digital economy agreement
The UK is the first European country to begin talks on a digital economy agreement (DEA) as it launches negotiations with Singapore. More than two-thirds (70%) of UK services – including financial and legal services to music streaming and e-books – were digitally delivered to Singapore in 2019, worth £3.2 billion. The DEA would remove barriers and open further opportunities for British businesses to deliver their services through digital trade. A DEA would help cut red tape and ensure companies can trade more efficiently through digital technology such as electronic transactions, e-signatures, and e-contracts. The launch is part of the government’s strategy to place the UK at the centre of a network of free trade agreements and enhance its status as a global hub for services and digital trade.
City Centre evolution key to recovery – Brabners
The evolution of the North’s city centres is set to be integral to the post-pandemic recovery, according to the chief executive of law firm Brabners. Robert White said that, despite full reopening being put on hold, the business community was considering the future of city centres. “Over the past year, we have supported a wide range of clients, helping them to weather the storm and to navigate through an unprecedented and challenging period, the like of which we will hopefully never see again,” he said. “For those with a stake in our city centres in particular, it has been so much more than a small bump in the road. According to research commissioned for our new Bouncing Back: North West cities report, which was published recently, three in five city centre workers in the North West have worked exclusively from home during the pandemic. Understandably, as we now inch back to normal life, many business leaders are considering whether this trend is set to continue and what it will mean for life in our previously vibrant city centres.”
https://www.insidermedia.com/news/north-west/city-centre-evolution-key-to-recovery-brabners