Business News Round Up (28/06/2024)
Scottish business confidence falls in June, but remains above UK average
Business confidence in Scotland fell 14 points during June to 43%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 16 points at 44%. When taken alongside their optimism in the economy, down 11 points to 42%, this gives a headline confidence reading of 43% – versus 57% in May. Looking ahead to the next six months, businesses in Scotland identified their top target areas for growth as investing in their team, for example through training (44%), introducing new technology (34%), and entering new markets (33%). Overall, UK business confidence fell nine points in June to a net balance of 41%. However, this was consistent with levels seen during the first quarter, before the sharp rise in May, and remained above the long-term average of 28%.
https://www.insider.co.uk/news/scottish-business-confidence-falls-june-33120163
Northern productivity powerhouses: how Manchester, Humber and North East could help bridge the north-south divide
Parts of the North West are seeing a “productivity resurgence” according to a prominent thinktank which believes these areas could stimulate further growth. Productivity is seen as a big issue for the UK economy, with output per hour lagging levels in the US and Germany, particularly since the global financial crisis. Experts say that if the UK can become more productive, it will have a big impact on economic growth. The Northern Powerhouse Partnership (NPP)’s latest study of English productivity shows the North East and North West have outperformed average productivity growth across England between 2022 and 2004, the year data was first available. London’s productivity growth over the period was the second lowest in England, behind the East Midlands. But the capital remains the most productive region in the UK, with productivity around 27% higher than the UK average in 2022, falling from 33% higher in 2004.
Regional business confidence falls back – but remains above UK national average
The region saw a reversal in business confidence during June, according to the latest Business Barometer from Lloyds Bank Commercial Banking. In May business confidence across the North West rose by 12 points to 48%. But the latest data from the bank revealed that it fell five points during June to 43%. Companies in the North West reported lower confidence in their own business prospects month-on-month, down seven points at 49%. When taken alongside their optimism in the economy, down four points to 36%, this gives a headline confidence reading of 43% (vs 48% in May). Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (41%), evolving their offering, for example by introducing new products or services (41%) and introducing new technology (36%).
EU trade ‘not working’ for UK business, warns lobby group
The next UK government must stop “walking on eggshells” around improving EU trade ties, the head of the UK’s largest business organisation has warned. Shevaun Haviland, director-general of the British Chambers of Commerce, on Thursday urged the winner of next week’s election to deepen the current EU-UK trade and co-operation deal in order to boost economic growth. “We must stop walking on eggshells and start saying it how it is. The current plan isn’t working for our members,” she said at the group’s annual international conference in London. Haviland’s intervention came as opinion polls put Labour on track to secure a large majority on July 4 on a platform that promises to lift Britain out of a decade of economic stagnation. The Office for Budget Responsibility, the fiscal watchdog, has said Brexit will cause a 4% long-run hit to UK GDP, alongside a 15% reduction in UK trade.
https://www.ft.com/content/1ac5dbdf-962a-4513-9c03-18515dcb3d71