Business News Round Up (28/09/2021)

New report says ‘real’ Living Wage can boost the Scottish economy

The Scottish economy would receive an £89 million annual boost if just a quarter of low-paid workers earned a “real” Living Wage, a new report says. Scotland’s four largest cities would derive the most benefit, with the local economies in Glasgow, Edinburgh, Aberdeen, and Dundee gaining nearly £30m, £7m, £3m and £1.8m respectively, it adds. The report highlights the findings of research by the Living Wage Foundation (LWF), which is at the heart of a UK-wide fair pay campaign, and public policy think-tank the Smith Institute. Raising the earnings of one-quarter of Britain’s lowest-paid workers to the “real” Living Wage rate of £9.50 an hour – higher than the UK Government’s National Living Wage rate £8.91 – would secure an average annual increase of £520, the report says. The higher “real” rate is calculated annually by another think-tank, the Resolution Foundation, and overseen by the Living Wage Commission, representing employers, trade unions, and independent experts, among others.

‘Robust Growth’ as consumer spending increases, chamber report shows

Increased consumer spending after the lifting of all COVID-19-related restrictions in July has contributed to an increase in third quarter economic activity, according to the findings of this quarter’s Economic Survey (QES) conducted by Greater Manchester Chamber of Commerce. The QES-based composite indicator for the city region, the Greater Manchester Index, improved marginally with trade in services and manufacturing recording growth in the quarter. The survey of 483 businesses reveals that sales to both domestic and overseas customers increased in this quarter. The Greater Manchester Index now stands at 31.9, an increase of 1.5 points from the previous quarter’s results. Current sales and advance orders from domestic customers increased relative to quarter two 2021. Although construction output declined in quarter three, growth in manufacturing and services contributed to the increase in the GM Index.

Two Scottish universities in top UK eight for producing most successful spinouts

Two Scottish universities are among the top eight in the UK for producing the most successful spinouts over the past 20 years. A new report has named the University of Dundee as the nation’s sixth most prolific at commercialising innovation, whilst the University of Edinburgh came in at number eight. Research carried out by intellectual property (IP) experts GovGrant found that Dundee’s spinouts have raised £325.7 million over the last two decades, and account for 1.5 per cent of the UK’s total spinouts. The university is also commended for generating some of the highest value spinout companies in the UK, the most successful being Exscientia – a global pharmatech company currently valued at £784.5m. The University of Edinburgh is responsible for 4.6 per cent of the UK’s total spinouts, the most successful of which is biopharma multinational MTEM, worth £140m. It has also raised more from spinouts – £241.5m – in the last two decades than the University of Bristol, which raised £235.4m.

UK side hustle economy worth £346 billion

Amid lockdown, many people looked to kill time or keep in a positive mindset by taking up new hobbies – developing an array of additional skills in the process. As the country’s pandemic support measures end, a new survey has found that these new skills are proving crucial to helping people make ends meet. In April 2021, a study by the Resolution Foundation discovered that UK households had taken huge falls in their income during the pandemic. Among households in which at least one person fell out of work due to Covid-19, 41% of UK households suffered a severe income fall of 25% or more. That was twice the level seen in France on 20%, and significantly higher than in Germany at 28%. UK households were also found to be more likely to have taken on additional debt in response to this. At the same time, the situation may soon get worse for workers in Britain, as state support for the pandemic comes to an end. Arguably the most prominent Covid-19 scheme was the furlough programme, which was introduced in spring 2020, to stop people being laid off by their employers during the Covid-19 lockdown.

https://www.consultancy.uk/news/29088/uk-side-hustle-economy-worth-346-billion