Business News Round Up (28/09/2023)
UK tech sector reaches record £817bn valuation
The UK tech sector has been valued at £817 billion, its highest ever level, despite a turbulent investment landscape, according to HSBC Innovation Banking. UK tech startups achieved a value of $996.8bn, up from $988bn last year, HSBC Innovation Banking research found, with the tech scene buoyed by widespread developments in AI. The valuation places the UK as the third global tech player, sitting behind the US and China, during a time when the Prime Minister is pushing to become a ‘Science and Tech Superpower’ ahead of the Bletchley Park AI Summit in November. Sheeraz Saleem, chief technology officer at DKK Partners said the FinTech industry in particular is “leveraging exciting developments in AI and blockchain for a host of use cases, including the development of digital assets that can lower the cost of foreign exchange and fuel overseas trade”. She added: “These innovations can play a key role in the growth of businesses, so it is important that the UK continues to cement itself as a leading tech hub and a prime investment centre in order to attract funding and continue to fuel R&D in order to give businesses access to the technology they need to thrive across different markets.” The figures come despite turbulence in the European tech investment landscape. Research from Atomico highlighted that UK tech investment fell 57% in H1 as investors were rocked by economic uncertainty and rising inflation.
Made Smarter-backed manufacturers deliver £242m economic boost for North West
A programme helping North West manufacturers invest in industrial digital technology is forecast to create more than 1,550 new jobs and boost the region’s economy by £242m, new figures reveal. It comes as businesses across the region mark National Manufacturing Day on Thursday, September 28. The Made Smarter adoption programme was launched in Liverpool to help businesses digitalise, decarbonise, and drive growth. So far 2,500 manufacturers from across Cheshire, Cumbria, Greater Manchester, Lancashire, and Liverpool have engaged with the programme and have received support through grant funding, technology advice and training. The Government-funded, industry-led initiative has delivered 334 technology projects in the North West, which are forecast to create 1,550 jobs, upskill 2,772 existing roles, and increase North West GVA by £242m. These achievements were celebrated at Made Smarter’s Impact 4.0 Showcase hosted at Siemens’ smart factory which brought together industry leaders, stakeholders, and SMEs to explore the success of the programme and its plans for the future.
SSE launches £15 million business support fund
SSE has launched a £15m support fund targeted at businesses struggling with their energy bills. The Perth-headquartered group, which sold its British household energy business to OVO Energy in 2020, is making the money available to a range of business customers supplied by its non-domestic energy provider, SSE Energy Solutions. Customers on longer-term fixed contracts that signed up between 1 August and 31 December 2022 will be eligible for the support, reflecting the fact that wholesale energy prices hit record highs during the second half of 2022. While some businesses continue to receive government bill support through the Energy Bills Discount Scheme (EBDS), the level of support that most businesses receive this winter will likely be lower than last winter. This fund is a continuation of the support SSE Energy Solutions has provided to customers throughout the pandemic and the energy price crisis. This support has included the extension of payment term options for struggling customers and shielding some customers from more than £10m of non-commodity industry charges.
https://www.insider.co.uk/news/sse-launches-15-million-business-31049264
Latest Greater Manchester business survey shows a slowdown in business prospects
Economic performance in Greater Manchester has declined slightly in Q3 2023 according to the findings of the latest Quarterly Economic Survey (QES) conducted by Greater Manchester Chamber of Commerce (GMCC). The headline Greater Manchester Index™, a composite indicator made of key QES measures, decreased to 20.4 (22.1 in Q2 2023). The survey of nearly 300 businesses held between August 16th and September 11th revealed that sales to UK customers decreased in manufacturing and construction, while services showed a marginal improvement. Manufacturing sector businesses reported a sharp reduction in domestic demand in Q2 2023 and that appears to continue in Q3. However, businesses in the sector also reported a healthier order book, which indicated that there might be some improvement in the coming months. The construction sector has now recorded three quarters of declining demand. This is consistent with the findings of other surveys and data from the Office for National Statistics (ONS). New orders in construction have steadily declined since Q3 2022. International trade data is particularly worrying. Businesses in both manufacturing and services reported that export sales and advance orders from overseas customers decreased in this quarter, a finding that matches data published by the ONS.