Business News Round Up (30/04/2021)
Small businesses in the UK lost between £3bn and £5.75bn
Small businesses lost between £3bn and £5.75bn of vital funds in 2020 because annual contracts and subscriptions were renewed without their knowledge, according to new research released today by SME insurance provider, Superscript. At a time where small businesses need as much help as possible, frustration is high amongst business owners who perceive that they are “locked in” to too many contracts with little to no room for flexibility. In fact, 82% of respondents said that their current annual contracts and subscriptions are too inflexible. On average, up to half of small businesses’ annual subscriptions are totally locked, with 84% small businesses saying they would prefer to be able to amend contracts/subscriptions on a monthly basis. Annual auto-renewals is an issue that a majority (60%) of small businesses have to contend with. The reason for this seems to be that there is a significant communication problem between the service-providers and clients, with 37% of businesses that have lost money through auto renewals saying they weren’t alerted to the upcoming renewal, and 34% saying they didn’t realise it was a rolling subscription when they signed up.
https://londonlovesbusiness.com/small-businesses-in-the-uk-lost-between-3bn-and-5-75bn/
Scottish business confidence enters positive territory for first time since the pandemic began
Business confidence in Scotland rose 11 points during April to 9%, the first positive reading since February 2020. The latest Business Barometer from Bank of Scotland Commercial Banking showed that companies in Scotland reported higher confidence in their own business prospects month-on-month, up 10 points at 5%. When taken alongside their optimism in the economy – up 11 points to 13% – this gives a headline confidence reading of 9%. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. When it comes to jobs, a net balance of 9% of firms expect to reduce staff levels in the next year, down from 20% last month. Overall UK business confidence surged 14 points in April to 29%, the highest reading since September 2018. The result follows the reopening of outdoor hospitality venues and non-essential retail and personal services providers in England and comes ahead of further restrictions easing in Wales and Scotland.
https://www.insider.co.uk/news/scottish-business-confidence-enters-positive-24006654
North West business confidence is the highest in the country
Business confidence in the North West surged 17 points to 43% during April – the highest of any UK nation or region – according to the latest Business Barometer from Lloyds Bank Commercial Banking. Businesses in the North West reported higher confidence in their business prospects month-on-month, up 15 points to 30%. When taken alongside their optimism in the economy, which grew for a fifth consecutive month and was up 12 points to 48%, this gives a headline confidence reading of 43% – the highest level recorded in the region since April 2018. Meanwhile, firms’ hiring intentions showed that a net balance of 16% of businesses in the region expect to recruit more staff during the next year, up 13 points on last month. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Retailers hope for upturn as empty shops hit new high
Retail leaders hope the reopening of businesses will mark a turning point as new data reveals that almost one in six Scottish shops now lies empty. Months of lockdown have forced the closure of hundreds of stores and the loss of thousands of jobs. In the first quarter of 2021, the Scottish vacancy rate pushed through 15% for the first time, increasing to 15.3%, from 14.4% in Q4 2020. The figure is higher than the overall GB vacancy rate which increased to 14.1%, from 13.7% in Q4 2020. Shopping Centres in Scotland have suffered the most with one in five (20.1%) units empty, against 18.2% in Q4. On the high street, vacancies increased to 13.9% in Q1, from Q4’s 13.5%. Retail Parks fared best, with vacancies increasing to 12.9% from 11.9% in Q4.