Business News Round Up (30/06/2023)
New UK investment zones announced to grow the economy in Scotland
Glasgow City Region and North East of Scotland will be Scotland’s Investment Zones following an agreement between the UK Government and Scottish Government. The pace at which the agreement was developed is testament to the strength of partnership between the two governments and what can be achieved when there is a focus on delivering economic growth and opportunity for people in Scotland. Investment Zones are a crucial part of levelling up, and are designed to deliver economic growth, more high skill jobs, investment, and future opportunities for local people – a key priority for Prime Minister Rishi Sunak. The tax incentives and funding that are being made available by the UK and Scottish governments will attract investment, improve skills, provide specialist business support, and improve local infrastructure. Investment Zones are focused around research institutions such as universities. They focus on driving growth in priority sectors including technology, the creative industries, life sciences, advanced manufacturing, and the green sector. They will underpin clusters to boost UK competitiveness in these high-potential industries, leveraging existing strengths and assets to increase opportunities for local communities and driving productivity growth.
https://www.gov.uk/government/news/new-uk-investment-zones-announced-to-grow-the-economy-in-scotland
Strong NW showing in latest ranking of UK’s fastest growing businesses
Fifteen North West companies are featured in this year’s top 100 fastest-growing private companies, compiled by The Sunday Times. The Sunday Times 100 – Britain’s fastest-growing businesses is being published in full this weekend. Its second annual ranking reveals that the Top 100 have generated sales of £3.2bn, up by £2.8bn, in the past three years. More than 10,000 jobs have been created by the Top 100 in the past three years, and a record 28 companies in the latest listing were founded by female entrepreneurs. Two thirds of the businesses trade internationally. Jim Armitage, business editor of The Sunday Times said: “The Sunday Times 100 is our annual celebration of the UK’s entrepreneurial achievements. “The founders of these exciting businesses are vital job creators and innovators. The top 100 performed exceptionally during the pandemic and are proving resilient in the face of inflation, higher interest rates and a weaker domestic economy.” The research for the Sunday Times 100 was conducted in partnership with Beauhurst, a source of private company data. Companies featured in the Top 100 must be independent, privately-owned, and based in the UK, with sales exceeding £5m in their latest year of trading.
The economy has proved to be resilient in the short term, but growth remains fragile in 2023 and beyond
Data in 2023 so far has shown that the economy has performed better than was expected only a few months ago, according to the Fraser of Allander Institute. The Institute’s quarterly Economic Commentary, which includes an assessment of all the latest key data on the UK and Scottish economies, is published today. In the Deloitte-sponsored Economic Commentary, the Strathclyde researchers have set out their new forecasts for the Scottish Economy. The economists are forecasting growth of 0.5% in 2023, 0.7% in 2024 and 1.2% in 2025. For 2023, this is a significant revision up from the Institute’s previous set of forecasts in March, which indicated that by now Scotland’s economy would be in a shallow recession. However, the Institute’s outlook for 2024 and 2025 has worsened somewhat, reflecting stubbornly high inflation and the continued response from the Bank of England in raising interest rates: which are now at 5%, with further rises likely, rather than peaking at 4.75% as expected in March. Analysis in the Commentary this quarter includes a detailed look at the attitudes of consumers; the extent to which businesses have been absorbing cost increases as opposed to passing these on to their customers; the state of the housing and rental markets; and a special analysis of the prospects for social enterprises in our economy in these difficult times.
2023 Business Barometer Report: Scottish employers missing out on hidden talent pool as the skills gap remains high
According to this year’s Business Barometer report published by The Open University and the British Chambers of Commerce, more than two-thirds (71%) of Scottish organisations are currently experiencing skills shortages, which remains one of the top challenges facing employers. The annual report, which provides a temperature check on the UK skills landscape, highlights that despite the ongoing skills shortage in Scotland, almost two in five (39%) of Scottish organisations don’t have any specific initiatives, skills programmes, or workplace adjustments in place for specific talent pools including underrepresented groups such as people with disabilities or workers from diverse ethnicities. The report suggests that employers are missing out on the hidden talent pool and an opportunity to ‘grow your own’ talent during a time when two in five (42%) Scottish organisations say they have been prevented from filling roles due to lack of applicants. The ongoing skills shortage continues to have a negative knock-on effect on existing staff morale and wellbeing, with three in four (75%) of organisations in Scotland reporting increased workload on existing staff. Organisations also reported an impact on reduced activity or output (44%) and reduced long-term growth plans (36%), meaning the additional pressure of skills shortages are impacting the future of organisations which could lead to further challenges for the economy as well as meeting NetZero and equality, diversity, and inclusion goals.