Business News Round Up (30/08/2022)
Majority believe government support ‘insufficient’ amid soaring prices
Nine in ten Scots have said that they expect a recession and worsening inflation in coming months as the UK is hit by the highest rate of inflation in 40 years. A survey by the David Hume Institute and the Diffley Partnership has revealed widespread anxiety and pessimism about the country’s economic outlook. More than 70% of respondents stated that the Scottish Government’s support through soaring costs has been “insufficient”, with 89% pointing the finger towards the UK Government. Almost 95% of those surveyed also believe that the effects of the cost of living crisis will be felt for a number of years across the country. The study also reported that 64% felt worse off now than over the past year, and 57% said their income could not satisfactorily cover rising costs – rising to 73% and 71% respectively in the most deprived neighbourhoods. Understanding Scotland polling also found that 87% of people in Scotland expect the soaring cost of living to cause a recession, and more than nine in ten expect things to get worse before they get better.
Shares in Northcoders surge after £4m Government contract revealed
Shares in Manchester-headquartered software coding trainer Northcoders have surged after it won a £4m contract from the UK Government. The AIM-listed company’s shares jumped by more than 12% following the news it had secured the money from the Department for Education Skills Bootcamps Wave 3 bid. This new round of funding provides Northcoders with £4m worth of scholarships to train individuals on its bootcamp. Shares in Northcoders are now trading at 284p, their highest value since the start of May. In a statement, the business said: “The new contract provides the company with revenue visibility into FY23, which is expected to be another year of significant growth. Signing contracts such as this, and Northcoders initiatives such as the new corporate Developer Incubator, enable the company to plan revenue further into the future than ever before providing comfort for future targets.” Chief executive Chris Hill said: “I am delighted that Northcoders been able to secure this additional £4 million government funding through the Department for Education. As well as providing the company with additional revenue visibility, it also demonstrates how well-regarded our technology training courses are in the UK. With one of the company’s core values being to improve diversity and inclusion within the tech industry, Northcoders are pleased to continue to offer these scholarships that provide accessibility to people from all walks of life across the UK whilst helping address the significant UK digital skills gap.”
https://www.business-live.co.uk/technology/shares-northcoders-surge-after-4m-24710715
Renewables sector demands government action on low-carbon industrial strategy
Scotland must establish its first low-carbon industrial strategy to take advantage of the transition to net zero, industry body Scottish Renewables has stated. The organisation, which represents more than 300 companies working in renewable energy, is calling on the Scottish Government to adopt five key priorities in its Programme for Government 2022/23, to be published in September. It argued that the government must also complete its reforms to the National Planning Framework 4 in order to deliver a planning system that is focused on tackling the climate emergency by building more renewable energy projects. Scotland already has ambitions to deliver a total of 11GW of offshore wind. Onshore, the ambition is for 12GW of new onshore wind by 2030. Industry is also gearing up to deliver increased activity in the marine, solar, low-carbon heat, and green hydrogen sectors.
https://www.insider.co.uk/news/renewables-sector-demands-government-action-27857934
Less than one third of COVID Relief Fund allocated by local authorities
New government figures claim that thousands of businesses promised business rates relief through the £1.5bn COVID-19 Additional Relief Fund (CARF) are still waiting to receive support, despite government promises more than a year ago. Professional services and investment management company Colliers says distribution of the fund continues to descend into a post code lottery. According to latest figures, to the end of June 2022, only £419.3m (or 28%) of the £1.5bn fund announced in March 2021, has actually been allocated to businesses, with only 82,573 hereditaments (properties) awarded relief across England. Of this £420m, £144.7m has been distributed to businesses in the offices sector, £112.4m to those in factories/industrial and £94m for warehousing, storage, and distribution. The CARF scheme was announced in March 2021 following the Government’s unprecedented step in announcing that businesses impacted by COVID-19 would not be able to appeal their business rates on grounds of a Material Change of Circumstance (MCC) – a move that was lambasted by the rating profession at the time and put paid to the hopes of hundreds of thousands of businesses who had started the appeals process against their rates bills, on the grounds of the impact the pandemic had had on their businesses. Instead, the new £1.5bn relief fund was announced to be for those businesses affected by COVID-19, outside the retail, hospitality, and leisure sectors, and would be distributed by local authorities to “get cash to affected businesses in the most proportionate and equitable way”.