Business News Round Up (31/01/2025)
New £630m funding settlement announced for Greater Manchester
The government has confirmed that Greater Manchester will receive an historic new £630m funding settlement, as part of its devolution deal. The new integrated settlement replaces a system of separate funding pots from different Government departments and gives Greater Manchester more freedom and flexibility to fund local services and invest in its priorities. It will also enable the City Region to deliver its ten-year plan to turbocharge growth and deliver tens of thousands of new homes and jobs over the next decade. Mayor of Greater Manchester Andy Burnham said: “This is the biggest step yet on Greater Manchester’s devolution journey, and we are ready to crack on and deliver for our residents. With more freedom and flexibility, we can be even smarter about funding local services. We can take a preventative approach, getting to the root causes of the issues facing our communities and delivering more practical everyday support.”
VC investment in Scottish startups rose by 14% in Q4 2024
The value of venture capital (VC) investment in Scottish startups increased by 14% in the final quarter of 2024, according to KPMG’s latest Venture Pulse report. A total of £92.3 million was raised by the country’s startups from October to December, up from the £80.9 million raised in Q3 of last year. The volume of transactions also grew to 25, up from 21 in Q3. This was driven by investment activity in the capital, particularly Resolution Therapeutics’ funding round of over £63 million, which significantly boosted overall investment for the country. Nationally, the UK raised a total of £15.5 billion in VC investment in 2024, with funding in Q4 alone increasing by more than 40% to £4.4 billion. Investments in 569 businesses contributed to the end of year surge, with the increase in value driven largely by £1.1 billion raised by London-based firm GreenScale.
https://www.digit.fyi/vc-investment-in-scottish-startups-rose-by-14-in-q4-2024
Greater Manchester emerges as a leading regional hub for green finance in the UK
New research commissioned by MIDAS has revealed that Greater Manchester is leading the charge in the UK’s green finance sector, with net-zero activities contributing billions to the local economy and supporting over 35,000 jobs. The report has highlighted Greater Manchester’s southeastern area as a particular powerhouse for net-zero initiatives, with key places in this area showing the highest proportions of net-zero economic activities in the whole of England and Wales. Major banks including, The Co-operative Bank, Natwest, Halifax and Nationwide have provided a support network in advancing Green Finance across Greater Manchester, with The Co-operative Bank and NatWest particularly experienced in structuring and marketing green bonds. With leading companies like Bruntwood SciTech, Legal & General, and Sustainable Ventures having chosen Greater Manchester as a base for their green initiatives, supported by a network of professional service firms including Deloitte, PWC, and specialist organisations like Tallarna and Sero.
6% of pubs and restaurants considering closing
The Chancellor’s tax and wage increases from April could force 6% of Scotland’s pubs, restaurants and hotels to close. A survey by the Scottish Licensed Trade Association (SLTA) reveals that many will reduce their opening hours and cut back on staffing, while others are considering calling it a day. Colin Wilkinson, SLTA managing director, said: “Christmas and New Year was a difficult
period for our industry with a universal theme of visitors spending less time in outlets and
spending less on food and drink. We also continue to face rising costs and staff shortages – 38% of outlets told us that staff availability is impacting upon opening hours, up from 23% in the summer. Regarding the pending changes to NI contributions, 75% of outlets expect new employers’ NI costs to impact on their staffing levels. “