Business News Round Up (31/05/2022)
Scotland outstrips Europe and UK on inward investment
Scotland outpaced both Europe and the UK as a whole last year as a destination for foreign investors, according to a new report. The latest EY Scotland Attractiveness Survey revealed 122 inward investment projects were secured in Scotland in 2021, up from 107 the previous year. The 14% increase compared with rises of 1.8% across the UK and 5.4% in Europe. The figures indicate that Scotland remains the top UK location outside of London. Digital technology led the way with 33 projects, followed by utility supply (18 projects), business and professional services (14) and machinery and equipment (14). Digital projects in Scotland rose by 73.4%, in contrast to a 7% decline in Europe and 7% growth in the UK overall. Scotland’s share of all UK foreign direct investment (FDI) projects rose to its highest level in the past decade, securing 12.3% of projects – up from 11% in 2020. The survey also found that Edinburgh, Glasgow, and Aberdeen remained in the top 10 locations outside of London for attracting projects. Edinburgh ranked equal first with Manchester, with Dundee and Livingston also making the top 20.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-61595697
North West matches pre-pandemic FDI performance
The North West matched its pre-pandemic levels of Foreign Direct Investment (FDI) in 2021, with 74 projects hosted in the region. According to the 2022 EY Attractiveness Survey, the 2021 performance was one up on the 73 projects delivered in 2019, although down on 2020’s 85 projects. This left the North West’s share of the UK FDI market at 7.5% – down from 8.7% in 2020, but above the 6.6% share in 2019 and 2018, and still the fifth highest share for the region in the past decade. Excluding London, the North West had the third highest number of projects in 2021 out of any English region, behind only the South East (82 projects) and the West Midlands (78). Meanwhile, Manchester shared the spoils with Edinburgh as the top FDI location outside of London, with both cities hosting 31 projects. Warrington also featured in the top-20 UK locations outside of London, with five projects. Despite the decline in overall project number of FDI projects, the North West did see some improvements in key sectors and investment activities. Digital technology remained the region’s leading sector in 2021, with 16 projects, while health, life sciences and social work was responsible for nine – up from four in 2020, one in 2018 and none in 2017. Transportation and logistics projects increased from one project in 2020 to seven in 2021.
Scots Fintech funding could reach £1bn through new investment
Investors from the global fintech sector could soon provide Scotland with hundreds of millions of pounds to boost fledgling start-ups.A new project could see as much as £1 billion per year in Scots fintech funding from international investors to boost business portfolios. The plans are looking to create greater links between Scotland’s fledgling start-ups and international investors and capital that are the critical pathway to becoming successful businesses. Led by Scottish venture builder and cluster developer Vivolution, the Scots fintech funding project is delivered in collaboration with the Scottish Government’s Scottish Technology Ecosystem Review and tapping funding and expertise from international investors including Silicon Valley Bank, EquiSolve, Pario Ventures and the Rainmaking Fund.
Double-digit growth for North West business confidence
Business confidence in the North West rose 12 points in May to 44 per cent, the third highest in the UK behind London and the West Midlands, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the region reported higher confidence in their own business prospects month-on-month, up 17 points at 60 per cent. When taken alongside their optimism in the economy, up seven points to 27 per cent, this gives a headline confidence reading of 44 per cent. North West businesses identified a range of growth opportunities for the next six months. It included investing in their teams (51 per cent), diversifying into new markets (44 per cent) and evolving their offering (38 per cent). A net balance of 58 per cent of companies in the region expect to increase staff levels over the next year, up 39 points on last month – the biggest rise of any UK region or nation.
https://www.insidermedia.com/news/north-west/double-digit-growth-for-north-west-business-confidence