Chancellor: UK will be the world’s first net zero financial centre

COP26: UK firms must plan for low-carbon future

Chancellor to set out plans for UK to be the world’s first net zero aligned financial centre, calling for other countries to follow suit
Over $130 trillion – 40% of the world’s financial assets – will now be aligned with the climate goals in the Paris Agreement, thanks to climate commitments from financial services firms
New UK climate finance projects funded from the UK’s international climate finance commitment will help developing countries to fund green growth and adapt to the changing climate

The Chancellor will set out the UK’s plans to become the world’s first net zero aligned financial centre and welcome “historic” climate commitments from private companies covering $130 trillion of financial assets as he hosts Finance Day at COP26 today (3 November 2021).

These commitments will help to create a huge pool of cash that could fund our net zero transition, including the move away from coal, the shift to electric cars, and the planting of more trees.

Convening the largest ever meeting of finance leaders on climate change, Rishi Sunak will set out the UK’s “responsibility to lead the way” and unveil a fresh push to decarbonise our world-leading financial centre.

Under the proposals, there will be new requirements for UK financial institutions and listed companies to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards to a net zero economy by 2050.

To guard against greenwashing, a science-based ‘gold standard’ for transition plans will be drawn up by a new Transition Plan Taskforce, composed of industry and academic leaders, regulators, and civil society groups.

In his opening keynote at Finance Day, Mr Sunak will hail the progress made to “rewire the entire global financial system for net zero” under the UK’s leadership of COP and reveal that over $130 trillion – around 40% of the world’s financial assets – is now being aligned with the climate goals in the Paris Agreement, including limiting global warming to 1.5C.

These commitments come from over 450 firms from all parts of the financial industry, based in 45 countries across six continents, and have been delivered through the Glasgow Financial Alliance for Net Zero (GFANZ), which was launched by the UK to harness the power of the financial sector in the transition to net zero.

The UK has also worked as chair of the G7, and in partnership with other G20 countries, to ensure all economic and financial decisions take the risks of climate change into account. The UK has convened over 30 advanced and developing countries from across 6 continents and representing over 70% of global GDP to back the creation of a new global climate reporting standards by the IFRS Foundation to give investors the information they need to fund net zero.

Celebrating this progress, the Chancellor will urge financial firms to “mobilise private finance quickly and at scale” and call on governments to enact bold climate policies to take advantage of these enormous financial resources.

Reiterating the importance the UK COP Presidency has placed on getting finance to the most vulnerable countries, Mr Sunak will also highlight that the $100 billion climate finance target will be met by 2023 and urge developed countries to boost their support to developing countries – including by helping them tap into the trillions of dollars committed to net zero by the private sector.

The UK will seek to address barriers to finance faced by developing countries with a series of new green initiatives funded from its international climate finance (ICF) commitment, including £100 million to respond to recommendations from the UK co-chaired Taskforce on Access to Climate Finance to make it faster and easier for developing countries to access finance for their climate plans.

In total, the UK will spend £576 million on a package of initiatives to mobilise finance into emerging markets and developing economies, including £66 million to expand the UK’s MOBILIST programme, which helps to develop new investment products which can be listed on public markets and attract different types of investors.

And in a further advance towards the $100 billion goal, the Chancellor will announce the launch of an innovative new financing mechanism – the Climate Investment Funds’ Capital Markets Mechanism (CCMM) – that will boost investment into clean energy like solar and wind power in developing countries.

The UK is already the biggest donor to the multilateral Climate Investment Funds, having contributed £2.5 billion, and will now give the returns from its investments (known as reflows) to CCMM. This new fund will use reflows to help it issue green bonds worth billions of pounds in the City of London – the world’s leading green finance centre – and could leverage an extra $30-70 billion from other sources for specific clean energy projects.

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Janine Hirt, Chief Executive Officer, Innovate Finance said: “As the voice of UK FinTech, we passionately support the development of the UK as the first net zero aligned financial centre.

“Net Zero transition will be driven by finance and capital markets and it will be enabled by technology and data. As a leading global centre for financial services and for financial technology and innovation, the UK can and should lead the way in rewiring the entire global financial system for net zero.”

Dr Ben Caldecott, Director, UK Centre for Greening Finance and Investment (CGFI) Chief said: “This is huge. The world’s largest international financial centre will become the world’s first net zero-aligned financial centre.

“This is underpinned by world-leading regulation and the economy-wide adoption of net zero transition plans. This will spur demand for green finance and accelerate decarbonisation, not just in the UK but wherever UK firms do business.

“This will make a real difference and means the UK financial services sector will play an even larger role in providing the capital and financial services required to deliver net zero globally.”

“The UK Centre for Greening Finance and Investment is excited to act as the secretariat, together with E3G, for the new Transition Plan Taskforce to develop a ‘gold standard’ for transition plans and associated cutting edge metrics.

“We are the UK’s national centre established to accelerate the adoption and use of climate and environmental data and analytics by financial institutions internationally.”

Julie Page, Chief Executive Officer, AON said: “We welcome and support the Chancellor’s plans for the UK to be the world’s first net zero aligned financial centre.

“All industries have an important role in helping to achieve this goal and through Aon’s own 2030 net-zero commitment, we will contribute to this historical commitment and help lead the way towards a net zero economy.”

Dr Rhian-Mari Thomas OBE, Chief Executive, Green Finance Institute said: “Today marks the day that green finance has reached a point of critical momentum. The amount of capital committed to the transition to net zero has reached unprecedented levels.

“The task before us now is to come together in radical collaboration to unlock investment opportunities at speed and scale so we can channel this wall of capital into real economy outcomes that not only positions the UK as the world’s first net zero financial centre but also delivers a just and resilient net-zero global economy”

Kay Swinburne, Vice Chair of Financial Services, KPMG UK said: “This announcement will provide the financial services industry with a valuable set of unified metrics to measure progress towards decarbonisation and it is brave to put a gold standard in place for all companies raising funding.

“We’re pleased to see the UK lead by example by not only establishing the GFANZ initiative, but also expanding private sector commitments and supporting a science based approach to reporting standards.”

James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF) said: “We warmly welcome the Chancellor’s ambition to make the UK the world’s first net-zero aligned financial services centre.

“As the first major economy to legislate to cut emissions to net zero by 2050, this is a natural step in the UK’s climate leadership journey and recognises the central role of the sustainable finance sector in addressing the climate crisis.

“UKSIF and our members look forward to actively engaging in these next steps, particularly helping to build a shared definition of a good quality transition plan and more broadly a net-zero finance sector.

“Government and regulators should work closely with the financial services industry to identify the policies and actions required to progress our sector towards this world-leading ambition.”

Investing to tackle climate change

The crucial role of private investment in efforts to achieve net zero will be set out by First Minister Nicola Sturgeon later today (Wednesday) as part of Finance Day at COP26.

The First Minister will join the Mayor of London Sadiq Khan at the opening session of a Green Investment Showcase to detail how private investors can help drive the green industries of the future.

The First Minister will emphasise Scotland’s role as a world leader in sustainable industries and highlight the associated investment opportunities that exist, including through Scotland’s Green Investment Portfolio – now valued at £2 billion and which is expected to reach £3 billion in 2022.

The Showcase, hosted by Scottish Enterprise, will be attended by international and UK-based institutional investors, along with climate and clean tech companies seeking investment.

The First Minister said: “COP26 provides what is possibly our best chance to advance the societal and economic change that is demanded by the climate emergency, delivering lasting action towards net zero and a climate-resilient future.

“By grasping the opportunities provided by green industries and supply chains, we can create the good green jobs of the future and secure a just transition away from fossil fuels.

“The role of private capital is fundamental to achieving this and governments must do what they can to channel investment into areas supporting transformational change.

“Through our Green Investment Portfolio, which is already valued at £2 billion, the Scottish Government highlights a range of exciting, commercially assessed investment propositions to investors and showcases businesses in Scotland as world leaders in innovative green industries of the future.”

Mayor of London Sadiq Khan, said: “COP26 is a landmark moment in the fight against climate change. We need to take bold action now or we will face catastrophic consequences in the years to come.

“Climate action and economic growth must go hand in hand – in London I’m investing in green technology which generates good quality jobs, for Londoners and across the UK. Turning the tide on climate change will require record investment and coordinated action from everyone – cities, businesses, governments and communities.

“That’s why I am committed to working with the Scottish Government in pioneering green investment and I’m proud to announce that I will be committing over £30 million in additional funding in London which will help encourage up to £150 million of private investment in low carbon projects and create jobs that will help achieve our 2030 net zero target.”

Selling online? Here’s what you need to know about taxes

With online shopping becoming more and more popular, e-commerce and online business start ups are growing at a rapid rate. In fact, according to the Business Data Group, the UK’s e-commerce start-up sector is booming at levels not seen before.

Its research showed that in the week before the UK’s COVID-19 lockdown was announced, more than 500 e-commerce start-ups were formed. Five weeks later, that figure had risen exponentially to almost 1,300 e-commerce start-ups per week – around 800 more than the same week in 2019.

If you own an e-commerce business, or you’re thinking about starting one, then there are special rules and regulations for operating. Here, Zoe Gibbons (above), partner and e-commerce specialist at Perrys Chartered Accountants, explains what you need to know about selling online:

Do online sellers have to pay tax?

Setting up as an online business is a great way to keep overheads to a minimum and benefit from flexible working arrangements. However, like any other business, an e-commerce business will be subject to paying taxes.

If you are self-employed, including as an online seller, then you’ll need to complete an annual self-assessment tax return to disclose any income and expenditure and submit it online to HM Revenue & Customs (HMRC).

However, there are some exceptions. For example, if you are selling items online and it is not part of a business activity, such as selling second-hand possessions on eBay, then you won’t need to pay tax. However, if you plan to do it regularly, this could count as a business even if you already have a job.

As of 2016, the Finance Act gave HMRC the authority to investigate selling sites of individuals who do not appear to be declaring income. This is assessed based on the following criteria:

Intention to make a profit as opposed to selling for fun or to raise emergency funds
Repetition of similar transactions over a short period of time
Borrowing money to fund transactions
Inability to prove items sold were pre-loved or used before being listed
Items sold at a fixed price in a similar way to other retailers
Limited time between purchase and selling of items
Modification of items in order to sell them for profit

How much can you sell online before paying tax?

If you’re hoping to make a small amount of money from selling online, then the good news is HMRC currently allows for £1,000 to be earned in sales before any tax is payable.

However, even if you’re selling online on platforms such as eBay, Depop and Gumtree, and you’re not a registered business, once you pass the £1,000 earnings threshold you may be liable for tax as a self-employed individual.

What taxes do online businesses need to pay?

Depending on how your business is set up, the following taxes may apply:

Income Tax
Corporation Tax
National Insurance
VAT
Employers’ PAYE
Business rates

It is recommended that you seek the advice of a professional accountant for any e-commerce business tax related matters.

Is there an online sales tax?

In March 2020, HMRC introduced the Digital Services Tax – a 2% tax on the revenues of search engines, social media services and online marketplaces, which derive value from UK users. The majority of businesses affected by this tax are large multi-national enterprises, such as Amazon, Facebook and Google.

However, the UK Treasury is also investigating the options for introducing an online sales tax in response to the recent shift in shopping patterns and online consumer behaviour. Currently, it is considering a 2% online sales tax on e-commerce sellers and marketplaces.

This could mean that e-commerce businesses will need to pay 2% of tax on their online sales to UK customers.

Do you pay taxes when selling online to other countries?

If you sell goods online to customers who are overseas, then other considerations will apply. For example, your goods may require accompanying documentation and could be subject to customs duty and sales tax on arrival at their destination.

If you are in any doubt, then you should seek the assistance of a qualified accountant who has experience dealing with e-commerce businesses.

The Tartan Blanket Co. expands thanks to £1.8 m HSBC UK support

Blanket and scarf brand, The Tartan Blanket Co., has received a £1.8 million loan from HSBC UK to purchase new premises, as demand grows globally.

The Edinburgh-based natural wool brand, which makes natural and sustainable tartan blankets, has used the funding to purchase a new 32,000 sq. ft. warehouse in Newbridge after its revenue increased by 100% in 2020.

With blankets and scarves now being sold in over 70 countries worldwide, the new warehouse will allow the company to keep up with increasing demand over its peak winter sales period.

The Tartan Blanket Co. is also aiming to hire 40 new employees within the next year to work in the new premises, giving it further capacity to distribute internationally on a large-scale.

Emma Macdonald, Owner of The Tartan Blanket Co., said: “After setting up in 2014, it’s really exciting to realise how far we’ve come. Our blankets and gifts are now being shipped across the globe, from Scotland to Australia, Canada and the US.

“Our revenue doubled last year, and we’re anticipating the same growth again in 2021.The investment from HSBC UK will enable us to increase capacity and distribution across the world, ensuring we can provide the best-quality blankets and service for years to come.”

Natalie Marshall, Relationship Director at HSBC UK, said: “It’s brilliant to see the strong appetite for contemporary tartan blankets from The Tartan Blanket Co. in Scotland and further afield. With sales increasing so rapidly in the midst of a pandemic, the company has really shown how hard work and a clear vision can result in success.”

The Tartan Blanket Co. was founded by Emma and Fergus Macdonald out of an ambition to create beautiful natural products. One of the company’s most popular lines is its recycled wool blankets, which transform discarded clothes and materials into contemporary tartan blankets.

This year, The Tartan Blanket Co. has also committed to help protect the environment, with the aim of offsetting more carbon than it is producing.

Emma added: “As part of our sustainable practices, which we aim to continue into our new premises, we will be donating 1% of every purchase to environmental causes and 1% to charities and community projects around the world to help those in need.”

Edinburgh hosts Barbados investment event

A touch of the Caribbean came to Edinburgh on Tuesday evening as it hosted a diplomatic and business event at Norton House Hotel, bringing together Scottish business leaders.

The event showcased investment opportunities on the Caribbean Island of Barbados and signals another return to normalcy as Scotland emerges from the COVID-19 pandemic.

The reception was hosted by Invest Barbados, the economic development agency of the government of Barbados and Business Friends of Barbados (Scotland).

Speakers included the Barbados High Commissioner to the UK, Milton Innis; CEO of Invest Barbados, Kaye-Anne Brathwaite and Chairman of Business Friends of Barbados, Ian Gittens.

Famed as a popular tourism destination, attendees heard how Barbados offers a warm and welcoming investment climate. The island boasts ambitions to become a “digitally enabled nation” and is well on track to achieving the goal of 100 per cent renewable energy generation by 2030, delivering a carbon-net-neutral target. The opportunity is ideal for those looking for more information and greater links with Scotland.

Attendees heard how investment opportunities for exploration include niche manufacturing, global banking, information, and computer technology (ICT), global education, food and drink, wealth management, insurance, renewable energy, and medical tourism among others.

The investment event comes hot on the heels of the recent announcement of Scotland’s only direct route to the Caribbean, with Virgin Atlantic launching a connection from Edinburgh to Bridgetown, Barbados, set to launch on 5^th December.

It also comes as a precursor to a trade mission to the island from Scotland, which will take place from 22-27 November 2021, the first in-person mission to Barbados since the start of Covid in early 2020.

Of additional interest is an innovative and highly successful ‘Welcome Stamp’ (introduced at the beginning of the COVID-19 pandemic), which enables individuals to stay and work remotely on the island without changing their tax residency.

It also has the lowest structure of income tax rates and some of the most competitive personal income taxes. Additionally, Barbados is a gateway to investment in the wider Caribbean and Latin America.

The island has historic links with Scotland, with strong Scottish immigration as well as having its own Scotland District on the east coast of the island, named due to its physical similarities with Scotland, located appropriately within the Saint Andrew Parish.

Barbados also hosts an annual Celtic Festival which takes place each spring (Covid permitting); this includes pipers, dancers, choirs, a haggis night, and a rugby tournament. The island also boasts its own tartan – the first Caribbean tartan to be registered in Scotland.

Barbados’ educational system is also renowned globally, with a literacy rate of 99.7 per cent, one of the highest in the world, delivering a highly talented workforce.

CEO of Invest Barbados, Kaye-Anne Brathwaite (above) , said: “We were delighted to host this event. Scotland has long and well-established links with Barbados and will become even more connected with the commencement of direct flights from Edinburgh in December.

“Barbados remains an incredibly desirable place to do business and is a stable political and economic jurisdiction. Our welcoming investment climate compliments the enviable quality of life that we offer.

“Our novel Welcome Stamp has also proven globally popular, enabling individuals to stay and work remotely on the island without changing their tax residency.

“Barbados is a long-established hub for global business and you’re invited to grow your business here.”

Glasgow set to host biggest ever British Chamber international trade mission during COP26

The largest ever international trade mission hosted by a British Chambers of Commerce is to take place during COP26, connecting up to 100 businesses worldwide to share best practice in accelerating the transition towards a more sustainable and circular economy.

Hosted by Glasgow Chamber of Commerce, the Climate Chamber Mission will bring companies from 10 countries across the globe together to increase international collaborations, export and business growth opportunities.

The two-day hybrid event, hosted between 2 – 3 November 2021, is one of the main international trade missions being held during COP26 and is designed to support businesses in the delivery of circular economy solutions, sustainability and climate targets.

The Mission will see UK companies including Edrington, Scottish Leather Group, Vango, A C Whyte and MacRebur collaborate with businesses from Germany, Indonesia, Israel, Italy, Norway, Denmark, France, Australia and Singapore.

Among international businesses, Glasgow will welcome Porsche, ZmartHaus and Bosch Energy Solutions from Germany, and HSBC, Indika Energy and Standard Chartered from Indonesia.

Aiming to create an international business network via an online community, the Mission provides the opportunity for businesses to achieve long term learning, innovation and implementation of both climate and business goals.

The main event will look at how businesses can join the race to net zero, and why bold climate targets are not always enough, while the breakout sessions will cover key sectors such as food and drink, manufacturing, construction, transport, low carbon and renewables, and fashion and retail.

Richard Muir, deputy chief executive of Glasgow Chamber of Commerce, said: “COP26 brings together a global community of leaders, businesses and climate change activists to focus and act on climate change and how countries and cities are planning to tackle it.’’

“The Climate Chamber Mission will leverage that global platform and utilise the Chamber Network to create lasting partnerships for Scottish and international businesses, while positioning Glasgow as a leading city in the green and circular economy.

“We are delighted to be working with a number of partners, including the British Chambers of Commerce Global Network of oversea Chambers, as well a number of Circular Economy organisations, and we look forward to welcoming our global community to Glasgow.”

Leif Nordhus, CEO of Circular Norway, said: “The transition to a circular economy is essential to fight climate breakdown.

“The Climate Chamber Mission during COP26 provides a unique opportunity for Circular Norway to mobilize a coalition of Norwegian companies to build momentum and accelerate actions towards the goals of the Paris Agreement.”

Ainsley Mann, chairman of British Chamber of Commerce in Indonesia, said: “I have long held the belief that COP26 offers a once in a lifetime opportunity for Scottish businesses to engage with companies from all over the world to meet and discuss collaboration opportunities and to contribute meaningfully to net zero objectives.

“I am very excited about the rapid up take by Indonesian businesses wanting to join this initiative which I believe will serve as a tremendous catalyst for many productive partnerships going forward.”

For more information about how to get involved, please contact:

climatechamber@glasgowchamberofcommerce.co.uk

Scottish business confidence climbs as restrictions ease

Bank of Scotland’s Business Barometer for August 2021 shows:

Scottish business confidence rises six points in August to 34%

Firms’ hiring intentions jump 13 points with 34% planning to create jobs in the next 12 months
Overall UK business confidence reaches 36% – the highest reading since May 2018 – as all regions and nations report positive confidence levels

Business confidence in Scotland rose six points during August to 34%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

The full easing of lockdown restrictions in Scotland in August was a clear boost for businesses, with overall confidence in the economy also rising by 20 points to 43%.

Companies in Scotland reported marginally lower confidence in their own business prospects month-on-month, down eight points at 25%. When taken alongside their optimism in the economy, this gives a headline confidence reading of 34%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

A net balance of 20% of businesses in Scotland expect to increase staff levels over the next year, up seven points on last month.

Overall UK business confidence rose six points in August, reaching 36%, the highest level recorded since May 2018. When asked about their overall trading prospects businesses reported a six-point increase on July’s reading at 34% and firms’ confidence in the economy also increased six points to 39%.

All UK nations and regions had a positive confidence reading in August. The most confident regions were the North West (64%), North East (46%) and London (41%). All bar three areas reported a growth in confidence in August, with the East Midlands (down 10 points to 28%), West Midlands (down three points to 27%) and Yorkshire and Humber (down two points to 26%) reporting marginal falls.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “With most of the Covid-19 restrictions easing in August, businesses across Scotland were able to return to normal trading for the first time in 18 months and are feeling optimistic about what this means for the economy.

“With confidence on the up and even more firms are now planning on making new hires, the country is taking great steps towards recovery and growth. We’ll continue to support businesses through the coming months as they aim to capitalise on this positive momentum.”

In sector terms, there was notable strength in sectors benefiting from the further easing of Covid restrictions. Services confidence saw the greatest month-on-month increase, rising by 8 points to 36%, the highest level since January 2018.

Confidence in both manufacturing and construction also picked up (both up 7 points to 40%), led by rises in trading prospects for the year ahead.

The increase in manufacturing confidence came despite ongoing supply disruptions, although the level remains below the high in May. Retail confidence posted a smaller 2-point rise to 34%, remaining below the recent peak in May.

Gareth Oakley, Managing Director for Business Banking, Lloyds Bank, said: “Since the start of the year business confidence has been increasing, and August has been a particularly strong month. Many of the regions have seen significant upticks in confidence and it’s encouraging that Northern Ireland has moved back into positive territory.

“It is clear there is still some level of uncertainty on inflation and the impact of price pressures, but with further boosts to confidence in the services, manufacturing and construction sectors we can be hopeful that demand across all sectors will drive consumption throughout the rest of the year. The last few months of the year will be pivotal to the future of UK economic growth and we remain by the side of businesses as the country continues to reopen.”

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Business confidence reaching its highest level in over four years tells a positive story about the country’s economic recovery.

“This confidence is driven by the continued success of the vaccine ollout, the removal of lockdown restrictions and adjustments to self-isolation rules.

“Staff shortages remain a challenge, but as the economy moves back towards pre-pandemic levels we can be optimistic that the momentum for business confidence and economic optimism can be sustained in the months ahead.”

Scotland Loves Local: new £10 million fund launched

Projects aiming to help transform towns and neighbourhoods could apply to a new £10 million multi-year fund.

The Scotland Loves Local Fund aims to encourage people to think local first, and support businesses and enterprises in their community. The fund will provide match funding of between £5,000 and £25,000 for projects run by groups like town centre partnerships, chambers of commerce or community and charity trusts.

Administered by Scotland’s Towns Partnership it aims to bring new, suitable, creative projects and activity to towns and neighbourhoods – helping build local wealth and increase footfall and activity, while supporting local enterprise partnerships. Eligible projects could include things like community shops, marketing and digital schemes, or enabling larger construction projects delivery.

Community Wealth Minister (Eh? – Ed.) Tom Arthur said: “To support Scotland’s towns and neighbourhoods recover from the pandemic we are launching a new £10 million Scotland Loves Local Fund.

“This will provide 50% match funding for local projects between £5,000 and £25,000. Whether it be funding for small-scale improvements or adaptations, climate or active travel programmes, home delivery digital schemes, pop up shops and markets, or the direct funding or expansion of Scotland Loves Local loyalty card schemes – communities will be able to decide how best to improve their local area.

“This 100 day Scottish Government commitment reinforces our determination to support all our communities as they recover from the pandemic and will help strengthen the vital support being provided through the Scotland Loves Local marketing campaign and loyalty card scheme.”

Scotland’s Towns Partnership Chief Officer Phil Prentice said: “Over the coming years, this significant commitment from the Scottish Government will make a real difference – empowering communities to take action that will make their areas fairer, greener and more successful. We are delighted to be working with ministers to deliver this.

“This funding will unlock the great potential of our towns and neighbourhoods, allowing them not just to recover from the impact of Covid-19, but to create a stronger, more sustainable future which has localism at its heart. I would encourage interested organisations across Scotland to get their applications in.”

Director of Milngavie Business Improvement District and Business owner Wendy Ross said: “The Scotland Loves Local campaign was a massive help to Milngavie, especially at the peak of the pandemic when non-essential retail businesses were forced to close.

“Using the digital experience of our business improvement district place manager and his network of collaborators, the Loves Local funding was invested to build many e-commerce websites very quickly so we could continue to trade online, with click and collect and deliveries.

“This was a critical help for local businesses and really opened our eyes to aspects of the digital world that we knew little about. Using the Loves Local messaging and excellent #ThinkLocalFirst campaign, we used social media and milngavie.co.uk to reach local people. That really struck home and continues to do so.”

www.lovelocal.scot

Take off for Loganair’s new Scotland-Wales air link

Loganair, the UK’s largest regional airline, today launches its new direct service linking the capital cities of Scotland and Wales.

To mark the launch of the new route between Edinburgh and Cardiff, Loganair’s head of revenue and sales, Donna McHugh, will fly to the Welsh capital to meet Spencer Birns, CEO at Cardiff Airport.

The service will operate up to five times weekly on Mondays, Wednesdays, Thursdays, Fridays and Sundays, connecting Scotland and Wales for business and leisure travellers alike.

Flights will be on Loganair’s 49-seat Embraer 145 regional jets, with prices on the 1hr 20min trip starting at £50.99 one way including all taxes and charges. All Loganair fares include a free checked baggage allowance.

The direct flights represent the last major route to be restored by Loganair and other carriers, thereby bringing back the domestic connectivity lost when Flybe collapsed in March 2020.

The Cardiff service adds to the eight others already flown from Edinburgh by Loganair, including Southampton, Newquay and the Isle of Man.

Donna McHugh, head of revenue and sales at Loganair, said: “Loganair is delighted to once again be operating the Edinburgh to Cardiff route.

“It is vital that connectivity is maintained between these two major cities and we know it will prove very popular with both our leisure and business travellers.”

Spencer Birns, CEO at Cardiff Airport said: “It’s fantastic that Loganair has re-instated such a vital and in-demand route, re-connecting the Scottish and Welsh capitals.

“Once again, customers will be able to fly with ease between Cardiff and Edinburgh, and fly from their local Airport for business travel, to visit friends and family, or to experience the vibrant city of Edinburgh and Scotland’s natural beauty.

“It is our priority to re-instate routes lost due to COVID-19 pandemic, and we are delighted that Scotland’s airline has stepped in to provide an essential service to both our business and leisure customers. We’d like to extend a warm Welsh welcome to Loganair and thank the airline for their support.”

Kate Sherry, aviation director at Edinburgh Airport said: “We’re excited to be reconnecting the capitals of Scotland and Wales, a route which will allow family members to reunite as well as enable people to enjoy a well-earned break in Edinburgh and Cardiff.

“It’s been an extremely tough period and we know people are looking forward to enjoying some time away from home, and this is further good news as the airport looks to provide those opportunities for our passengers. Loganair is a valued partner and its confidence in Edinburgh Airport is welcome now and going forward.”

Chancellor hails Scotland’s pivotal role in future of UK economy

The Chancellor will visit Scotland today (29 July 2021) to meet people and firms supported by the UK Government’s Plan for Jobs throughout the pandemic.
In advance of the trip, Rishi Sunak hailed the economic strength of the Union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy;
He will meet firms in sectors ranging from tech to tourism and see how Scotland is helping drive the UK’s transition to net zero ahead of the COP26 summit in Glasgow later this year.

The Chancellor has hailed the economic strength of the union ahead of a visit to Scotland where he will see first hand how the UK Government’s Plan for Jobs has supported businesses and families during the pandemic.

Rishi Sunak will meet Scottish businesses and individuals in Edinburgh, Glasgow and Fife to discuss how they are recovering from the crisis and find out more about the ways Scottish firms are creating jobs and playing a key role in the UK’s green recovery.

Ahead of the visit, he hailed the economic strength of the union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy.

Chancellor of the Exchequer, Rishi Sunak said: “We’ve come through this pandemic as one United Kingdom – with our Plan for Jobs supporting one in three jobs and tens of thousands of businesses across Scotland.

“Thanks to the strength of our Union we’ve deployed the fastest vaccination rollout in Europe and our economy is rebounding faster than expected.

“It’s vital this continues, and Scotland’s innovation and ingenuity will be key in creating jobs, powering our growth and driving a green recovery.”

Since the start of the pandemic the UK government has delivered one of the world’s most generous packages to support, create and protect jobs across the UK.

In Scotland one in three jobs have been supported through the pandemic, over 900,000 people in Scotland were furloughed, more than 90,000 businesses have received loans and £1,535 billion has been paid in self-employment support.

People in Scotland are benefitting from the UK Government’s Plan for Jobs – the Kickstart scheme is already helping thousands of 16-24-year-olds into work, Job Entry Targeted Support (JETS) Scotland is providing up to six months of targeted support and 13,500 new Work Coaches have been recruited across Great Britain to give tailored support to people out of work.

On today’s visit, the Chancellor will travel to a number of businesses – both small and large – to meet business owners and furloughed employees who have returned to work after their jobs were protected through the UK-wide scheme.

With just under 100 days until the COP26 summit in Glasgow, he will also see how Scotland is harnessing the power of offshore wind, a sector which supports 2,800 jobs in Scotland and is key in helping the whole of the UK reach our climate goals.

The Chancellor will also meet representatives of Scotland’s financial services sector to thank them for keeping call centres and branches open over the pandemic as well as distributing billions of pounds through UK government loan schemes.

He will discuss his vision for the future of financial services – a sector which accounts for 153,000 jobs in Scotland (financial and professional related services).

He will also see how Scotland’s culture sector is preparing for the summer ahead, as it looks forward to welcoming back locals and tourists who wish to revel in Scotland’s rich cultural heritage.

Scottish Business confidence soars to highest levels in UK

Bank of Scotland’s Business Barometer for June 2021 shows:

Scottish business confidence leaps 27 points to 42% – the highest in the UK
Net balance of 18% of businesses in the country expect to increase staff levels over the next 12 months
UK business confidence remains steady at 33% with all regions and nations reporting a net positive reading for the third consecutive month

Business confidence in Scotland rose 27 points during June to 42%, according to the latest Business Barometer from Bank of Scotland Commercial Banking. This is the sharpest rise in overall confidence this year and means Scotland has the highest levels of optimism anywhere in the UK.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 32 points at 42%. When taken alongside their optimism in the economy, up 24 points to 43%, this gives a headline confidence reading of 42%.

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 18% of Scottish businesses expect to increase staff levels over the next year, up ten points on last month and the third consecutive month the reading has increased.

Overall UK business confidence remained steady month-on-month at 33%. Firms reported a small increase in their business prospects, up two points to 30%, the highest reading since September 2020. Confidence in the economy dipped marginally by two points to 36%.

Across the UK all regions and nations reported positive confidence readings for the third consecutive month. Businesses in Scotland, London (up 17 points to 41%) and the East of England (up ten points to 36%) reported the highest increases in confidence.

While confidence remained positive, firms in eight regions reported a month-on-month drop. The biggest decreases were in Yorkshire and Humber (down 14 points to 30%), the West Midlands (down 12 points to 29%), the North West (down nine points to 29%) and East Midlands (down nine points to 31%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Business confidence in Scotland rose again in June as firms across the country slowly but surely returned to normal trading. It also positive to see that more firms are now planning to hire new staff this year – another clear indicator that the country is on the path to recovery.

“Despite this, the well-trailed postponement to the easing of lockdown restrictions will have dampened spirits, especially for those in the country’s tourism and hospitality sector and is another sign that we are not out of the woods yet.

“We’ll continue to stand by Scottish business and support firms through the coming months as we look to build back better.”

Differences in confidence between the UK’s regions and nations narrowed this month (chart 5). There were sizeable increases in Scotland (up 27 points to 42%), London (up 17 points to 41%) and the East of England (up 10 points to 36%).

Along with the South West (36%), these were the most confident parts of the country. The largest falls, albeit from previously elevated levels, happened in Yorkshire and the Humber (down 14 points to 30%) and the East Midlands (down 9 points to 31%). There were smaller declines in the South East (down 6 points to 31%), Wales (down 6 points to 31%) and Northern Ireland (down 6 points to 11%).

The majority of responses were given before the various UK governments formally announced the delay to the removal of all limits on social contact, which was originally expected to happen on 21st June in England and close to that date in other parts of the UK.

However, it is likely that anticipation of the delay may have had a small negative impact in confidence particularly in the retail sector (down eight points to 36%) while manufacturing also fell (down 18 points to 35%).

Despite this, confidence remains at historically high levels across the broad industry sectors – in part due to services increasing by five points (31%) to its highest level in more than three years and construction remaining steady at 35%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “Despite a fall in business confidence in eight of the UK’s nations and regions from the highs of last month, the differences are narrowing.

“It’s pleasing to see such significant improvements in a number of regions, in particular Scotland and London, with both reporting strong increases in confidence. We can be optimistic that the increase in confidence in the services sector, as well as the overall historically high levels across the broad industry sectors, bodes well for businesses as we remain by their side on their road to recovery.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “A fifth consecutive monthly increase in trading prospects and employment expectations highlights the resilience of UK businesses as they continue to recover from the challenges presented by the pandemic.

“Although we must now wait slightly longer for the last remaining COVID-19 restrictions to ease, it’s an encouraging sign that firms continue to have strong overall confidence in the outlook for the UK economy, as well as their expectations for their own growth prospects.”