Damien Moore MP welcomes 4 million more people in work since 2010

MEMBER of Parliament for Southport, Damien Moore, has welcomed new figures showing 3,505,311 people are in work across the North West, an increase of:- 326,337, since 2010, as the Conservative Government marks 4 million more people in work since Labour left office.

As the number of people in work grows, figures also show that 107,179 fewer people are unemployed across the North West, meaning more people have the security of their own income.

New figures published by the Office of National Statistics show there are a total of 33.09 million people in work in the UK, an increase of 382,000 people in the last year.

As jobs rise, vacancies are falling, with an unemployment rate of 3.8%, near record lows, meaning the number of unemployed people in the UK has halved since 2010.

This news also comes as wages grew by the largest rate outside of the pandemic at 7.2%, helping people in Southport manage costs as the Conservative Government continues working to halve inflation and grow the economy; alongside other priorities to reduce debt, cut waiting lists, and stop the boats.

These new figures show that the Government is making progress in achieving these economic priorities, with a strong workforce and a resilient economy.

Damien Moore, Member of Parliament for Southport, said:- "With Britain's economy shocked by Coronavirus and then impacted by Putin's war in Ukraine, this has been a difficult time for many people, though these figures show that the Conservative Government is committed to making sure that Southport residents have the security of a job and their own income. I will continue doing all I can to ensure that the people of Southport are able to work, whether this is by improving connectivity through restoring rail links for commuters, by ensuring that our young people are equipped with the necessary skills to enter the work force, or by remaining committed to boosting our local seaside economy, so that Southport is seen as an attractive location for business investment."

Secretary of State for Work and Pensions, Mel Stride MP, said:- "We're getting Britain people working with record number of people in jobs - representing the vigorous support we have in place to support people get into work. We are equipping the over 50s to return to work, removing barriers for parents on universal credit and supporting those who are sick or disabled. The Prime Minister has set out clear priorities to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats. We are working non-stop to ensure more people are in work to achieve these priorities"

Will North West manufacturers see a brightening picture as outlook improves

NORTH West manufacturers are seeing an improving economic outlook for the rest of the year as the domestic and global markets have improved, easing fears of a significant recession for industry this year.

The findings in the Make UK/BDO Q2 Manufacturing Outlook survey show a marked pick up ahead with the improvement largely driven by strong demand in the aerospace sector which has seen a combination of a substantial increase in passenger flights and a spate of major new aircraft orders. The Region is also benefitting from the recovery in the automotive sector with chip shortages easing and registrations increasing for the tenth successive month in May.

Both output and orders are forecast to increase significantly in the next quarter to a balance of:- +17% and +22% respectively, figures that are substantially above long-term historic averages. Both UK and export orders are strong at a balance of:- +11% and 25% respectively In line with this improving picture job prospects are improving with the balance of companies increasing recruitment in the last three months above the national average at:- +17%.

In terms of overall output this year Make UK and BDO are forecasting a contraction of:- 0.3% although this is a significant improvement from the contraction of:- -3.3% made in Q1 and the -4.4% forecast, at the end of 2022. However, Make UK is maintaining its previous forecast for growth of just 0.8% in 2024. UK GDP growth is at:- 0.4%, for 2023, and 1.3%, for 2024.

Dawn Huntrod, Regional Director for the North at Make UK, said:- "Manufacturers in the North West are seeing a gradually improving picture but the word 'gradually' is doing a lot of heavy lifting. However, companies are at least seeing a relative period of stability after the political and economic turmoil of the last few years when they have spent most of their time firefighting. Substantial challenges still remain and so long as there is an absence of an overarching industrial strategy growth prospects will remain anaemic at best."

Graham Ellis, Head of Manufacturing at BDO in the North West, said:- "Despite the 1st half of the year seeing some pressures easing for local manufacturers, there are longer term systemic challenges in the UK market, with built-in inefficiencies that need to be addressed urgently in order for manufacturers to effectively plan and invest. Supply chain pressures, for example, are an endemic issue for the businesses we talk to, particularly medium-sized firms. These issues cannot be overlooked by policymakers or we run the risk of tepid-at-best growth for UK manufacturing for many years to come."

Small business equity investment declined 22% in 2022

THE total value of equity investment in the North West's small businesses declined by 22% to £685m in 2022, driven by a downturn in market conditions, reveals the British Business Bank's annual Small Business Equity Tracker, that has recently been published.

2021 was an exceptional year for equity deals in the North West's smaller businesses, with £882m of investment across 175 deals, driven by activity in the business and professional services sector.

The findings in the North West reflect those across the UK. The total number of deals across the country also saw a decline of 7%, falling from:- 2,912 in 2021 to 2,702, the 1st annual drop in equity deal volumes since the Beauhurst data series began in 2011.

Dr Sophie Dale-Black, UK Network Director for the North of England, British Business Bank, said:- "The last few months have certainly been challenging for businesses in the North West. However, the strength of the Region's Universities, a hotbed for equity investment, should be a source of optimism. The British Business Bank, and our Regional delivery partners, are well poised to support businesses in the North West with significant growth potential."

The downturn reflects venture capital (VC) fund managers reducing their deal making activity and focusing more on business fundamentals, to compensate for the rapid capital deployment in previous months.

Between 2020 and 2022, British Business Bank's equity programmes supported 13% of all equity deals and 15% of total investment. This represents a slight decrease from the previous:- 2019 to 2021 period, driven by the growth stage of the market, in which there were some large investments during the 1st half of 2022 without involvement from the Bank. However, the proportion of equity deals and investment supported by the Bank was 9% and 13% respectively in:- 2016 to 2018, showing that its current market share remains higher than historical levels.

Overall, the Bank remains more likely to invest in tech businesses than the wider equity market, with 48% of Bank supported deals in the sector, compared to 42% across the overall market, in 2020 to 2022. Furthermore, 12% of all Bank supported deals were for university spinouts, compared to 9% of wider market deals. Additionally, an increasing proportion of Bank supported deals are funding diverse teams, with 26% of deals going to companies with at least one female founder, highlighting the Bank's commitment to supporting an innovative and diverse VC ecosystem.