Business spending will grow tentatively over the next two years, according to a new report from the ITEM Club, an economic research group established by Ernst & Young. It predicts that overall spending by businesses will grow by just over three per cent this year and a further 8.1 per cent in 2014. This is good news following a number of recent economic forecasts but means that spending will remains some way short of its pre-downturn peak. The ITEM Club also called on the UK Government to do more to stimulate growth. More →

The application to build a new business district within the government-designated Airport City enterprise zone in Manchester has been granted outline planning permission by Manchester City Council. The UK coalition government made the area one of its first four “vanguard” enterprise zones in March 2011 to provide fastrack planning and tax breaks to encourage rapid development. The application involves the creation of  113,400 sq. m. of office space, 49,000 sq. m. of industrial units, and 5,800 sq. m. of retail and leisure facilities on the outskirts of Manchester. The £650 million scheme is anticipated to create over 11,000 jobs over the next 15 years.

The National Audit Office has called on the UK government to provide greater clarity to taxpayers and consumers on how it will meet its national infrastructure plan. The government expects £310 billion to be spent by 2015 and beyond on new infrastructure projects in sectors such as energy, rail, roads, water, waste, flood defences and digital communications. The government is looking to private companies to own and finance around 64 per cent of the £310 billion, with the burden of funding likely to shift towards the public as consumers rather than taxpayers.

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Following the announcement at the end of last year from the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, that the emirate was to build what it called a new city within its borders, the Government of neighbouring Abu Dhabi has announced that it plans to spend around £56bn on capital projects over the next five years as it seeks to restructure its economy to reduce its reliance on the oil and gas industry. Abu Dhabi is the largest emirate state and its investment marks a significant shift in the economic focus of the region.  More →

Following recent reports that a growing number of firms were locating in the burgeoning creative centres of East London,investment bank Goldman Sachs has finally submitted plans for the 1.2m sq ft nine storey headquarters building KPF in Farringdon Street. The KPF-designed development will replace two existing buildings – the 13 storey Fleet Building and adjacent Plumtree Court which Goldman Sachs acquired in 2011.

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