Councils across the East Midlands face a collective funding gap of over £181m in the next financial year forcing them to cut essential services, says a report published by Unison.
Waste collections, leisure centres, nurseries and other vital services will all be hit according to the findings based on information* from local authorities in England, Scotland and Wales. The Unison report shows that Leicester City Council is set to have the largest funding gap of all the authorities in the region with a funding gap of £48.3m. The next worst affected authority in the region is North Northamptonshire Council (£25.1m), then Derbyshire County Council (£19.0m) and Lincolnshire district and county councils (£16 m) The record shortfall, totalling £181m across the 40 councils in the East Midlands in 2023/24, means local authorities will be forced to rely on dwindling reserves, and cut services and jobs, says Unison. The report shows there is worse to come with the cumulative funding gap rising even further in 2024/25 to over £360m, says Unison. Unison says skyrocketing inflation, energy costs and the economic impact of the mini budget mean that the actual shortfall will be many times higher. The picture is likely to get bleaker still, says Unison. Chancellor Jeremy Hunt has spoken of further cuts to the public sector, which are likely to compound the crisis in local government funding. And as the cost-of-living crisis deepens and inflation soars, even greater strain will be placed on councils as their costs increase and demand grows for food banks and other support. Unison’s research is based on data relating to 39 local councils across the region. It found that all but four (Chesterfield, Harborough, High Peak and North East Derbyshire) have predicted budget gaps. Most are responding to the crisis by cutting services and activities, examples include: • Derbyshire County Council is closing 8 adult disability centres and 7 authority owned care homes resulting in over 100 job losses. • Nottingham City Council has earmarked five children’s centres for closure, closed a leisure centre in Radford and have cancelled this year’s Bonfire night and fireworks display. Unison says even more services – as well as jobs – will be at risk if councils have to declare themselves effectively bankrupt. Unison East Midlands head of local government Rachel Hodson said: “Local authorities provide the essential services everyone relies on such as waste collection, road repairs, and children’s care. “But cash-strapped councils are having to resort to ever more desperate measures after years of austerity just to keep services going. Now the government looks set to make their predicament infinitely worse with emergency cuts to spending following the mini-budget fiasco. “I have written to all the region’s Conservative MPs to ask them to sort the crisis in local government funding and give councils the cash they need to save services.”Growth sees new starters and promotions at Purpose Media
Full service marketing agency Purpose Media has announced the appointment of two new people and two internal promotions as client growth and their recruitment drive continues in response to the demand for digital marketing services.
Joining the company are account executive Georgia Weston and client services apprentice Harriet Fell. The promotions that have been announced include Becky Sandars, who has been promoted to account manager, and Olivia Beesley who is now a senior content and marketing executive.
Georgia joins from a retail background and holds qualifications in branding and photography. Harriet has an automotive industry background and will be studying for a business administration apprenticeship arranged by EMA Training. In her new role Georgia will support the account management team, and Harriet will support the client service team – both helping to retain and attract new business.
Olivia has excelled in her role since joining the company in February, and has shown great initiative in shaping the vital role the content team plays in delivering compelling campaigns.
Becky joined Purpose Media in January 2021 and has gradually been mentored to manage her own client portfolio. Her promotion recognises the confidence she has developed with clients who have grown to trust her expert advice when planning their campaigns.
Head of client services, Grace Golden said: “When we take on new people our goal is to always nurture their development so that they build confidence and enjoy their work from learning new skills. By promoting from within we help ensure continuity of client service and our people feel rewarded for their hard work and commitment.”
South & East Lincolnshire Councils Partnership awarded NPO status and £2m funding
The South & East Lincolnshire Councils Partnership is delighted to have been awarded National Portfolio Organisation status for the first time – securing just under £2m to support art, culture and creativity across the Partnership.
The prestigious status awarded by Arts Council England has seen funding of £1,955,799 allocated for 2023-2026 to help support arts and cultural organisations across South Holland, East Lindsey and Boston.
It will also support the creation of cultural centres at The Guildhall in Boston, Ayscoughfee Hall in South Holland and the Colonnade in Sutton on Sea and fund a programme of art and culture across the Partnership centred on the rich heritage and stories from each district. Education, research and skills programmes will also be developed, giving more people access to culture on their doorstep.
The NPO comes after Boston and East Lindsey adopted a new cultural framework which sets out an ambitious vision for culture, connecting heritage and the visitor economy while recognising the health and wellbeing benefits culture brings to people’s lives. The Partnership is committed to extending the Cultural framework into South Holland too.
Competition for the status was extremely high, with 1,700 applications made nationally from organisations, venues and providers.
In total, 990 organisations will receive a share of £446 million (each year) ensuring that more people in more places have access to fulfilling art and culture.
As well as the NPO for the Partnership, The SO Festival, Magna Vitae Trust for Leisure and Culture’s flagship cultural event in East Lindsey has also been awarded Arts Council England funding and secured its place as a National Portfolio Organisation for the third time running https://www.sofestival.org/so-festival-npo-2022/
Cllr Craig Leyland, Leader of East Lindsey District Council said: “Achieving NPO status and almost £2m for our communities to better access culture is genuinely a monumental achievement for the Partnership.
“The Partnership has a proven track record of working collaboratively, including in the arts and culture sector across our three districts. This funding will help support them, as well as the health and wellbeing of our residents who will have more access to events and culture and support the local economy.”
Lord Gary Porter, Leader of South Holland District Council said: “Being part of the National Portfolio investment programme and the funding awarded will create new opportunities for our residents, community groups and organisations and support Ayscoughfee Hall in Spalding as a central hub.
“The heritage of South Holland is what shapes this district and we should all celebrate the stories which have built our communities. Going to any event, whether it be a drama group, show or festival, can really help improve health and wellbeing. I am pleased this funding will help our residents access even more things to do on their doorstep.”
Cllr Paul Skinner, Leader of Boston Borough Council said: “This is a fantastic achievement for the Partnership and Boston. The town is built around its history and has so much to offer for local and international visitors.
“This funding will help tell those stories to a wider audience and support our community-driven cultural providers as we lead up to the milestone of Boston 2030 and the internationally opportunities that will present to celebrate the town’s heritage.”
Work starts on £2m children’s care home in Lincolnshire
Lindum Group has started work on a £2m children’s care home designed by Kier Construction, Design & Business Services on behalf of Lincolnshire County Council.
The council is looking to create additional places in the county for children aged between 12-18 that require a safe place to stay. The project will involve the creation of a two-storey, six-bedroom traditional brick and block property, with PV solar panels on the roof to improve energy efficiency. The proposed building aims to appear as domestic as possible, providing a safe, homely feel.
The home will also include staff accommodation, a dining room, kitchen, and lounge. It will also be fully accessible for those with disabilities. In addition, the building will be fully soundproofed, with acoustic floor, ceiling, and panels under the roof.
The grounds will feature landscaped gardens, a new car park and a gated entrance, and will be protected by a six-foot fence. Lindum will also be taking on improvement works to the road leading up to the house, benefitting both the children’s home and the nearby theatre.
The scheme will cost over £2m and is being jointly funded by the county council and the Department for Education. The works contract was awarded through the Pagabo Medium Works Framework. The project will create 15 new jobs.
Cllr Mrs Patricia Bradwell OBE, executive member for children’s services at Lincolnshire County Council, said: “Over the last few years, we’ve seen a rising number of young people needing care, so it’s important we have enough accommodation here in Lincolnshire for those who need it. To that end, the council has earmarked funding for the creation of two new children’s homes at sites in Louth and Lincoln.
“The new homes will provide high-quality facilities for children in care and will mean that fewer children will need to be placed in homes outside the county. This will ensure these children remain close to their local community and existing support networks, leading to better outcomes.”
The Louth home will be located behind the Riverhead Theatre, on the site of the former Pilgrim School. Work to demolish the existing building is due to start on 7 November, with the home expected to be completed in late summer 2023, with the first residents arriving in autumn 2023.
East Midlands businesses restructuring to cope with mounting cost pressures
A combination of inflationary pressures, rising interest rates, high energy costs, and ongoing supply chain issues are significantly impacting the financial viability of many businesses, according to new research from Grant Thornton UK LLP.
The business and financial adviser’s latest Business Outlook Tracker found that over a quarter (28%) of mid-sized businesses in the East Midlands have restructured their operations to face these challenges, with a further 48% having plans to do so.
30% of business leaders in the region have already reviewed their headcount due to the impact of rising costs and inflationary pressures, with an additional 36% intending to do so.
The survey recorded that optimism levels from respondents on their business’s funding position dropped to 64%, which is a fall of -28 percentage points (pp) compared to August.
Many businesses in the region are having to secure additional finance to work through the escalating costs facing the market, with 36% already having secured further funding and 38% planning to do so.
The strain on funding has also led to a considerable drop in investment expectations across most areas monitored by the Tracker. The most significant drops compared to the last round in August 2022 were seen in skills development (-33pp), recruitment (-27pp) and employee wellbeing (-23pp). There was also a -19pp drop in the number of businesses planning to increase investment in plant, machinery and new buildings.
But investment looks to be being directed to areas that will have the most impact on reducing costs. Over three quarters (78%) of respondents have already invested, or are planning to invest, in productivity, efficiency and automation.
The number of businesses in the East Midlands that are optimistic about the outlook of the UK economy has also plummeted by –30pp, compared to August 2022.
James Brown, partner and practice leader at Grant Thornton UK LLP, said: “Businesses in the East Midlands are facing a long list of cost pressures, ranging from input cost price increases and high energy bills to rising interest rates and supply chain bottlenecks. All of this means that many businesses are being faced with cost increases from 5% to as much as 100% in some cases.
“The severity of the current market landscape is causing many firms to restructure their operations and review their headcount. While these pressures are going to be with us for some time, there are steps that businesses should be looking at if they’re not already. This includes reducing their debt level to counter interest rate rises, minimising energy usage, looking for efficiencies wherever possible, and considering alternative, cheaper suppliers.
“Right now, many East Midlands businesses will be looking ahead and reviewing their budgets for the next 6-12 months. These forward plans should account for factors that may spring up in 2023, such as the energy bill relief scheme ending, and rising interest costs. Thankfully, I know that this region is full of proactive, agile and dynamic businesses that will take on the challenges and emerge as more resilient, efficient organisations.”
Rotheras to expand in Derby with JH Powell & Co acquisition
Rotheras Solicitors LLP is set to expand its services into Derby with the acquisition of JH Powell & Co.
The deal will see JH Powell & Co take on the Rotheras name in a partnership that will see the two historic firms combine to reinforce service offerings, whilst paving the way for growth and expansion into the Derby legal market for Rotheras.
The deal consists of 15 staff including 7 legal advisors, 2 of which will join as partners, increasing the headcount to 131 at Rotheras, with the addition of city centre premises located next to Derby Cathedral coming under the umbrella of Rotheras’ 4 branch locations in Nottingham.
Both firms share a rich history and legacy in their neighbouring legal markets with Rotheras having been established in 1824 and JH Powell & Co in 1873.
Rotheras CEO, Christina Yardley said: “We are delighted to be joining forces with JH Powell & Co and we welcome their highly skilled and experienced team into the Rotheras family. JH Powell & Co operate with similar values to our own, particularly around their ethos for developing lasting client relationships, which is something that underpins the history and longevity of both of our firms.
“We found a natural synergy in our desire to increase the quality and depth of service we can offer to our clients. We are extremely excited to bring the Rotheras name to the Derby market and we can’t wait to get our recruitment plans underway and further expand our legal presence in Derby.”
Confidence and output growth fall to lockdown levels as recession looms
Confidence and output growth have fallen to the levels experienced during lockdown as recession looms, according to a new report from BDO.
October saw BDO’s Output and Optimism Indices fall to their lowest levels since the third national lockdown in February 2021, as record-high inflation continues to dampen the economy and prompt fears of a recession, according to the latest Business Trends report from accountancy and business advisory firm, BDO.
The latest figures indicate that inflationary pressures are to blame for the decline across three of BDO’s four indices, as Optimism, Output and Employment all recorded their weakest readings for at least six months. BDO’s Inflation Index reached an all-time high in October forcing businesses to re-evaluate production in line with demand and supply-side headwinds and exercise caution in their outlook and hiring intentions.
October saw BDO’s Output and Optimism Indices plummet to 93.10 and 94.63, respectively, their lowest levels since the third national lockdown in February 2021. Both indices now sit in contractionary territory, below the 95-point mark – regarded as the watershed between growth and decline, an indicator of a recession.
The dip in productivity was driven by a fall across both the Services and Manufacturing Indices for the second month in a row. Continued disruption to global logistics networks and increased input prices have pushed manufacturing activity into negative territory, whilst the cost-of-living crisis has impacted consumer demand, driving down services output.
Confidence amongst businesses followed a similar downward trajectory as the weaker macroeconomic environment drove a seventh consecutive month of decline for BDO’s Optimism Index.
BDO’s Inflation Index rose by 1.67 points in October to a record high of 120.67 following an increase in the energy price cap which caused consumer price inflation to climb. At the same time, diminished spending power due to a weaker currency put considerable upwards pressure on input inflation leading to a record high of 121.26, as businesses importing goods paid higher prices.
Driven by inflationary fears, the Employment Index mirrored waning confidence among businesses with a fall of 1.14 points to 113.05 last month. However, the index has remained resilient, and the unemployment rate stood at a historic low of 3.5% on the most recent reading in the three months to August.
Despite the index remaining firmly in positive territory, hiring intentions are set to decline in the longer-term as businesses continue to tackle mounting inflation and a recession, resulting in further falls in the index over the coming months.
Kaley Crossthwaite, Partner at BDO LLP, said: “A contraction in both optimism and output is a concerning bellwether for firms, as inflation is expected to continue climbing in the run-up to Christmas. A weaker currency and drop in consumer spending power will have real and tangible consequences for firms relying on imports or customers in the retail and services sector, alongside the knock-on effects of managing political and economic uncertainty.
“We also know that rising energy costs are a top concern for nearly half of mid-sized businesses this winter as we’re only just beginning to see the impacts of the energy price cap rise. Firms will be looking to the Autumn Statement for the support they need as they navigate a tough period ahead.”
East Midlands workers name job security and flexible working as top reasons to stay in their jobs
A new survey has revealed that job security and flexible working are the top reasons given by employees in the East Midlands for choosing to remain in their current jobs.
Acas commissioned YouGov to ask employees of East Midlands-based businesses what are the three most important things that are keeping them in their current main job. The poll found that:
- 55% job security;
- 38% flexible working; and
- 33% picked competitive pay and feeling valued, respectively.
Acas East Midlands area director Dwinder Virk said: “Our latest survey gives East Midlands employers a crucial insight into what their employees currently value most in their job.
“For workers in the East Midlands, job security and flexible working are the two main things keeping them in their current roles. One-third also chose competitive pay and feeling valued.
“These findings can help employers when they are considering the types of workplace practices and benefits that aim to attract and retain talent.”
Acas’ advice is that building good staff relations and supporting flexible working can help businesses attract and retain staff as well as increase staff productivity. Flexible working can allow employees to balance work effectively with their personal life and responsibilities.
Leicestershire, Derbyshire and Lincolnshire to receive a share of £17.5m funding boost to spur future growth
Leicestershire, Derbyshire and Lincolnshire are to receive a share of £17.5m funding to support high-growth potential creative businesses in sectors such as film, gaming, fashion and architecture. Businesses will also be able to draw from a fund of up to £7 million being managed by Innovate UK to support them in achieving their growth potential.
The creative industries are one of the major UK economic success stories in recent years. They have grown at twice the rate of the wider economy since 2010 – generating approximately £115.9 billion for the economy and providing more than two million jobs.
Indeed, Data from the Association for UK Interactive Entertainment (Ukie) estimates the value of the UK consumer games market reached a record £7.16 billion in 2021.
Today’s plans will build on this stellar success and make sure the next generation of creative talent succeeds, companies continue to scale-up and those that need support have access to it.
Creative Industries Minister Julia Lopez said: “From product design and video games to music and film, the creative industries are a stellar UK success story.
“Today’s plans will help get more creative businesses off the ground so they can spread jobs and wealth and help more people, including those from underrepresented backgrounds, break into these world-class sectors.”
Each of the six regions have been awarded £1.275 million in grant funding from the Department for Digital, Culture, Media and Sport (DCMS) to develop a targeted programme of business support. Companies applying for finance will need to demonstrate their potential to grow rapidly and become sustainable through private investment. The investment fund and investor building activities will be delivered by the UK’s innovation agency, Innovate UK. Also announced are seventeen start-up video games studios which have been given grants of up to £25,000 to realise their ideas for innovative new projects as part of the UK Games Fund. The cash injection is for firms across the country with great ideas but lacking in development funding. The fund, which was established in 2015, has received increased government funding of more than £8 million for 2022 to 2025. It aims to help high-potential companies raise new funding, spur economic growth and create new jobs. Games spanning formats from virtual reality to mobile and themes from space exploration to eco-education, with developers based across the country – from Cardiff to Paisley and Brighton to Yorkshire – will benefit from the scheme’s latest funding round.Revival of iconic Derby retail street looming
Independent Derby apparel designer, Karl Shaw is returning to Sadler Gate, this time at number 49, with his ‘Derby centric’ clothing venture ‘Mr Shaw’.
Karl Shaw, Managing Director at Mr Shaw, said: “We want to bring Sadler Gate back to life. Being a Derby heritage brand, we have the city deep rooted within in our DNA. As well as opening our retail shop at number 49 where we will be selling Mr Shaw apparel, we will be using the space to generate a hub for creatives on the upper floors, a coffee and craft beer bar, a pop-up selling space and promote our ‘Reminisce’ music nights, designed to celebrate Derby’s 90s music culture.”
It’s no secret that the Cathedral Quarter has been hit by various economic factors affecting footfall and trade over recent years. But, there remains a resilient hunger by local businesspeople who are committed to returning culture rich retail streets like Sadler Gate back to their former glory.
Local property company, Clowes Developments, own several properties in and around Derby City Centre. Whilst most of their units are fully occupied, their team have been looking to find suitable occupiers for their empty retail units on Sadler Gate, The Strand and St James’ Street to help regenerate this historic part of the town, breathing fresh life into the city centre.
Sadler Gate and its surrounding streets including Iron Gate, The Strand and The Strand Arcade are collectively known as the ‘Cathedral Quarter’. Historically, this part of town has been the home to high-end, independent, luxury shops with a diverse culture.
Since the 1970s there have been some legendary shops which coined the path for high-end commerce within Derby. The likes of Napoleons and Josephine’s which then became His and Hers, Ziggies, Seargent’s Barbers, R E Cords, Roomes Fish Mongers, Potts Shoemakers, Interior Options, The Eye Gallery, Big Blue Coffee House, Limeys, Scenario, Ethos, the Forum, Mark Scott hairdressers… this list goes on. These names all played a huge part in forming the history and reputation of Sadler Gate. The stories created on this street still linger in the conversations of its frequenters and will continue to do so for years to come.
Unfortunately, many of those names have since closed their doors but some continue to flourish and evolve with the trails and tribulations of high street retail. Canopy, established in 1992 has been a resident of Sadler Gate for many years. Thirty years on and the family business continues to face its challenges with creative optimism for turning a challenge into an opportunity whilst retaining its core values of great product and excellent customer service. Brigden’s has also stood the test of time and remained true to is roots in the Cathedral Quarter. In recent years, Brigden’s have expanded their offering to include a new shop dedicated to country attire, selling high-end lifestyle brands including Fairfax & Favor, Le Chameau and Holland Cooper. Importantly, there are many other businesses thriving along and around this historic street.
Retail is not the only reason Sadler Gate holds such nostalgic fond memories for its patrons. The 90s and 00s were fantastic periods for the Sadler Gate night life scene. Some of those hot spots are still providing evening entertainment years on. Vines, The Old Bell, which has been recently renovated, and The Blue Note are still going strong, keeping the true spirit and kudos of Sadler Gate alive.
Karl and his wife, Emma knows the significance and history of this part of Derby City Centre. They are keen to support the revival of Derby’s iconic Sadler Gate by encouraging collaboration between neighbouring occupiers and hosting events to encourage people back to the old streets of Derby.
“When I started, Mr Shaw was a great way to keep my creative juices flowing; free from commercial and client constraints. I had often thought about developing a clothing brand as fashion is a great love of mine and I can’t deny the buzz from knowing someone would wear my brand… a living, breathing identity. I’m excited to combine this with my passion for Derby as we open up Mr Shaw House and combine our love for fashion, music, creativity, craft beer and coffee all in one place!”
Kevin McFarlane, associate director at Clowes Developments, commented on the deal: “As landlords of several commercial properties within Derby city centre, Clowes recognise their responsibility to help regenerate the town.
“We have been working with the Council and invested parties such as Marketing Derby over the past year to provide upgraded premises for start-ups and continue to improve the aesthetics of some of our more tired looking properties. Our aim is to encourage occupiers and promote increased footfall into the area.
“We are delighted to welcome Karl Shaw back to one of our properties on Sadler Gate. Our vision and aspirations for Derby are aligned and we wish him all the best in his venture.”
Multi-million landmark scheme reaches completion in Chesterfield
Seven street-level retail units at Elder Way in Chesterfield are now complete and ready for tenants.
Elder Way, a former Co-op department store in the North Derbyshire town has been transformed into a landmark mixed-use leisure scheme by regeneration specialists Jomast Developments.
The transformation of the street-level units, all with glazed frontages, has now been completed, offering prospective tenants a flexible and blank canvas for their business. The units, which range in size from 1,420 sq.ft to 16,076 sq.ft are targeted at food and drink businesses. Additionally, there is 16,285sq.ftof gym/D2 space in the basement of the building.
The site boasts a hotel on the upper floors and now, retail units on the ground floor. Each of the units has been boarded out and painted, creating a blank canvas for new tenants.
Situated in the golden triangle of investment with Chesterfield town centre, Elder Way sits within the recently completed £19.9million Northern Gateway regeneration scheme which comprises a new multi-storey car park, the Northern Gateway Enterprise Centre and large-scale public realm improvements.
Jomast, one of the UK’s leading property development and investment specialists, acquired the famous 1930s, Mock-Tudor building in 2016. It has since developed it into hotel accommodation and the new retail units which are targeted at food and drink operators. The new units complement the upper two floors of the four-storey building which have been operated as a 92-bed Premier Inn hotel since 2019.
Mark Hill, Development Director at Jomast said: “The transformation of the iconic and characterful former department store in Chesterfield has been a labour of love that has created a vibrant new leisure quarter for the town of which we are immensely proud. Interest in the units has been strong and we hope to welcome tenants soon.”
Mark added: “The position and location of the site at times has been challenging but our ongoing collaboration with Chesterfield Brough Council has enabled us to create a premium and attractive business address on Chesterfield’s high street.”
Northern Gateway Enterprise Centre, which opened in July earlier this year, already boasts more than 50% occupancy with 17 of the 32 offices now tenanted.
Chesterfield Borough Council is making further investment in the town centre following £20million of Levelling Up funding which, along with additional funding from Chesterfield Borough Council, will transform key event spaces and public areas. The £26million Revitalising the Heart of Chesterfield scheme that will revitalise and better connect key areas of the historic town centre and revamp the Stephenson Memorial Hall. Work has already started and will be completed in phased until 2025.
Elder Way and the golden triangle of investment in the town centre is part of £2billion of regeneration projects currently underway across Chesterfield, which includes the £400million Peak Resort and £340million Chesterfield Waterside developments.
Situated in the golden triangle of investment with Chesterfield town centre, Elder Way sits within the recently completed £19.9million Northern Gateway regeneration scheme which comprises a new multi-storey car park, the Northern Gateway Enterprise Centre and large-scale public realm improvements.
Jomast, one of the UK’s leading property development and investment specialists, acquired the famous 1930s, Mock-Tudor building in 2016. It has since developed it into hotel accommodation and the new retail units which are targeted at food and drink operators. The new units complement the upper two floors of the four-storey building which have been operated as a 92-bed Premier Inn hotel since 2019.
Mark Hill, Development Director at Jomast said: “The transformation of the iconic and characterful former department store in Chesterfield has been a labour of love that has created a vibrant new leisure quarter for the town of which we are immensely proud. Interest in the units has been strong and we hope to welcome tenants soon.”
Mark added: “The position and location of the site at times has been challenging but our ongoing collaboration with Chesterfield Brough Council has enabled us to create a premium and attractive business address on Chesterfield’s high street.”
Northern Gateway Enterprise Centre, which opened in July earlier this year, already boasts more than 50% occupancy with 17 of the 32 offices now tenanted.
Chesterfield Borough Council is making further investment in the town centre following £20million of Levelling Up funding which, along with additional funding from Chesterfield Borough Council, will transform key event spaces and public areas. The £26million Revitalising the Heart of Chesterfield scheme that will revitalise and better connect key areas of the historic town centre and revamp the Stephenson Memorial Hall. Work has already started and will be completed in phased until 2025.
Elder Way and the golden triangle of investment in the town centre is part of £2billion of regeneration projects currently underway across Chesterfield, which includes the £400million Peak Resort and £340million Chesterfield Waterside developments.
South Lincolnshire Food Enterprise Zone welcomes first tenant
Moving into new office space was a well-calculated decision for local accountant Tim Burrows, of Station One Accountants.
Tim owns and runs the accountancy firm, whose main client base is agricultural and food businesses, making the South Lincolnshire Food Enterprise Zone the perfect location for his new office.
Cllr Colin Davie, executive councillor for economy and place at Lincolnshire County Council, said: “The Hub building is a great new space for established, growing and start-up businesses. I’m delighted that an existing local business has chosen to re-locate here as the first of many new tenants, and wish Tim every success.
“All businesses who locate at the Hub will benefit from being at the forefront of new developments and innovation in agri-tech and in turn, will add their own expertise to support the sector.”
Tim Burrows, said: “To have my own office with high-tech spec and the support of The Hub staff, but with the opportunity to hire a Meeting Room as and when I needed one, was just what I was looking for, and I am not disappointed.
“When the Café is open on the ground floor, it will be even more attractive for client visits in a more informal, but professional environment.
“There is plenty of parking on site, with EV charging points too. The building has been well thought out, with a shower room for example, if you cycle to work.
“I am looking forward to the opportunity of working alongside other companies to offer advice where I can with my experience of working as an accountant within the food industry to help their business flourish.”
Cambridge & Counties Bank appoints Patrick Newberry as its new Chairman
Specialist lender Cambridge & Counties Bank has appointed Patrick Newberry as its new Chairman. He replaces Simon Moore, who retired from the Bank after serving 10 years as a Board member.
Patrick joined Cambridge & Counties Bank as Non-Executive Director in June 2021, taking responsibility as Chair of Audit from September 2021. His executive career spans over 30 years with PwC, where his primary focus was on strategy, performance improvement as well as all things regulatory within the financial services and insurance sectors. During this time, he was the lead in major transformational programmes and worked with large financial institutions to set strategy and transform performance. Over the last nine years, Patrick has spent his time as non-executive director and freelance consultant for a number of financial and non-financial services organisations. He is currently on the Board as Chair of the Audit and Risk Committee at Brunel Pensions Partnership, is a Commissioner of Historic England and Chair of its Audit and Risk Committee. He is also Chair of the Cornwall College Group. Patrick Newberry, Chairman at Cambridge & Counties Bank said: “I’m honoured to be taking on the role of Chairman at a time when Cambridge & Counties Bank is continuing to expand its presence across the UK and building on its strong growth momentum. The bank’s tailored approach and deep relationships with clients and brokers allows it to offer a differentiated service and we have seen continued demand across 2022.” Cambridge & Counties Bank announced in June this year that total lending had topped £1 billion for the first time. Originally focused on the East Midlands region, the Leicester-headquartered bank has seen staff numbers increase to more than 200 over the past decade, with major offices now in Sheffield, Bristol, London, and Glasgow.Joules in bridge financing discussions as working capital falls below expectations
Joules, the Harborough-based designer fashion group, has seen performance fall below expectations due, it says, to “a challenging UK economic environment which has negatively impacted consumer confidence and disposable income”
Their trading underperformance has resulted in the Company’s working capital position falling below expectations, which has led the company to discussing bridge financing options as well as considering a Company Voluntary Arrangement (CVA), enabling it to pay creditors over a fixed period.
Net debt at the end of October was £25.7m with headroom of £11.4m, according to a statement to the London Stock Exchange today [Monday 7th Nov 2022 ]. However, the statement goes on to explain that this headroom is reduced by £5.6m of ‘trapped cash’ (i.e. cash held in transit by payment providers etc) and would also be reduced by repayment of the £5m short-term RCF (“STRCF”), due for repayment on 30th November 2022.
The Company is therefore in discussions with Tom Joule and its lender in regard to a bridge financing proposal in order to enable continued progress to be made with its re-financing plans. Should that bridge financing proposal, or its terms, not be agreed, the Company states that it expects it would be unable to repay the STRCF on its due date for repayment.
The Company had previously announced that it is assessing its ongoing financing requirements, including a possible equity raise, to allow the Company to strengthen its balance sheet and provide a strong platform to support its turnaround plan.
Since that announcement, the Company has had advanced discussions with a number of strategic investors, including Tom Joule, to provide a cornerstone investment in an equity raise.
It is the Group’s intention to commence consultation with key stakeholders, including suppliers, on the turnaround plan including potential alternative options, should they be required.
Consumers plan for thrifty Christmas as 59% say they’ll have less to spend
UK consumers are signalling a thriftier approach to the 2022 festive season, as 59% believe they will have less money overall to spend during the Christmas period, according to new research from Deloitte.
Surveying over 3,000 UK consumers about their spending intentions for the retail sector’s ‘Golden Quarter’, 38% of respondents say they will switch to cheaper brands or stores to seek out gifts and, when it comes to Christmas Day dinner, one in three (35%) consumers plan to do at least part of their food shop at a discounter supermarket.
With rising costs adding pressure to budgets, one in ten (11%) intend to purchase gifts either second hand or via reselling platforms this year.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Consumers are entering the festive season with budgets under more pressure this year, and it is not surprising that almost all are considering affordability and adapting their typical Christmas spending habits in one way or another. The economic circumstances in which we enter the period has, perhaps inadvertently, fostered a spirit of thrift amongst some consumers who are looking to save money on celebrations this year.
“For some, this will mean looking to the ‘pre-loved’ market for gifts or scouting out presents via resellers. For others, this could mean shopping with cheaper stores or brands or, in the case of food, buying Christmas dinner ingredients from the discounter supermarkets.”
With the retail calendar also fast-approaching large promotional events, such as Black Friday, nearly half (46%) of consumers say they intend to buy more gifts either on sale or discounted this year.
Céline Fenech, consumer insight lead at Deloitte, commented: “Whilst it is not unusual for consumers to look for discounts in the run up to Christmas, this year’s shopping events, like Black Friday, could see even more interest than usual as budget-conscious consumers look for smarter ways to bring down the cost of their Christmas spending.”
According to Deloitte’s data, 54% of consumers intend to shop for Christmas in November and the first two weeks of December; a period which includes Black Friday.
Fenech added: “Some consumers have also indicated that they will shop closer to Christmas Day to not only manage budgets but also take advantage of any discounts. For retailers, this will mean ensuring availability of product ranges to suit all budgets and include more ‘gift’ items within promotional ranges, expanding on the clothing and footwear, and electronic goods that are usually purchased during Black Friday events.”
Over half (56%) of consumers believe they will be spending more this Christmas because of rising prices. Whilst many consumers are looking to be more resourceful with budgets, 8% state they will simply not buy Christmas gifts this year.
Vernon-Harcourt concluded, “Ongoing rising costs have seen consumer spending habits shift for a prolonged time, with non-essential items often the first to go. Unfortunately, it appears that this cost-cutting will also be reflected on some aspects of Christmas celebrations as some consumers will forgo gift-giving altogether. Whilst this will be a difficult financial decision for some, others will have re-prioritised what the festive period means to them, following a number of COVID-impacted Christmases.”
More than 80% of UK SMEs want to switch to electric vehicles
Most UK small businesses want to switch to electric vehicles but are held back by rising vehicle costs and electricity bills, new data from NatWest shows.
Despite the research revealing that 81% of SMEs want to transition to green transport, the current economic conditions are delaying plans rather than causing them to be abandoned entirely. Of those looking to take their first steps into greener transport, only 40% plan to start within the next 2 years, highlighting the need for greater support to allow businesses to fulfil their climate ambitions sooner.
SMEs are reporting that the price of electricity is a barrier for more than a quarter (28%), whilst vehicle costs are deterring a further third (32%). However, the business case for adopting electric vehicles appears to be the main motivator for SMEs looking to electrify their fleet (44%), however emissions reductions (40%) and sustainability concerns (36%) are also found to be key drivers in the move to greener transport.
Recognising the barriers preventing SMEs from taking action to improve their sustainability, NatWest Group, through Lombard, has launched Green Asset Finance which gives businesses a way to finance assets that help to make their businesses more sustainable, such as electric vehicles. Since July 2021, Lombard has provided £1.3billion in climate and sustainable funding, to businesses transitioning to electric vehicles, hybrid vehicles, and other renewable assets, including those in the Agricultural sector.
Commenting on the findings, Ian Isaac, Managing Director at Lombard, NatWest Group, said: “It’s clear to see there is appetite among UK small businesses to transition to electric vehicles in order to both lower fuel costs, and make a significant contribution towards the nation’s climate targets.
“However, the current economic climate and immediate cashflow concerns means that many SMEs feel they need to put plans on hold. We’d encourage any business looking to take that first step in their own sustainability journey to research the support measures available.
“The first step on this journey is the hardest and it’s a big decision for businesses. But our research shows the intention to transition is there, and the sooner businesses take that first step, the sooner they will be able to see the benefits. At NatWest and Lombard, we can help them make sense of their business case even against the backdrop of increasing energy costs.”
The bank is also working in partnership with energy tech company Octopus Energy to offer businesses EV charge points at discounted rates, and last year partnered with EV8 Technologies to launch the EV8 Switch app, which uses real world data to help drivers understand if switching to an EV makes economic sense for them.
If it does, the bank can then offer funding to SMEs to allow them to spread the cost of transition to EV, through options such as contract hire. This allows businesses to have certainty around vehicle operating costs over a fixed period, as well as the option to regularly refresh their vehicles and adapt their fleet to meet changing business needs and guard against the risk of technology obsolescence.
NatWest has recently begun offering Green Loans and Green Asset Finance to SMEs from £25,000, ensuring that more businesses can access funding to help transition to more sustainable practices such as electric vehicles, in turn reducing costs in the long term, all whilst supporting UK net zero targets.
NatWest has also created a new Carbon Planner, a free to use digital platform designed to help UK businesses manage their fuel and operational costs and reduce their carbon footprint to help them go and grow greener. This includes providing a cost of transport overview that businesses can then use to build a business case for investing in their transition to net zero. Since launch around two-thirds of businesses that have used the NatWest Carbon Planner have produced a carbon reduction action plan for their business.
The bank has recently also launched one of the UK’s biggest EV car parks at its Scotland headquarters at Gogarburn in Edinburgh, investing in 264 chargers for colleagues and visitors to charge their electric vehicle. The launch forms part of the bank’s aim to halve its own operations emissions by 2025.
2022 Leicester Business Festival begins today
The 2022 Leicester Business Festival (LBF) – one of the regions biggest Business Festival’s ever – begins today [Monday 7th November] with over 80 business events taking place throughout Leicester, Leicestershire and online.
The festival which runs over the next fortnight also coincide with COP27 – the 2022 United Nations Climate Change Conference – themed around protecting the world’s biodiversity for limiting carbon emissions and adapting to climate impacts.
At LBF 2022, climate impact is also featured strongly on the agenda with experts set to highlight real life examples of ways businesses can work towards net zero and be more sustainable. As well as first hand insights from Twycross Zoo on biodiversity there will be a range of expertise from local universities and businesses.
One event which will showcase the race to net zero is ‘Field of Dreams: creating a grass roots net zero football club.’ Taking place on 11 November 12-1.30pm at Heritage House, DMU Campus.
This project involves researchers at DMU who have begun scoping work with Leicester Nirvana Football Club to identify how a team begins the process of decarbonisation. The aim is to help the club become Net Zero in carbon emissions in all aspects of the beautiful game. This includes travel to games, the players’ diets and nutrition, the kits the players wear to train, the clubhouses and lighting, recycling practices and inclusive values. Both teams want to use the SDGs as a framework for collaboration to achieve their visions.
Associate Director of SDG Impact, and Net Zero Research Theme Director at De Montfort University, Mark Charlton said: “This is a very exciting project, whether you like football or not. There are so many aspects to amateur sport that will need addressing as we all work towards a Net Zero future. This is a fantastic opportunity for local businesses to come along and find out more about the actions Leicester Nirvana are taking to reach net zero.”
Other events themed around sustainability include:
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Navigating net zero: how to overcome the challenges facing businesses
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Field of dreams: creating a grassroots net zero football club
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Zero emissions, positive impact -they key actions to reduce your organisation’s carbon footprint
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Innovation masterclass – helping your business grow, profit and be sustainable
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Biodiversity conservation opportunities at Twycross Zoo
Tickets are available now and can be secured online at: www.leicesterbusinessfestival.com
Cérélia’s takeover of Jus-Rol hits hurdles with CMA
The merger of home baking brand Jus-Rol and Northamptonshire pastry maker Cerelia agreed in 2021 has hit hurdles after the Competition and Markets Authority (CMA) identified possible competition concerns, which they say could impact on prices and product quality.
The CMA launched an in-depth review into the deal in June 2022 and provisionally found that the merger brings together what are the 2 leading suppliers in the market by a considerable margin. Ready-to-bake items supplied by Cérélia and Jus-Rol account for nearly two-thirds of all such products sold in the UK.
While there are differences between the companies’ products, the evidence gathered by the CMA shows that Jus-Rol products compete with grocery retailers’ own-brand products supplied by Cérélia for the same space on many supermarket shelves. Evidence from grocery retailers shows that they consider the companies’ products to be important alternatives to one another – in particular because there are few alternative suppliers of either branded or own-brand products. Grocery retailers also told the CMA that their ability to trade off Jus-Rol and Cérélia when purchasing these products enables them to get a better deal for customers.
The CMA’s investigation provisionally found that the 2 businesses face very limited competition, with all other suppliers being far smaller, and many lacking the capabilities held by the merging businesses. The CMA also provisionally found it is unlikely that any supplier would enter the market, or expand its existing activities, to address the loss of competition brought about by the deal.
On this basis, the CMA has provisionally concluded that the deal would substantially lessen competition. This would risk UK grocers facing higher prices and lower quality products, which could ultimately be passed on to their customers.
Margot Daly, chair of the independent inquiry group carrying out the Phase 2 investigation, said: “Food prices are already increasing, which makes it important that we don’t allow a lack of competition to make the situation worse.
“Jus-Rol and Cérélia are by far the largest suppliers in the ready-to-bake sector and the competition that takes place between them helps grocers to give shoppers the best possible deals.
“Today’s decision is provisional, and we will now consult on our findings and listen to any further views before reaching a final decision.”
The CMA welcomes responses from interested parties to its provisional findings by 25 November 2022 and its notice of possible remedies, which sets out potential options for addressing its provisional concerns, by 18 November 2022. These will be considered ahead of the CMA issuing its final report, which is due by 24 January 2023.East Midlands Chamber announce Leicestershire business of the year
The Leicestershire Business of the Year awards by East Midlands Chamber, saw Scope Construction, a fast-growing contractor for the residential and commercial sectors, crowned the Leicestershire Business of the Year.
The Loughborough-based company – which provides construction, refurbishment and interior design services – also won the Outstanding Growth award at the Leicestershire Business Awards, which was held on Friday (4 November) in partnership with headline sponsor Mazars.
Founded by Maz Patel and Paz Patel in 2015, the business has almost trebled its seven-figure turnover over the past 12 months, and expects to double it again this year after building a reputation mainly via word of mouth for its work on a range of projects including shop, restaurant and car showroom fit-outs, as well as home refurbishments.
The Leicestershire Business Awards, recognised East Midlands Chamber members across 13 categories, ranging from Excellence in Innovation and Environmental Impact at organisational level through to individual honours for Entrepreneur of the Year and Apprentice of the Year, in addition to the overall Business of the Year winner.
Finalists, chosen by a judging panel of the Chamber’s senior leadership and board of directors, as well as sponsors, discovered their fate during a gala dinner attended by hundreds of people at Leicester City FC’s King Power Stadium.
Scott Knowles, chief executive of East Midlands Chamber, said: “The past few years have been challenging for our business community, and yet we continue to see so many shining examples of business success across our region.
“It’s always important to celebrate these achievements and shout about the great things happening right here in Leicestershire. We know it is a fantastic place to do business and these organisations – many of which have worked together to maximise their impact within their sectors and communities – are doing a wonderful job.
“Later this month, the Chamber will launch a Business Manifesto for Growth in the East Midlands and Beyond in Parliament that illustrates how our region is a Centre of Trading Excellence. Our Business Awards are full of companies that are living proof of this.”
Money raised for East Midlands Chamber charitable fund
The Leicestershire Business Awards – one of three awards hosted by the Chamber, along with Derbyshire and Nottinghamshire – were hosted by comedian Patrick Monahan.
A raffle was held to raise funds for East Midlands Chamber president Lindsey Williams’ three chosen charities this year – Focus, Nottinghamshire Wildlife Trust and Treetops Hospice.
Lindsey, chief executive of Coalville-based housing association Futures Housing Group, added: “Behind every nominee and winner whose name will go up in lights are people and organisations that are truly delivering for the region. Their achievements generate employment, wealth and opportunity not just for those directly connected, but for the wider community.
“So I’m proud to see the Chamber yet again take the opportunity to bring us together and celebrate our top talent – for their success but also for what they bring to the East Midlands as a whole.”
Winners of the Business Awards
Business Improvement Through Technology – Consultus International Group
Community Impact – Leicestershire Cares
Outstanding Growth – Scope Construction
Excellence in Collaboration – BrightER Futures (De Montfort University and ER Recruitment)
Environmental Impact – Michael Smith Switchgear
Commitment to People Development – CR Civil Engineering
Apprentice of the Year – Jessica Gould, CR Civil Engineering
Entrepreneur of the Year – Jaz Kaur and Narinder Nijjar, Fraser Stretton Property Group
Education and Business Partnership – Leicestershire Cares
Excellence in Customer Service – Paradigm Wills & Legal Services
Excellence in International Trade – Unimed Procurement Services
Small Business of the Year – Creative62
Excellence in Innovation – The Simulator Company
Business of the Year – Scope Construction
Businesses and community groups to have consultation on £1.14 billion devolution deal
Businesses, organisations , community groups and the public are to have their say on the £1.14 billion devolution deal which councils are keen to press ahead with as they say it will offer the region a package of new powers and funding worth £1.14 billion.
Derbyshire County Council, Nottinghamshire County Council, Derby City Council, and Nottingham City Council have all given the green light to a public consultation on devolution, so the public, businesses, community groups and other organisations will now have the chance to have their say about the deal, in a public consultation.
The leaders of each of the four councils signed up to work on a devolution deal on 30th August this year at Rolls Royce in Derby, after the Government offered the region a package of new powers and funding worth £1.14 billion.
Since August the councils have been working on agreeing a more detailed proposal for consultation, which includes more information about how devolution would work in our area.
The deal would provide the region with a guaranteed income stream of £38 million per year over a 30-year period, and would cover around 2.2 million people, making it one of the biggest in the country. It would also mean a new regional mayor and new type of combined authority for the area, from 2024.
Chris Poulter, Leader of Derby City Council, said: The East Midlands has long been overlooked and held back compared to other areas of the country. The cities and counties in our region should have a bigger voice, and this devolution deal would give us the influence, funding, and powers that we deserve.
The investment in this deal will bring with it many opportunities. We could see more jobs, better transport and housing, an enhanced greener environment, and more value for money of services provided for our people.
The proposals that we’re consulting on are just the beginning, and we’re determined to build on it over time. I would encourage everyone to give us their views on the deal by taking part in the consultation.
Barry Lewis, Leader of Derbyshire County Council, said: “Devolution is about getting a better deal for Derbyshire and the East Midlands and achieving a fair share for our region. It will bring us more money and mean we can make more meaningful decisions here, rather than in London.
“This deal will bring more and better jobs and opportunities for training, improve the local economy, result in better transport and housing, and accelerate our route to Net Zero. I encourage everyone to take part in the consultation and give us their views on devolution.
“A devolution deal, should it be agreed, would be the beginning, not the end. We’re determined to build on this deal over time, as other areas have done.
Ben Bradley MP, Leader of Nottinghamshire County Council, said: “It’s great news that we’re moving forward with devolution plans for Nottinghamshire and the wider area. I’m really pleased that we’re making progress with this.
“Devolution can bring real benefits for local people, as it has done in other parts of the country. It will mean more funding for our region, and the opportunity to have more meaningful decisions made here, near the people they affect, rather than in London, so they can be better tailored to local needs.
“This is an opportunity to create jobs, boost our economy, enhance transport, build more and better homes, improve our environment, and more, and we need to grab it with both hands. I don’t want our area to miss out on a chance to improve things for everyone who lives and works here.
“Devolution can help us be more effective locally, make better use of public money, and most importantly, improve people’s lives. It would lay the groundwork for us to build on in the future, to benefit future generations.
“I’d encourage everyone to take part in the consultation and give us their views on the devolution deal.”
David Mellen, Leader of Nottingham City Council, said: “This deal has the potential to make a significant difference and local people would see the real benefits from the investment with more and better jobs, housing, training and much more.
“For too long this region hasn’t had the investment it needed and deserves – by working on a deal we can start to address this, but this is just the start, and I will make sure that we get our fair share and make the most of this funding.
“It would allow us to start to address the long-term under-investment in our region. It would give us more control over our own area, where local people would have a say in the region’s priorities rather than decisions made in London.”
If the devolution deal goes ahead, it would create the first of a new type of combined authority, which requires new legislation from central government. As well as the £1.14 billion, it includes an extra £16 million for new homes on brownfield land, and control over a range of budgets like the Adult Education Budget, which could be better tailored to the needs of people in our communities.
The devolution deal is a level 3 deal, which offers the most local powers and funding. It would mean a new elected regional mayor, like those which already exist in other areas, who would represent both cities and counties. The role of the mayor would be to look at major issues affecting the whole region, give the area a bigger voice, and take advantage of local knowledge and expertise.
The deal means that a future mayor and combined authority could:
- Work towards Net Zero and cleaner air with new low carbon homes, retrofit existing houses with external wall insulation, promote the use of renewable energy, and protect and enhance green spaces, like areas for wildlife and green verges.
- Build on the region’s existing knowledge and expertise in green technology and promote the growth of a future low carbon economy by investing in related skills training at colleges and other training facilities.
- Set up and coordinate smart integrated ticketing and enhanced concessionary fares schemes.
- Work with Homes England to build more affordable homes, by using new powers to buy land and housing (With district and borough council consent).
- Enhance the region’s economy by developing new commercial space to maximise opportunities.
- Work with national government on initiatives to address homelessness, domestic abuse, community safety, social mobility, and support for young people.
- Take advantage of economies of scale by using combined and devolved budgets to deliver more value for taxpayers and more cost-efficient services.
