Calls for improvements to ‘sparse and underfunded’ rail services in the East Midlands
Leaders across the East Midlands region have come together to call for a long-term plan for improving regional rail services, following a report from Transport for the East Midlands (TfEM) that shines a spotlight on the opportunity to improve regional rail services.
The report, titled ‘A Platform for Growth’, highlights the need to develop a more competitive rail offer in the East Midlands, improve performance standards, and for an East Midlands voice within the new Great British Railways.
Sir Peter Soulsby, City Mayor of Leicester and Chair of TfEM, said: “Our evidence suggests that regional rail services in the East Midlands are directly worth around £356 million per year to our regional economy. We have major population growth forecast and exciting local plans for many more new jobs and homes.
“Due to years of underinvestment, the East Midlands rail network is sparse and infrequent compared to other regions. This inevitably impacts on punctuality and the ability to run the level of services the region requires.
“Around 75% of stations in the East Midlands are served by just one train per hour or fewer, with even lower levels of service levels on Sundays and increasingly overcrowded trains on Saturdays.
“But it doesn’t have to be this way.
“We need to see a new clear plan for growth for this region in terms of both services and performance. The rail industry cannot ‘cut itself’ to financial sustainability – it must grow patronage to survive, and the East Midlands is a great place to start!”
Claire Ward, Mayor of the East Midlands, said: “Rail is proudly embedded in the culture of our region, yet there is so much more room for improvement when it comes to infrastructure and regional services in the East Midlands.
“Our regional rail network doesn’t yet match the ambition of our towns and cities. Commuters, local communities and business can see what rail investment has done elsewhere and rightly expect the same standards here.
“If we’re going to reduce the number of car journeys and meet our climate goals, we need to boost sustainable travel by investing in our rail network and making sure commuters are getting a fair deal. If we get this right, we could unlock tens of millions of pounds of direct economic benefits.”
Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “Chesterfield Railway Station is one of the busiest in the East Midlands and of vital importance to unlocking the economic potential of our borough and the wider economies of north Derbyshire and the Peak District.
“We need our train services to be catalysts for growth bringing more and better jobs to our economies, stimulating inward investment, enabling social mobility and introducing new audiences to the area’s visitor attractions.
“To achieve this, there needs to be investment in our stations, better quality trains, more frequent and reliable services, and fare structures that encourage people to leave their cars at home.”
Will Rogers, Managing Director at East Midlands Railway, said: “Although our regional fleet is undergoing a major £28.2 million refurbishment, the East Midlands transport spend per head has been significantly below the UK average level for all of the last 25 years.
“We are keen to work in partnership with Transport for the East Midlands, our mayors and other stakeholders to improve this situation. Rail is a key enabler of economic and social value and for our region to compete, grow and meet the ambitions of its citizens, greater investment in rail infrastructure and services is vital.”
Foresight celebrates £100 million investment in Midlands
Foresight Group, the regional private equity and infrastructure investment manager, has now invested a milestone £100 million in the Midlands and is ready to partner with more growing companies across the region.
Among the businesses Foresight has invested in is Nottingham-based Lightbulb Credit, which provides solutions to enable companies to monitor and improve their credit rating. Lightbulb has helped SMEs to raise over £700 million in funding.
It has also backed Loughborough University spin-out, Previsico, a developer of a software-based flood forecasting and warning system; ReadyGo, a start-up diagnostics company that detects infectious diseases; and Postworks, a Northamptonshire company which has digitised the corporate mail sector and is seeing rapid growth.
Ray Harris, Director at Foresight Group, said: “The Midlands is home to a diverse and inspirational business community, packed with entrepreneurs and dynamic teams ready to take their enterprises to the next level.
“Our passionate and experienced team has significant funds to invest here and are very keen to meet business owners and their advisors to discuss how we can potentially support them on their growth journey.
“We know that every business is different so we take time to nurture relationships and understand where we can add value. Our investment is much more than providing funding – we have a large network of contacts and non-executives who play an important role in helping management teams to grow sustainably, benefiting the local economy.”
IMA Architects appointed by Lidl GB on two regional distribution centre projects
Leicestershire-based IMA Architects has been appointed by discount supermarket Lidl GB to provide architectural services and advice on the construction of two new Regional Distribution Centres (RDCs) in Gildersome, Leeds and in Belvedere, London.
As experts in logistical warehousing architecture, IMA has worked with Lidl GB since 2012 and has now been instructed on 10 RDCs for the company.
In Belvedere, IMA is working with Lidl to rebuild and expand a 36,825m2 RDC. The company has been hired to deliver the RDC through the construction phase to completion.
Anthony Day, Managing Director of IMA Architects, says: “Work is progressing well, and we are excited to be delivering another large-scale project with Lidl GB. The RDC specialises in storing and distributing food at both refrigerated and ambient temperatures and will become another vital part of Lidl’s distribution network in the south east when complete.”
In Leeds, IMA, on behalf of Lidl GB, prepared the architectural designs and planning packs for the RDC for submission to Leeds City Council. The plans have now been approved and will see the creation of a 54,000m2 distribution centre on a 34.6-acre site in the southwest of the city, with good transport links to both the M621 and M62 motorways.
Once complete, the new RDC in Leeds will create around 400 jobs for people in the local area. The site is part of the retailer’s multi-million-pound investment plan to support its growing network of stores and foster local economic growth.
Anthony Day, Managing Director of IMA Architects, adds: “We are proud to be working with Lidl GB on both schemes and bringing forward both projects. IMA is currently active on over 20 logistics and warehousing projects across the UK on behalf of our clients, making new sites for businesses and employment opportunities for local people.”
Mario Viduka, Construction Director at Lidl GB, said: “Our ambitious warehouse plans demonstrate our commitment to investing not only in our distribution network but the UK as a whole, and we look forward to working with IMA Architects to increase that capacity further.”
Next upgrades profit guidance following strong sales
Leicestershire retailer Next has upgraded its profit guidance for the year.
It follows a strong first half in which full price sales were up 4.4% versus last year, exceeding expectations of a 2.5% increase.
Total Group sales, meanwhile, including markdown, subsidiaries and investments, were up 8%, with additional growth thanks to the acquisition of FatFace and an increase in Next’s shareholding in Reiss.
Next has increased its profit guidance for the full year by £20m to £980m, up 6.7% versus last year, as a result of additional sales (£11m) and cost savings (£9m), mainly in logistics.
Bank of England reduces interest rates for first time in four years
The Bank of England has reduced interest rates for the first time in four years.
“It is now appropriate to reduce slightly the degree of policy restrictiveness,” the Bank of England said. “The impact from past external shocks has abated and there has been some progress in moderating risks of persistence in inflation.”
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment.
At its meeting ending on 31 July 2024, the MPC voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 5%. Four members preferred to maintain Bank Rate at 5.25%.
Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “Today’s decision to cut interest rates was on a knife-edge, as illustrated by the narrow majority of the Monetary Policy Committee voting in favour. At best, there is only mixed evidence that inflation persistence has been defeated. While the labour market is loosening and wage growth slowly easing, the unexpected strength in services inflation remains a red flag.
“We still think that today’s meeting marks the start of a rate cutting cycle, but the pace of this is now more uncertain. Several MPC members will be looking for more definitive signs of inflation persistence easing, to be swayed towards reducing rates further. They will also be conscious of continued upside risks to inflation, with economic growth firming and survey measures of manufacturing pricing pressures picking up.”
Rolls-Royce’s transformation proceeds “with pace and intensity”
Rolls-Royce has hailed “strong first half results,” giving it confidence to raise guidance.
The business reported significantly higher operating profit despite a challenging supply chain environment. Underlying operating profit rose by £0.5bn to £1.1bn, a 74% increase versus the prior period.
This was driven by Rolls-Royce’s transformation programme and strategic initiatives, with commercial optimisation and cost efficiency benefits across the group.
Underlying revenue, meanwhile, passed £8bn, up from just under £7bn in the same period last year.
Full year guidance has now been raised, with Rolls-Royce expecting underlying operating profit between £2.1bn and £2.3bn.
Tufan Erginbilgic, CEO, said: “Our transformation of Rolls-Royce into a high-performing, competitive, resilient, and growing business is proceeding with pace and intensity. We are expanding the earnings and cash potential of the business in a challenging supply chain environment, which we are proactively managing. We are on track to deliver our mid-term targets.
“Our strong first half results reflect the continued delivery of our strategic initiatives and a relentless focus on commercial optimisation and cost efficiencies across the Group. These results and our increased financial resilience give us the confidence to raise our 2024 guidance and reinstate shareholder distributions in respect of the full year 2024 results.”
Light Science Technologies increases revenue and reduces losses
Light Science Technologies Holdings (LSTH), comprising three divisions: controlled environment agriculture (CEA), contract electronics manufacturing (CEM) and passive fire protection (PFP), has increased its revenue and reduced its losses.
According to unaudited interim results for the six months ended 31 May 2024, the business’s revenue hit £5.2m, up from £4.4m in the same period of the year prior.
The firm, meanwhile, reduced its loss before tax by 58.4% to £0.3m.
Simon Deacon, CEO of LSTH, said: “In the first half of 2024, the structural changes made in the business began to take hold and we are seeing accelerated growth in both revenues and margins. With this progress, our losses are narrowing and therefore we are confident of achieving break even with continued progression across our divisions.
“Strategically, we are better positioned as a Group than we ever have been. CEM continues to provide robust revenues and expands into new markets, PFP is adding strong margin revenues in a large addressable market that benefits from regulatory tailwinds, and we continue to establish a global footprint in CEA; a market that we believe underpins exponential long-term growth opportunities for LSTH.
“While some hurdles remain, the landscape for the Group is steadily improving. CEM, recently positioned to handle larger volume projects, stands to benefit from emerging market trends. PFP is targeting an enormous domestic market, which is facing increasing governmental pressure, as the less invasive, lower cost solution and within CEA we are increasingly reminded of the global pressures that are forcing us to re-think how we approach food production. It is the Board’s view that both the short and long term prospects for the Group are very positive.”
Rolls-Royce completes sale of lower power range engine business
Rolls-Royce has completed the sale of the lower power range engines business of Rolls-Royce Power Systems to Deutz.
The sale follows the announcement on 13 December 2023 of an agreement in principle being reached and the sale price is in the high double-digit million euro range.
Dr. Joerg Stratmann, CEO of Rolls-Royce Power Systems, said: “This deal follows the realignment of our strategy to focus on the supply and maintenance of engines and systems primarily from our own production. We are handing over a good business, an excellent customer base and a strong team.”
As a result of the transaction, Deutz will take over the distribution of the mtu Classic series in the lower power range and the mtu engine series 1000 to 1500, which are based on three Daimler Truck engine platforms. These engines are in the 5 to 16 litre displacement class with an output of up to 480 kW and used in a variety of off-highway applications, primarily agriculture and construction.
Power Systems will continue to use engines based on Daimler Truck technology to power railway and military land vehicles, as well as for power generation. The servicing activity related to engines already in use is also part of the sale and, following a transition phase, is expected to be covered exclusively by Deutz-authorised partners from 1 January 2025.
Hundreds of Derbyshire charities face “devastating” cuts
The future of voluntary and community groups across the High Peak is under severe threat due to a significant proposal by Derbyshire County Council (DCC) to end discretionary grant funding as it looks to tackle financial pressures. This move could have catastrophic consequences for numerous charities and services that play a crucial role in the community.
These discretionary grants are a lifeline for the voluntary sector, enabling a wide range of essential services to operate throughout the High Peak. The proposed cuts are indiscriminate and far-reaching, jeopardising the existence of small voluntary groups that provide crucial support to some of the most vulnerable members of society, including young people, the elderly, and disabled.
Infrastructure organisations such as High Peak CVS, Connex in Buxton, New Mills Volunteer Centre, and The Bureau in Glossop, which all support the local voluntary sector, also face cuts which will severely impact the support on offer to groups and charities.
These organisations say they are now joining forces to fight these cuts and need the general public and residents of Derbyshire to unite to make their voices heard.
If the cuts go ahead, over £1 million in grants will be lost for community and
voluntary groups across the High Peak and Derbyshire. Specifically, groups providing adult social care would lose just over £722,000, while groups receiving corporate services and transformation grants would forfeit just over £333,000.
Derbyshire residents are being urged to fill in a survey the County Council has put together as part of the consultation period it is currently holding about the proposed cuts.
A representative from HPCVS urged people to get involved: “We need as many people as possible to unite together and make a stand against these cuts. We need to make our voices heard that the voluntary sector is valued, needed, and relied upon in this area by so many people!
“These grants are a lifeline to the voluntary sector, supporting a wide range of essential services locally. The consultation survey is open until 20th August 2024, and can be accessed through High Peak CVS’s website at highpeakcvs.org.uk/dcc-survey.
“Please tell all of your family and friends to ensure everyone is aware of the emergency that is facing our voluntary sector. We need to act now as time is running out!”
In addition to the survey, Derbyshire Voluntary Action are asking the Council to
debate in full any proposed cuts to discretionary funding and consider the significant impact to communities if services are reduced.
Mayor welcomes new homes plan
Claire Ward, the Mayor of the East Midlands, has welcomed Government plans announced on Tuesday (30 July) to overhaul planning rules in a bid to accelerate housebuilding across the country.
Mayor Claire, who included a pledge to build more affordable homes in her mayoral campaign, said: “These are bold plans to revolutionise housebuilding – and my priority is to make sure they will make a real difference to the many people in the region who want and need a good, affordable home.
“These plans are still at a very early stage and we need to wait to see more detail before we can work through the implications of what it means for us, but a radical overhaul of a system that just wasn’t working is important for all of us who want to make this region a great place to live, work and learn.
“This is a region unlike any other in terms of the challenges around developments in the right places and I will be having early conversations with government so they get a clear idea about what will work here.
“We know we have some big opportunities if we are prepared to be ambitious and that’s what we want to do.
“I’ve always been clear that building the homes we need is an absolute priority, supporting our drive to deliver inclusive growth across the region and make a difference in our communities, but we want to do it in the right way, working with district and borough councils across the region.”
Mayor Claire said she was looking forward to working with the Government to get the best outcome for the East Midlands: “Our region needs new homes and, crucially, the infrastructure to go with it so that housing developments have good connections to jobs, schools and colleges.
“So I will continue to make the case for the funding we need to deliver the infrastructure of road, rail and public transport so we can unlock the private sector investment in new homes and jobs.
“I’m impatient to get on with delivering for the people in our region and this is a very welcome first step.”
