Inflation returns to target

Tess Egginton
-
0
Inflation returns to target
Inflation has returned to the Bank of England’s 2% target for the first time since July 2021. Measured by the consumer prices index (CPI), which rose by 2% in the 12 months to May 2024, it is down from 2.3% in the 12 months to April. The biggest downward contribution to the fall in inflation came from food-price inflation, which dipped to 1.7% in May, the lowest annual rate since October 2021. This was partially offset by higher petrol prices. The UK has also won the international race to get back to target, being the first among the euro area and US to bring headline inflation back down to 2%. In fact, the UK currently has the lowest headline inflation rate in the G7 bar Italy. Despite this, the impacts of sustained high inflation over the past three years will remain for some time, with the relative cost of essential goods expected to remain high. The Resolution Foundation notes that overall prices have risen by 22% since July 2021 (when inflation was last at 2%), while energy prices have risen by 66% and food by 31%. Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, rose by 3.5% in the 12 months to May 2024, down from 3.9% in April. James Smith, Research Director at the Resolution Foundation, said: “It’s very welcome to see headline CPI inflation falling back to its 2 per cent target for the first time since July 2021. And while the UK experienced a higher inflation peak during the cost-of-living crisis, it has now got back to target more quickly than either the US or euro area. “But the legacy of a long period of very high inflation means there is unlikely to be much of a feel-good factor among families, as they continue to struggle with the higher cost of essentials. “And while headline inflation is back to normal levels, domestically-driven services-price inflation remains elevated. This inflation will worry the Bank of England, and may give pause for thought when it comes to cutting interest rates.”

“Inflation returns to target, but Bank of England is unlikely to fire starting gun on interest rate cuts tomorrow,” noted Yael Selfin, Chief Economist at KPMG UK.

“The Bank of England will be encouraged by the slowdown in headline inflation, and while concerns will remain over elevated underlying price pressures, further falls in services inflation are anticipated over the coming months. Today’s data are unlikely to spur a surprise rate cut tomorrow, however, the MPC could have sufficient evidence to begin its easing cycle in August.

“While underlying price pressures have moderated somewhat, they remain uncomfortably high, with services inflation running at 5.7%. The Bank will need to see a continued fall in services inflation before it can be confident that headline inflation will stay sustainably at its 2% target in the medium term. A slower pace of pay rises may lead to weakening services inflation, helped by a loosening labour market.

“Energy prices continue to present a risk for the UK inflation outlook. Wholesale gas prices have risen by more than 30% since the start of April, and if prices remain at this level into the autumn, household energy bills could potentially rise again in October. Nevertheless, the overall outlook for inflation remains broadly positive, and we expect headline inflation to hover around the target range over the coming months.”

New chair appointed to Leicester and Leicestershire Business Board

Tess Egginton
-
0
New chair appointed to Leicester and Leicestershire Business Board
Andy Reed OBE has been appointed to chair a new Business Board tasked with helping to shape economic strategy in Leicester and Leicestershire. The Leicester and Leicestershire Business Board will bring senior public and private sector leaders together to consider matters relating to growth in the city and county. The Business Board is a key part of the new Leicester and Leicestershire Business and Skills Partnership led by Leicester City Council and Leicestershire County Council. The Leader of the County Council and the City Mayor have appointed Mr Reed, the former Chair of the Leicester and Leicestershire Enterprise Partnership (LLEP), as the Business Board’s first Chair. Mr Reed brings substantial relevant experience, and his appointment provides continuity in business and stakeholder advice to the city and county councils. The purpose of the Business Board is to boost skills and growth by building the local business voice into delivery of economic strategy. The Board is a key component of the Business and Skills Partnership, which will have input into functions including the Business Gateway Growth Hub and the Careers Hub. Mr Reed said: “It’s so important that the voice of business is available to local authority leaders as they form growth policy in our city and county. “The Leicester and Leicestershire Business Board will provide input from businesses of all sizes during decision-making, working with our elected leaders to inform broad economic strategy.” Introduction of the Business Board comes after the Government ceased funding for local enterprise partnerships (LEPs) nationwide at the end of March. Work has since continued behind the scenes to develop the new Business and Skills Partnership and associated Business Board. Cllr Nick Rushton, Leicestershire County Council Leader, welcomed Government sign-off for the new Business and Skills Partnership, adding: “I’m delighted that Andy has agreed to chair the new Business Board and am keen that we get the new arrangements up and running as soon as possible.” Sir Peter Soulsby, Leicester Elected Mayor, said: “Building a strong business voice into the development and delivery of our economic strategy is very important and we look forward to working alongside Andy as we establish the new Business Board.” Work is now underway to recruit Board members. The first meeting is expected to be held later this year. Subsequent meetings are expected to be held every two months in and around Leicester and Leicestershire. Members are set to serve a three-year term, which may then be extended by a further three years.

East Midlands scale ups attracted more than $36m in Q1

Tess Egginton
-
0
East Midlands scale ups attracted more than $36m in Q1
Innovative businesses in the East Midlands attracted $36 million across 13 deals in venture capital (VC) funding in the first quarter of the year, according to the latest KPMG Private Enterprise Venture Pulse report. While the number of deals remained relatively stable, decreasing only from 13 to 12, the total value of these deals experienced a significant decline, falling from over $58 million to $36 million compared to the same period in the previous year. Some of the largest raises came from businesses with a healthcare focus – Locate Bio raised $10.6 million for a clinical study, University of Nottingham spin-out IsomAb raised $9.4 million to develop a new treatment for cardiovascular diseases, and Neupulse secured $3 million to advance a wearable device aimed at tackling Tourettes Syndrome. In 2023, there were a total of 47 VC investments in the East Midlands, worth more than $155 million. Khush Purewal, partner and head of deals at KPMG in the Midlands, said: It is reassuring to see that funds continue to flow into businesses in the Midlands, particularly those that are pioneering in the healthcare sector. “Over the last 18 months, the macroeconomic environment has changed dramatically with political uncertainty and cost of borrowing all rising. As we find ourselves in a new normal, we need to think about how we move ahead, and right now, investors are focusing on companies prioritising routes to profitability and that are creating sustainable growth to succeed in the current environment. “The diversity of our scaleup ecosystem still attracts VC investors who are looking for innovative companies with robust unit economics and a path to growth. As the economy remains challenging, continuing to support fast growth businesses is important to the UK’s economic recovery and growth, and is key to levelling up as we look to attract and develop talent across our regions.” UK national outlook Nationally, VC investment into UK businesses continued to slide in the opening quarter for 2024, falling to levels last seen in 2018. Coming off the back of $4.9 billion raised by UK businesses in the last quarter of 2023, just $3 billion in funding was raised in Q1’24 — the lowest amount seen in twenty-two quarters. Deal volumes were also down with the Venture Pulse report recording just 519 deals completed in the period, levels not seen since 2016. While deal volume was very subdued, deal sizes remained quite healthy as VC investors focused their funds on the most promising startups. B2B businesses looking for VC investment faced particular challenges as companies across sectors felt pressure to tighten their pocketbooks and improve their internal efficiencies. This slowdown is likely to affect the interest of VC investors heading into Q2’24, although B2B startups with embedded technology solutions will likely prove more resilient than those with additive technology offerings the report found. On the fundraising side, Q1’24 saw some larger VC funds in the UK showing interest in acquiring the portfolios of smaller funds; during the quarter, for example, Molten Ventures completed its acquisition of Forward Partners for $52 million. Another trend seen recently in the UK has been the focus on investment corridors; this has been particularly true in the fintech sector, where a number of UK fintechs are working to connect to the fintech ecosystems emerging in the Middle East. What’s happening elsewhere? Global VC investment fell slightly from $83.8 billion across 9,458 deals in Q4’23 to $75.9 billion across 7,520 deals in Q1’24 amid geopolitical tensions, the extended drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages. The level of VC investment in Q1’24 was the lowest since Q2’19, while the number of VC deals was the lowest since Q2’16. VC investment in Europe rose from $15.1 billion in Q4’23 to $17.9 billion in Q1’24, buoyed by a large $5.2 billion raise by H2 Green Steel in Sweden. With few exceptions, VC investors in Europe continued to show caution given the challenging geopolitical and macroeconomic environment, including the high interest rate environment; while interest rates have smoothed, there is little sign that they will decline to a significant degree in the near future. The number of VC deals dropped considerably in Europe, falling from 2,419 deals in Q4’23 to 1,798 deals in Q1’24. This decline was particularly noticeable at later deal stages, with the number of Series D+ deals in the region dropping to just eleven. The geographic diversity of VC investments held strong during the quarter, with eight jurisdictions in the region attracting at least one $100 million+ funding round in Q1’24, including Sweden, the Netherlands, France, Germany, the UK, Spain, Israel, and Italy.

Chamber-Toyota partnership champions energy efficiency amongst small businesses

Tess Egginton
-
0
Chamber-Toyota partnership champions energy efficiency amongst small businesses
A new partnership between East Midlands Chamber and Toyota Motor Manufacturing aims to bring to life energy efficiency for small businesses. The fully funded Energy Reduction workshop, part of the Accelerator project funded by the UK Government through the UK Shared Prosperity Fund, provides a rare opportunity to experience a practical demonstration and shop floor observation with Toyota Energy Specialists. It also includes an overview of their strategic approach to decarbonisation and energy cost management and aims to demonstrate decarbonisation and competitiveness in action. East Midlands Chamber Deputy Chief Executive Diane Beresford said: “Any decision-maker in a business that meets the eligibility criteria of the Accelerator project is welcome to express their interest in joining us on the day although larger-sized SMEs with a particularly high energy consumption will take priority and we expect manufacturing and logistics businesses to derive the most value. “Whilst participation is fully funded, the workshop is valued at around £600 per person so I’ve no doubt it will be a highly popular offer.” Toyota Manufacturing UK Senior Manager, Environment and Carbon Neutrality Project John Malpas said: “We have over 30 years of energy kaizen experience achieving significant energy reductions and technological breakthroughs. The workshop aims to inspire others through sharing our decarbonisation activities by practical observations and demonstrations on the shopfloor by our Energy Support and Collaboration Team.” Businesses can choose from three dates. Each session is limited to 15 places, takes place over the course of five hours and will be held on the following Tuesdays: 30th July, 24th September and 29th October. Businesses interested in attending are invited to contact Ian Bates​​​​, Policy and Representation Manager at East Midlands Chamber ian.bates@emc-dnl.co.uk.

Fraudster sentenced for £1.5m renewable energy and home safety scam

Tess Egginton
-
0
Fraudster sentenced for £1.5m renewable energy and home safety scam
A fraudster who conned elderly and vulnerable residents out of £1.5m for renewable energy and home safety products has been sentenced to seven years imprisonment alongside a 10-year directorship ban. Robin MacDonald, aged 45, of Park Row, Bretby, Burton-on-Trent, was found guilty of conspiracy to commit fraud by false representation along with charges of fraudulent trading following a five-month trial at Nottingham Crown Court where more than 200 victims gave evidence. Between 2014 and 2015, MacDonald repeatedly mis-sold victims products including solar panels and emergency medical buttons through his businesses Sunpower Renewables Ltd and Stirling Technologies Ltd trading as Proshield Alarms. The defendant was prosecuted following an investigation led by the National Trading Standards Regional Investigations Team East Midlands, hosted by Nottinghamshire County Council, and supported by Derbyshire County Council Trading Standards. Sunpower Renewables sold renewable energy products to customers and sales representatives often bullied and pressured victims into signing contracts for works which were then completed to a poor standard, with some creating structural instability in homes. Proshield Alarms promised customers round the clock safety through products which would allegedly alert emergency services in the event that their alarm systems were triggered, with victims being misled through the deliberately false statements made by sales representatives and the marketing brochures. A second defendant was found not guilty by the jury on the same charges. Roy Hancher, aged 54, of Light Ash Lane, Coven, Wolverhampton, pleaded guilty to fraudulent trading prior to the trial and was sentenced to one year and eight months imprisonment, suspended for 18 months and a six-year directorship ban. Nicola Mather, aged 44, of Spindletree Drive, Derby, pleaded guilty to money laundering prior to the trial and was sentenced to one year imprisonment suspended for one year as well as 200 hours of unpaid community work. Mark Walker, Interim Service Director for Place at Nottinghamshire County Council, said: “I’d like to thank and recognise all of the victims who came forward and worked with our investigators to bring this case to trial and these individuals to justice. “These sentences show that the dishonest selling of products will not be tolerated. “There is a saying that if something seems too good to be true, then it probably is and sadly scammers hope to exploit this for their own gain. “We would always advise residents to be alert to cold calling and to never buy at the door. If residents have any concerns or if something doesn’t feel right, then it probably isn’t, and nobody should ever be afraid to close the door. “Scammers may turn up out of the blue offering something you didn’t think that you needed, but by working together to spot their behaviour we can make sure that they don’t take advantage of friends, loved ones and neighbours. “If you think you’ve fallen victim to a rogue trader, you can report this to the Citizens Advice Consumer Helpline by calling 0808 223 1133. You can also contact them for advice prior to entering into a contract to purchase goods or services.” Lord Michael Bichard, Chair, National Trading Standards, said: “MacDonald and his associates preyed on and took advantage of vulnerable people – stopping at nothing to get what they wanted. “Lingering in the homes of their victims for hours, they bullied customers – many of them elderly – into signing contracts at vastly inflated prices for products they didn’t want or need. “I hope that the sentences handed down today will provide some solace to the victims and serve as a powerful deterrent to anyone hoping to make money from fraudulently selling renewable energy and home safety products.”

Derby businesses fear uncertainty will hit investment in potential vote of no confidence

Tess Egginton
-
0
Derby businesses fear uncertainty will hit investment in potential vote of no confidence
Derby City Council is being called upon to reconsider holding a potential vote of no confidence in its leader, Councillor Baggy Shanker, in an emergency meeting it is understood is due to be held in secret this evening. Organisations representing thousands of businesses, including the Business Improvement Districts (BIDs) for the Cathedral Quarter and St Peters Quarter, plus Marketing Derby, as well as investors, such as St James Securities and Wavensmere Homes, have submitted letters expressing deep concern about the introduction of political instability at a crucial time for Derby. At immediate risk is a huge sum of up to £500 million of investment with genuine fears that instability will further affect investor confidence costing the city jobs and investment. Wavensmere Homes, which has already built over 900 new homes in the Nightingale Quarter, with a further 500 homes in the immediate pipeline, has said it may now consider re-evaluating a further £250 million of investment in Derby. St James Securities said that negotiations on the next phase of the £230 million Becketwell scheme were at a very sensitive stage and feared this might be threatened. The BIDs are especially concerned about losing city centre regeneration momentum and today Marketing Derby has written to the Mayor of Derby, Councillor Ged Potter, reiterating these concerns and urging a different approach be taken to solve any political problems. All submissions have stressed they are non-party political and supportive of the four-year electoral cycle introduced last year. This being broken could lead to three years of uncertainty. The vote of no confidence from opposition leaders relates to the conduct and actions of Cllr Shanker regarding the failed Sinfin Waste Treatment Plant. Shanker was quoted by the BBC saying the motion was “a desperate act of political opportunism.” A statement from Shanker added: “It is no coincidence that two of the signatories to the motion happen to be standing against me in the general election to become the next MP for Derby South.”

Excor snaps up Teal Park warehouse

Tess Egginton
-
0
Excor snaps up Teal Park warehouse
Supply chain solution provider Excor Services, part of Park Logistics Group, has acquired a new warehouse property in Nottingham to service their ongoing expansion requirements. The deal agreed between agents FHP and Innes England saw the acquisition of the brand new 26,409 sq ft facility with a large secure yard at the Teal Park scheme, which provides a 20-unit warehouse and trade park scheme totalling 160,000 sq ft owned by national investors, Northwood Urban Logistics. Iain Taylor, director at Northwood Urban Logistics, said: “We are very pleased to welcome our latest occupier to Teal Park demonstrating that it is appealing to a wide range of occupiers who will be able to adapt the units for a variety of uses.” Mark Tomlinson, director at FHP who acted on behalf of Northwood, said: “It is great to welcome another good quality Tenant to the scheme. There are very few units which offer such good quality space around the city and there are now only 4 units remaining of this 20-unit development. “The remaining warehouse units are of a very high quality on large secure fenced plots with substantial yard depths. There are just 2 trade units remaining sitting alongside established occupiers… Screwfix, Howdens, Toolstation, Paintwell and Karcher.” Craig Straw, director at Innes England who acted on behalf of the tenant, said: “We have advised Park Logistics for many years and are delighted to have assisted Excor Services in their latest acquisition. Securing a Grade A warehouse close to their existing base at Colwick was key so Teal Park offered the perfect solution.” Phillips Sutton and JLL act as joint agents on the scheme.

Leicestershire philanthropist receives Uganda Red Cross Society award

Tess Egginton
-
0
Leicestershire philanthropist receives Uganda Red Cross Society award
The Chairman of a Leicestershire-based charitable foundation has received the Henry Dunant Award from the Uganda Red Cross Society (URCS). Dr Nik Kotecha OBE DL was invited to receive this year’s award because of the collaborative work between the society and the Randal Charitable Foundation to open a manufacturing plant for sanitary pads in Uganda. This plant, through its operation of producing affordable reusable sanitary pads, will significantly improve the lives of up to 50,000 Ugandan girls and women each year. The plant was officially opened in the summer of 2023 by Dr Kotecha and is now working towards its goal of manufacturing 100,000 re-usable sanitary pads annually – directly helping to tackle missed educational opportunities for girls, who may miss 18% of the academic year, because of poor sanitary protection during their menstrual periods. It is also creating locally based, skilled employment opportunities for vulnerable girls and women who are being trained to make and market the pads and ensure the long-term sustainability of the facility. Speaking virtually at the Uganda Red Cross Society’s National Council Meeting (General Assembly) in Kampala, Dr Kotecha, said: “Thank you very much for this award. It is a privilege to receive this on behalf of our Foundation. Many of you will know that Uganda was my birthplace and my home as a child. A place that I have been to many times, and of which I’ve got some very fond memories. “Especially the time when I visited last year to open this incredible manufacturing facility, which I’m very humbled to have had the opportunity to collaborate with the Uganda Red Cross to create. “It’s amazing how life comes together – it was over 50 years ago in 1972 when my family left Uganda during the time of Idi Amin, and it was the Red Cross that helped and supported us to leave, settle and start a new life in the United Kingdom. “So, it’s an honour to be presented with this award and to support the Uganda Red Cross Society to save and significantly improve the lives of so many girls and young women.” Named after the founder of the International Red Cross, the award acknowledges and rewards outstanding humanitarian services and actions by an individual, and is the highest award given by the Uganda Red Cross Society each year. During the ceremony, Robert Kwesiga, Uganda Red Cross Secretary General, read a Citation to the members of the National Council (General Assembly). He said: “We are pleased to present the Henry Dunant Award to Dr Kotecha, for his outstanding contribution towards the establishment of the Uganda Red Cross Reusable Pads Manufacturing plant, at our Youth Training Centre in Namakwa, Mukono. “This project is helping us to improve and touch lives, especially vulnerable girls in rural communities. The Pads are a point of regaining dignity of the girls who drop out of school due to lack of Pads. The same project is contributing to the economic welfare of girls and women in the communities who sew the Pads and find this as a point of psychosocial support for their emotional and mental wellbeing. “This is the noblest award we give in the Red Cross, and we are excited to present it to Dr Nik Kotecha, for his outstanding contribution towards the National Society development.” The award was accepted on Dr Kotecha’s behalf at the National Council Meeting by Business and Investment Ambassador, Grace Muliisa, who is also the Managing Director of EcoBank Uganda. Rachael McCormack, Chief Operating Officer of the Randal Foundation, added: “We were delighted to be invited to join the National Council Meeting 2024 for the Uganda Red Cross Society, marking 60 years of celebrating humanity in Uganda – at their meeting in Kampala. “Presenters spoke of how the work of the society has been hugely supported by partners to enable them to go further. Throughout the year, their work has included activity which puts their teams at risk – but despite this, in the service of others, they deliver, with commitment and a focus on serving the most vulnerable.”

Andrew + Ashwell makes leadership team promotions

Tess Egginton
-
0
Andrew + Ashwell makes leadership team promotions
Andrew + Ashwell, a property consultancy firm in Leicestershire, has promoted two surveyors within its leadership team. Kelvin Wilson, a seasoned professional with a wealth of experience in the industry, has been elevated to the position of director, having previously served as an associate director. Additionally, Joe Dodd, a dedicated member of the team, has been promoted to the role of associate director. Kelvin Wilson, who has been an integral part of Andrew + Ashwell for several years, has consistently demonstrated exceptional leadership, expertise, and a deep commitment to delivering outstanding service to clients. His promotion to director is a well deserved recognition of his hard work, dedication, and proven track record of success within the company. In his new role, Kelvin will play a key role in shaping the strategic direction of the firm, driving growth, and ensuring the continued delivery of high-quality service to clients. “I am honoured and excited to take on the role of director,” said Kelvin. “Having been at the firm 10 years this year, starting as a fresh faced graduate in 2014, I have seen the company continue to evolve and I look forward to building on our long term reputation of excellence and to continue driving the company forwards.” Joe Dodd, who has shown exceptional commitment in his role at the company, has been promoted to the position of associate director. Joe’s promotion is a testament to his hard work, expertise, and commitment to delivering exceptional results for clients. In his new position, Joe will continue to play a key role in supporting the company’s growth and success, working closely with the leadership team to drive innovation and excellence in service delivery for clients, whilst helping the younger members of the team to progress. “I am very proud to be given a new role and responsibilities as associate director at A+A,” said Joe. “I have been fortunate to gain guidance from a team with a wealth of experience and I am committed to continuing to deliver the highest standard of service to new and existing clients and contributing to the ongoing success of the company.”

Manchester Airports Group seek planning permission for new manufacturing park

Stuart Pearcey
-
0
Manchester Airports Group seek planning permission for new manufacturing park
Manchester Airports Group is seeking planning permission to turn land near East Midlands Airport into a new hi-tech logistics and manufacturing park as part of the East Midlands Freeport. It relates to a site just south of the A453 alongside the airport, and if approved could result in more than 2,000 new jobs once fully operational and employ up to 174 people during a two-year construction period. It’s estimated the new development could contribute up to £132m per year in GVA to the East Midlands economy, along with almost £9m in additional annual business rates contributions. The land has been designated a tax site as part of East Midlands Freeport to help attract new investment and jobs to the region. The draft local plan also identifies it as a potential location for strategic distribution, located in the heart of the country close to the M1 and major road network, the UK’s number one dedicated cargo airport, and the East Midlands Gateway rail freight hub and logistics park – all within what’s known as the UK’s logistics ‘Golden Triangle.’ The plans laid before North West Leicestershire District Council describe the outline proposals as several units up to 25m tall, providing up to 135,000 square metres of floorspace for general industrial and storage or distribution uses, along with offices. The largest units would be located closest to the A453, with smaller units along the southern end of the site. This would help towards meeting a need identified by North West Leicestershire District Council for 2.5m square metres of additional warehousing in the area by 2041. EMA’s MD Steve Griffiths said: “This is a prime site for a development of this kind, given its proximity to major road and rail networks and the UK’s number one express air cargo hub. Given its status as a Freeport tax site, we are confident that if approved, we will have little difficulty in attracting businesses, bringing much-needed jobs to the region during its construction and operation. “The proposals we have submitted to the council outline how we have carefully considered the opportunities and constraints of the site, seeking to strike the balance between the need for such a development against the potential impact on the environment and local residents. We have met and will continue to meet members of Diseworth Parish Council and community groups and have aimed to address their concerns in our proposals.” Tom Newman-Taylor, Chief Exec of East Midlands Freeport, said: “Our mission is to act as a catalyst for economic regeneration across the East Midlands to create thousands of jobs boosting skills for local workers, and accelerating the region’s commitment to decarbonisation through sustainable development and low-carbon energy investments. “We support moves by our key partners to develop the Freeport’s strategically important sites which offer unparalleled connectivity to the rest of the UK. We also welcome the consultation the airport has carried out with the local community and the steps they have taken to address their concerns as part of the process.”
1...137138139...894Page 138 of 894