Business confidence in the East Midlands rose one point during January to 39%, according to the latest Business Barometer from Lloyds. Companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up 14 points at 53%. When taken alongside their optimism in the economy, down 11 points to 25%, this gives a headline confidence reading of 39% (vs. 38% in December 2024). Looking ahead to the next six months, East Midlands businesses identified their top target areas for growth as evolving their offering, for example by introducing new products or services (51%), investing in their team, for example through training (38%) and introducing new technology such as AI or automation (29%). The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. National picture Overall, UK business confidence fell two points in January to 37%. While firms’ optimism in their own trading prospects strengthened four points to 51%, their confidence in the wider economy dropped seven points to 24%. For the third month in a row, London was the most confident UK nation or region in January (55%), with the West Midlands following behind (51%). Sector insights There were similar falls in manufacturing, construction and retail this month, with a slight increase in services. Confidence fell to 38% in manufacturing (down 4 points), 36% in construction (down 5 points), and 40% in retail (down 3 points). However, confidence in services increased by 3 points to 38%. These results come within a general trend of larger confidence declines in retail and services in recent months. Within the services sector, confidence has notably fallen in hospitality but has remained more stable in business services and health-related services. Dave Atkinson, regional director for the East Midlands at Lloyds, said: “The resilience and ambition of businesses in the East Midlands is evident in this month’s results. And it’s particularly encouraging to see businesses prioritising steps that will support their long-term growth, such as investments in their team and technology. “As firms kick-off their 2025 plans, we’ll continue to be their side to help them make the most of every opportunity ahead.”

A new business support initiative for ambitious entrepreneurs has started at Vulcan Works. The John Franklin programme was recently launched to run alongside the town centre workspace’s existing incubation programme for start-up businesses, known as Vulcan Creatives. Vulcan Creatives, led by business growth manager Darren Smith, supports 10 ambitious local people hoping to kick start a new business or grow an existing idea with specialist support. The second cohort began in November with business support workshops, specialist grant opportunities and one to one coaching from Darren. The popular six-month initiative, funded by West Northamptonshire Council utilising £40,000 of the UK Shared Prosperity Fund (UKSPF), had more than 50 applicants this year. Rather than let 40 down, South Midlands Growth Hub offered to collaborate with Darren and use remaining funds from West Northamptonshire Council to offer a second project. An additional 21 people have joined the John Franklin programme, which also runs for six months and offers participants collaborative learning opportunities, guidance and advice in starting or growing a business. Darren said: “By taking on another 21 people in the John Franklin programme, we can spend that money earmarked for this purpose on more entrepreneurs who need the support, and more Northamptonshire businesses will benefit from that decision. “The John Franklin participants will have access to the Vulcan Creatives business support workshops, as well as one to one coaching with the Growth Hub at Vulcan Works.” South Midlands Growth Hub business adviser Jessica Stead said: “We had such a high number of people wanting to join the Vulcan Creatives that rather than let them fall away we thought we’d support them too. “We thought we’d mirror what Darren is doing and offer that initial consultation meeting to ensure they’re aware of the business workshops happening at Vulcan Works and can network with the Vulcan Creatives team. “We are funded by the Department for Business and Trade to provide advice for any SME in the region, so this was a perfect fit for us. All those taking part can come to us for advice after the programme finishes too.”

It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Sunny Landa, director at Landa Associates. Why workers continue to resist call backs to the office… There remains a real challenge for the office in a post pandemic world as traditional offices no longer offer worker-friendly environments that give workers the same comforts as their homes. Workplace planning will be key in 2025 as changing workplace dynamics such as hybrid working, particularly amongst younger generations, become key drivers for companies seeking to attract and compete for talent. Grade A offices should now offer collaborative spaces as well as work place food options and we will see AI begin to play a key role in making the office environment more friendly, such as facial recognition technology, and also play its part in collecting data for senior managers. Company bosses are being advised by workplace change management specialists employees needs are paramount and we will also see early adopters of a 4-day workweek. There will continue to be active demand for office space from tech and media businesses, insurance and financial services as well as professional businesses, but we will see a real decline from charities and associates, public service sectors, government, education and health sectors. The ultimate driver for these active sectors will be competition for talented people and staff retention which in my view will force many tenants to drive for quality in their office environments. Despite market uncertainty grade A office space will continue to be a coveted asset for more people wanting to return to the office. In the post pandemic world, the dominant choice for many tenants is to now have collaborative spaces in larger open plan offices. This working style lends itself well to hybrid working and hot desking which is very much the new norm. Fit-out cost will remain a barrier for most occupiers but those willing to invest in their office space by making them the best in their class will undoubtedly win. 2024 has shown us that top tier Grade A offices continue to let and the polarisation between unrefurbished space becomes bigger with less take up in the secondary and tertiary sectors.