Rising prices cause major dent to business confidence in the East Midlands
Confidence among East Midlands firms is rapidly declining amid a price squeeze that is causing a “cost of doing business crisis,” new research reveals.
East Midlands Chamber’s Quarterly Economic Survey (QES), which gauges the health of the region’s economy, found that only a net 8% of companies in the region expect profitability to increase over the coming year, down from a net 31% at the start of the year.
A net 42% of those surveyed during the second quarter of 2022 anticipate turnover to improve, down from a net 62% in the previous quarter.
The findings, from a questionnaire filled out by 322 businesses across Derbyshire, Leicestershire and Nottinghamshire between 16 May and 10 June, show that the low confidence stems from weakening overseas sales and orders, alongside a flat UK market.
These issues are driven by spiralling inflation and costs for energy, raw materials, people and fuel – and are now affecting business investment, which is crucial to driving the productivity gains that can help to beat inflation.
Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “Issues with supply chains – which have been readjusting since the pandemic impact and surging demand as we emerge into this post-pandemic period – alongside changes in trading conditions resulting from the UK leaving the EU and, more recently, the impact on prices following the Russian invasion of Ukraine, have all combined to hit business confidence and activity levels.
“This dent to confidence has knock-on effects on investment, with intentions to invest in training (down 3% quarter-on-quarter) and equipment (down 6%) both being scaled back, and at a time where 40% of businesses report operating at full capacity – a record for the survey in recent times.
“The underlying concern here is, for an economy to grow, businesses need to invest. A struggling economy isn’t being driven by a lack of demand, but rather a hindered ability to respond to that demand. This in turn puts further pressure on prices, risking a situation that continues to deteriorate as the months progress.”
East Midlands Chamber QES Q2 2022 data
Key findings from the Quarterly Economic Survey Q2 2022 for the East Midlands included:
· UK sales flatlined between Q1 2022 and Q2 2022, with a net 27% of businesses reporting these increased in both periods, while there was a net 4% drop in advanced orders between the quarters
· Overseas sales and orders were down for a net 9% and 11% for companies respectively
· While a net 11% of businesses increased their workforce in Q2, this marked a 9% drop compared to the previous quarter. Similarly, a net 33% of firms believe they will aim to increase their labour force over the coming three months, but this was 3% down on Q1
· Two-thirds (66%) of businesses attempted to recruit in Q2 but, of this cohort, four in five (82%) encountered problems with filling vacancies
· There was positive movement in cashflow, which had been down for a net 3% of firms in Q1 but had increased for a net 4% in Q2 – a 7% swing
· Six in 10 (62%) businesses expect they will be forced to raise prices over the next three months, although this was a 4% drop compared to Q1
· A lack of room at the margins means investment intentions in plant and equipment are down by 6% compared to the beginning of the year, while intentions for investing in training dropped by 3%
· Business confidence nosedived, with the proportion of businesses expecting profitability to increase dropping by 23% and those anticipating improved turnover falling by 20%
How Government can support businesses to invest and ease inflation
Chris called for the Government to urgently address key financial challenges faced by businesses that will eventually be passed on to consumers.
“Businesses need an injection of confidence to enhance their investment plans and respond to the challenges they’re facing,” he said.
“Given that many of these issues are external, this is easier said than done, but there are levers the Government can pull to support business. On fuel, it should act to further cut duty and reduce VAT applied to fuel purchases, while the HMRC mileage rate should be increased from 45p per mile to 60p.
“Small businesses should be offered greater grant support on fuel bills, similar to that received by consumers, and those struggling with repayments linked to coronavirus-associated support schemes should be given more leeway for repayments to be made.
“Finally, incentives should be given to businesses looking to invest in their people, similar to schemes that already exist for capital investment, which themselves should be extended.
“These are not usual times, but the current state of affairs is also not permanent. It is right that Government should act to introduce special measures at a time when the economy needs it, with the knowledge that once there are calmer waters ahead, businesses will continue on their growth trajectories and drive a competitive UK economy.”
Deskbound staff put their best feet forward with 1,202 mile walk to support refugees
A team of employees from a Derbyshire marketing agency are taking on a whopping 1,202 mile walk to support refugees in troubled parts of the globe who must trek many miles in search of safety.
A group of ten staff members from MacMartin, a full-service marketing agency based at the Bartonfields Centre in Church Broughton, are putting their walking shoes on during lunch breaks and evenings in order to get their miles in before the end of June.
MacMartin is completing the challenge to raise money for the British Red Cross and its Miles for Refugees campaign. The campaign offers participants the opportunity to walk, swim or cycle a range of distances, which are all based on the number of miles that refugees in different situations around the world are having to travel to reach safety. One distance is 22 miles – the length of the English channel – while another 108 miles, which is what it takes to get from Lviv in Ukraine to Lublin in Poland.
The MacMartin team has combined all distances on offer to trek the challenge as a team, resulting in a grand 1,202-mile target. Each member of the team is responsible for 120.2 miles.
This is the first time the growing company, which celebrates its fifth birthday this month, has taken on a charity challenge as a team effort, and they are planning more for different causes over the summer months.
Katie Redfern, marketing account manager at MacMartin, said: “We particularly wanted to support this campaign because of the British Red Cross’s work with refugees fleeing war-torn Ukraine. It’s a situation that is so horrifying to watch unfold on TV and we would like to do all we can to help. We’ve supported Ukrainians in crisis financially as a company too. We really wanted our first charity challenge to be relevant to a current global situation which is why we have chosen this particular one.
“As busy office-bound people we don’t naturally get that many steps into our normal working day. We might achieve 3,000 in the ordinary course of things. With this challenge we’re all having to up that to around 10,000 a day and it’s amazing how creative you can be when you’re having to reach that milestone on a daily basis! When I do the school drop off I’m parking the car further way so I can get some more steps in, and I think we’re all running upstairs as much as we can!
“But the nicest thing is that everyone is going for a walk together every lunch time which is actually a really good chance to get away from our desks into the fresh air. We do work in a lovely corner of Derbyshire and it’s nice to see the beautiful scenery surrounding us every day. We know how lucky we are to be able to walk safely in the countryside or head down to the gym. Those in the world who are having to walk miles from necessity are not so lucky.
“In the village where I live, Abbots Bromley in Staffordshire, some people have already welcomed Ukrainian refugees, whose children have also joined my son’s school. I know of more in nearby areas such as Uttoxeter and Denstone. It just brings it all so much closer to home, so we’re glad to do our little bit to try and help.”
MacMartin’s refugee challenge has an additional relevance for the company as they work closely with the Burton sexual abuse and rape advice centre, Sarac. With sexual violence often used throughout history as a weapon of war, today as much as ever, the team from MacMartin particularly wanted to show their solidarity for refugees who may be fleeing other forms of violence than bombs and gunfire.
To support MacMartin’s Miles for Refugees campaign, visit www.justgiving.com/fundraising/mac-martin1/
NTU researcher among the ‘Top 50 Women in Engineering’
NTU researcher professor Eiman Kanjo has been named among the Top 50 Women in Engineering by The Women’s Engineering Society (WES).The WES has revealed the list as part of International Women in Engineering Day 2022 to celebrate women who demonstrate the creation or improvement of a product or process that makes a difference. Eiman, professor of Pervasive Sensing and head of the Smart Sensing Lab in NTU’s School of Science and Technology, researches topics including mobile sensing, edge computing, data science and technology for wellbeing. Under the leadership of Professor Kanjo, her team at NTU won a 2021 Vice-Chancellor’s Outstanding Research Award. Professor Kanjo is also the award lead of the new NTU-Turing Data Science Network funded by the Alan Turing Institute.For 2022, the WES, in association with The Guardian and Ball Corporation, a global supplier of sustainable packaging, invited nominations on numerous factors, including their ability to support and combat climate change, work as an advocate for women in STEM, their drive to make a difference within the engineering industry and achieving beyond what would normally be expected.The number and standard of nominations were high, emphasising the exceptional achievements made by women in this field. The WE50 awards were judged by a panel of industry experts.This year more than ever, female engineers are applying themselves to sustainability and creating a built environment that is kinder to the natural world.Female engineers are working hard to combat global CO2 emissions by creating products that monitor, capture and reduce carbon emissions, as well as developing energy solutions to decarbonise entire countries.At the heart of many of the projects featured in this year’s list are those that help us to be more eco-friendly, whether it be infrastructure, transport systems and all types of equipment that help us to be more sustainable.
Professor Kanjo said: “My hope is that engineers and technologists, female and male, play a more prominent role in shaping the world’s future. We design and develop systems that respond to local communities’ needs and we work hand in hand with end users’ organisations to understand what we can do.“I am so grateful to WES for this award, and to my family and my late father who always believed in me and encouraged me to be the engineer I am. Also thank you to all the people who have supported me over the years, including my brilliant Smart Sensing team and colleagues at NTU, without whom this would not have been possible.”Elizabeth Donnelly, CEO of WES, said: “Once again WES is delighted to celebrate the achievements of women engineers. It’s a joy that so many innovative women are making a difference to our everyday lives and working to mitigate the impact that engineering has on the environment.”
Plans for new solar farm approved in Leicestershire
Plans for a new solar farm that will generate enough electricity each year to power all of Leicestershire County Council’s properties and thousands of its streetlights have been approved.
The green energy complex is to be built on a 55-acre farmland site on land north of the A6 near Quorn.
The £5.9 million scheme will be developed by the county council to generate electricity from sunlight which would then feed into the grid.
The landscaped solar farm, on county council-owned land at Poole Farm, will create nearly 10,000 megawatt hours of electricity a year and will save nearly 5,000 tonnes of carbon dioxide emissions annually.
It will help the council achieve its target of becoming an organisation with Net Zero carbon emissions by 2030 and its wider aim of the whole county producing net zero carbon emissions by 2045.
The solar farm could also save the council around £600,000-a-year in energy bills – making money available to pay for essential frontline services at a time when the authority is under significant financial pressure.
Clean energy created could also be sold back into the grid in the future to generate income for the authority.
County council cabinet lead member for resources, councillor Lee Breckon, said: “This project ticks so many important boxes for us.
“We are a green council investing in this environmentally-friendly project which will make a big contribution to creating clean and renewable energy while also providing considerable savings allowing us to fund vital front-line services.
“It is a key scheme in our Corporate Asset Investment Fund (CAIF) which we set up to use the council’s property and land innovatively to deliver savings.
“The money we make from CAIF protects key services at a time when there is much uncertainty around council funding.”
It is hoped construction of the solar farm will begin this autumn with it being ready to generate electricity from Summer 2023.
The land on which the solar farm is to be built will remain in agricultural use with livestock grazing alongside the panels.
Nottingham consultancy upsizes to fit team and business demands
National independent property, construction, and infrastructure consultancy Pick Everard has strengthened its presence in the East Midlands with the opening of a larger office in Nottingham city centre. The new space in Tollhouse Hill will cater for the firm’s growing team and business in the region.
Pick Everard is one of the UK’s leading multi-professional consultancies and has more than 600 employees supporting clients with multi-professional property and construction consultancy. Its clients hold leading roles across the public and private sectors of the UK.
The 156-year-old business has had a presence in Nottingham for more than 14 years. Now, to accommodate an agile and collaborative style of working and support its expanding Nottingham team, the firm has taken residence in a brand-new office space in the EastWest building.
The new office features a brand-new fit out specific to Pick Everard, including 28 desk workspaces and two meeting rooms equipped with modern equipment to facilitate hybrid meetings. There are also informal meeting spaces, supported by a café on the ground floor for employees and clients.
David Nisbet, partner at Pick Everard, said: “Over the past two years particularly, the growth in both the design and management services of the business meant a bigger office was the only logical next step.
“On top of the greater resources we can now put into such areas, the move also allows us the opportunity to include additional new capabilities to the Nottingham office, bringing us more in line with Pick Everard’s multi-disciplinary construction solutions. Ultimately, we believe this growth signals the beginning of more expansion heading into the future.”
Nottingham City Council responds to Government’s proposed intervention
Nottingham City Council has pledged that the major improvements it has been making to financial governance and management will continue in light of the Government’s announcement that it is minded to appoint Commissioners to take over some decision making functions to ensure compliance with the council’s best value duty.
These include strategic financial management, governance and strategic decision making and appointment of statutory officers.
Council leader, Cllr David Mellen said: “The Government’s decision to appoint Commissioners follows our discovery last December that Housing Revenue Account funds had been allocated unlawfully.
“This was a significant setback but it’s important to understand that we brought the matter to light ourselves as part of our work to tighten up our financial and governance arrangements and have already taken swift and direct action to address the issue, including seeking the necessary ministerial direction to pay the money back into the Housing Revenue Account.
“In light of the improvements we have been making, it’s clearly disappointing that the Housing Revenue Account issue has led to the Government taking the action it has. We understand that it will be a major concern for city residents, council staff, our partners and local businesses but we are committed to working with Commissioners on any further improvements we need to make.
“Our staff do a great job providing vital services to city residents and we will support them to continue to do that in the months and years ahead.”
Chief Executive, Mel Barrett said: “We have been making good progress on our recovery and improvement plan over the last 18 months, working closely with the independent Improvement and Assurance Board appointed by the Government to oversee its implementation.
“We have had a positive relationship with the Board and its chair Sir Tony Redmond. Sir Tony’s appointment as the lead commissioner therefore provides reassurance and continuity. This, and the fact that commissioners have been appointed for two years rather than the normal three, is recognition of the progress we have already made over the last 18 months.”
The council has agreed a balanced Medium Term Financial Plan covering the next four years, a key requirement of the previous Non Statutory Review, and within that a balanced budget for this year without the need for any other financial support or intervention.
It says it is also continuing to bring down overall debt levels significantly and taking a strategic approach to disposing of property assets to bring an income to the council.
A review of council-owned companies is continuing and all the recommendations of two independent reports into the Housing Revenue Account issue commissioned by the council are being implemented, including bringing housing management back in-house, to ensure problems are resolved, the money is returned to the HRA and the same mistakes can never happen again.
Council’s plans to buy Freshney Place move a step closer
A plan for Freshney Place Shopping Centre to be bought by North East Lincolnshire Council has moved a step closer, following approval at the Council’s Cabinet meeting yesterday [22 June 2022].
The Grimsby centre went into receivership earlier this year, and the deadline for bids for its sale closed on Tuesday [21 June 2022]. The council has confirmed a bid has been submitted but the final decision to purchase the centre must have Full Council approval. The plan will be discussed at a special meeting in July.
Cllr Philip Jackson, leader of the Council, said: “It is vital that we take this course of action to make sure we can continue to deliver our transformation of the urban heart of Grimsby. If we don’t buy the centre, it could be bought by someone who is unwilling to invest and the decline of the heart of our town centre would be devastating.”
The centre makes up 60 per cent of the town centre’s retail offer, supporting one in five jobs within that area.
“The move to secure the centre will safeguard a critical part of Grimsby town centre’s economic and community infrastructure,” continued Cllr Jackson. “Ensuring it retains a competitive retail and service offer is key to safeguarding up to 1,700 jobs within Freshney Place and Top Town Market.
“If this is approved, subject to due diligence, we would be looking to appoint external asset managers with significant experience to run the centre on a day-to-day basis with the council taking an ‘arms-length’ approach.
“To enable this regeneration to continue, Freshney Place, a huge space in our town centre, must have a stable future. If this becomes Council-owned, this would mean that we could take Freshney Place into account when we’re looking at the transformation of the whole of our town centre, potentially bringing in different offers, using the centre in different and more modern ways to reduce its current over-reliance on retail.”
Grant funding from Central Government, including the Towns Fund, has already seen significant transformation in the town centre with projects still under way. These include Garth Lane, St James Square, the new Onside Horizon Youth Zone and the conversion of St James House into an E-Factor Group businesses centre and hub.
The plan, if approved by Full Council, is to acquire Freshney Place using the national Future High Streets Fund (FHSF) money. The Council would then bid for replacement money to continue the FHSF work at the western end of Freshney Place and Victoria Street through the ‘LUF (Levelling Up Funds) Round Two’ process.
Nottingham retail park snapped up in £15m deal
Custodian REIT, the property investment company, has acquired a Nottingham retail park for £15 million.
The 70,160 sq ft retail park consists of four units occupied by Wickes, Matalan, Poundland and KFC, with nearby retailers including Tesco, Morrisons, Lidl and McDonald’s.
The units have a weighted average unexpired term to first break or expiry of 9 years with an aggregate passing rent of £994,050 per annum, reflecting a net initial yield of 6.21%.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the company’s discretionary investment manager), said: “Well located retail warehouses let off low rents are complementary to online retailing and have remained in demand during the restructuring of the retail market.
“This purchase, which was agreed off-market at an attractive net initial yield, offers long income from a very strong tenant line up with opportunities to enhance rents by developing a drive-through restaurant and installing electric vehicle charging points.”
Greater Lincolnshire LEP “encourages everyone in the property sector to make a nomination” for the East Midlands Bricks Awards 2022
The chair of the Greater Lincolnshire LEP is encouraging “everyone in the property sector” to make a nomination for the East Midlands Bricks Awards 2022, to “highlight the work of an outstanding property professional or business.”
“The property sector has been quite resilient throughout the pandemic and it’s good to see the East Midlands Bricks Awards helping to build confidence in the economy,” said Pat Doody, chair of the Greater Lincolnshire Local Enterprise Partnership.
“These prestigious awards play an important role in showcasing the excellent work of our property sector in the East Midlands, but they need your help. I would like to encourage everyone in the property sector to make a nomination and highlight the work of an outstanding property professional or business.”
Thanks to our sponsors:
If you haven’t submitted your nominations yet, now is the ideal time.
The East Midlands Bricks Awards celebrate the region’s property and construction industry, its people, and exceptional developments, and provide the perfect opportunity to shine a light on your team, reward their hard work, and boost morale. Winners will be revealed at a glittering awards ceremony on Thursday 15 September, at the Trent Bridge Cricket Ground – an evening that will also provide plenty of time to forge new contacts with property and construction professionals from across the region. To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner (this award cannot be entered, the winner will be selected from those nominated)
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker, as well as award-winning mind reader, magician, and professional mentalist Looch, who will bewilder and astonish guests during the evening’s networking. Dress code is standard business attire.
To be held at:
Bid for £40m ‘Levelling Up’ Link Road confirmed
Nottinghamshire County Council is preparing a bid worth approximately £40m to fund the planned Toton Link Road as part of the government’s ‘Levelling Up’ agenda.
It follows the council formally taking the key decision to apply to the Levelling Up Fund for the multi-million-pound sum needed to build the ‘transformative’ road, which would unlock jobs, housing and business growth.
Plans for the link road were rubber-stamped by county councillors last year – with pre-construction work already underway – but it is hoped that a solid bid to the Levelling Up Fund will lead to the government fully financing it. A decision is expected in October.
Leader of Nottinghamshire County Council, Ben Bradley MP, said: “The Toton Link Road is a transformative project – the council will be putting a strong, clear case to government for the £40m needed to construct the road from the Levelling Up Fund.
“The ripple effect of the Toton Link Road will be huge, including being an attractive asset for the development of homes and commercial space in our county.
“It will play a vital role in Nottinghamshire’s economic future by unlocking vital job, housing and investment opportunities in the years to come.
“I know big picture transport schemes are critical to levelling up plans – I’m hoping that the Toton Link Road will fit the government’s ambitious agenda, and we will secure funding for this major infrastructure project here in Nottinghamshire.”
In its application to the Levelling Up Fund, the council will outline how the new, multi-connected boulevard will make a direct contribution to Nottinghamshire’s economic growth.
This will include boosting local transport, with the link road planned to be built alongside the A52 and M1, giving direct access to the NET tram network and the potential new Network Rail station at Toton outlined in the Integrated Rail Plan.
Cabinet member for economic development and asset management, Councillor Keith Girling, says the council will be submitting a ‘robust case’ for funding from the government to build the link road.
He said: “Both Councillor Bradley and I are looking forward to submitting a robust application to Levelling Up Fund, so we can secure the £40m we think we deserve here in Nottinghamshire.
“The transport benefits of the Toton Link Road are countless, connecting our residents to multiple forms of travel, which will ease congestion.”
As part of its bid for the £40m, the council will explain how the Toton Link Road will enable wider plans for growth that are being worked up by the East Midlands Development Company (DevCo).
The DevCo has been setup by five local authorities to coordinate development around the Toton-Chetwynd corridor, Ratcliffe-on-Soar Power Station area and the East Midlands Airport area.
Richard Carr, Managing Director of the DevCo believes that the county council’s Levelling Up Fund bid can ‘accelerate progress’ at Toton and Chetwynd.
He said: “The county council’s application for levelling-up funding for the link road is a major opportunity for the DevCo to accelerate progress at Toton and Chetwynd.
“The Toton Link Road will open up the prospect of high-quality development, delivering benefits from community to economy level.
“The link road is an important part of our plans, as we bring forward proposals across our three sites which could create 84,000 jobs and add £4.8bn to the value of the East Midlands economy.”
It is hoped that the DevCo will soon gain statutory powers, after the government flagged the East Midlands’ case for a new type of development corporation in its Levelling Up and Regeneration Bill as an ‘expedient’ mechanism for council areas to join forces and deliver growth.
Councillor Bradley added: “I’m excited how the link road is vital to the East Midlands Development Corporation’s ambitions to supercharge our regional economy.
“The DevCo is planning a once-in-a-generation programme which will deliver benefits from community to economy level, and both our county and our region can reap the rewards.”
