Thursday, December 4, 2025

Economic outlook to dampen companies’ festive cheer this Christmas as hiring and growth decline

Tess Egginton
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Economic outlook to dampen companies’ festive cheer this Christmas as hiring and growth decline
Weaker hiring intentions and recessionary pressures suggest a challenging winter ahead for UK businesses, according to the Business Trends report from accounting and business advisory firm BDO. November saw all four indices across employment, inflation, output and optimism fall for the second time in the last three months. The latest figures show BDO’s Employment Index contracted by 1.20 points in November, as it fell for the third month in a row to 111.85. While the Index remains above 95, considered the watershed between growth and contraction, it now sits at its lowest point since February 2022. This decline has been caused by weaker hiring intentions across the services sector. BDO’s Inflation Index declined for the second time in the past three months, falling to 118.43, although still remains historically elevated. This represents a sizeable contraction of 2.24 points – the largest fall the index has seen since May 2020. The lower reading was driven in part by a drop in the value of sterling improved following market volatility attributed to government measures announced in September’s mini-Budget. Indications of a recession have put downward pressure on productivity growth among businesses. BDO’s Output Index recorded a steep drop of 2.43 points to 90.56 in November, registering its weakest reading since the third national lockdown at the start of 2021. This suggests that overall economic output is contracting, with further sub-95 values expected until at least Q2 2023. BDO’s Optimism Index plunged to a record two-year low of 91.64 in November, as recessionary pressures and the expectation of further headwinds caused a drop in confidence. The services sector has seen the largest fall in optimism, having been particularly exposed to inflationary pressures and a decline in output, as supply chain disruption and soaring living costs impacted consumers and businesses alike. Entering the Christmas run-up, waning confidence among businesses reflects falls across the Employment and Output Indices, while there are still significant pressures on the Inflation Index. Kyla Bellingall, regional managing partner at BDO LLP in the Midlands, said: “This time last year, businesses faced an uphill battle after months of on-going COVID-19 restrictions and the pandemic still impacting economic activity. While the challenges may be different this year, the outlook remains concerning, as the latest figures suggest the economy is on the verge of contraction. “Rising costs, continued supply chain challenges and historically low spending power are just some of the challenges businesses and their customers face at a time of year when activity should be reaching its peak. “As another interest rate decision is due, and with a tough macroeconomic environment to battle, firms need the right support and reassurance from the Government to provide confidence ahead of an uncertain winter.”

Two Senior Associates joins Knights in Leicester

Michael Fisher
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Two Senior Associates joins Knights in Leicester
Knights’ Plot Sales team in Leicester has been bolstered with the arrival of two new Senior Associates. Diane Price and Rachael Hillam both joined legal and professional services business Knights this week, based in the firm’s office in Leicester city centre. Both have more than 30 years’ experience across commercial and property law – bolstering Knights’ team of specialist new build property specialists across the Midlands. Diane and Rachael specialise in work alongside new build property developers, PLCs, landowners, and public sector bodies – at a regional and national level – as well as negotiating agreements and deeds for new developments. Diane Price, Senior Associate at Knights, said:  “It is an honour to be part of such an amazing team who are clearly passionate about what they do. “There is a saying – do what you love and you’ll never have a problem with Mondays.” Rachael Hillam, Senior Associate at Knights, said:  “I am very proud to take on this new and exciting opportunity at Knights.” Sarah Perry, Client Services Director at Knights, said:  “It’s great news that Diane and Rachael have joined our growing team here in Leicester. “Their experience and vast knowledge will complement the skills of the rest of our talented Plot Sales team. We can’t wait for them to get started.” Knights is one of the fastest-growing legal and professional services businesses in the UK – ranked within the top 50 UK law firms by revenue, with specialists in all key areas of corporate and commercial law.

Major new multi-million regeneration scheme in motion at city’s former Abbey Lane bus depot

Michael Fisher
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Major new multi-million regeneration scheme in motion at city’s former Abbey Lane bus depot
Construction work has started on a multi-million development by Jessup Partnerships to transform Leicester’s iconic former bus depot on Abbey Lane into 117 homes for housing association Midland Heart. The site which has sat empty since 2007, will be the biggest residential scheme in the city and will be made up of a mix of 103 semi-detached and terraced houses, ranging from two, three, and four bedrooms, as well as 14 maisonettes. The Edwardian depot building itself opened in 1904 and construction work is to be completed by winter 2024. All the homes will be timber-framed as part of Jessup’s commitment to adopting sustainable business methods, while it continues to develop on its strong ESG credentials. Leicester-based RG+P Architects has designed the new homes, which will include 29 two-bedroom houses, 70 three-bedroom houses, and four four-bedroom houses as well as 12 one-bedroom maisonettes and two-bedroom maisonettes. Chris Timmins, Managing Director at Jessup, which opened an office at Meridian earlier this year said: “This is an iconic site and we understand its importance to the city. We are honoured to have the opportunity alongside our partners Midland Heart to transform this derelict site which has stood disused for so long into new homes for families and first-time home buyers in Leicester. Midland Heart Executive Director of Finance and Growth, Joe Reeves, said: “We are delighted to be working with Jessup on this project. “The Abbey Lane Bus Depot site has been derelict for some years and it’s great to be able to use our joint expertise to regenerate it into homes for affordable rent and shared ownership. Not only will this project transform a disused brownfield site but provide much needed affordable housing in the city.” The development is situated right across the road from Abbey Park which hosts sprawling 32-acre grounds, with a river and flower displays set on top of Augustinian monastery ruins. The site also has great transport routes being just two miles from Leicester City Centre and on bus route 54A. The site is also just a four-minute drive from Ross Walk Nature Reserve which is perfect for any canine companions and is just a five-minute drive to Cossington Recreation Ground which boasts a floodlit outdoor ball court, a 30-meter indoor swimming pool, sauna facilities, and a gym.  

Enrok expands with new West Midlands office

Tess Egginton
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0
Enrok expands with new West Midlands office
Enrok Construction has opened a new office in the West Midlands as part of its continued expansion plans. The company, which has seen strong growth in 2022, has opened a new office in Stafford so that it can meet increased client demand in the West Midlands and give its staff a central hub in which to work and collaborate. The office is in addition to its head office in Ednaston, Derbyshire. Enrok is currently delivering 51 residential units in the West Midlands, including its most recent contract win which will see the development of 19 new build affordable homes for Citizen on Wellington Road in Handsworth. The company is also delivering a new £4m medical centre in Hartshill, Nuneaton which is expected to open its doors in 2023. Jordan Mallisch, Managing Director of Enrok Construction, says: “In addition to our projects in London and Nottingham, we are seeing increased demand in the West Midlands and have therefore taken the decision to open our second office in Stafford. “In addition to giving Enrok a physical presence in the area, the new office is helping our growing West Midlands-based team to reduce commuting time and gives us a high-quality environment in which to work. “As our presence in the West Midlands continues to grow, we will be creating further employment opportunities in the area and have therefore taken on the additional office as part of our future expansion plans.” Enrok Construction is a privately owned construction company, operating across the UK from its headquarters in Derbyshire.

East Midlands unemployment rate drops but research suggests it could soon rise again

Tess Egginton
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0
East Midlands unemployment rate drops but research suggests it could soon rise again
After three months of climbing, the proportion of people out of work in the East Midlands has dropped from 3.5% to 3.3%. The region’s unemployment rate remained below the UK average of 3.7% for the period between August and October this year, according to the latest regional labour market data from the Office for National Statistics. After hitting a record low of 2.4% between April and June, the East Midlands rate had been steadily rising until this point. The region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – dropped slightly from 22.6% to 22.4% but this remains near record highs. East Midlands Chamber Chief Executive Scott Knowles said: “After a sharp upwards trajectory in the level of unemployment over recent months – although against a context of still being within historically low levels – it is reassuring to see a reversal of a worrying trend. “Despite this, our own research suggests unemployment levels may not remain so low in the future. Our final Quarterly Economic Survey of the year, which ran throughout November, found there was an 8% decline from quarter to quarter in the proportion of East Midlands businesses that added to their workforce in the previous three months, while there was a similar drop-off in recruitment prospects over the coming three months. “Clearly, the cost-of-doing-business crisis – led by rising costs in energy, interest rates, raw materials, people and fuel – has deeply affected business confidence to invest, and a lack of available skills in the labour market is now impacting significantly on firms’ ability to grow. “While the slight decrease in the proportion of those people who have opted out of the workforce for various reasons is welcomed, this remains at a very high level and has helped to create the tightest labour market in years. “This poses a major concern for the road ahead as our economy continues to stagnate but there are measures the Government can take to support businesses to develop a skills base fit for 21st century industry. “In our Business Manifesto for Growth launched in Parliament last month, we propose a series of reforms around how businesses invest in their people. “These include flexible incentives for business investment in staff training, expanding the use of the apprenticeship levy, bringing forward the introduction of the lifelong loan entitlement to support retraining and the retainment of an older workforce, and a comprehensive reform of the shortage occupation list to allow sectors facing urgent demand for skills to get what they need. “In other words, this is about ‘getting the basics right’ – removing the day-to-day barriers for businesses and ensuring the basic building blocks of economic success are in place.”

New estimator joins Blueprint Interiors

Tess Egginton
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0
New estimator joins Blueprint Interiors
Experienced estimator Andy Lillington has joined workplace consultants and office fit-out specialists Blueprint Interiors, which is based in Ashby de la Zouch, Leicestershire. Andy, who lives in Leicester, has a BSc. Hons Construction Management and over 20 year’s experience in the construction industry. Over the last 10 years he has focused on the interior design and build market, working in various roles including site manager, contracts manager and latterly as a pre-construction manager. His new role at Blueprint Interiors will involve working alongside the design team to prepare project specifications and quotations, liaising with sub-contractors, and preparing detailed project information to enable the smooth handover to the delivery team. Commenting on his appointment, Andy said: “I am really excited about the opportunity to work for a company that puts people and employee wellbeing first – not just internally, but clients and community as well. WorkLife Central is an inspiring head office with awesome collaborative environments which were a real attraction for me to join an award winning team.” Rachel Biddles, operations director, added: “Andy has wide ranging experience which will be a great addition to our team. He can relate to the needs of both colleagues and clients and able to quickly build strong relationships with clients and our supply chain partners.” In May 2022, Andy completed an Everest Base Camp Trek and also enjoys coaching American Football for Tamworth Phoenix Phutures Academy, cooking, baking and BBQ.

Hanson UK acquires East Mids recycling company

Tess Egginton
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0
Hanson UK acquires East Mids recycling company

Hanson UK is to acquire the Mick George Group, a construction and demolition waste (CDW) recycler in East Anglia and East Midlands, subject to relevant competition authority approval.

The Mick George Group, which has an annual revenue of around £220 million, specialises in bulk excavation and earthmoving services, demolition, environmentally sensitive waste removal and waste management services, as well as aggregates and concrete supply. The company operates four recycling facilities, eight waste transfer stations, 11 aggregates quarries and 10 ready-mixed concrete plants.

Hanson UK CEO Simon Willis said: “The acquisition of the Mick George Group is a strong fit for us and another significant step towards our target to offer circular alternatives for half of our concrete products by 2030.

“Promoting circularity and consequently recycling, reusing, and thereby reducing the use of primary raw materials, is crucial to achieving net zero. I warmly welcome the 1,000 Mick George employees to Hanson and look forward to further developing the business together.”

Nottingham councillors to consider proposals to reduce £32.2m budget gap for 2023/24

Tess Egginton
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0
Nottingham councillors to consider proposals to reduce £32.2m budget gap for 2023/24
City councillors are to meet next week to consider a set of new saving and income proposals which, if accepted, would deliver £29m towards balancing Nottingham City Council’s budget for 2023/24. The overall budget gap is £32.2m – with the current proposals leaving a further £3.2m of savings to be addressed by February 2023. The council had been on track towards setting a balanced budget next year but this was knocked off-course by the unforeseen rising inflation, fuel and energy costs that are impacting households and businesses across the country, along with other pressures including a higher-than-expected nationally-agreed pay increase for hardworking council staff which comes without any additional funding from Government. The budget is also being set in the context of a challenging employment market, increased demand for services, some post-Covid pandemic supply chain challenges continuing to impact upon the council’s finances, the need to secure financial sustainability and resilience and continued lack of certainty over future Government funding. Councils are required by law to set a balanced budget each year – but the Government is not due to announce until later this month how much they will provide councils towards their costs for the forthcoming financial year. The amount of Revenue Support Grant Nottingham City Council receives from Government has fallen from £126.8m a decade ago to £26.7m last year. This is the equivalent of £694 less for every household in Nottingham. The other main source of income is Council Tax, which the Chancellor announced in his Autumn Statement can now be increased by up to 5%, including a 2% precept towards adult social care costs. The Government announcements on adult social care funding are based on councils funding most of that by increasing Council Tax through the adult social care precept. Eighty percent of Nottingham’s homes are in the two lowest Council Tax bands – almost twice the national average – reducing the council’s ability to raise funds this way. Faced with this and increasing pressures on services – particularly adult and children’s social care and homelessness support – the City Council has based its budget proposals for consultation on raising Council Tax by the full 5% permitted under Government proposals. It has also set out a range of savings proposals, involving a workforce reduction of 110 full-time equivalent posts. These proposals will be discussed at the council’s Executive Board meeting next Tuesday (December 20). These include:
  • Changes to adult social care, including more independent living support instead of residential or nursing care
  • Reviewing fees and charges for parking, cremation and burials, leisure centres and cafes
  • Reviewing grants to community groups, community centres and cultural organisations
  • Withdrawing the Shopmobility service at the Victoria Centre
  • Stopping collection of household bins put out on the wrong day
  • Short-term mothballing of two floors of Loxley House pending the review of options for offices and depots
  • Increasing tariffs for EnviroEnergy customers.
Some of the proposals are part of or complement the transformation programme which is underway to radically change the way the council operates. The City Council’s Deputy Leader and Portfolio Holder for Finance, Cllr Adele Williams, said: “Most councils up and down the country are facing significant financial difficulties, and once again we are faced with some really difficult decisions about how we balance our budget next year. We have also looked in this budget process for ways in which we can become more efficient and effective with each pound we spend for Nottingham. “Demand continues to grow for vital services such as adult social care, which now makes up over a third of the council’s entire budget. Proposals we are considering include making efficiencies by providing these services differently, along with savings from a range of other council services. “Since 2010 we have had to make over £300m of savings to our budgets. With vastly diminished Government grants, we have got to seriously consider the 5% Council Tax increase allowed by Government, even though this wouldn’t raise enough to properly meet local needs, and it would sadly place a further burden on local people who we know are already struggling with the cost-of-living crisis. “For the vast majority of city residents, this would equate to between £1.25 and £1.46 more per week. When Nottingham households have lost out on average almost £700 of national funding since 2010, this rise is something we have been forced to consider. “In this budget we have protected our ability to keep Nottingham communities safe with numbers of much-needed community protection officers not seen in other core cities. We have made sure that we will still be able to offer free events for families and a network of outstanding parks that will enable hard pressed Nottingham families to enjoy what they might otherwise struggle to afford to do.”

Major new housing and commercial developments approved for Mastin Moor and Markham Vale

Tess Egginton
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0
Major new housing and commercial developments approved for Mastin Moor and Markham Vale
Plans for 650 new homes and community facilities at Mastin Moor and a major extension to the existing business park at Markham Vale have both been approved (Monday 12 December) by Chesterfield Borough Council. Both projects are being undertaken by the Devonshire Property Group, part of the Devonshire Group. Work on Mastin Moor is due to start in summer 2023 and at Markham Vale later in the same year. Andrew Byrne, Devonshire Property Group, said: “We are delighted that the planning committee has approved these exciting projects. They will bring hundreds of much needed new jobs and homes to the area and, just as importantly, throughout their development we are taking a considered and sensitive approach to improving environmental standards and to the provision of training and skills. “Mastin Moor will gain 650 new homes, including affordable homes, all built to the latest environmental standards. As well as new community facilities such as a residential care home, shops, and health and leisure amenities, 20 hectares (c50 acres) of new parkland will be created. “As part of this development we’re particularly proud to provide a home for the Construction Skills Hub, a council-sponsored, Staveley Town Deal project that will deliver a range of vocational courses designed to upskill the workforce in both current construction techniques and those required to create the sustainable homes and workplaces of the future. “The extension to the business park at Markham Vale is expected to create up to 800 new jobs for local people at what is a very successful development already supporting 2700 jobs in a variety of sectors. We’ve put in place an extensive landscaping plan, which includes protecting and improving the river corridor, and extensive tree and hedgerow planting as well as a large area of grassland. “We’re also working with the Derbyshire Wildlife Trust to improve the wildlife habitats on a nearby site that will result in an overall 10% net gain in biodiversity. This is a high-quality extension to a highly successful employment location, with the aim of making a real contribution to the strength of the local economy.” Mastin Moor The housing and community development at Mastin Moor will be built on approximately 46 hectares (c113 acres) of land south of Worksop Road. It will deliver 650 new homes, a quarter of which will be built to higher adaptable and accessible standards. The project also includes a new elderly care centre and specialist accommodation, health centre, convenience shops and retail. All of the homes will have access to electric car charging units and will be electrically-heated making them some of the most environmentally friendly new homes in the district. The development will sit amongst 20 hectares of green, open space for the community, with children’s play areas, informal recreation spaces and naturalistic tree planting (approx 8500) to increase biodiversity. The project is expected to take 10 years to complete and will create 150 direct construction jobs as well as 150 supply chain and other roles. The Construction Skills hub, a council-sponsored, Staveley Town Deal project, will be in place for the duration of the project, providing a range of vocational courses designed to upskill the workforce in both current construction techniques and those required to create the sustainable homes for the future. Markham Vale Devonshire Property Group will continue its work with the commercial developer HBD at Markham Vale and hopes to create around 800 new jobs for local people, with a scheme that pays strong attention to its natural surroundings. The project includes an extensive landscaping plan that makes the most of the site’s existing features, whilst protecting and improving the river corridor. Significant planting will include c. 5,700 new trees (including 2.15ha of new woodland planting), 3.7ha of new grassland habitat and two kilometres of new native hedgerow to screen the development and create areas of new habitat. This creates a 10% improvement of biodiversity net gain over the existing ecology value, in excess of current policy. Markham Vale was established as a joint venture between HBD and Derbyshire County Council back in 2006 and now hosts more than 2,700 jobs across a wide range of sectors, including advanced manufacturing and logistics. Markham Vale is home to a range of business uses, including Daher Aerospace which is exporting monorail parts to Cairo, Grangers International which manufactures waterproof outdoor products and shoe care products, and Sterigenics, which makes sterile healthcare products. The success of the existing business park has led to the site running out of space to accommodate large space users and without this new development, Markham Vale will have to turn away investment from the growing industrial and logistics sectors, who require large units at locations with good access to the motorway network. The site itself comprises two non-protected agricultural fields, bounded by the M1 to the south and keeping a large separation distance between the business park and the village of Woodthorpe. The final design of the buildings will be in accordance with the established design code for Markham Vale, which fixes a limited palette of colours to minimise visual impact. All vehicular traffic will use the existing highway network to allow easy access to the motorway.

Leicester College secures over £5m for three new higher education projects

Tess Egginton
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0
Leicester College secures over £5m for three new higher education projects
Leicester College has secured Office for Students funding worth £5,395,187 from 2022-25 to deliver three major higher education capital projects across its main campuses in Leicester. All three projects will support transition and progression for the College’s current and future T Level cohorts and will collectively increase higher education learners from the current average of 375 per year to over 700 by September 2024. The College will add £500,000 of match funding to complete these significant projects. Project 1: Advanced Engineering and Aerospace Build and equip a new aeronautical/advanced engineering training facility to enable the delivery of Level 4 and 5 higher education technical and apprenticeship programmes. This will expand engineering at the Abbey Park Campus through a new 400+sq metre, light aircraft hosting, glass-fronted technical lab adjacent to existing engineering facilities. The site will house industry-standard aeronautical equipment in a learning conducive environment and inspire the next generation of aviation and engineering professionals. Project 2: APC HE Hub Establish an exclusive ‘HE Hub’ for students to use as a dual social/study space and create a greater sense of a higher education undergraduate culture at the College’s Abbey Park Campus. Two classrooms will be merged, refurbished, and fitted with conferencing and meeting technology. The Hub will enable exclusive access for the existing 110 L4+ higher education APC students and will accommodate the College’s planned growth in HE. Project 3: ICT/HE Technical Equipment upgrades Upgrade a range of HE curriculum equipment across multiple campuses. This includes new computers, smart displays, drone technology and VR to highlight the inner workings and theories. At least four rooms will be upgraded to further enhance delivery and student experience for L4+ cohorts. This includes a new healthcare consultation space, a computer suite and lecture rooms. Verity Hancock, principal of Leicester College, said: “We are delighted that our bid to the Office for Students was successful. This will enable us to make further significant investments in our facilities to strengthen our provision of first-class higher education for the next generation of technical experts and provide valuable progression opportunities for our current T Level students.”
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