Small firms fear this Christmas will be their last if energy support ends post-March
The Federation of Small Businesses (FSB) is warning that discontinuing government energy support at the end of March would force tens of thousands of small firms to close or downsize.
This comes ahead of the publication of the Energy Bill Relief Scheme review, which is due imminently – when the government will decide whether current energy support for small firms will continue after the six-month coverage ends on April 1, 2023.
Latest FSB research shows that one in four small firms (24%) plan to close, downsize or restructure if energy relief comes to a sharp end in April next year.This rises to 42% of firms in the accommodation and food sector, followed by the wholesale and retail (34%), and manufacturing sectors (29%).
A third (30%) of small firms expect to cancel or scale down planned investment if the government ends support on energy, while more than four in ten (44%) consider raising prices to cope with soaring bills, although it will be impossible for them to pass on full costs to consumers tightening their belts amid the cost of living rises.
FSB has proposed through the Government’s review that there should be significant support for small businesses for at least the next 6-month period, based on a fixed wholesale price. There should however be further controls added on energy suppliers to prevent them cutting vulnerable small businesses off who fall into arrears, hiking their standing charges and enabling them to offer Time To Pay in the same manner as HMRC with tax debts.
Continuing to apply support directly to bills, as in the current scheme, will ensure that there is no deadweight cost, and will minimise the chances of small businesses who should be entitled to support missing out. The current delivery mechanism is therefore preferable to local authority-based grants, or loans that small businesses who are steeped in debt since COVID, with low cash reserves, cannot afford to repay.
FSB development manager Natalie Gasson-McKinley said: “After two long years of Covid, this Christmas was supposed to the one bringing back that small business spirit – but many small firms are now worried that they might have to shut their doors for good in a few months, if not weeks.
“More than 16 million jobs are in small firms. Our members are telling us their businesses as well as their staff are dependent on government support in this energy price crisis.
“We’d like to see the upcoming publication of the review taking business size into account, acknowledging the fact that small firms have typically lower margins and are least able to deal with skyrocketing energy costs – a purely sector-based decision will lead to deadweight and unfairness.
“At the same time, Government must intervene when energy suppliers find routes to inflate prices, raise standing charges, and ask for disproportionate upfront payments – these heavy-handed practices defeat the whole purpose of the multi-billion-pound relief scheme and will drive more small firms to go under.”
Insurance broker boosts business development and account management teams
Leicestershire-based insurance brokers Blythin & Brown has boosted its business development and account management teams following the appointment of Stephanie Issit and Gemma Bradshaw.
Stephanie, who lives in Rothley, joins as a business development manager having spent many years in the construction industry in similar roles for Hilti, Uptonsteel and Gripple UK. Her new role is to support management to deliver their growth strategy by generating, developing and maintaining new business.
Blythin and Brown celebrated its 50th company anniversary in 2021 following a management buy-out by current owners Richard Picton and Jonathan Blythin.
Stephanie said: “I like the idea of working for a local business and supporting growth in my community. Moving into the insurance industry is also a new challenge and I’m looking forward to hanging up my site boots and hard hat as the colder winter months approach!”
Stephanie, who is a keen cook, can also dance, stilt walk and breath fire! She has raised money for several charities by jumping out of an airplane for Macmillan, climbing Scafell Pike for the Warner Brothers Wish To Walk Foundation, and completed a Tough Mudder for Diabetes UK.The second new recruit is Gemma Bradshaw from Burton on the Wolds who joins as a trainee account executive. She has worked in the insurance industry since 1999 in underwriting and broking roles for Independent, Avon (now NIG), and Towergate Insurance.
In her new role she will be liaising with existing clients, dealing with renewals, new business and claims. Her past expertise includes many sectors and she has particular knowledge of Motor Trade, Fleet, Property Owners, Contractors, Warehousing, Manufacturing, Retail, Cyber and Computer insurance products.
Gemma said: “During my career as an underwriter I have been able to build a strong relationship with Blythin and Brown and the opportunity to join their team came at a time when I was looking for the next stage in my career. I am looking to forward to supporting the account managers as well as the opportunity to develop my own client portfolio by utilising the great connections I already have in the industry.”
Gemma enjoys the countryside and any type of sporting activity.
Alstom secures further Irish order
Alstom has secured a further order worth 160 million euros to supply trains to Irish Rail.
It will see the firm, which has its UK train manufacturing site in Derby, provide an extra 18 X’trapolis battery-electric trains to the rail operator.
The further order is part of a 10-year framework agreement signed last year, which allows for up to 750 electric and battery-electric rail cars to be procured for the DART+ network, which is planned to open in 2025.
In total, Irish Rail has now ordered 37 five-car X’trapolis trains from Alstom, which will deliver more capacity and decarbonisation benefits once they enter service from 2025.
Under the framework agreement, Alstom will also provide a range of services solutions, including technical support and spares.
Nick Crossfield, Managing Director of Alstom UK and Ireland, said: “This further order of X’trapolis trains signals Irish Rail’s intent to move quickly in greening the Greater Dublin commuter network, Ireland’s most populated commuter belt as a first step in that national transformation.
“As the world’s leading innovator and supplier of green mobility solutions, Alstom is here for the long-term to support Ireland in delivering transformative change to its citizens through sustainable rail travel.”
Jim Meade, Chief Executive of Irish Rail, said: “We’re excited to continue to work with Alstom to deliver expanded services in the Greater Dublin Area, enhanced facilities for our customers, and a cleaner environment for our country.”
Coventry City signs new agreement with Frasers Group to stay at stadium
Coventry City Football Club has signed a new licence agreement with Shirebrook-based Frasers Group in order for the Club to continue to play home games at the Coventry Building Society Arena.
It comes after the Club was served an eviction notice following Frasers Group’s acquisition of the stadium from administrators in November, which the Club said came with the presentation of a new agreement with new commercial terms, without any dialogue or negotiations, that were less favourable in comparison to the Club’s prior long-term licence.
At the time Coventry City said: “We were surprised to learn of this intention by Frasers Group, given that discussions with Coventry City prior to the completion of their purchase of the Arena led us to understand the existing terms would continue unchanged with Frasers Group as the new owners of the Arena.”
Now, however, a licence has been signed running until May 2023.
A new statement from Coventry City says: “This represents a positive step forward for the Club and its fans and we now look forward to establishing a constructive working relationship with Frasers Group.
“The licence that we have today signed will run until May 2023 and is subject to EFL approval, which we expect to be granted on Tuesday.
“Coventry City will now commence amicable talks with Frasers Group with a view to agreeing a longer-term licence for the Club to play at the Arena.”
Bounty – the taste of PRadise: By Greg Simpson, founder of Press for Attention PR
Greg Simpson, founder of Press for Attention PR, recaps some PR magic.
Admit it, we’ve all been there.
The last knockings of the chocolate box over Christmas (anytime in December in my house) are being prodded listlessly as you attempt to “force” down just one more sweet treat.
The Purple one has vanished, the Green Triangle has found its inner Bermuda and disappeared.
Then lo, underneath all the detritus that litters the bottom of the tin, a few stragglers strive to break the surface, their little shiny wrappers glinting in the sunlight as they make a break for it.
It feels tropical, you can almost smell the…oh no…the Coconut! However, what’s this? It appears that for many* hope is kindled…they’ve only gone and BANNED the Bounty one!
This SHOCK omission made headlines for days with global media outlets featuring the story with huge enthusiasm and fun, knowing full well that they were giving invaluable column inches, clicks and airtime to a superbrand with enough marketing budgets to PAY for this.
Why? Simples…engagement.
Let’s recap what happened here.
The maker of Celebrations chocolates let it be known that they would be removing Bounty bars from SOME tubs after finding 40% of people HATE the coconut-flavoured treat.
They confirmed that they will supply a limited run of “No Bounty” tubs which would be available at 40 Tesco stores in the run-up to Christmas.
This isn’t the first time these guys have leveraged the Love/Hate angle either. Last year they announced a Bounty Return Scheme allowing a swap with Maltesers. Genius!
What is even cleverer is that they have caused more outrage by limiting the availability.
People are now annoyed about not being able to access the Bounty-free tins if they don’t live in the chosen areas. The scarcity message is so clever. Fans will flock and even non-fans will have a little look when comparing which choc tubs to buy.
So they are now moaning on Twitter and fuelling the PR fire beautifully.
“Wispa” it…but my money is on the Bounty-free tins being far more widely available due to consumer demand pretty sharpish (EC column deadlines dictate that I cannot say for sure).
That will give them ANOTHER great PR opportunity. Hats off to the team behind this!
Even if they don’t roll this out, Bounty WILL be available to pretty much everyone across the UK (whether they like it or not!).
Meanwhile, Piers Morgan (no stranger to me after I appeared on the same bill as him a year or so ago) labelled it as a “diabolical decision” to his 8 million followers, whilst Lorraine Kelly expressed her indignation to her huge national TV following.
PR GOLD! The secret sauce here is being talked about.
That is basically what PR is. If you are planning something like this, you have to take yourself OUT of the conversation as a marketer and metaphorically stand on the edge of the group.
Ask yourself; “Will this get our audience talking about us?” – in a good way that is.
That is what journalists think all the time too. “Will this story inform, entertain, stir, move, annoy, enlighten” our readers/viewers?
In basic terms, will this raise eyebrows and sell copies and clicks?
Christmas is coming and only time will tell whether there will be a mutiny on the Bounty. Either way, PR celebrations are in order!
*This is the key, not EVERYONE has to agree. In fact, ideally, this is what you want. You want a fight. Or as the media will term it, ‘engagement’.
A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press for Attention PR in 2008.
He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective.
See this article in the December edition of East Midlands Business Link Magazine here.
2023 Business Predictions: Parm Bhangal of Bhangals Construction Consultants
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 Parm Bhangal of Bhangals Construction Consultants.
With the interest rates continuing to increase, I expect the construction market will start to slow down in 2023 as people are forced to tighten their belts.
It’s a tricky landscape to navigate currently, especially on top of what has been a testing time for the sector with all the previous challenges of Brexit and the pandemic. We have already been hit with a crippling skills shortage and long, unavoidable materials delays.
The coming year will be about managing customer expectations, planning ahead and staying up to date with industry trends.
Modern methods of construction and artificial intelligence seem to be slowly infiltrating the sector, and no doubt there is more to come in the coming months.
Although historically, the construction industry has relied upon traditional skilled tradesmen, the workforce is now making room for the introduction of robotics, automation and computerised design to aid development and efficiency.
I believe 2023 will see large developers using more robotic technology and prefabricated off-site building, especially for new house builds with repetitive structures, that can be much more systemised.
But this shouldn’t concern those who provide bespoke, tailored, skilled services, which very much still have their own place.
What is vital for the coming year is strategic planning. Construction firms should be looking 6 months, 12 months and 3 years ahead to forecast how their business might evolve and focus on the training and investment that is needed, ensuring you adapt to stay strong in the market.
“Challenging year” sees pre-tax loss and revenue dip for X-ray business
2022 has been a “challenging year” for Image Scan, according to its chairman, Tim Jackson, balancing lower booking levels with cost increases whilst maintaining research and development investment to lay the foundations for a stronger 2023.
The X-ray screening systems manufacturer has today announced preliminary results for the year ended 30 September 2022, in which the firm has slipped to a pre-tax loss and revenues have dropped.
The Leicestershire-based group generated revenues of £2m, down 31% from £2.9m in the year prior, and produced a loss before tax of £0.35m, decreasing from a profit of £0.19m.
It is said this performance was a result of the slow recovery from the COVID-19 pandemic in certain key markets and Government procurement cycles, coupled with some delays with component sourcing.
Tim Jackson said: “On behalf of the Board and management of Image Scan, I would like to thank all of our colleagues and customers for their contribution to our business during 2022, without whom we would not be in the position we are today.
“The trading performance was below expectations as government procurement continued to be held back following the pandemic challenges that remain in some of our key markets. Our balance sheet provides us with a strong operational and financial platform from which to deliver growth.
“We have made an encouraging start to 2023 and are confident in meeting our expectations for the full year. Whilst there are still macroeconomic uncertainties and challenges and the domestic economic outlook looks weak, the Board of Directors is confident in the group’s prospects in the medium to long term as we continue to seek to capitalise on our extended product range and global sales channels.”
Bill Mawer, the former chairman and CEO, stepped down as CEO in January 2022 and retired from the Board in June 2022.
Image Scan’s Chief Executive, Vince Deery, said: “Following the organisational changes completed during the year, I would like to thank Bill Mawer for his leadership and contribution over the last eight years.
“Furthermore, I would also like to express my appreciation to the new chairman Tim Jackson and the entire Board for their support in this transitional period. Both myself and the Board take this opportunity to commend the staff for their valued contribution during a challenging year. Our goal is to build upon Bill’s legacy while focusing on the expansion of our higher margin portable product line which we believe is our route to returning to profit in 2023.”
Support for more Derbyshire businesses to reduce energy use and cut carbon
More Derbyshire businesses and organisations will be eligible for help to reduce their energy costs and cut carbon emissions as part of Derbyshire County Council’s Green Entrepreneurs Fund programme.
More than £715,000 has already been awarded to businesses and organisations through the grants programme which is being run in collaboration with the University of Derby as part of the council’s drive to help the county reach net zero by 2050 or sooner.
But now changes made to the eligibility criteria for the programme’s Small Grants Fund mean even more businesses and organisations will be able to access funding to help implement green energy plans to reduce their energy costs.
Small grants from £6,000 up to a maximum of £20,000 can be applied for towards projects such as, but not limited to:
- installing solar panels
- replacing old heating systems with air/ground source heat pumps
- retrofitting old boilers to make them more energy efficient
- fitting electric vehicle charging points at their premises
- installing energy efficient LED lighting
- improving the insulation in their premises to help prevent heat escaping
- funding to replace equipment and machinery with energy-saving alternatives
- battery storage for solar generated energy.
New Northampton logistics hub creating 7,500 jobs reaches key milestones
The development of a new state-of-the-art multi-modal logistics hub in the Midlands, which is expected to create around 7,500 new jobs, has achieved a number of key milestones this year and remains on schedule.
Main contractor Winvic Construction Ltd commenced construction work at SEGRO Logistics Park Northampton, a five million square feet modern, warehousing and logistics hub alongside a dedicated 35-acre Strategic Rail Freight Interchange, in early 2020.
This year, work has completed on the intermodal and HGV slabs, along with the terminal buildings at the 450-acre site, which is located adjacent to Junction 15 on the M1, four miles outside Northampton. The final slab on the rail terminal has been poured, meaning the programme for the rail terminal is on schedule.
The strategic rail freight interchange will connect to the West Coast Mainline via the Northampton loop line and will encourage the increase of sustainable movement of freight by rail. On-site rail works will continue through the winter period and Network Rail will be working on-site to connect the Northampton loop to the mainline. The rail terminal is planned to be fully operational by Easter 2024.
As part of SEGRO’s commitment to investing over £200 million into local infrastructure, improvement works have now been completed to the M1 Junction 15 upgrade, the A508 and the A45, which have improved access and traffic flow. The overall infrastructure scheme, being delivered in partnership with National Highways, Network Rail and local authorities, is anticipated to be fully complete at the beginning of 2024.
The development comprises seven large warehouse units, ranging in size from 530,000 square feet to 1.2 million square feet. Over 50% of the development plateaus have been prepared this year and the remaining plateaus will be available by the end of 2023.
The site will include over 80 acres of parkland and amenity grassland, 18km of footpaths, 20km of hedgerows and the planting of 60,000 new trees.
Andrew Pilsworth, Managing Director, National Logistics at SEGRO, said: “Developments such as SEGRO Logistics Park Northampton represent critical pieces of national infrastructure in the heart of the UK, playing an invaluable role in storing and transporting goods and services all over the country in an efficient and sustainable way.
“We are making excellent progress and are pleased to be able to continue development at pace despite the current economic uncertainty.”
Rob Cook, head of Civils and Infrastructure at Winvic Construction, said: “This multi-modal logistics hub is crucial for meeting the demands of distribution in a sustainable, future-proofed way. Our one-team approach to the complex programming for earthworks, rail, a covered tunnel structure and significant highways reconfiguration works has enabled us to meet all the key milestones and we look forward to continuing our partnership with SEGRO to a successful handover and beyond.”
SEGRO has been working alongside local council and community partners to deliver an employment and skills programme that provides training and employment opportunities for members of the local community. This forms part of SEGRO’s newly launched Community Investment Plan for the Northampton area.
Last month, a community environmental project completed at The Racehorse Park, which involved reinvigorating outdoor community space and enhancing biodiversity and wellbeing.
People with bright ideas invited to create their own businesses with expert support and £75k prize fund
People with ideas for change are being invited to turn them into exciting new businesses, with the help of university experts.
Budding entrepreneurs can submit their ideas to the Ingenuity Programme, a business creation competition, where they will be supported to develop and progress their initial idea with the help of experts from the UK’s top universities, charities and businesses. This year’s prize fund available to winners totals £75,000.
The Ingenuity Programme, run by Nottingham University Business School, supports start-ups to directly address the UK’s social and environmental challenges to drive change in local communities. By entering the Programme, entrepreneurs will receive one-on-one support from specialist mentors to develop their idea into a business plan and be in with a chance of receiving significant investment and support.
Entrepreneurs will also have access to online learning materials and tutorials from industry and academic experts. The programme brings together a network of 30 partner universities, charities, and businesses across the UK to support ideas that promote sustainable ways of living.
The 2023 programme has been designed alongside Nuffield Health, the programme’s key supporter, with the focus aligned to Nuffield Health’s purpose to build a healthier nation. The programme is looking for ideas that focus on building stronger communities, improve health and address health inequalities, and promote environmental sustainability.
“At Ingenuity, we are committed to making the UK’s start-up landscape more inclusive, diverse and accessible. You don’t need any prior business experience to take part, and we will provide you with all the support you need to turn your ideas into a reality,” said Elizabeth Smith, director of the Ingenuity Programme at the Haydn Green Institute at Nottingham University Business School.
Elizabeth continued: “Being able to collaborate and design the programme with charities like Nuffield Health has allowed us to support more people than ever before. We are proud to have delivered more than £750,000 of social benefit through last year’s programme, and look forward to working with the next generation of changemakers this year to tackle issues such as the cost of living crisis, climate change and widening health inequalities.”
“We are really excited for the launch of Ingenuity 2023. The themes this year continue to align closely with our purpose to build a healthier nation – not only through health and wellbeing, but by shining a light on protecting our environment and sustainable living,” said Brendan Street, head of Charity at Nuffield Health.
Brendan continued: “We are also proud to have the opportunity to work with, and support, people from under-served groups to help bring their ideas to life and make meaningful impact in the communities in which they live. It’s inspiring to see the impact the winners from last year have already made within their communities, and I look forward to seeing this year’s innovative programmes building more sustainable and healthier communities.”
Keasha Kellam was awarded the 2022 Impact Entrepreneur of the Year title. Powered by her own lived experience, Keasha Kellam founded ‘Honour Thy Woman’, a community support group that helps domestic abuse survivors in the local area.
After recognising a gap in the support available to domestic abuse survivors, she formed the idea and began assembling a group of volunteers. Keasha later joined the Ingenuity Programme and was supported to turn the volunteer-led group into a financially sustainable social enterprise with a business model and a five-year business plan.
During the programme, Keasha was also able to further develop another idea for providing safe accommodation for women and incorporate this into her business plan. Keasha benefited from the help of a host of academic and business experts, who provided advice on Intellectual Property, developing a Unique Selling Point for the business, pricing structure, and pitching to investors.
The funding Keasha received after winning the national prize has enabled her to employ a Research and Developer to build a programme so that the business can work with international partners.
Keasha Kellam said: “I’m a domestic abuse survivor, but my whole team has experienced domestic abuse so it’s by the community, for the community.
“The Programme did even more for me than I imagined and I was delighted to win the national award. Since winning, so many more opportunities have opened up to me as a result. The authenticity of winning an award has helped me to network with potential collaborators and investors, and I have been able to successfully attract more funding.”
The programme’s learning platform, accessible to all entrants, includes a step-by-step process to help entrepreneurs to think through the finance, marketing, impact measurement, copyright, and organisational development of their solution.
By the end of the programme, each start-up will submit their finished business plans to be assessed by industry experts. The most scalable and impactful ideas from each region will be announced as Regional Finalists. From there, winners will be chosen.
The Ingenuity Programme supports social mobility by providing seed grants and mentorship to innovators looking to start new enterprises, aiming to engage innovators from under-represented and underserved groups across the UK.
To date, Ingenuity has supported more than 3,000 innovators and delivered over £1million in seed funding, including to The Anxiety Map Programme, which created a network of venues trained in anxiety accessibility for people living with anxiety or mental ill health. 