University of Nottingham collaborates on new research centre to accelerate the UK’s electrified future
GKN Automotive, a global leader in drive systems, has announced its new Advanced Research Centre – created to develop next-generation eDrive systems powering future electrified vehicles and increase engineering capability in the UK to meet Net Zero commitment.
GKN Automotive is partnering with the University of Nottingham and Newcastle University to push the boundaries of eDrive technology and accelerate modular innovation. The collaboration will focus on the development of ultra-high efficiency EDUs for future electric vehicles.
The Advanced Research Centre is being supported through £3.5m in funding from the Melrose Skills Fund, to increase the automotive electrification knowledge capability and strengthen research and development in the UK.
The project will be virtually shared between the engineering departments at the University of Nottingham and Newcastle University, with research teams at each university operating collaboratively with engineers at the GKN Automotive Innovation Centre.
Gordon Day, Managing Director, GKN Automotive Innovation Centre, said: “GKN Automotive is a pioneer of advanced eDrive development and this new research partnership will play a key role in strengthening the innovation of electrification technologies for future advanced propulsion systems.
“We are extremely proud that this research will be in partnership with Newcastle University and the University of Nottingham, two renowned and respected global leaders in automotive electrification engineering research. Both institutions will also play a leading role in helping us develop a supply of high-calibre engineering talent, which is essential to enable us to put the UK at the forefront of global automotive industry innovation.”
This collaborative research not only spearheads the development of disruptive technology innovations in eDrive but supports the UK’s technology roadmap set out by the Advanced Propulsion Centre (APC). It also further strengthens GKN Automotive’s collaborative links within the UK Innovation Network.
Both partner universities are part of the Advanced Propulsion Centre’s ‘spoke’ community. The initiative brings together specialist academic, technological, and commercial expertise from across the UK to share best practice for the development of low emission propulsion technologies.
The University of Nottingham is the APC’s spoke for power electronics, and home to the Driving the Electric Revolution (DER) Industrialisation Centre – Midlands; while Newcastle University is the spoke for electric motors, and leads the national network of four DER Industrialisation Centres including the Driving the Electric Revolution Industrialisation Centre – North East.
The Centres are backed by £33m UK Government funding (UK Research and Innovation (UKRI)), providing open access facilities with state-of-the-art equipment. They bring together the UK’s technology and manufacturing expertise in electrification research and development. The network will help propel UK manufacturing to the forefront of global efforts to tackle climate change and ensure the UK can reach net zero emissions by 2050.
The Melrose Skills Fund is a £10m fund, allocated over five years across GKN Aerospace and GKN Automotive, developing and promoting engineering skills in the UK. The first phase of investment saw the launch of the Skills Development Programme at the Abingdon Innovation Centre, supporting the development of engineering skills through STEM engagement, apprenticeships, training opportunities and internal staff upskilling. This next phase now focuses on Research.
CEO to step down at Image Scan as second profitable year delivered
Image Scan, the Leicestershire-based supplier of X-ray screening systems to the security and industrial inspection markets, has reported a second profitable year, despite the continuing impact of COVID-19.
In preliminary results for the year ended 30 September 2021 the company posted a pre-tax trading profit of £189k, up from £112k in the year prior.
Sales however dipped from £3.5m to £2.9m, following a “subdued first half.”
Meanwhile Image Scan’s chairman has announced a role change as part of the firm’s succession plan.
Bill Mawer, chairman and Chief Executive of Image Scan, said: “It is gratifying to be able to report that a second profitable year has been delivered, despite the continuing impact of the COVID-19 pandemic on our customers, our supply chains and our staff.
“Important ‘firsts’ in the year included: first sales of the AXIS-CXi cabinet X-ray machine, first portable X-ray sales in North America and key new customers in the UK. The product development programme continues to move forward, and I look forward to launching more new products in FY22.
“As part of the Board’s succession plan, I will relinquish the CEO role in January and we will appoint Vincent Deery, currently Sales Director, as Interim CEO. Vince and I have worked closely on the development of the organic growth plan for the business, and I have every confidence in his ability to play a larger part in implementing that plan.
“I will continue to drive strategy and product development, allowing Vince to focus on sales and operations. All the board remain optimistic for the future of Image Scan.”
Metalfacture named Leicestershire Business of the Year
Metalfacture, a manufacturer that has transformed its business from being a solely domestic trader to an exporting success story, has been crowned the Leicestershire Business of the Year by East Midlands Chamber.
The Wigston-based company – which now sends deliveries to more than 54 countries worldwide, with exports accounting for about half of sales – also won the Excellence in International Trade category and Outstanding Growth Award at the Leicestershire Business Awards, which was held on Friday (3 December) in conjunction with the Chamber’s annual Christmas Lunch.
Founder Ben Jones-Fenleigh started the company as a sheet metal work sub-contractor but diversified over the past few years to make its own products. It has used its wealth of manufacturing knowledge to create innovative displays used in shops that increase brand awareness and impulse sales, with a specialism in beverages, small convenience stores and petrol forecourts. Customers include Heineken, Molston Coors, Asda and Sainsbury’s.
The Leicestershire Business Awards, held in partnership with headline sponsor Mazars, recognised winners across 13 categories, ranging from Business Improvement Through Technology and Environmental Impact Award within an organisation to individual honours for Entrepreneur of the Year and Apprentice of the Year. There were new categories this year for Collaboration Project of the Year and Excellence in Innovation.
Finalists, chosen by a judging panel of the Chamber’s senior leadership and board of directors, as well as sponsors, discovered their fate during a gala dinner attended by hundreds of people at Leicester Tigers’ Mattioli Woods Welford Road stadium – marking a return for face-to-face celebrations after being held virtually last year.
Scott Knowles, Chief Executive of East Midlands Chamber, said: “There has been so much to celebrate within our business community despite a challenging 18 months and these awards have showcased some of the incredible companies that call our region home.
“As the economic recovery continues, and new opportunities present themselves in a new era of global trade and sustainable business, these are just the kinds of organisations we should be highlighting when we’re shouting about everything the East Midlands has to offer. We know it’s a great place to do business and these are living proof.
“We received so many high-calibre applications, which demonstrated how the pandemic hasn’t been a period in which we have just stood still. Instead, the time afforded for reflection has led to many companies seeking out new opportunities, innovating and driving themselves forward.
“While last year offered us a different kind of experience in a virtual awards ceremony, it was great to be back holding such a landmark event for the business calendar in person once more. Once again, we are so thankful to our sponsors for making this event so successful.”
The Leicestershire Business Awards – one of three awards hosted by the Chamber, along with Derbyshire and Nottinghamshire – were hosted by comedian Dom Woodward.
A raffle and auction was held to raise more than £3,000 for East Midlands Chamber president Eileen Richards MBE’s three chosen charities this year – Chesterfield Samaritans, Help the Homeless Leicester and Nottinghamshire Hospice.
Eileen, who owns Leicester-based ER Recruitment, gave a speech in which she explained how much the city where she has always lived means to her, as well as its strong entrepreneurial community – with four and a half businesses for every 100 residents, and 85% of those companies having fewer than nine employees.
She also referenced the economic opportunities on the horizon, with Leicestershire securing £54m from the Government’s Levelling Up Fund to back projects including Pioneer Park, Pilot House and the remodelling of the city’s railway station.
Commenting on the awards, she added: “During my year as president, I’ve been privileged to witness some of the amazing success stories that don’t always receive the wider recognition they ought to, so I’m thrilled to see some of these come to the fore at East Midlands Chamber’s Business Awards.
“The Leicestershire Business Awards has shone the spotlight on some well-deserving winners from my hometown’s thriving entrepreneurial community, but I’d also like to congratulate the finalists for their outstanding entries too as we had some really strong competition across many categories this year.
“Metalfacture is a very worthy winner of the Leicestershire Business of the Year and shows just what can be achieved by having the boldness of ambition to diversify into new products and markets.
“British manufacturing’s badge of quality will be at the heart of our economic recovery and post-Brexit global trading relationships, so it’s really encouraging to see one of Leicestershire’s own flying the flag across the world, from Japan to the USA.”
Winners of Leicestershire Business Awards
Business Improvement Through Technology Winner Due Diligence Checking Finalists Kitking North Warwickshire and South Leicestershire College Steps Conductive Education Centre Community Impact Award Winner Zinthiya Trust Finalists Alex’s Wish Charity Link Hope Against Cancer Shama Women’s Centre Outstanding Growth Award Winner Metalfacture Finalists Loughborough Finance for Sport Jake & Nayns Myonex Pattersons Commercial Law Environmental Impact Award Winner Abacus Flooring Solutions Finalists Go Travel Solutions Michael Smith Switchgear PacWolf Commitment to People Development Award Winner Precision Facilities Management Finalists Alex’s Wish Noble Events Pick Everard REAL Education Apprentice of the Year Winner James Cook – C S Ellis Group Finalists Millie Clayton – Almac Group Emily-Rose Moore – Hinckley & Bosworth Borough Council Chloe Grantham – Paragon Sales Solutions Alice Deeping – Unsworth Sugden Group Entrepreneur of the Year Winner Brij Thankey – Precision Facilities Management Finalists Jaz Kaur and Narinder Nijjar – Fraser Stretton Estate Agents Satwinder Sidhu – Paradigm Wills and Legal Services Navroop Kaur – Prime Casual Alex Slack – The House of LM Education and Business Partnership Award Winner MIRA Technology Institute Finalists De Montfort University – Small Business Leadership Programme Loughborough College North Warwickshire and South Leicestershire College REAL Education Excellence in Customer Service Winner Furnley House Finalists Glenfield Electrical Growth Partners Kazzoo Paradigm Wills and Legal Services Excellence in International Trade Winner Metalfacture Finalists A Mistry Worldwide Express (UK) Small Business of the Year Winner Your Tender Team Finalists Arthur Civil Engineering Charnwood Regency Guest House Precision Facilities Management We Love Surveys Excellence in Innovation Winner Structural Adhesives Finalists Access Rating Penny Price Aromatherapy Printvision (UK) Excellence in Collaboration Winner De Montfort University – Round-tip Knives Finalists Alex’s Wish Creative62 Joined-Up Working Associates Leicestershire Cares Business of the Year Winner MetalfactureEnd of year disruption threatens to de-rail Midlands’ recovery but businesses pledge to expand globally and create jobs
Midlands business leaders fear supply chain disruption will affect their ability to offer the usual range of products and services, impacting end of year trading, according to new research from accountancy firm, BDO.
The bi-monthly Rethinking the Economy survey of 500 leaders of medium-sized businesses reveals a third of businesses in the region are planning to increase the prices of their goods and services as a result.
Despite these pressures, more than half (58%) of companies in the region expect to see their revenues return to pre-pandemic levels within 12 months.
There is a sense of cautious optimism looking into 2022 with nearly a quarter (22%) of Midlands companies surveyed prioritising investment in international expansion and creating new jobs (20%) to support future business growth. One in five Midlands businesses are looking to drive growth into the US next year and 22% are looking towards Asia for sources of growth.
The research provides an insight into the mid-sized businesses which BDO calls the ‘economic engine.’ This group of companies comprises mid-sized, private equity-backed and AIM-listed businesses, which contribute £1.3 trillion to the economy and create almost 8 million jobs.
When asked which area of public spending would have the greatest positive impact on their business in 2022, one in five (22%) of the region’s companies called on the Government to invest in public services as a priority for growth.
Nearly a quarter (23%) of businesses shared concerns that a decision from the Bank of England to increase interest rates could have the greatest impact on their business over the next 12 months.
Tim Foster, partner at BDO in the Midlands, said: “Businesses in the region have been hoping for a strong finish to a year which started with so much uncertainty. Businesses have continued to face issues of rising costs, supply chain challenges and talent shortages.
“According to ONS data published at the end of November, economic output in the West Midlands is still down nearly 10% and the East Midlands is around 5% below pre-pandemic levels, lagging behind regions such as Yorkshire, the North West and North East.
“Despite this and the continued speculation around interest rate rises ahead of the Monetary Policy Committee decision later this month and fresh concerns around COVID-19 restrictions, mid-market Midlands businesses are demonstrating the ambition and their hallmark resilience as they plan for 2022.
“It’s positive to see investment intentions around international growth and creating new jobs, which suggests we will see a strong recovery in the region’s new economy.”
Leicestershire businesses give big for babies at charity ball
Businesses from across Leicester and Leicestershire have raised a huge £39,000 for a new neonatal ventilator and other equipment that will save countless lives.
More than 360 people from 15 local and national businesses came together with NHS staff at Leicester Hospitals Charity’s first ever Heroes Ball on Saturday 27 November to raise money for this life-saving equipment.
The event, hosted by BBC Radio Leicester presenter Ady Dayman at Winstanley House in Leicester, also focussed heart and minds on the impact of Covid over the last 18 months, remembering those whose lives had been lost and paying tribute to the heroic NHS staff who have worked tirelessly to protect their patients throughout the pandemic.
Money was raised through a live auction and silent auction with prizes ranging from Nevill Holt Opera tickets to furniture from Charles Bentley Furniture, match day hospitality tickets at Leicester City FC and a round of golf with Foxes legend Gerry Taggart.
Corporate sponsors BVM Medical, Berkeley Insurance Group and the Thakrar Foundation also funded tables for 90 hospital staff to join in the celebrations, in thanks for all they’ve done to care for the people of Leicestershire.
One of the key corporate sponsors was Leicester wholesaler, Anand International. Vic Sethi, said: “It was an excellent event with great entertainment, speeches and food. We, the Anand and Sethi family, are honoured to be sponsoring the NHS as we owe it to them. This is the least we can do to show our appreciation for their hard work. We are so grateful and proud of everyone working directly or indirectly for the NHS. We stand shoulder to shoulder with the NHS at all times.”
Another key sponsor was Nuffield Health Leicester Hospital. Stephen Haselip, sales and services manager, said: “We are pleased to offer our continued support to the NHS and the teams at University Hospitals Leicester at this challenging time and we are especially proud to support the Leicester Hospitals Charity as it offers so much help and support to the local community.”
Gavin Bee, healthcare client director at NTT DATA UK, said: “University Hospitals Leicester is an important client of ours and we are so proud to be able to support its charity’s first ever NHS Heroes Ball, raising vital funds and celebrating caring at its best. We all look forward to next year’s event which we know will be even bigger and better.”
The ventilator will mean that the neonatal team at Leicester Royal Hospital will be able to care for its 1,600 babies a year with the most up-to-date equipment. The money will also be used to fund other desperately needed equipment across the hospital.
Lisa Davies, director of Leicester Hospitals Charity, said: “To see so many businesses get involved and give so generously was incredibly heart-warming and we cannot thank them enough. The difference this will make to the lives of so many babies and their families when they are most in need is huge.”
Switch flicked to give Derby a “once in a generation” internet super-boost
An internet supplier has cut the ribbon to begin offering thousands of Derby homes and businesses access to the city’s new full-fibre internet network, describing it as a “once-in-a-generation opportunity to prosper.”
Gigabit Networks joined forces with Derby Mayor Councillor Robin Wood to officially launch its service at a ceremony held last week (Dec 2).
Derby is the first city in the East Midlands and among the first in the UK to enjoy the benefits of full-fibre internet technology, which will enable subscribers to stream TV, take part in video conferencing or use cloud computing quicker and more reliably than at present.
The technology is being seen as a game-changer for the city because not only will the superfast speeds give its businesses a huge commercial advantage over competitors in others cities, but, as Councillor Wood pointed out, it also promises to boost Derby’s bid to become a City of Culture in 2025 and could be vital in helping the city win the race to become home to the new state-owned rail transport body Great British Railways.
Gigabit Networks, which is operating from an office in Uttoxeter Old Road, is working in partnership with CityFibre, which is installing the all-important cabling that will create a full fibre internet network beneath Derby’s streets as part of an initial £45m private investment.
The network uses 100% underground fibre optic cables, which transmit data quicker and more reliably than the traditional copper wire network and have so far been laid outside 8,000 homes and businesses in parts of Mackworth, Allestree, Mickleover, Abbey, Arboretum and Darley wards.
CityFibre is laying more and more cable every day, but since it is the installer and not an internet service provider (ISP) itself, it does not connect individual properties to the network itself. Instead, it is working in partnership with companies like Gigabit Networks.
Dan Ilett, co-founder of Gigabit Networks, said: “Our recent experience of lockdown showed everybody how critical good connection speeds are and, with more and more data being shared and received across the internet each day, the need for a fast and reliable connection is only going to grow.
“Derby is now able to handle that growth thanks to its new network, meaning that this is a once-in-a-generation opportunity for the city to prosper while others are being left behind. This is why we’re incredibly excited about giving everybody in Derby the opportunity to get on board.”
David Yates, co-founder of Gigabit Networks, added: “Full fibre is only available to around 20 per cent of UK premises, which means that Derby is right at the very forefront of this technology and has a huge commercial advantage because of the internet speeds that are now at its companies’ finger-tips.”
Speaking at the launch just before he announced the service had gone live, Councillor Wood said: “I am proud to say that I am now one of the first people to be able to say that they are Mayor of a Gigabit City. That is very important, because Derby’s future plans rely on connectivity, so you are giving us exactly what Derby needs at the right time.”
It will take until 2025 to install the entire digital infrastructure across Derby.
East Midlands region to deliver disappointing economic growth rates in latest analysis
A new economic report has highlighted the significant challenges for the economies of Nottingham, Derby and Leicester with all three cities set to produce relatively slow growth over the next 12 months.
The UK Powerhouse study, which has been produced by Irwin Mitchell and the Centre for Economics & Business Research (Cebr), analyses 50 of the largest local economies by employment and GVA growth.
In the latest report, Derby is ranked 11th for year-on-year GVA growth in Q4 2022 with its economy due to increase in size by 2.9%. Leicester’s economy is predicted to grow at a slower rate of 2.6% whilst Nottingham, with the largest economy in the region, is set to see growth of 2.3%.
Nottingham’s rate of growth is a full percentage point behind hotspots in the South including Reading, Oxford, Cambridge and Milton Keynes.
Despite Nottingham’s GVA growth being the lowest in the region, its expected employment level growth in 2022 of 1.4% is higher than Derby (1.1%) and Leicester (0.8%).
Similar to GVA levels, the levels of employment growth were much slower in East Midlands than they were in hotspots such as Oxford (3.2%), Chelmsford (2.5%) and Cambridge (2.5%).
Hannah Clipston, partner at Irwin Mitchell, said: “The UK’s economy has undergone significant change over the last two years and this report highlights that the recovery is unlikely to be linear or even uniform.
“Over the next 12 months our report predicts that manufacturing’s output will grow by 3.5% whilst for hospitality it will grow by 35%. This has a huge impact on the variations that we are seeing in terms of growth in different locations and should be considered by the government as it looks to level up.”
Irwin Mitchell’s report also examines to what extent disruption in the economy leads to innovation.
Here the study reveals that the South West and the South East have the largest share of businesses engaged in innovative activity. According to the study, 41% of businesses in the South West are defined as innovative compared to 38% in the East Midlands.
Hannah added: “Businesses have been incredibly resilient over the last couple of years and have faced many disruptors including Covid, labour shortages, supply chain issues and high fuel costs.
“Our latest study recommends that irrespective of the sector they’re in, organisations should be adopting technology more quickly and adapting to the UK’s new status after Brexit.
“All of this will require a shift in approach and for innovation to be celebrated and nurtured more than it is currently. It’s vital that businesses are encouraged to follow this path and receive the right level of support in order to help them succeed.”
Half of Midlands construction firms not confident they will achieve net zero by 2050
As the urgency for the shift to a net zero economy becomes more prominent, a brand-new piece of research has identified that nearly half (43%) of the UK construction industry is not confident they will achieve net zero by 2050 and this is even higher in the Midlands at 49%.
For the sector, which contributes over 40% of the UK’s total carbon footprint, to reduce
emissions and achieve net zero by 2050, it needs to address three key challenges, according to a piece of industry research commissioned by Bramble Energy – a hydrogen fuel cell technology startup:
1. Education and an understanding on the solutions available
2. A net zero ambition which is realistic and ultimately, achievable
3. Full transparency on the government funding available.
Research specific to the Midlands follows the national trend. Over three quarters (81%) of
participants believe the government can be clearer in how it expects the construction industry to hit carbon targets and ensure the net zero ambition is not a pipedream.
The survey also revealed that over four fifths (81%) of the construction industry, 82% regionally, has not taken advantage of any hydrogen government funding schemes available to them. In the Midlands, only 37% of the industry know funding is available – nationally it is just under a half (48%).
Chief product officer, Peter Sayce, at Bramble Energy says: “Inherently the construction industry is a heavy carbon emitter and continues to be the focus of many planned government initiatives and policies, as well as public scrutiny. The urgency to act on climate
change has never been greater, and the construction industry – like all others – has a moral and legal responsibility to address the climate emergency and accelerate sector decarbonisation.
“The construction industry is already demonstrating clear intent with the launch of major
projects like HS2. Yet our survey revealed some genuine challenges that continue to face the sector in order to achieve net zero. Yes roadmaps are being put into place by industry experts but the picture being painted is that all parties have to take their share of the responsibility. Construction firms have to become better educated on solutions and support available, and the government has to be more transparent in its support.”
Earlier this summer, the UK government tipped hydrogen as being one of the country’s carbon cutting solutions by launching a dedicated strategy to kick-start the UK in becoming a world-leading hydrogen economy. The vision promises to unlock up to £1 billion in UK
government support for hydrogen and other low carbon technologies, including over £400m for hydrogen specifically. This received huge criticism from industry experts claiming the amount of funding will mean the UK will struggle to deliver at scale because it is dwarfed by the billions earmarked by European counterparts like Germany and France.
Earlier this month more than 100 organisations led by the UK Green Building Council (UKGBC) launched the Whole Life Carbon Roadmap – a vision and actions for achieving net zero carbon in the construction and demolition of buildings and infrastructure.
The benefits of hydrogen power are well documented. Not only does it help reduce carbon
footprint, it is reliable and easy-to-use, its only emission is water and when in operation is
virtually silent. Yet what is stopping the construction industry from implementing it, is cost with 65 percent of participants claiming it was their biggest barrier to entry – from cost of raw materials and overall operating costs to cost of replacing legacy equipment and initial
investment.
The survey did reveal that four percent of the construction industry have already started to
implement hydrogen, with another six percent considering it in the very near future. The good news is innovation continues. Last year Siemens Energy installed a zero-emission hydrogen fuel cell to provide off grid power to the National Grid’s Viking Link construction site and JCB announced earlier this year its development of the construction’s first ever hydrogen powered excavator.
“As more and more construction firms start to strategically prioritise or consider the pursuit of a sustainable world, the more change becomes a reality in how the industry currently powers its sites. The race to net zero is proving to the world that hydrogen will be part of the solution in tackling carbon emissions – for today and tomorrow. After all the talk, it is time for action!
“The climate crisis is the biggest challenge humanity faces and speed is of the essence. COP26 presented a stark warning of the dangers involved when ignoring climate change and lack of action. Everyone has a part to play – this includes the construction industry, but more importantly, those who have access to insight, knowledge and tools to bring it to the forefront and make tackling climate change a collaborative effort,” concludes Sayce.
Booster for business investment needed to sustain the recovery & unleash UK’s potential – CBI economic forecast
The foundations for the UK’s economic recovery remain firm despite global supply challenges weighing on growth in the near-term, according to the latest CBI economic forecast.
However, short-term headwinds – including rising costs and shortages – have grown since the business group’s previous forecast in June. Longer-term challenges, notably persistently poor productivity, underline the need for a booster for business investment to support sustainable growth.
The CBI is forecasting 6.9% growth in GDP over 2021 and 5.1% in 2022, revised down from 8.2% and 6.1% respectively. It should be noted that this largely reflects weaker than expected outturn data since the CBI’s previous forecast. The business group’s forecast expects supply chain frictions to largely dissipate by the middle of next year. Earlier in the Autumn, the Government formed the supply chain advisory group to grip these issues.
Overall, household spending remains the key driver of GDP growth, generating 90% of growth in 2022, and two-thirds in 2023. This is supported by a further improvement in real income, and households running down excess savings accumulated during the pandemic.
The resilience of the UK’s labour market has been a real success story, thanks largely to the Government’s Job Retention Scheme, which helped stave off potentially large-scale job losses. Continued employment growth over the next couple of years also supports household spending.
Business investment appetite has recovered somewhat and, spurred by continual economic growth, it rises briefly above its pre-pandemic level at the end of 2022 (growing by 8.2% over the year as a whole). However, this recovery is short-lived, with capital spending falling from mid-2023, as the super-deduction comes to an end and the rise in corporation tax kicks in. As a result, business investment will continue to lag other advanced economies.
The recovery in exports is also expected to be lacklustre, following disappointing growth over this year so far.
The forecast predicts CPI inflation to peak at 5.2% in April next year. It is set to remain above the Bank of England’s 2% target until Spring 2023, which will hit pay packets and offsets some of the positive underpins to consumer spending.
Tony Danker, CBI Director-General, said: “The challenge for January 1st is now very clear for the UK economy. Significant headwinds and rising costs of living threaten the extent of recovery and prospects for economic success. These hurdles for firms will provide a major test for Government – can they foster sustainable UK investment and growth?
“The UK’s New Year resolution must be to give firms the confidence to go for growth. We should be raising our sights on the economy’s potential and seizing the moment. “I know from speaking with firms of all sizes that they have an ambitious investment mindset, and are anxious to implement growth plans.
“But while intentions have thawed, we’re coming up to a cliff-edge in 2023. The super-deduction is a welcome catalyst, but a one-hit wonder isn’t enough to make up for four decades of underperforming business investment. We must build on its success with targeted measures encouraging the scale of investment we need, particularly in green technologies. A booster for growth is needed to protect and build on our recovery.
“But this isn’t just a challenge for government. It’s also up to businesses to step up and be part of the solution. Investment in technology and skills are among the most important steps firms can take now that will power productivity growth.
“Government has key levers at its disposal to back business: pro-investment and pro-innovation regulation to help build new markets, a competitive tax regime that incentivises business investment across the board and new market-making interventions, for example on clean energy. Getting this mix right will pay dividends over the longer term, jumpstarting the UK’s flatlining productivity and set us on course for a brighter new year.”
Rain Newton-Smith, CBI Chief Economist, said: “We expect a pretty firm economic recovery ahead, though understandably the emergence of Omicron poses another downside risk to our forecast.
“Ultimately this underscores the need for equitable distribution of vaccines across the world – supporting lives, livelihoods and freeing our international travel sector, boosting trade too. The emphasis must be on testing and using all the tools at our disposal to keep as many global routes open as possible.
“Increasing exports is also a vital component of sustainable growth. Exporting companies are more productive, resilient and help create internationally competitive UK regions.
“Let us be candid: UK exports are being outpaced by our global peers which, if allowed to continue, will negatively impact our economy in the long term.
“We must continue to address market access barriers globally while supporting all businesses to seek growth internationally.
“The export strategy is a positive step forward with the extension of the new Export Support Service, and a welcome focus on the UK’s world-beating services sector. We now need to follow through on delivery.
“And there’s more we can do at home, too. By matching our peers on R&D spending we can build on existing UK strengths in areas like life sciences, higher education and decarbonisation to become the science superpower we all want to see.
“But let’s not forget the importance of normalising relations with the EU – our biggest and nearest trading partner – which will aid cooperation in a host of other areas.”
Key forecast data:
Jobs and household spending
- Household spending is set to increase by 7.6% in 2022 and 3.1% in 2023 as real incomes recover, and employment growth strengthens
- Recovery in the labour market continues with early data indicating only a minimal impact on jobless numbers following the end of the Job Retention Scheme.
- The CBI expect a relatively short-lived rise in jobless numbers at the end of this year, after which unemployment falls back steadily, ending the CBI’s forecast (3.8%) at its pre-COVID level.
- However, CPI inflation is expected to pick up further ahead, peaking at over 5.2% in April 2022 – driven by a combination of base effects from 2020, rises in Ofgem’s energy price cap, higher fuel prices and supply chain pressures. This will hit living standards, with real wages set to fall year-on-year for much of 2022.
- Business investment continues to recover over the coming year, rising briefly above its pre-pandemic level by 2022. However, it then falls from mid-2023 and ends the CBI’s forecast 3% below its pre-COVID level at the end of that year
- At the end of 2023, the CBI expect GDP to still be 3% below its pre-COVID trend.
- Poor productivity persists over the CBI’s forecast: despite the recovery over the next few years, output per worker remains 17% below its pre-2008 trend at the end of 2023
- With the recovery in UK exports lacklustre in the CBI’s forecast, and imports growth kicking off on a stronger footing, the CBI do not expect any support to GDP from net trade.
- The CBI expect global GDP growth (in purchasing power parity terms) at 5.7% in 2021, 4.7% in 2022 and 3.8% in 2023. Most of the economies that the CBI forecast are set to surpass their pre-pandemic levels of GDP at the end of 2022.
- But the global recovery is also likely to be very skewed, with emerging economies lagging behind, due to slower vaccine rollouts and limited space for policy support.
Christie & Co announce the sale of Derby’s iconic Old Bell Hotel
Specialist business property advisor, Christie & Co is delighted to announce one of Derby’s oldest buildings and last surviving coaching inns, the iconic Old Bell Hotel is up for sale with a guide price of £1,500,000.
Set in the heart of Derby’s historic Cathedral Quarter, this charming inn dates back to 1650 and was once considered one of the most prestigious coaching inns outside of London. From Bonnie Prince Charlie’s army to Paul McCartney, the Grade II listed building has played host to many guests over the years.
The current owner, local businessman Paul Hurst acquired the hotel in 2012 and set about an award-winning three year restoration project worth over £1 million, that saw the hotel transformed into a popular destination venue for shows, corporate events and weddings.
Mr Hurst comments, “After a decade of hard work, it is time to hand the baton over to someone else who can take the business to the next level. That is why we engaged Christie and Co, who I know will find the right owner to look after the building and fully appreciate its heritage and importance to our city.
“One of our greatest assets here is our fabulous team,” he continued, “who share the same passion and drive for the building and our customers, to ensure they have the very best experience, whether popping in for a pint, relaxing with a coffee, enjoying a show or getting married! It has been an absolutely honour and priviledge to be the custodian of The Old Bell, working with such an incredible team. I really am dreading my last day as I am sure it is going to be very emotional.
“Following the sale, I will be proud to join a long list of people who have made their mark on this incredible building over its 372 year history but our many loyal customers should be reassured that it will continue to be business as usual throughout the transition to new ownership.”
The substantial building features five bars and several function rooms, including its Grand Regency Ballroom, as well as a 60-cover restaurant. The former hotel rooms are currently used as storage and office space, presenting a fantastic development opportunity for an incoming owner to reintroduce an accommodation offering.
Gavin Webb, Senior Business Agent at Christie & Co comments, “The Old Bell Hotel is a property of historic significance in Derby and opportunities of this nature rarely come to the market. New owners will have the opportunity to further develop the business by creating up to 12 letting bedrooms in the upper floors of the premises”
