British Steel weighs closure of Scunthorpe blast furnaces amid financial strain

April Lara
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British Steel weighs closure of Scunthorpe blast furnaces amid financial strain

British Steel is considering shutting down its two blast furnaces in Scunthorpe, putting up to 2,700 jobs at risk. The company says high operating costs, tariffs, and environmental regulations have made the furnaces unsustainable.

Since acquiring British Steel in 2020, Chinese owner Jingye has invested over £1.2 billion but continues to face daily losses of around £700,000. Talks with the UK government about financial support for new Electric Arc Furnaces (EAF) have not resulted in a deal.

The potential closure has raised concerns among unions and industry leaders, who warn it could end the UK’s ability to produce primary steel, affecting supply chains and infrastructure projects. The government has pledged up to £2.5 billion for the steel industry but has yet to finalise a plan for Scunthorpe.

British Steel is consulting on three possible timelines, with the earliest furnace shutdown by mid-2025. The company says discussions with workers, unions, and officials are ongoing.

UK motor industry urges urgent talks as US imposes 25% tariffs on car imports

April Lara
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UK motor industry urges urgent talks as US imposes 25% tariffs on car imports

UK automotive leaders are calling for immediate trade negotiations following the US government’s decision to impose a 25% tariff on imported vehicles, set to take effect next Wednesday. The move threatens a sector already facing declining sales and rising production costs.

The US is the UK’s second-largest car export market, valued at £7.6 billion. In 2023, over 101,000 UK-built vehicles—mainly premium and luxury models—were shipped to the US, accounting for nearly 17% of total car exports. The tariffs will hit major UK manufacturers, including Jaguar Land Rover, BMW, Toyota, Nissan, and Stellantis.

Jaguar Land Rover, which employs 11,000 people in the UK, relies on the US as its biggest overseas market. BMW’s three UK plants, which focus on Mini production and employ around 8,000 people, could also face significant cost increases. The US remains a key Mini market despite declining sales due to model changes.

The Society of Motor Manufacturers and Traders (SMMT) is pushing for a trade deal to avoid disruption, emphasising the long-standing UK-US automotive relationship. The British Chambers of Commerce has also called for “intensive dialogue” to mitigate the economic impact.

Chancellor Rachel Reeves confirmed that discussions with the US are ongoing, while business leaders warn that the tariffs could increase costs for American consumers and create further supply chain instability.

Leicestershire firms reunite for new Burbage residential development

Tess Egginton
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Leicestershire firms reunite for new Burbage residential development
Leicestershire firms Springbourne Homes and Hayward Architects have teamed up again to design a new exclusive development in Burbage, near Hinckley. The properties will be built at Springbourne’s new site called The Spinney, which is off Elm Tree Drive and close to Burbage Common and Woods. Haywards has designed eight luxury detached homes, including two bungalows for the development, with construction set to commence this Spring. Springbourne chairman Adrian Burr is hoping this latest collaboration will prove as successful as their previous partnership which delivered the Hornsey Rise development near Market Bosworth. Adrian said: “Springbourne Homes and Hayward Architects is a proven, winning combination. We have a long and fruitful history of working together again and we are confident that The Spinney will be another success story. “I will be delighted if we go on to emulate what we achieved at Hornsey Rise where we scooped four national construction awards and delivered what is arguably our best-ever site. “We have applied the same high standards, design principles and attention to detail for The Spinney and we are once again anticipating keen interest from buyers who are in the market for a quality home in a desirable location.” Hayward’s director Zoe Massey is equally confident there will be high demand. Zoe explained: “We have designed eight spacious properties, six detached homes and two bungalows, on a lovely landscaped site in a sought-after area. “There are three five bedroom homes, three four bedroom homes and two three bedroom bungalows, all with double garages and ranging from just over 3000 sq ft to just under 2000 sq ft.”

Nottinghamshire invests £1m in feasibility study for new River Trent bridge

April Lara
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Nottinghamshire invests £1m in feasibility study for new River Trent bridge

Nottinghamshire County Council has allocated £1 million to explore the feasibility of a fourth road bridge over the River Trent at Colwick. The study is part of a broader transport development initiative to ease congestion and improve regional connectivity.

The funding comes as the council secures an additional £15.2 million from the East Midlands Combined County Authority for road infrastructure. If approved, the project could become one of the largest transport investments in the county in years, potentially benefiting businesses reliant on efficient logistics and commuter ro

Amplius invests £41m to improve energy efficiency in 2,000 homes

April Lara
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Amplius invests £41m to improve energy efficiency in 2,000 homes

Housing provider Amplius, formed from the merger of Longhurst Group and Grand Union Housing Group, is set to invest £41 million to upgrade energy efficiency in nearly 2,000 homes across the Midlands and East of England.

The investment includes £20.3 million in provisional funding from Wave 3 of the Warm Homes Social Housing Fund. The upgrades—covering Northamptonshire, Bedfordshire, Cambridgeshire, and Lincolnshire—will include insulation, new doors and windows, and low-carbon heating systems to meet at least an EPC rating of C.

This follows Amplius’ previous £16 million investment in Wave 2.1, which improved 750 homes. The latest project will bring the total number of upgraded properties to 2,700.

Amplius is partnering with Morgan Sindall Property Services to deliver the improvements, aligning with broader net-zero goals and efforts to reduce fuel poverty in social housing.

Leicester updates scaffolding and skip licensing rules

April Lara
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Leicester updates scaffolding and skip licensing rules

Leicester City Council has introduced new guidance outlining licensing requirements for scaffolding, skips, and hoarding on public highways. The updated policy aims to clarify regulations for contractors and ensure compliance with safety standards.

The changes require scaffolders to apply for a licence well in advance, except in emergencies. Applications must include detailed site plans and traffic management arrangements to demonstrate that safety risks have been properly assessed. Skips also need a licence, even if they are placed on the highway for a short time.

City officials emphasise that while many contractors operate responsibly, some fail to meet legal requirements. The council has made the guidance easily accessible to remove any excuses for non-compliance. Enforcement will be stricter, with breaches leading to action ranging from warnings to prosecution.

The policy update follows consultation with the scaffolding industry, which has welcomed the increased clarity.

Derby electric bus project scrapped as funds reallocated

April Lara
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Derby electric bus project scrapped as funds reallocated

Derby City Council has cancelled its £11.5 million electric rapid transit (eRT) project, citing post-pandemic economic challenges. The scheme, announced in 2020, aimed to introduce 12-metre electric buses to improve city centre connectivity, but was deemed financially unviable.

The project was initially part of a £161 million government-backed transport improvement package for Derby and Nottingham. Nearly £500,000 had been spent before its cancellation, with £11 million reallocated to other local transport initiatives with Department for Transport approval. Plans for new Park and Ride buses were also scrapped, freeing up an additional £6.4 million, which has been redirected to cycle routes and public realm improvements.

Council officials noted that while the eRT project had potential benefits, it would have required long-term revenue support, which was unavailable.

Nottingham Council approves cost-based leases for community centres

April Lara
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Nottingham Council approves cost-based leases for community centres

Nottingham City Council has approved plans to introduce cost-covering leases for community centres, replacing previously proposed market-rate rents. The move aims to keep centres open while improving the Council’s financial sustainability.

Under the new lease agreements, set to take effect by April 2026, community associations will take on responsibility for repairs, maintenance, and compliance. As third-sector organisations, they will have access to funding streams unavailable to the Council, helping cover operational costs.

The Council will support associations with training on grant applications, business planning, and procurement to ensure long-term viability.

Spring Statement 2025 – a defensive play or offensive push for growth?

Tess Egginton
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Spring Statement 2025 – a defensive play or offensive push for growth?
James Pinchbeck, partner at Streets Chartered Accountants, reflects on the Spring Statement. In delivering her first Spring Statement, Chancellor Rachel Reeves made it clear that this government intends to follow the principle of a single annual Budget, with major tax changes reserved for the Autumn. The Spring Statement, instead, is positioned as a fiscal checkpoint, a chance to update the nation on the economic outlook and to adjust financial levers as needed. For many businesses and individuals, the most immediate takeaway will be relief in that there were no further tax increases. That said, there was also no reversal of previous tax hikes, nor any uplifting announcements such as increases to the personal allowance or adjustments to frozen tax thresholds. Those hoping for fiscal giveaways will have found little to cheer about. As anticipated, the Chancellor’s focus was on tightening public spending. With the UK economic growth forecast for 2025 revised downward from 2% to just 1%, the pressure is on to rebalance the books. Lower than expected tax revenues and rising borrowing costs have left the Treasury with less fiscal headroom, prompting action. The Chancellor cited global geopolitical tensions and instability as major headwinds, but much of the UK’s stagnation has been homegrown with a combination of suppressed consumer confidence and cautious business investment. Households continue to grapple with the cost-of-living crisis, while employers face increased staffing costs, notably from the rise in National Insurance contributions from 6th April. Public sector reform, transformation or austerity 2.0? A key announcement was the creation of a £3.25bn Public Sector Transformation Fund, aimed at shrinking the size of the state and boosting productivity through AI and digital innovation. This includes structural changes such as the dissolution of NHS England, in an effort to cut costs and improve decision-making. There will also be further tightening of welfare budgets, with cuts to Universal Credit and other support mechanisms flagged as part of the savings drive. A defence led growth strategy? Perhaps the most headline grabbing shift is the government’s framing of defence spending as an economic growth strategy. With £400m earmarked for defence innovation, particularly in AI and drone technology and a commitment to increasing defence investment as a percentage of GDP, the Chancellor declared her ambition to make the UK a “defence industrial superpower.” To complement this, capital spending commitments will continue with a £2bn increase, alongside a renewed push to meet housing targets and accelerate homebuilding. Whether this marks a bold new direction for economic strategy or a reactive shift to global instability remains to be seen. What’s clear is that growth is now expected to come from defence procurement and infrastructure investment, rather than tax cuts or consumer led stimulus. As ever, the effectiveness of this strategy will depend not just on the vision, but the execution. Businesses, investors and households alike will be watching closely. For the devil in the detail and tax planning advice for 2025/26, including managing the increase in employer’s national insurance, there is still time to book for Streets Chartered Accountants’ post Spring Statement webinar which takes place from 11am until 12noon on Thursday 27th March. Watch live or on catch up! Register to join live and/or to receive a post broadcast recording to watch on catch up. https://www.streetsweb.co.uk/about/events/the-spring-statement-2025-what-will-it-mean-for-you/

Chesterfield packaging manufacturer reports “substantial sales growth” in 2024

Tess Egginton
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0
Chesterfield packaging manufacturer reports “substantial sales growth” in 2024

Robinson, the custom manufacturer of plastic and paperboard packaging, has reported “strong progress” for 2024, in its audited results for the year.

Revenue at the firm jumped 14% to £56.4m, up from £49.7m in 2023, while underlying operating profit increased to £3.2m, from £2.2m.

The business, meanwhile, posted a loss before tax of £3.8m, expanding from £0.7m in 2023, as a result of non-cash and non-Company costs of £3.7m related to the buy-out of the defined benefit pension scheme and a non-cash impairment charge of £1.7m related to start up issues at the company’s Denmark operation. Interventions, however, are delivering improvements and expected to return the operation to profitability in 2025.

Alan Raleigh, Chairman, said: “I am pleased to report strong progress in 2024. Our results build on the positive momentum experienced in the second half of 2023, with substantial sales growth of 14% to £56.4 million, gross margin increasing to 20% and a 45% increase in underlying operating profit to £3.2 million.

“This confirms that our strategy of partnering with major FMCG brand owners, investing in new technology, driving efficiencies, and supplying sustainable packaging is delivering the anticipated results.

“Our excellent customer relationships have created a very strong sales pipeline for 2025, and as our customers respond to new market opportunities, we see additional growth potential in future years. As we grow revenue and underlying volumes, we will continue to drive improved efficiency and profitability across our operations.

“The underlying performance of the business gives the Board confidence to recommend an increase in the final dividend to 3.5p per share. This brings the total dividend declared for 2024 to 6.0p (2023: 5.5p).

“Progress has also been made on the buy-out of the defined benefit pension scheme, but the closure of the scheme has resulted in a non-cash and non-Company cost of £3.7m included in our income statement (required by accounting standards despite no impact on shareholders’ funds).

“The disposal of surplus properties, with some sales expected to complete in 2025, will further improve our financial leverage and ability to support attractive growth projects.

“Finally, despite strong progress in H2 2024, there is a non-cash impairment charge of £1.7m related to the Denmark operation due to start up issues earlier in the year associated with processing post-consumer recycled resin, demand variability and a longer learning curve than anticipated on the large project implemented there.

“Pleasingly, interventions during the second half of 2024 are already delivering improvements and are expected to return that operation to profitability in 2025.

“In combination, these other items have resulted in a Group loss before tax of £3.8m (2023: loss before tax £0.7m).

“Despite these non-recurring items, the combination of volume and revenue growth, efficiency and profitability gains, improved financial leverage and new leadership, gives the Board confidence that we are well placed to compete and win.

“As such, we expect underlying operating profit for the 2025 financial year to be ahead of 2024, and ahead of current market expectations. We remain committed to delivering above-market profitable growth and our target of 6-8% underlying operating margin.”

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