Midlands Connect is revising its strategic outline business case (SOBC) for reinstating a direct rail service between Coventry and Leicester. Currently, passengers must transfer at Nuneaton, adding time and complexity to the journey.

The updated business case will be presented at an event on February 28 at the Coventry Transport Museum, where political representatives and business leaders will discuss the economic and connectivity benefits of restoring the link. Speakers include Coventry East MP Mary Creagh, Coventry and Warwickshire Chamber CEO Corin Crane, and East Midlands Chamber policy director Richard Blackmore.

According to Cynergy Bank’s analysis of ONS data, the number of new businesses in the UK fell to 306,995 in 2024, marking the lowest level since 2017. At the same time, the average turnover of failing businesses has reached a record high, indicating that even well-established firms are struggling in the current economic climate.

Job creation through new businesses remains weak, with a net gain of only 13,754 jobs in 2024, a sharp decline from the 348,845 jobs added in 2017. The latest data also highlights a growing divide across industries. Agriculture has been the hardest hit, with only half of closing businesses being replaced. Manufacturing, production, wholesale trade, and transportation are also facing significant challenges, struggling to keep up with business closures.

In contrast, health and social care businesses are expanding rapidly, likely due to increased private sector involvement in areas where the NHS is under strain. The education sector, including all schooling and vocational training levels, is also growing, while real estate businesses continue to show resilience.

Regionally, London remains the strongest performer, with more new businesses opening than closing. However, the East Midlands and Wales are experiencing the steepest decline in business health, with closure rates outpacing new formations.

Construction has begun on the expansion of business land at Spratt Close in Horncastle, backed by a £1.5 million investment from Lincolnshire County Council and £400,000 from East Lindsey District Council. The project, known as Hornbeam Business Park, will create three serviced development plots across four acres and aim to generate over 65 jobs.

The initiative is part of a broader £20 million county-wide investment in business infrastructure over the next four years, targeting key sectors such as manufacturing, defence, and agri-food. Additional industrial estate expansions are planned in West Lindsey, East Lindsey, and Boston, to create 3,000 jobs.

Lindum Construction is managing the site development, which was procured via the Scape regional construction framework. The expansion includes new road infrastructure designed to improve access and attract further business investment.

East Lindsey District Council has allocated £7.83 million from its £10 million East Lindsey Investment Fund to support community development, tourism, business growth, and infrastructure improvements. The funding includes £1 million for the new ‘Pride in Place’ grant scheme, which will finance community-led projects to improve safety, transport, local amenities, and environmental initiatives.

A total of £1.8 million will go toward tourism-related projects, with a significant portion allocated to The Woodland Trust for the restoration of Harrison Woodlands near Louth. The 483-acre site, currently in poor condition and closed to the public, will be rehabilitated and reopened. Another £1.25 million will be used for place and asset improvements, including shopfront renovations, upgraded signage, and car park enhancements in key areas like Sutton on Sea. Cultural events and arts engagement will receive £650,000, while £250,000 will support heritage projects, including market revitalization and infrastructure to promote the Lincolnshire Wolds as a tourist destination.

Business support funding will be directed toward hosting networking events, increasing access to skills and jobs through local education and training providers, and providing sector-specific grants for green technology investments. The fund will also support the development of new employment sites in the district. The council expects these investments to strengthen the local economy, attract visitors, and enhance residents’ overall quality of life. Details on the ‘Pride in Place’ grant scheme will be released when applications open.

Leicestershire County Council is moving forward with plans to replace district and borough councils with a single unitary authority, aiming to streamline services and cut costs. The proposal excludes Leicester City and Rutland and is expected to be submitted to the Government next month.

The county council argues that consolidating governance into one authority would save approximately £30 million annually, compared to £10 million if the county were split into two unitary councils. Acting leader Cllr Deborah Taylor emphasized that a single authority would avoid service inconsistencies and duplication of administrative functions.

District and borough councils remain opposed to a two-authority model, citing concerns that a single council would be too large and disconnected from local needs. However, the county council plans to establish local area committees and expand the role of parish and town councils to maintain community engagement.

The council also reversed its previous position on expanding Leicester City’s boundaries, originally intended to support its financial sustainability and meet housing targets. The shift followed the Government’s rejection of the council’s request to delay local elections, though ministers did not provide a specific reason for the rejection.

UK recruitment leaders have raised concerns that the Government’s proposed Employment Rights Bill could disrupt the temporary work sector, which they argue is essential to economic stability. The bill introduces measures such as guaranteed hours for zero-hours workers and statutory sick pay from day one.

Pete Taylor, Managing Director at Gi Group, joined industry representatives at the REC’s Parliamentary Reception to highlight the risks of restricting temporary employment. He emphasised that more than 1 million temporary workers contribute to the UK economy daily, supporting key industries such as logistics, engineering, and manufacturing.

Citing a recent REC survey, Taylor noted that 79% of temporary workers value job flexibility, while 81% rely on temp work for essential income. He warned that policy changes, combined with upcoming tax reforms, could create a difficult hiring environment, limiting opportunities for both businesses and job seekers.

Gi Group, headquartered in Chesterfield, employs nearly 500 people and serves 1,500 clients from 87 locations across the UK. Its parent company places one person in work every 90 seconds.