2025 Business Predictions: Marc Abrams, Nottingham Office Senior Partner at KPMG UK
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 Marc Abrams, Nottingham Office Senior Partner at KPMG UK.
Getting back to sustained economic growth will be a defining issue in 2025 and with the new East Midlands Combined County Authority in power, there’s plenty to play for. Access to its £4billion spending pot will help to boost growth opportunities for our region’s great businesses and universities, and bring the East Midlands onto a more equal footing with other devolution areas.
As home to some of the country’s leading manufacturers, how the East Midlands embraces the green agenda to develop its manufacturing strengths will be essential in driving change and boosting our vibrant health and agri-tech sectors. As a region, we already have much to be proud of in this space, and as the new Combined Authority grows and develops, the role of local businesses will be critical to its success.
Innovation in tech will also continue to accelerate at pace in 2025, with generative AI leading the charge both at home and in the workplace. Technology has the power to revolutionise industries across the East Midlands, and those businesses that are bold and invest in digital transformation will be best-placed to capitalise on new opportunities.
The digital economy will continue to expand, driven by e-commerce, digital payments, and online services. Every new year brings new opportunities, and ambitious businesses are already making moves to enhance their digital presence and leverage technology to reach and serve customers effectively – for those that follow suit, the sky is the limit.
Trade associations unite to call for consultation over inheritance tax changes
Collectively, these associations represent more than 160,000 family businesses, who warn that the changes to agricultural property relief and business property relief announced in the Autumn Budget will have ‘a severe and long-lasting impact on these businesses and the livelihoods of the millions of people they employ’.
In the open letter, published by Family Business UK, leaders warned that the policy changes will ‘starve’ these businesses and the economy of much-needed investment, ‘leading to forced, premature business sales and the loss of jobs in constituencies across the country’.
They add that BPR and APR ‘are not loopholes’ but measures that exist to ‘allow profitable businesses to continue trading, without penalty, when the owner dies’.
Economic impact analysis commissioned by FBUK and produced by CBI Economics has revealed that between 2026/7 – 2029/30 the changes to BPR could reduce economic activity by £9.4bn, lead to more than 125,000 job losses – including among the SMEs the government is trying to support and protect – and result in a net fiscal loss to the Exchequer of £1.25bn.
The NFU’s own impact analysis, produced in consultation with former Treasury and Office for Budget Responsibility economists, found that 75% of commercial family farms will be above the £1m threshold.
NFU President Tom Bradshaw said the Family Business UK letter further showed just how poorly thought through the inheritance tax changes were. He said: “As a signatory of the letter, alongside 31 other trade organisations representing the industry and associated businesses, we strongly echo the sentiment that the proposed tax could have far reaching consequences for the broader economy, employment and public finances.
“No one thinks this is a good policy, not even the government’s own advisers. It’s time for Treasury to listen to farmers and the multiple other organisations calling for these proposals to be opened up for consultation.”
CEO of Family Business UK Neil Davy said: “The model of family business ownership is unique. It powers the entire economy from farming to finance and everything in between. This letter, and those who have chosen to sign it, are testament to just how widespread family ownership is, and how committed we are to speak up on behalf of our members.
“Already, family business owners are taking decisions to withhold planned investments and are putting recruitment on hold.”
According to CBI Economics, family businesses mitigating the cost of a potential future Inheritance Tax bill would be most likely to reduce investment and employment leading to an:
- average reduction in investment of 16.5%
- average reduction in headcount of 10.2%
- average loss of turnover of 7.4%.
Historic Nottingham War Rooms to get new lease of life with regeneration plans submitted
Regeneration plans for Nottingham War Rooms on Chalfront Drive in Beechdale have been submitted by Aspbury Planning alongside Nottingham-headquartered practice CPMG Architects ahead of the historic, derelict site being transformed into a mixed-use community hub.
The building was originally constructed in the Cold War era as one of 17 Regional War Rooms across England and Scotland to withstand a nuclear strike, before becoming a Seat for Regional Government in the 1960s following a second phase of construction.
The structure also housed a BBC emergency broadcasting facility for use in a national emergency, prior to being used solely for storage since it was decommissioned in 1969.
Redevelopment of the 4,563 sq m, Grade II listed concrete building includes the preservation of important historic spaces developed in the 1950s and 1960s, such as the Lamson Tube Room, plant rooms and kitchen facility.
CPMG will being using its architecture and interior design expertise to transform the site into a community hub offering long-term and viable use, while including designated heritage zones.
The design plans also include exhibition spaces, media spaces, co-working and conference facilities, health and wellbeing amenities, café and restaurant, and a roof terrace.
Sara Harraway, director and interior design lead at CPMG, said: “The Nottingham War Rooms site offers an opportunity to create a truly unique destination by combining heritage, modern interior design and tangible community benefit.
“While the existing brutalist design will be loved by some and deemed not so visually appealing to others, this ‘brutal beauty’ will be set to make a real difference.
“Our plans centre around enhancing the usability of the site and the creation of a visual dialogue between past and present to respect both the functionality and the significance of the building and its place in the UK’s Cold War history.
“We’ll take a sensitive approach to the interior design, respecting it’s features and seeking to retain its character, using its colour palette, detailing and materials to influence our design development. Lighting will be a critical factor in its success, creating sensitive museum quality environments, to inspirational workspaces and desirable coffee bars and restaurants.
“Following a thorough consultation process prior to the planning submission being submitted, the scheme has come to life. It is incredibly clear how positive and influential the project will be in transforming the building, surrounding area and the local community in Beechdale – which currently does not have adequate provision of available services.
“The Nottingham War Rooms and its history may take centre stage from an outside perspective, but the most value will be gained from the way the repurposed space serves the community and educates future generations.”
The project is being led by property developer Hamilton Russell, in collaboration with landowner Homes England, and includes plans to align all work to local authority targets and environmental plans.
Regeneration and community value will be prominent within the creation of a new 104-affordable home development on the 2.1 hectares of developable land surrounding the war rooms, also being designed by CPMG and backed by East Midlands Housing Group (emh).
The current proposals have provision for two tenure types, shared ownership and social rent. 37% of the proposed homes will be allocated for shared ownership and 63% will be allocated for social rent.
Key project partner and Nottingham-based young people’s charity Base 51 is set to call the War Rooms building its new home if plans are approved, while further partners are set to be confirmed.
Craig Cameron at Hamilton Russell said: “We have been working on this project for a number of years with Nottingham Planning, and are looking forward to getting the planning submitted, and are very excited about the getting started on site in 2025.”
Science company employees raise more than £15,000 for St John Ambulance
Hundreds of science company employees turned their office canteen into a sea of Christmas jumpers as they held one of their final fundraisers wrapping up more than £15,000 in fundraising for St John Ambulance.
Staff at science company Lubrizol’s UK Technical Centre in Hazelwood, near Duffield, put on their best Christmas jumpers, antlers, Grinch outfits and sparkly headgear as a fundraiser for their current chosen charity.
Lubrizol has supported St John Ambulance for the past two years across all its UK sites: Derbyshire, Huddersfield, Blackley in Manchester and Barnsley.
Employees have thrown themselves behind a range of charity fundraisers culminating in dressing up in their festive jumper best for a Christmas meal on-site, donating to St John Ambulance as they did so.
Over two years Lubrizol employees have been raising money for the life-saving charity and will be handing it over when the final donations arrive in early 2025.
Lubrizol staff have undertaken a wide range of charity efforts to raise money for St John Ambulance over the past two years, including employee couple Claire and Tim Hollingshurst who braved blisters and tiredness to walk the whole of the 55-mile Derbyshire Heritage Way within a 24-hour timeframe. The couple and supporters raised nearly £2,000 with their efforts.
Over the past two years teams from St John Ambulance have also visited Lubrizol’s offices across the UK to deliver life-saving first aid sessions.
Across the UK, more than 30,000 cardiac arrests take place outside of a hospital setting annually. But less than one in ten people survive, often because those around them lack the skills or confidence to perform CPR, or access to a defibrillator.
When someone is in cardiac arrest their heart has stopped beating, and every minute without CPR or defibrillation reduces the chances of survival by up to 10 per cent, while early CPR and defibrillation can more than double survival rates.
Claire, who sits on Lubrizol’s charities and communities committee which co-ordinates the company’s charity fundraising each year, said: “Every year we hold our Christmas jumper day at Lubrizol and it’s nice to raise some money for our charity at the same time.
“Some people wear the same Christmas jumper each year but others like to mix it up and surprise us all with something new! One of our senior members of staff likes to wear the same turkey hat each year and it’s a mark of the festive season when we see him wearing it as he walks into the room.
“We’re very proud at Lubrizol to be able to support a new charity every two years and it’s been brilliant to raise money for St John Ambulance in 2023 and 2024. It’s a great organisation that’s saving lives. We’ll be finalising our total in 2025 ready to announce our next chosen charity.”
Pair of Northampton pharmacies sold
Specialist business property adviser, Christie & Co, has sold Delapre Pharmacy and Far Cotton Pharmacy in Northampton.
Delapre Pharmacy and Far Cotton Pharmacy are a pair of standard-hour community and health centre pharmacies that dispense a combined average of 17,500 items each month. They are located in Northampton, less than one mile apart on Gloucester Avenue and Delapre Crescent Road respectively.
The branches were previously owned by Vyas Limited for over 10 years and were brought to market to enable semi-retirement.
Following a confidential off-market sales process with Carl Steer at Christie & Co, and with funding sourced through David Ward at Christie Finance, they have been sold to Sagar Shah, who is now the proud owner of three pharmacies all bought through and funded through Christie & Co and Christie Finance.
Carl Steer, Director – Pharmacy at Christie & Co, said: “Not many first-time buyers find their ideal pharmacy close to home, but we were pleased to help Sagar achieve this 18 months ago, so to be able to help him add two more in his local area is pleasing.
“Delapre and Far Cotton pharmacies were sold off-market and offered to just a handful of likely suitors. The guide price was achieved.
“Year-on-year, not many pharmacies come to market in Northamptonshire, so it was pleasing to complete two more this year after two last year. There are many Pharmacists seeking a pharmacy business across the wider county, and we expect this strong appetite to continue in 2025.”
Delapre Pharmacy and Far Cotton Pharmacy were sold for an undisclosed price.
Regeneration plans move forward for the Hucknall area
Plans to use Nottinghamshire County Council-owned land to help boost the local economy have taken a further step forward.
This is the next phase of the Top Wighay site, near Hucknall, which the county council successfully secured outline planning permission for in 2022 and has already made substantial progress on, with the residential element of the site and the construction of the Oak House office well underway.
This next phase includes the development of land earmarked for employment use. Uses could include workshops, storage, distribution, and other employment uses that can drive local economic growth.
A specialist agency will now be commissioned by Arc Partnership, on behalf of the county council, to come up with a range of options on the potential future use for this land, including a feasibility study into the self-delivery of employment units.
Options will then be considered by the county council in early 2025.
Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management, said: “We have big plans for this development to bring more jobs, skills and inward investment to the area.
“With its central location, good public transport links and being close to the M1, this site could be an attractive location for businesses.
“We are a forward-thinking council, so providing workshops or business units for SMEs could be something we could consider.
“This would not only help boost the local economy but would also help generate revenue which could be used towards other council services.
“We will carefully look into all the options available to find what is best for this site.”
A new community is being created on the overall site, including much-needed new homes led by Vistry Partnerships.
Oak House, the council’s new low carbon, all-electric office is currently under construction on the site and due for completion in 2025.
It also forms part of the wider plan to bring more jobs, skills and investment into the Hucknall area.
This new office is being designed, project and cost-managed by Arc Partnership and delivered through Arc’s construction partner, Morgan Sindall Construction.
Sara Williams, Deputy Managing Director at Arc Partnership, said: “We are pleased to be supporting Nottinghamshire County Council with the next phase of the Top Wighay site.
“The options appraisal will consider the viability of all development opportunities for the site and local economy.”
Work starts on new affordable homes for Ashbourne
Work has begun on 35 new, affordable and sustainable homes in Ashbourne.
Sited on the old airfield off Cavendish Drive, the development will be a mix of two and three-bedroom homes, including six bungalows and 29 houses.
Seventeen homes will be available for shared ownership – part rent, part buy – and the remaining 18 for affordable rent. The homes are expected to be complete in winter 2025.
Rob Cogings, Director of Housing at Derbyshire Dales District Council, said: “The provision of affordable homes remains the Council’s top priority and this development follows another recently completed affordable homes development at the former Dove Garage site on Mayfield Road, also in Ashbourne.
“All affordable homes for rent and shared ownership can be viewed online at www.home-options.org. These new homes will be advertised later in 2025.”
Developed by Nottingham Community Housing Association (NCHA) in partnership with MyPad, the scheme will offer much-needed affordable housing for local families.
MyPad will construct the homes, that’ll be built to energy rating A standard. With no gas on-site, the homes will be fitted with air source heat pumps, enhanced insulation, and advanced double-glazed windows, along with EV charging points for each home and PV panels reducing energy bills for residents and supporting Derbyshire Dales District Council’s commitment to a greener future.
NCHA and MyPad recently met with Derbyshire Dales District Council for a tour of the site.
Claudine Edwards, New Business and Development Manager at NCHA, said: “This development reflects our commitment to building homes that are both affordable and environmentally friendly, in line with our sustainability targets.
“With rising energy costs, these homes will provide residents with lower living expenses and a reduced carbon footprint. We’re proud to bring this new housing scheme to Ashbourne, addressing local housing needs while paving the way for a sustainable future.”
John Turner, Land and Partnerships Director at MyPad, said: “We’re delighted to have started another project in partnership with NCHA. This development will provide a range of high quality and efficient homes to meet the growing need for affordable housing in Ashbourne. We’re now fully focused on build to allow the handover of the first completed homes in summer 2025.”
Interest rates left unchanged
The Bank of England has held interest rates at 4.75%, in line with expectations following the further rise in inflation announced yesterday.
The Monetary Policy Committee (MPC), which sets monetary policy to meet the 2% inflation target, voted by a majority of 6–3 to maintain Bank Rate at 4.75%. Three members preferred to reduce Bank Rate by 0.25 percentage points, to 4.5%.
Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “It was widely expected that the Monetary Policy Committee would keep rates unchanged in December. Having cut twice this year, today’s announcement was in line with the gradual pace of rate cuts that the MPC has previously endorsed.
“However, the trade-off facing the Bank of England is getting more difficult. While the worst of the inflation crisis is undoubtedly behind us, we now expect the CPI rate to stay above the Bank’s 2% target for the next two years- following announcements in October’s Budget.
“Domestic price pressures also remain stubbornly high. At the same time, business surveys – including our own – show a notable deterioration in growth and hiring expectations.
“The MPC has prioritised its price stability mandate in the recent past, which aligns with a gradual loosening in monetary policy. As a result, we expect four more rate cuts over the coming year.
“However, if growth prospects worsen more materially, dampening domestic price pressures in the process, we may be looking at a scenario where rates are cut at a faster pace.”
Footprints calls out for building materials and construction skills for new centre
Nottingham-based charity Footprints Conductive Education Centre is asking the East Midlands construction community if it can pledge its support in 2025.
Footprints transforms the lives of children living with mobility and communication difficulties across the East Midlands and empower their families. Through Conductive Education and its other transformative services, children develop the skills they need to thrive and achieve their potential.
Having outgrew its previous centre, which was within a school in Sneinton, the charity announced earlier this year that it had found its own, larger premises on Farnborough Road in Clifton, and would be moving in 2025.
The brand-new Footprints Centre, home of Footprints Conductive Education and Community hub, will enable the charity to deliver a greater number of transformative services and reach more children and families, as well as connect with the local community. However, the new centre needs significant renovation works before it can be fully operational.
To progress with the building works Footprints is looking for companies who can support with services and donations of building materials, supply and installation of insulation and landscaping services. It is also looking for funds to buy the equipment it needs in the centre to support more families.
The charity has already welcomed over 100 volunteers who have helped to strip back and clear the site, and local businesses have also played a major role in the project to date. Halsall Lloyd Partnership Architects, project manager Gleeds, mechanical and electrical engineer Chord Consult and workplace consultancy Blueprint Interiors have donated time and expertise to get the renovation plans together.
John Pye Auctions has also donated goods for the centre, as well as storage and logistical support with the collection and delivery of furniture and materials, and 200 Degrees Coffee will be training volunteers to be baristas in the new coffee bar.
Blueprint Interiors is now calling on its contacts in the property and construction industry to bring together more partners who are looking for a meaningful cause to support in the new year, and can help Footprints get its new centre operational.
John Tansur, Commercial Director at Blueprint Interiors, said: “Having seen the miracles the team at Footprints have performed over the years working with the children and families it supports, it was an easy decision for us to get involved in the project. If the business community can all pull together and deliver the facilities they need then we can help change so many lives for the better.
“To help with longer term financial support, part of the new centre will be a wellbeing coffee bar which will provide a safe and supportive space for families to spend time in and connect with other Footprints families, as well as being open to the local community.”
Stephen Frew, Footprints’ Business and Charity Manager, said: “Moving to our new centre in Clifton will be an absolute game changer for Footprints. As a charity who supports children and families with mobility and communication difficulties, it’s crucial that we provide a space which is accessible and is suitable for all of our needs, now and in the future. And we’re so pleased to have found this at Clifton!
“At our brand-new Footprints Centre, we will be able to deliver a greater number of our transformative services and reach more families and children. We are hugely grateful to the amazing organisations who are working with us on our exciting project, their support will truly make a difference to all of the children and families we support.”
As well as having the wellbeing coffee bar for families and the community, the new Footprints Centre will have three session rooms, and new facilities including a sensory room, function space and outdoor education areas.
To find out more about the project and to pledge support, contact enquiries@footprintscec.org
Football clubs write to Government to support rail link connecting Midlands cities
Coventry City and Nottingham Forest football clubs have written to the Transport Secretary and the Culture Secretary to support a potential rail link that would connect Coventry, Leicester and Nottingham to boost economic growth in the Midlands.
The rail link, planned by Midlands Connect, would reinstate direct rail services between the three cities for the first time in two decades.
The letter signed by the sports clubs says improved rail connections between Coventry, Leicester and Nottingham would help to reduce emissions from match-going fans by offering supporters a reliable alternative to the car. The link would also increase home and away attendance in the major sports grounds and entertainment venues of the Midlands, providing a boost to the local economy.
Interviews with Coventry City, Leicester City and Nottingham Forest fans showed an appetite for improved rail connections for fans in the Midlands.
John Taylor, COO at Coventry City, said: “For Coventry City and other football clubs, transporting fans efficiently and sustainably is incredibly important.
“This project will help increase attendance and create an easier journey for people using the Coventry Building Society Arena for non-sporting events.
“Connecting the three major cities is massively beneficial for sports clubs like Coventry City, and other local businesses.”
Andy Clark, Head of Rail at Midlands Connect said: “Currently only 3% of journeys on the Coventry-Leicester-Nottingham corridor are made by train, compared to 30% between better connected cities such as Coventry and Birmingham.
“We plan to have a direct, half hourly service with a journey time of 40 minutes from Coventry to Leicester and 70 minutes from Coventry to Nottingham, which would improve the journey for thousands of sports fans and other customers travelling between the three cities”.
