2022 Business Predictions: Chris Hobson, director of policy and external affairs at East Midlands Chamber
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 Chris Hobson, director of policy and external affairs at East Midlands Chamber.
The watchword for 2022 is uncertainty as businesses grapple with a growing list of issues – ranging from capacity constraints and skills shortages to price rises and tightening cashflow – which are now putting a drag on what was previously looking like a strong economic recovery.
Our latest Quarterly Economic Survey for Q4 2021 showed every single economic indicator had dipped compared to the previous quarter, so the warning lights are flashing.
At the same time, there are positive signs for our region. The freeport at East Midlands Airport will be a magnet for international inward investment as we seek to establish ourselves at the centre of the UK’s post-Brexit global trading relationship, hopefully backed by new trade deals in the next 12 months.
While we were deeply disappointed with the Government’s recent decision to descope the HS2 Eastern Leg, which we are concerned will place us at a structural disadvantage to the West of our country, there are opportunities in the Integrated Rail Plan that our region must maximise by working together.
We should learn more about the East Midlands Development Corporation’s vision for key strategic sites, most notably the future of the Ratcliffe-on-Soar Power Station, which could thrust the region to the heart of the energy innovation that will guide the UK to a net zero future.
The ESG (environmental, social and governance) agenda is rising in prominence for businesses and they should be ready to demonstrate how they’re embracing sustainability.
This is one policy area where there is a clear direction but we will need our decision-makers to bring more certainty across the entire policy landscape over the next 12 months – giving businesses the confidence they need to invest and rebuild our economy.
Midlands permanent salaries rise at record pace in November
The latest KPMG and REC, UK Report on Jobs: Midlands highlighted a record rise in both permanent starting salaries and hourly wages for temporary staff in November, amid a combination of sharp and sustained growth in demand for staff and a further marked deterioration in the supply of candidates.
A further steep expansion in permanent placements was also recorded, and one that was the sharpest since June’s series record. Meanwhile, growth in temporary billings eased to the joint-softest since May.
The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.
Further rapid rise in permanent placements
The rate of growth in permanent placements across the Midlands quickened midway through the fourth quarter of the year. The increase was rapid overall and the sharpest seen since June’s survey record. Recruitment consultancies indicated that placements had risen following stronger demand from clients for permanent staff amid sustained shortages.
The increase in permanent placements in the Midlands was slightly quicker than that seen at the UK level.
November data pointed to a continued increase in temporary billings in the Midlands. That said, the rate of expansion slowed from October and was the joint-softest since May (equal with September). Some respondents suggested that while clients were more confident, there were fewer applications for temporary positions.
Growth in temp billings was also the slowest of the four monitored English regions.
Permanent vacancies increased at a marked pace in the Midlands during November, though the rate of increase eased for the third month running. As a result, permanent vacancies increased at the softest pace since March.
Demand for temporary staff also rose steeply in the latest survey period. Yet, the pace of expansion softened from October to the slowest for eight months.
Growth in demand for staff in the Midlands was weaker than the national average.
Softer decline in permanent candidate numbers
The Midlands saw a further reduction in the supply of permanent candidates during November, though the rate of decrease slowed to the softest since May. Anecdotal evidence suggested that people currently in work were reluctant to move at present given higher levels of uncertainty. At the national level, the reduction in the availability of permanent staff was than quicker that seen in the Midlands.
Recruitment consultancies indicated that temporary candidate numbers decreased at a rapid pace in November. The pace of reduction slowed for the third month in a row to reach the softest for six months. A number of respondents indicated that Brexit and tax legislation changes had contributed to a lack of available staff for temp roles. The fall in temp staff availability was the least marked of the four monitored English regions, however.
Permanent salaries rise at record rate for the second month in a row
Permanent salaries for new joiners in the Midlands increased at the fastest pace in the survey’s history in November, with the rate of inflation surpassing the previous record set in October. A combination of rising demand for staff and a lack of suitable candidates was behind the increase in permanent salaries.
The rise in permanent salaries in the Midlands was the sharpest of the four English regions covered.
As was the case with permanent starting salaries, pay rates for temporary staff rose sharply during November. The rate of inflation was the strongest since the survey began in October 1997. Recruitment consultancies indicated that candidate supply shortages had been the principal factor leading to higher pay rates. Moreover, the increase in the Midlands was the quickest of the four monitored English regions.
Commenting on the latest survey results, Kate Holt, People Consulting Partner at KPMG, said: “The rate of sustained salary growth across the region suggests that the war on talent shows no signs of abating as businesses continue to look for people with the right skills.
“The demand and supply imbalance, however, is not going to change overnight, and while January typically is a busier month for jobseekers, it won’t tackle the bigger issue, which is essentially skills. If we address this issue, then pressures will begin to ease, but effort is required of all to look at how to identify and maximise on transferable skills, as well as upskilling and reskilling.”
Neil Carberry, Chief Executive at the REC, said: “Today’s figures emphasise again how far we have come this year – it is certainly a great Christmas if you’re looking for a job. This is always the busiest part of the year for recruiters, but demand for new staff across the autumn has been exceptional.
“Because of this high demand, starting salaries and temp rates continue to rise, making it even more attractive to be looking for a new opportunity in 2022. Hiring companies will need to make sure they get their offer right – not just on pay – and take an inclusive approach if they are to avoid losing out.
“It’s too early to tell what the effect of the Omicron variant might be on the labour market – December may be slower than previous months as its effects feed through. Hospitality will be in the forefront of any changes as we approach the festive season, of course, and the impact of high inflation will also be felt as purses tighten in January.
“But the broader outlook is more positive for candidates, suggesting that the labour market will remain tight for some time to come. This will put a premium on skills development, and the flexibility to hire overseas when necessary. These two issues will be critical ones for the government to address next year – both levelling up and delivering a global Britain rely on them.”
New senior architectural technologist joins InkDrawn
Architectural studio, InkDrawn, has appointed a new senior architectural technologist following a series of project wins.
Nicola West, a Chartered Member of CIAT (Chartered Institute of Architectural Technologist), has joined the Leicester-based studio to implement technical delivery of the firm’s residential and commercial developments.
With over 30 years’ experience, Nicola is passionate about training young people and has sat on both the CIAT’s Education Committee and Executive Board, where she was the first female to be elected.
“I was fortunate that part of my role on the CIAT Education Committee was to undertake accreditation and validation visits to universities, so I got to interact first-hand with aspiring architecture students,” said Nicola.
“I believe that mentoring and learning are essential tools for success so I’m keen to not only help my new colleagues at InkDrawn, but also continue my own training. I’m actually just completing my On Construction Domestic Energy Assessor (OCDEA) course which will enable me to become an accredited SAP assessor for new homes.”
Celebrating its tenth year in business this year, InkDrawn has recorded several significant project wins in recent months, including The Triangle, a £35m riverside residential development in Ashford, Kent and The UrbanFox Quarter, a £40m residential development in Leicester, both of which Nicola is now working on.
BT gifts free advertising to Nottingham based businesses as first Street Hub 2.0 Unit goes live
Nottingham is one of the first places in the UK to benefit from BT’s new digital street units, with the first one in the city unveiled in Canal Street today.
BT is donating up to £7.5 million of outdoor advertising space to small businesses across the UK, as part of its roll-out of new Street Hub 2.0 units – which help build the UK’s digital infrastructure and include services such as an emergency call button, rapid mobile device charging and ultrafast Wi-Fi.
Local businesses in Nottingham are also being given the chance to advertise for free on the new Street Hub units, with nominations open now. BT is calling on local businesses and the public to nominate local firms who could benefit from the offer.
The launch comes as a recent BT study found that more than 60 per cent of small businesses agree that local advertising would help to increase awareness of their business, with 40 per cent saying it would encourage more people to shop at their local high street. However, almost half (49 per cent) said that cost was a major obstacle to them investing in local Out Of Home (OOH) advertising. BT is now taking action to remove one of the biggest barriers to adoption, with the Street Hub’s digital advertising screens designed to help small firms attract more customers following the local and national lockdowns.
Street Hubs can also help to enhance digital connectivity and services for communities through features including charity helplines, and local wayfinding via an integrated tablet.
A further three of the new Street Hub units will be rolled out in the first phase of the rollout across Nottingham in the coming months.
Councillor Rebecca Langton, Portfolio Holder for Skills, Growth and Economic Development at Nottingham City Council, said: “We’re excited to see BT investing in these new Street Hubs and providing small businesses with an opportunity to raise their profiles in Nottingham city centre. The hubs, which contribute to Wi-Fi coverage in the city centre and offer information and mobile charging points, will benefit residents and visitors to Nottingham, and this will further support small and independent businesses who play such an important role in making Nottingham city centre a great place to socialise safely.”
Sarah Walker, Director for BT’s Enterprise business in the Midlands, said: “BT has been supporting the recovery and growth of small businesses throughout the pandemic – and we’re moving up a gear as many prepare for one of the busiest times of the year. We hope that, by gifting free digital advertising space via our new Street Hub units, we can give small businesses in Nottingham an extra boost as high streets spring back to life. Our new Street Hub units can play a vital role in helping small firms to bounce back – whether that’s through building greater awareness of their business through free advertising, or by rejuvenating the high street by boosting local digital infrastructure.”
Kirsty Hole, Director of 101 Vintage, an independent vintage and used clothing store in Nottingham, said: “We’re a small independent shop, founded by two women, that opened our doors in September in the heart of Nottingham. One of our biggest challenges right now is connecting with customers and letting them know that we’re here. The power of local advertising is so important for us as a new small business, but Out-of-Home advertising felt completely out of reach at this early stage of our journey. The opportunity to have our name in lights on the new BT Street Hubs to let the local community know that we’re here, and open, is the perfect solution.”
The new digital units can also help local councils achieve their social and economic improvement and sustainability goals. With Nottingham City Council aiming to be carbon neutral by 2028, each Street Hub 2.0 unit can be fitted with air quality and CO2 sensors. This will provide local councils with the insight needed to help them take action to improve air quality, contributing to the health and wellbeing of local people.
BT’s latest study also revealed that around two thirds (66 per cent) of local businesses think that mobile connectivity could be improved in their local community, to help them work faster and smarter. BT’s new Street Hub 2.0 units will enhance local digital infrastructure by including the option to install mini mobile masts or ‘small cells’ on the structure to further boost 4G and 5G coverage in the local area.
Subject to local planning processes, BT is aiming to roll out around 300 of its new Street Hub 2.0 units across the UK in the next 12 months, working closely with local councils and communities.
Local employers ‘named and shamed’ for failing to pay staff minimum wage
Over 200 employers have been named and shamed by government for failing to pay their lowest paid staff the minimum wage.
The 208 employers were found to have failed to pay their workers £1.2 million in a clear breach of National Minimum Wage (NMW) law, leaving around 12,000 workers out of pocket.
Companies named range from multinational businesses and large high street names to SMEs and sole traders.
These businesses have since had to pay back what they owe to staff and also face significant financial penalties of up to 200% of what was owed, which are paid to the government. The investigations by Her Majesty’s Revenue and Customs concluded between 2014 and 2019.
Minister for Labour Markets Paul Scully said: “We want workers to know that we’re on their side and they must be treated fairly by their employers, which is why paying the legal minimum wage should be non-negotiable for businesses.
“Today’s 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not. With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So don’t be a scrooge – pay your staff properly.”
The employers named previously underpaid workers in the following ways:
- 37% – deductions that reduce minimum wage pay, for example workers out of pocket to comply with the dress code
- 29% – unpaid working time such as mandatory training, trial shifts or travel time
- 16% – failing to pay the correct rate to apprentices
- 11% – not increasing NMW pay in line with government rises, or paying the wrong minimum wage rate, for example paying a 23 year old the 21-22 year old rate
Acorn Safety Services wins two national awards
A Northampton health and safety consultancy has won two prestigious national awards.
Acorn Safety Services has won the UK Best Health & Safety Consultancy award at the SME News Midlands Enterprise Awards which showcase the region’s industry leaders.
News of the win came hot on the heels of Acorn’s health and safety manager, John Crockett, winning The Alan McArthur Unsung Hero Award at The Safety Health and Excellence (SHE) Awards. These national awards celebrate innovation and achievements in the health and safety sector and attract hundreds of entries from across the UK.
During the past 45 years, John has helped tens of thousands of clients, including the likes of Bovis Construction, London Midlands Trains, HSBC Data Centres. BP, British Gypsum, Heathrow Airport, McDonald’s, Taylor Woodrow and Network Rail.
Since joining Acorn in early 2020, John has helped more than 600 of its clients with their health and safety needs and helped the firm to further extend its range of services.
He said: “I’ve always worked hard but I’ve never sought to be rewarded. To win the award was incredible because I was up against tough competition. I’m pleased for myself, but I’m also delighted for Acorn because winning these awards shows people that Acorn is somewhere they can go for expert health and safety advice in a wide range of areas.”
Acorn director, Ian Stone, said: “We’re so proud to have won these awards and are thrilled for John whose expert guidance has saved countless lives, prevented many injuries and saved so many clients from issues that would have ended in prosecutions.”
Plans for planetarium at Sherwood Observatory move a step closer
An ambitious project to build a state-of-the-art new £5.25m planetarium and science discovery centre in Nottinghamshire has moved a step closer after funding was secured and a contractor appointed.
The team at Sherwood Observatory, in Sutton-in-Ashfield, has secured support via the Towns Fund programme for the scheme that aims to inspire interest in STEM learning and careers.
They have also appointed a local contractor, Robert Woodhead Limited, to carry out the building work, procured through SCAPE, one of the UK’s leading procurement authorities.
A planning application will be submitted in early 2022, with work on the development due to start later next year. The project has been accelerated through SCAPE Construction, a direct award framework designed to drive collaboration, efficiency, time and cost savings.
Planetarium project manager, Steve Wallace, said: “The new centre will create a unique visitor attraction and help raise the profile of our area significantly.
“It will focus on delivering STEM content in an exciting and hands-on way, to raise awareness of the opportunities that STEM careers can unlock an important aspect of future jobs creation in our region.”
Leo Woodhead, director of Robert Woodhead Limited, said: “We are so pleased to have been appointed to build the new centre through the SCAPE. It means we can bring our construction expertise in delivering exceptional visitor attractions at the earliest possible stage.
“This early engagement has a multitude of benefits to the project, one being how we can get people involved in discovering STEM during the design and construction phases to deliver exceptional social value.”
Mark Robinson, group chief executive at SCAPE, said: “This project is a great example of how government funding can be channelled to breathe new life into local communities. Not only will it stimulate the local visitor economy but also inspire children and develop much needed interest in STEM-based careers.
“We’re extremely proud to have helped accelerate the project through procurement and, in turn, ensure Sherwood Observatory will be supported by a best-in-class local delivery team.”
The project aims to turn a disused underground Victorian reservoir on the site of the Sherwood Observatory into a state-of-the-art tourist attraction and education centre. The reservoir will be repurposed to house a multi-functional exhibition area and teaching spaces while preserving the existing architectural heritage features.
The striking designs have been drawn up by Nottinghamshire Architects, Player Roberts Bell. HSP Consulting Engineers, based in Eastwood, will form part of the experienced design team.
A 10m diameter planetarium, accommodating approximately 60 people per show, will sit on the reservoir’s roof. The planetarium is being designed though a partnership of RSA Cosmos and ST Engineering Antycip, global leaders in digital planetariums and visual displays. The area around the planetarium will serve as a viewing platform for portable telescopes.
It is set to become one of just a handful of UK destinations to combine a planetarium with an observatory – and has the potential to attract at least 20,000 visitors a year to support the local visitor economy.
The plans were presented to an audience of business and community leaders at the head office of local business Total Integrated Solutions on the 24th November, along with a call for more local businesses to back the project and provide the outstanding funding required to bring it to fruition.
It is hoped that the education and outreach activities it carries out will help create a pipeline of talented and motivated people interested in STEM, which will support prosperity in the area and develop the skills needed by local businesses.
To progress the project further, it needs to secure a further £3 million of matched funding. If funding is confirmed, the site could open in early 2024.
Plans in for 200-acre Derbyshire employment site
Plans to create a major 200-acre employment site in Derbyshire, which would create thousands of new jobs, have been submitted.
Following a public consultation, which started in October, Verdant Regeneration has submitted a planning application to Erewash Borough Council to create the rail connected scheme near to Junction 25 of the M1, on part of the former Stanton Ironworks.
Verdant, which is a joint venture featuring the owners of Ward Recycling, completed a deal for the site towards the end of last year – and first revealed its plans for the development – called New Stanton Park – back in April.
According to Verdant, if the scheme gets to go-ahead, the site could provide around two million square feet of employment space and create 4,000 new jobs once fully developed.
David Ward, of Verdant Regeneration, said: “The submission of the outline planning application is a hugely important step in bringing forward the regeneration of this major strategic site.
“In its redevelopment we are aiming to deliver high quality real estate that will drive occupier activity and job creation.”
With a direct and operational link to the Midland Main Line railway, the New Stanton Park site has potential to become a key distribution point for materials being imported and exported efficiently throughout the UK and beyond.
Mr Ward said that Verdant would take a “sustainable approach” to the development, combining energy efficient buildings with green space.
Fishing ponds, rural walkways and cycle tracks would also be created to enhance biodiversity and link the site and its wider communities.
David Grier, of Verdant Regeneration, said: “Having acquired the site in 2020, we have worked hard across the team to quickly bring forward an outline planning application on what is one of the largest regeneration projects within the region.
“New Stanton Park offers an excellent strategic location, blending an active rail connection with strong private and public transport connectivity, plentiful labour and large power supply.
“When combined, we are confident this will result in a highly successful development with the next chapter set to positively transform and improve the area, bringing forward large scale job creation in the process.”
New Stanton Park is being jointly marketed by M1 Agency and TBD Real Estate.
James Keeton, of M1 Agency, said: “The submission of the outline planning application is a major milestone in the delivery of New Stanton Park and the regeneration of this large-scale former brownfield site.
“With strong initial occupier interest, subject to receiving a positive outcome, we are confident of quickly bringing forward development and realising the transformation and improvement of the area in a high quality and sustainable manner, most importantly, delivering large scale job creation in the process.”
Chris Drummond, from TDB Real Estate, said: “The redevelopment of the site has been talked about for a significant period of time and it is excellent news that it is now hopefully set to come to fruition.
“Verdant Regeneration has been hugely pro-active in its approach since purchasing the site and with active occupier engagement we welcome the delivery of an outline planning consent to thereafter bring forward the transformation and improvement of this strategically important site.”
Leicester criminal law practice acquired by national firm
National law firm Reeds Solicitors LLP (Reeds) has acquired Bray & Bray’s (Bray) criminal law practice in Leicester.
The acquisition, which consists of two offices, marks the firm’s first steps into the Midlands and adds to its suite of offices across London, Thames Valley, the South East, South West, the North and Wales.
The team in Leicester, lead by partner Mike Garvey, will continue to service its existing client base in all aspects of criminal legal services, whilst also leveraging on Reeds’ extensive national coverage.
Reeds continues to not only be one of the UK’s largest suppliers of legal aid services, but the firm also acts for an increasing number of clients on a private basis offering services in criminal, family, mental health, court of protection and prison law as well as numerous services in business law ranging from white-collar crime to health and safety law.
The new team brings the firm’s total headcount to more than 170 fee earners and 240 staff.
Commenting on the merger Reeds’ managing partner, Jan Matthews, said: “This is an exciting new chapter for us all here at Reeds. With offices now in the Midlands, we intend to capitalise on our increasing national footprint and offer clients the very best service that they have come to expect from us. I would like to extend a very warm welcome to our new colleagues and look forward to working closely together into the new year.”
Hitachi/Alstom JV wins contracts to build HS2 trains in Derby
A Hitachi/Alstom JV has been awarded the contracts to build Britain’s next generation of high speed trains at their factories in Derby and County Durham in a major deal set to support 2,500 jobs.
The landmark contracts – worth around £2bn – will see the JV design, build and maintain a fleet of 54 state-of-the-art high speed trains that will operate on HS2 – the new high-speed railway being built between London, the West Midlands and Crewe.
Capable of speeds of up to 225mph (360km/h), the fully electric trains will also run on the existing network to places such as Glasgow, Liverpool, Manchester and the North West.
Building on the latest technology from the Japanese Shinkansen ‘bullet train’ and European high-speed network, they will be some of the fastest, quietest and most energy efficient high-speed trains operating anywhere in the world.
The design, manufacture, assembly, and testing of the new trains will be shared between Hitachi Rail and Alstom.
- The first stages including vehicle body assembly and initial fit-out will be done at Hitachi Rail’s facility at Newton Aycliffe, County Durham; and
- The second stage of fit out and testing will be done at Alstom’s Litchurch Lane factory in Derby.
