East Midlands unemployment rate drops – but acute skills shortage is hampering recovery
Unemployment in the East Midlands has dropped slightly and remains below the national average, according to the latest figures.
The region’s unemployment rate for the period between June and August 2021 was 4.3%, down by 0.1% compared to between May and July, the Office for National Statistics’ latest regional labour market report revealed.
And for the third successive month it was lower than the UK-wide figure, which dropped from 4.6% to 4.5% during the same timeframe.
Before this recent period, the region’s jobs market had consistently been hit harder than the rest of the country during almost the entire pandemic – peaking at 5.9% and 0.8% above the national average.
East Midlands Chamber Chief Executive, Scott Knowles, said: “After some concerning numbers at the beginning of this year, the unemployment rate appears to have stabilised as Covid-19 restrictions have been rolled back.
“This has enabled industries that are heavily represented in our region’s economy – including hospitality, retail, and leisure and tourism – to finally reopen fully and prove they have always remained viable if the trading environment allows.
“At the same time, we’ve also seen initiatives like the Kickstart Scheme – in which the Chamber has played a key role as a gateway organisation to facilitate more than 1,000 job placements – contribute to helping young people, who had been disproportionately affected by Covid, find work.
“We expect the region’s jobs market to continue improving, with the latest data from the Chamber’s Quarterly Economic Survey (QES) for Q3 2021 showing a net 25% of East Midlands businesses saying they have increased headcount over the previous three months and a net 38% expecting a rise in employment over the coming three months.”
While the UK’s September payrolls showed another monthly increase of 207,000 to 29.2 million, the headline figure was that job vacancies once again hit a record high, with 1.1 million jobs available between July and September.
Scott added: “The record number of vacancies highlights the acute hiring crisis faced by many businesses right now. While two-thirds (67%) of companies attempted recruitment in the previous quarter, according to our QES, 71% of this cohort said they faced problems with hiring the right people.
“We have skills gaps across the board that urgently need to be addressed – something that has been highlighted most pertinently by the HGV driver shortage during the ongoing fuel supply crisis.
“Many of these are longstanding but as Brexit and Covid have driven a more deep-seated decline in labour supply, they have come to the fore more prominently.
“The end of furlough is unlikely to be a silver bullet to the ongoing shortages and these recruitment difficulties will likely dampen the recovery by limiting businesses’ ability to fulfil orders and meet customer demand.
“More needs to be done to ensure businesses have access to skills when these can’t be recruited locally – including access to rapid and agile training and re-skilling opportunities for adults in the workforce, and a more flexible immigration system that allows firms to access the high and low-skilled workers they need.”
Full year revenue dips at Shoe Zone
Revenue has dipped slightly at Shoe Zone, the Leicester-based retailer, according to a full year trading update.
Unaudited results for the 52 weeks to 2 October 2021 indicate a total group revenue of £119.1m, down from £122.6m in 2020 and £162m in 2019. The company said this was impacted by the COVID pandemic mainly in the first half of the year as stores were closed for 16 weeks.
All stores were open and fully trading as at the end of April 2021, however, enabling the business to trade over its key ‘Back to School’ period.
Digital revenue was boosted in the year at £30.6m in comparison to £19.3m in 2020 (a 58.5% increase) and £10.6m in 2019 (a 188.7% increase). This now represents 25.7% of revenue, a result of Shoe Zone’s digital investment.
The firm further noted that profit before tax is expected to be not less than £6.5m
Chief Executive, Anthony Smith, said: “Shoe Zone has weathered an intensely challenging year due to the COVID-19 pandemic. The negative impact of this has been largely mitigated due to quick action taken in areas we could control, by reducing costs, continuing and accelerating investment in our digital business and improving operations. As a result, we have emerged as a leaner, stronger and more resilient business.
“These are a solid set of preliminary results but there is still uncertainty ahead of us in the next 12 months, not only with the continuing impact of COVID, but also the challenges we face with the global supply chain and inflationary pressures. We have seen a minimum of a five-fold increase in container prices over the last 12 months and this will continue to impact us for at least a further six months until the issues being experienced in the whole supply chain return to more sensible levels.”
Small firms losing £25bn a year to tax admin
The Making Tax Digital initiative, which the Government states should be “making it easier for individuals and businesses to get their tax right and keep on top of their affairs,” has, to date, significantly increased costs and admin burdens for small firms, according to the latest major report from FSB.
The business group sets out measures to reverse those trends and ensure MTD delivers on its potential to improve productivity and profitability among small firms.
FSB’s new publication, A Duty to Reform: Making tax work for small businesses in a digital world, shows that small firms are each spending an average of £4,100 and 52 hours a year on tax compliance.
For those that are participating in the Government’s MTD programme – designed to fully digitalise the tax reporting process – the average cost of compliance (£4,562) is considerably higher than for those yet to migrate (£2,960).
Those in scope of MTD must purchase compatible software, subscriptions for which have significantly added to compliance costs. There are concerns that these costs will grow further as the initiative is extended to cover more taxes.
Seven in ten (70%) small businesses have made the MTD switch. Among them, a similar proportion (71%) say that the move has resulted in increased costs and time lost to learning new processes.
Collectively, the small business community is losing £25 billion a year to tax compliance – a figure which does not reflect the 300 million working hours spent on preparing and filing records.
The report also finds that the requirement to register for VAT once a firm has £85,000 of turnover serves as a barrier to growth for one in four (24%) firms, equivalent to 1.4 million businesses across the UK.
Elsewhere, the study flags a lack of awareness among small firms of the tax incentives they’re entitled to – fewer than one in 20 (4%) see the Government’s new Super Deduction for plant & machinery investment as a top incentive to invest and expand.
When asked to identify desired tax reliefs that would assist growth, more than a third (34%) cite “a reduction in National Insurance Contributions.”
Recommendations published as part of A Duty to Reform include:
- Ensuring the Government takes a stand where MTD is concerned to prevent unfair profit-seeking behaviour among software providers, with the Competition and Markets Authority intervening if necessary.
- Installing an MTD feature which nudges businesses towards relevant tax reliefs and investment incentives.
- Increasing the VAT turnover registration threshold, which has not moved in-line with inflation, to encourage those bunching beneath the £85,000 turnover point to expand whilst adopting the Office for Tax Simplification’s proposals for a smoothing mechanism.
- Reforming the Super Deduction, with consideration given to scaling back the cost of the break – making room for incentives that would benefit a greater number of smaller firms – and changing qualifying criteria to make the break applicable to intangible assets such as software and intellectual property.
- Increasing the Employment Allowance from £4,000 to £5,000 to help firms recruit, retain and retrain more staff as furlough ends and operating costs rise.
Mixed-use scheme proposed for former Newark Marks & Spencer
Newark and Sherwood District Council has finalised its plans to transform the former Marks & Spencer site on Stodman Street in Newark to bring new homes, shops and employment opportunities to the town centre.
A planning application has been submitted by architects RG+P Ltd to build a new site comprising a mixed-use housing and commercial development featuring 29 new homes and between two to four new retail units.
The Council took ownership of the site in March 2020. Despite marketing the building, no viable offers or approaches for large retail premises were made, but it was clear there was an interest for smaller retail spaces. This led the District Council to explore how the current building could be reconfigured and repurposed.
The redevelopment of the site was one of nine priority projects set out in Newark’s ‘Town Investment Plan’ (TIP) which was developed by a dedicated Newark Towns Fund Board, including more than 30 private and public businesses and bodies. These plans were given the go ahead by central government in March 2021 as part of its Towns Fund initiative and £25 million funding was awarded to Newark.
The TIP identified concern from residents about empty properties and the lack of housing. It also found that just 3% of Newark’s population live in the town centre and noted the limited offer, especially for general market housing and the private rented sector.
To address this concern, the new homes are expected to be available for residents by 2023/4 and will comprise one and two-bed apartments for private sale. By increasing the resident population, it is forecast that the town centre will benefit from an increase in spend, use of facilities, footfall, new jobs and improved access to services.
The District Council has also secured £284k in additional grant funding for the project through the Ministry of Housing, Communities and Local Government’s Brownfield Land Release Fund, in partnership with North Midlands One Public Estate. This funding will support the cost of the demolition and remediation works and will allow for the scheme to be completed sooner than initially targeted.
If planning permission is granted, demolition works are due to begin in April 2022, with construction on site targeted for a start date of November 2022.
Councillor David Lloyd, leader of Newark and Sherwood District Council and co-chair of Newark Towns Fund Board, said: “These are really exciting plans for Newark, to create new, high quality homes, retail space and job opportunities in the heart of the town centre. This will in turn drive local activity, footfall, dwell time and public spend, ultimately driving a catalyst to wider town-centre regeneration.
“I know that since the site became vacant in spring 2019 there has been a visible gap on the high street, which isn’t at all appealing to residents and visitors. Thanks to central government funding we can now submit these plans to redesign the area and bring this key site back into use for everyone to enjoy.” WREN to raise funds for mental health charity with quiz night
WREN Property Network is raising funds for a mental health charity as it celebrates the return of its in-person events.
After what will be more than eighteen months since events went dark and WREN was forced to postpone all scheduled seminars and events following its re-launch party last February, it finally has the go ahead to return with its first live and in-person event – a charity quiz night.
The event, in aid of The Wolfpack Project, will be held on Friday 19 November, from 6.30pm-9.30pm, at Nottingham’s Spotlight Bar within Motorpoint Arena.
Mingle, enjoy dinner, a quiz and raffle prizes.
Green light recommended for 60-bed student scheme
Plans for a new student accommodation scheme in Nottingham have been recommended for approval by the City Council.
The 60-bed scheme would replace a disused play centre – a two storey red brick terrace style property.
Thorpe And Fletcher Developments Ltd are behind the proposals which would see the existing building at 34 Tennyson Street demolished and ten 6-bed student accommodation dwellings constructed.
Two short terraces of identical three storey buildings would be built.
Each student accommodation dwelling would have would have a shared kitchen/living space on the ground floor and three bedrooms on both the first and second floors.
Nottingham web design agency shortlisted for national awards
Nottingham-based web design agency, Strafe Creative, has been named as finalists in The Drum Awards for the Digital Industries, a prestigious national award that recognises the companies and people behind the most effective and innovative marketing.
Strafe has been listed in the Best Website Design Category for its work with Adventure Base, a leisure, travel and tourism company which specialises in creating and delivering unforgettable mountain experiences.
Located in Nottingham’s Creative Quarter, Strafe has been selected ahead of other top agencies in the UK, including many leading London firms.
Launched in 2006, The Drum Awards for the Digital Industries is a global competition. Each year, it attracts entries from some of the most remarkable marketing and advertising talent from around the world whose work is judged by senior figures from international brands, global consultancies and fast-growing independent agencies.
In 2021, the jury comprises representatives from Unilever, The Lycra Company, TSB, Boots UK, Ketchum, Getty Images and the US Chamber of Commerce.
Ross Davies, director and co-founder of Strafe Creative, says: “I am delighted that Strafe has been selected as a finalist and that we are competing alongside some of the leading agencies in the UK. Our work is being judged on our design capabilities and the strong results we have delivered for our client.
“We are focussed on conversion led design, helping our clients convert more enquiries into sales. Our work with the Adventure Base has done just that. The website we designed has helped Adventure Base convert more sales and is therefore supporting the growth of their business.”
Everyone at Strafe is hoping it will be a case of ‘two out of two’ on the night, following the success of Open Kitchens at the CSR Excellence Awards. The Strafe team worked alongside others in the creative and hospitality sectors at the height of the pandemic in 2020 to create Open Kitchens, an initiative that brings together restaurants and their local communities to fund, produce and deliver free meals to vulnerable people.
Ross Davies adds: “The Open Kitchens scheme is something we as a company are hugely proud of being involved with. During the pandemic we managed to retain all staff and, although working remotely, were open as usual. This meant we were able to use our expertise to help Open Kitchens and widely support vulnerable people and the local restaurant industry.”
Streets to review the Autumn Budget 2021 in virtual event
The Chancellor of the Exchequer, Rishi Sunak will unveil the Autumn Budget and public sector spending review on Wednesday 27th October.
Mr Sunak will provide details of how he plans to balance the books over the next year and details of a three-year spending review.
The Chancellor said the spending review would “set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.”
On the following day (28th October), Streets Chartered Accountants will be hosting a virtual event via Demio to offer:
- A review of the announcements made by the Chancellor
- Guidance on the impact of the changes for individuals and businesses
- An indication of the steps to be taken to deal with the announcements
Major Mansfield golf retailer sold to French firm
Golfsupport.co.uk, the online golf retailer based in Mansfield, has been sold to PGC Group, the French business involved in the distribution of golf equipment for players and professionals and a European leader in driving range and course equipment.
Golfsupport.co.uk generates about half of its turnover in the UK and a third in continental Europe.
The acquisition allows PGC Group to penetrate the British market but also online distribution, thus integrating a new channel and new brands.
TLT advised Golfsupport.co.uk on its sale. KBS Corporate advised on the sale of its shares.
John Lines, CEO at Golfsupport.co.uk, says: “We are delighted to become part of the growing PGC Group. Our mission has always been to provide a one stop shop for players and professionals and this will ensure that we can continue to achieve this goal.
“We are grateful to TLT for their advice and professionalism, and for working seamlessly with the parties to complete the deal.”
Richard Life, partner at TLT who led the team, says: “We’re continuing to see overseas interest in businesses that have secured a strong foothold in the UK and European markets. This is a great way for many companies to take their growth to the next level, and we are delighted to have been able to support Golfsupport.co.uk on this major milestone.”
PGC Group aims to double its turnover in 2021 and cross the threshold of 30 million euros in revenue given these external growth operations and the strong resilience of the golf market in Europe.
Masterplan unveiled for regeneration of major Derbyshire brownfield site
An online consultation has been launched to gather feedback on the future development of New Stanton Park, the 200-acre, rail connected site near Junction 25 of the M1 in Derbyshire.
Verdant Regeneration purchased part of the former Stanton Ironworks site at the end of 2020. Since then it has been working with Erewash Borough Council and a wide range of stakeholders to draft proposals for the regeneration of the brownfield site off Lows Lane in Ilkeston, Derbyshire. It is now sharing the plans to gather feedback from the wider local community in an online consultation throughout October.
A number of plans have been put forward as part of the consultation. The main benefits include the remediation and re-use of a large, brownfield site; the potential to provide up to 261,471 square metres of employment space; development of an estimated 4,000 new jobs.
The plans also include consolidation of the existing rail line and provision of new rail spur; retention of approximately 50 acres of woodland and waterways for biodiversity; creation of a substantial new pond within the site for drainage and re-routing National Cycle Route 67 to make it a safer, more pleasant route for cyclists and pedestrians.
David Ward, director of Verdant Regeneration, said: “The team has been working closely with Erewash Borough Council and a wide range of stakeholders to prepare a planning application which offers significant economic development and employment in a scheme which also retains much of the green open space and waterways within the site.
“The proposals, which are not yet finalised, include new employment space, rail hubs and retention and enhancement of green spaces and ponds. We are keen to hear the feedback and thoughts of the local community, as this is a significant development that is important to the prosperity and future wellbeing of generations to come.”
New Stanton Park site has already been identified by Erewash Borough Council as a key regeneration site in their Core Strategy. With a direct and operational link to the Midland Mainline railway, the site has potential to become a key distribution point for materials being imported and exported efficiently throughout the UK and beyond.
Following the end of the consultation, feedback on the initial plans will be incorporated into the planning application, with submission expected later in the year.
Running from Friday 8 October to Friday 5 November, the online public consultation is being held via the website: www.nspconsultation.com and managed on behalf of Verdant Regeneration by SP Broadway.
