UK labour market hits two-year high as economy emerges from pandemic
The strength of the UK labour market has returned to pre-pandemic levels for the first time, according to the latest Business Trends report from accountancy and business advisory firm BDO LLP.
BDO’s Employment Index rose for a fourth consecutive month to 110.75 in February, representing a monthly gain of 0.77 points. This is the highest level the index has seen since February 2020, when it reached 112.86 ahead of the UK’s first coronavirus lockdown. The index now sits well above the 95 level which indicates growth.
The jump in the Employment Index has been driven by the lifting of COVID restrictions and associated economic recovery. As businesses continue to re-open and resume operations, they have been looking to hire more staff to cope with increased demand. A shortage of workers due to Brexit and the pandemic has also made competition for employees fierce. Together, these factors have placed upward pressure on employment figures, reflected in BDO’s Employment Index.
The lifting of the remaining coronavirus restrictions has also led to a rise in BDO’s Optimism Index, which increased 0.9 points to 105.81 in February, marking a second consecutive month of improvement following December’s Omicron-related dip.
This rise was primarily driven by the BDO Services Optimism Index, which covers retail, hospitality and leisure among other industries. The index jumped by 0.94 points in February to reach 105.24 – its highest reading since July 2021 – reflecting the impact that remaining restrictions had on consumer-facing businesses.
However, this rise in optimism could be short lived. The impacts of Russia’s war on Ukraine are expected to weigh heavily on inflationary pressures, compounding existing concerns around the cost of living, which could see confidence decline in the coming months.
Commenting on the results, Tim Foster, partner at BDO LLP in the Midlands, said: “Propped up by the government’s furlough scheme, the UK jobs market was largely resilient throughout the pandemic. As we emerge from a series of lockdowns and return to normality, the jobs market is now moving from resilience to growth, reflected in February’s buoyant figures.
“While it’s promising to see growth in business optimism throughout February, this could be short lived as inflation continues to rise at a faster rate than wages. Inflationary pressures are set to mount further over the coming months, with energy and fuel prices key drivers of this increase.”
Speculatively built trade counter scheme in Corby reaches full occupation
Speculatively built trade counter scheme, Omega Court is now fully occupied.
Omega Court, located within Centrix Business Park, Corby, comprises 45,563 sq ft split over 10 units ranging from 2,939 sq ft to 8,600 sq ft.
Units were launched to the market at the start of 2021 with several occupiers on site and operational by summer. In recent weeks, agents and developers have secured tenants for the remaining unit which now sees the development 100% occupied.
In an interesting twist, the last tenant to sign up to Omega Court has also taken a unit at another Clowes scheme known as Forbes Park in Long Eaton. The national retailer, City Plumbing, have completed on two leases with Clowes Developments within one week.
Other occupiers at Omega Court include national DIY and trade store Toolstation and local businesses including Nielsen Racing, Personal Canvas Prints, River Rouge, B.F Brickwork and Northants Waste Control.
Construction activity at Centrix Business Park is ongoing with contractor Winvic on site building two units for NFU Mutual. One 162,000 sq ft unit has already been let to Deichmann-Shoes UK and the other 58,000 sq ft unit is being built speculatively.
Developer at Clowes Developments, Dominic Jackson, said: “I am delighted to have seen this scheme through from start on site to completion. Omega Court will undoubtedly be an active, thriving trade centre in a convenient location with an attractive mix of occupiers set within the successful Centrix Business Park.”
Conveyor Systems Limited invests in new Swadlincote HQ
Following an increase in demand for its design and installation services, due in part to the exponential growth of eCommerce, Conveyor Systems Limited (CSL) has invested in new purpose-built headquarters incorporating offices, a showroom and testing facilities.
The supplier of turnkey eCommerce fulfilment, warehouse automation, conveyor, and sortation systems, as well as a provider of support and maintenance services, has secured an 11,520 sq ft HQ close to its existing site in Swadlincote.
Enthusing about the investment, Managing Director, Mike Graham, said: “Our new purpose-built 11,520.60 sq ft head office is in close proximity to our existing site and centrally located in Swadlincote, Derbyshire. The building will play a significant role in our projected expansion plans as we drive the business forward.”
The company has also hired a marketing executive, Pete Evans. His addition strengthens the management team as he takes responsibility for marketing and brand development.
Commenting on his new role at the company Evans said: “With CSL’s ambitious expansion plans I’m looking forward to raising the profile of the business. The directors required a dedicated marketing team who could align the marketing strategy with the company’s growth plan.
“I am very excited about the challenge ahead. It is a great opportunity for me to bring my experience and creativity to the business and work together with the management team to further grow the CSL brand.
“Part of my remit includes focusing on winning new business as well as improving our clients’ experience. Underpinning all I do will be the need to bring consistency to our marketing activities, branding and documentation. As CSL enters a pivotal stage in its development it is great to be part of the journey.”
Managing Director, Mike Graham, concluded: “This is a very exciting year for CSL, we are looking forward to moving into our new flagship head office in what is the company’s 25th anniversary year.”
Social Enterprise Support fund reopens with £16.3m boost for East Midlands enterprises
Social enterprises from across the East Midlands are being urged to tap into £16.3m of funding that will help their communities recover from the impact of COVID-19.
The Social Enterprise Support Fund (SESF) reopened for applications on Monday, with organisations across the region able to apply for grants of between £10,000 and £100,000 to help them deliver essential services or increase trading in the communities they serve.
Funded by The National Lottery Community Fund, the initiative’s first round in December received 800 applications and a request for funding of over £37m.
Five social enterprise support agencies – Big Issue Invest, Key Fund, Resonance, the School for Social Entrepreneurs and UnLtd – have come together again to deliver the fund with the target of assisting circa 500 enterprises. The fund is due to close for applications on March 24th.
“The volume of applications for the first round demonstrates not only the huge need for this financial support as community and social enterprises move to recovery mode, but also the depth and breadth of the impact that these organisations continue to provide to some of the most marginalised groups and communities in our society,” explained Matt Smith, CEO of Key Fund.
“We’re proud to be part of the team delivering this funding at such challenging times for our sector, with support from The National Lottery Community Fund, and we look forward to receiving new applications in Round 2.”
The COVID-19 crisis continues to disproportionately hurt communities who already experience social and economic inequalities.
The Social Enterprise Support Fund, which is available to social enterprises if most of their beneficiaries are in England and boast an annual income of between been £20,000 and £1.8m in either of the last two financial years, will assist social entrepreneurs to put their solutions into practice to help people most impacted by the crisis.
An emphasis will be on supporting organisations that will create economic growth while helping people in need or improving the environment.
The fund is committed to inclusion, working to ensure that at least 50% of grants reach groups that are led by: people from Black, Asian and minority ethnic communities; LGBTQ+ communities; disabled people; and/or leaders with lived experience of the issues their social enterprise is addressing.
One enterprise that was successful with its application was Leicestershire-based Highfields Community Association, which has a proven track record of developing and delivering a wide range of community focused activities, including academic/vocational/first-rung learning courses, cultural events and sports/youth work activities.
It serves Spinney Hills/Wycliffe/Stonegate wards, areas that are characterised by a 85% multi-ethnic population experiencing varying severe degrees of socio-economic disadvantage.
“It’s wonderful to receive the SESF grant, as it’ll enable us to make fuller use of our Art studios and H-Café as we rebuild our footfall and income after the debilitating impact of the pandemic and related socio-economic downturn,” concluded Priya Thamotheram, head of Highfields Centre.”
For more information and to apply, social enterprises should visit http://socialenterprisesupportfund.org.uk/.
Redevelopment of Coalville’s Marlborough Square given go-ahead
The creation of a new pedestrian space for outdoor markets and events in Marlborough Square will finally start this year after councillors voted to press ahead with the scheme.
After a number of years involving detailed design and discussion, the final plans to redesign Marlborough Square have been approved by North West Leicestershire District Council (NWLDC).
The scheme has been a key commitment for NWLDC since plans were drawn up in 2018, but it has suffered delays because of the complexity and detail involved in the project.
NWLDC Cabinet unanimously approved plans for the square in February, with Full Council agreeing the budget for the work at its recent meeting. Subject to final approval from Leicestershire County Council highways, work will start this year.
The redesign includes:
• A central outdoor market and events space
• High-quality street furniture including bins and bus shelters
• Bespoke seating inspired by the National Forest
• Raised planting
• Feature LED lighting
• Granite paving
• Introduction of a one-way traffic system
• Limited vehicle access to the northern part of the square.
The scheme is expected to cost £2.7 million.
With contractors soon to be appointed, work should start in early summer, and it is hoped the square will be completed by early 2023.
Councillor Richard Blunt, NWLDC Leader, said: “The redesign of Marlborough Square is another area where the public can see our investment and commitment to high-quality projects in Coalville.
“Businesses and locals have supported our plans from the beginning and councillors wholeheartedly supported the approved plans, so as soon as we have highways approval we can finally start work.
“The redesign of the square will complement Newmarket, our recently-announced renovation of the row of shops on the corner of the square and will complete our plans to transform the offering for market traders since the closure of the former indoor market.”
The Nottingham reports “robust financial performance”
Nottingham Building Society has revealed a “robust financial performance against the backdrop of the challenges from the ongoing pandemic,” in results for the year ended 31 December 2021.
The Nottingham posted a pre-tax profit of £15.1m on a statutory basis, up from an £8.4m loss in the year prior, while underlying pre-tax profit grew from £400,000 to £7.4m.
Gross mortgage lending was up 13% at over £550m for 2021 resulting in total assets of £3.6bn.
David Marlow, Chief Executive, said: “Entering 2021, we had a number of key areas on which to focus our energies: the ongoing COVID-19 pandemic; the significant economic uncertainty brought about by a combination of the pandemic and Brexit; our intent to reinvent the Society for the emerging new world; continue to act as a responsible society accepting our responsibilities to stakeholders, communities and the environment; and to continue to grow membership, whilst delivering a level of financial performance that would sustain us for the future.
“Whilst the challenges of the pandemic remain, I am delighted to report good progress on the development and delivery of our strategy, as well as a return to strong financial performance providing the platform for continued investment and growth.”
New manufacturing network boosts collaboration in the East Midlands
Manufacturers across the East Midlands are being invited to join a new region-wide, business-led support network.
The East Midlands Manufacturing Network aims to help manufacturers share best practices and experience in a trusted peer environment; focus on issues and challenges that are a priority for manufacturing businesses; better understand the financial support on offer for their industry; and tap into specialist consultancy and advice on regulation and compliance.
The network will officially launch at an event at the Belfry, Nottingham, on Tuesday 22 March 2022. It is one of many initiatives made possible by the UK Community Renewal Fund (UKCRF), which East Midlands Chamber is delivering, along with academic and other business support partners, under the East Midlands Accelerator project.
Diane Beresford, Deputy Chief Executive of East Midlands Chamber, said: “The East Midlands is a region with a strong manufacturing heritage and with the potential to have an equally strong future. What better way to secure the future success of manufacturing in our region than by bringing together key knowledge and skills to form a dedicated, supportive peer network. That’s why it’s so important the Chamber leads on this.”
The network builds on the success of the respected Nottinghamshire Manufacturing Network (NMN), which is chaired by Mark Goldby DL, non-executive director and ambassador for Qinesis – The Business Growth Company, and is supported by the University of Nottingham.
While the network is open to any manufacturer, those based in UKCRF areas may be eligible for a £2,000 growth voucher towards specialist consultancy support or a grant of £8,000 linked to job creation. UKCRF areas are considered by Government to be those most in need. In the East Midlands, these are Bassetlaw, Derbyshire Dales, High Peak, Leicester city, Mansfield, Newark and Sherwood, and Nottingham city.
Businesses may express their interest in the East Midlands Manufacturing Network and book a place at the event on 22 March on the East Midlands Chamber website.
March 18 deadline for business to claim Omicron help grants
Business whose trade was affected by the surge in Omicron coronavirus cases have just over two more weeks to apply for a share of one of two grant schemes designed to help them.
The two grant schemes, which are administered by Leicester City Council on behalf of the Government, are designed to help support hospitality, leisure, accommodation and personal care businesses in the city whose trade has been hit due to the number of Omicron cases.
Businesses must apply by Friday, March 18.
The Omicron Hospitality and Leisure Grant (OHLG) is available to hospitality, leisure and accommodation businesses which were offering in-person services on the premises, which were the direct ratepayer, and which were trading on December 30, 2021.
Those eligible include businesses such as restaurants, pubs, cafes, cinemas, casinos, art galleries, tourist attractions, event venues, nightclubs, theatres, hotels and B&Bs, as set out by the Government.
The exact amount of grant depends on the rateable value of the business premises, and ranges from £2,667 to £6,000. It is a one-off payment.
The city council estimates that over 1,000 local businesses are eligible for the grant. Grants totalling £2.6m have already been paid to 800 businesses.
The second grant scheme is a discretionary grant fund, set up by the council using £675,000 of Government funding. This is called the Omicron Additional Restrictions Grant.
These discretionary grants are available to sole traders and micro/small/medium-sized businesses which occupy business premises subject to business rates.
The business must be trading and does not have to be the direct ratepayer. Grants totalling £300,000 have already been paid to 100 businesses. Personal care businesses are now eligible to apply.
The types of business that can apply are:
- Hospitality, leisure and accommodation businesses, which are not the direct ratepayer
- Travel agents and tour operators
- Hospitality and leisure businesses that have been supported by the council through previous discretionary grants
- Suppliers to the leisure, hospitality, events and accommodation sectors
- Gym and sports businesses
- Places of public worship with defined community facilities
- Personal care businesses, such as hairdressers, barbers and beauty salons
£5.27m Community Renewal Fund set to transform the region under East Midlands Accelerator project
Businesses across the East Midlands are set to receive a boost in support on jobs, entrepreneurship and growth post-COVID with the roll-out of grant funding and innovation support under the UK Government’s Community Renewal Fund (UKCRF).
East Midlands Chamber won a bid last autumn to deliver £5.27m of support, in partnership with the region’s universities, specialist support organisations and local authorities. The Chamber is matching funds of £491,000 to the project.
The East Midlands Accelerator, as the programme is to be known, is running now until the end of June 2022, and is being delivered under five strands:
1. Net Zero Accelerator to help businesses gain green business skills, invest in net zero business practices, and access financial support to start their journey towards net zero or carbon neutrality.
2. Digital Transformation Accelerator to help businesses implement digital and e-commerce solutions, become online bookable, and drive market town footfall.
3. Start Up to Scale Up Accelerator to deliver specialist mentoring and provide financial support to help start-ups launch a new business or product.
4. Kickstart Accelerator to offer training and mentoring support to improve job retention, as well as a wage subsidy to convert a Kickstart or Graduate placement into a new sustained job.
5. Financial Accelerator to offer grants of up to £8,000 (covering 80% of costs) to help businesses adopt digital solutions, introduce carbon reduction solutions or provide a wage subsidy to support Kickstart or Graduate job retention. Growth vouchers of up to £2,000 will be available for consultancy advice to support business growth or to undertake specialist training.
Support is now being delivered in those areas identified by Government as being in particular need – namely Derbyshire Dales and High Peak, Mansfield, Bassetlaw, Newark and Sherwood, Nottingham city, and Leicester city – between now and the end of June.
There is a wealth of opportunities for businesses to get involved, whether it be tapping into training on carbon literacy, free regulatory and compliance advice, graduate student placement projects, or the implementation of digital technologies.
Diane Beresford, Deputy Chief Executive at East Midlands Chamber, said: “This is an exciting time for the East Midlands as we look beyond the EU funding arrangements of old.
“The East Midlands Accelerator allows us to pilot a new approach to funding, and without the need for overly-prescriptive guidelines. Unlike the former ESF (European Social Fund) and ERDF (European Regional Development Fund) grants, we’re now able to fund training and the stimulation of economic growth under one programme.
“It’s a much simpler and quicker process to navigate, with businesses being invited to put forward an application that focuses on what they need to grow.
“If their adviser, based at the Chamber or at one of our consortium partner organisations, considers the application worthy of endorsement and we can show that a job will be created in the business as a result, it will be put forward for consideration.
“Importantly, this approach means that all key business support bodies in our region are working together to achieve one common goal of business acceleration.
“The Chamber’s role in connecting business audiences to the right partners at the right time is an important one. On our Kickstart scheme alone, we outperformed other regions by placing more than 1,950 individuals. We’re looking to replicate that success on a much wider scale through the East Midlands Accelerator project.”
Hinckley & Rugby unveils new Community Foundation following strong financial performance in 2021
Hinckley & Rugby Building Society has hailed a “strong financial performance” through 2021.
The Society’s profit levels have increased despite ongoing challenges presented by COVID-19, enabling the business to launch a new Community Foundation which will support local registered charities with grants of up to £5,000.
Profit before tax more than doubled from £0.56 million in 2020 to £1.44 million in 2021 due to the increase in net interest income which stood at £10.8 million in 2021, up from £9.3 million in 2019. The Society also achieved improved levels of capital and liquidity over the year.
Retail savings grew to £693.0 million in 2021 from £690.2 million in 2020.
The Society’s mortgage book decreased to £619.0 million in 2021, from £658.0 million in 2019 because of a cautious approach to lending in the self-employed and buy to let markets, as well as higher loan to value lending. However, the Society says it is pleased to have begun re-entering these lending areas in late 2021.
Hinckley & Rugby Building Society added that it has used its revenue to invest in improvements for members and staff, further strengthening the business and allowing it to deliver increased profitability, which can be reinvested back into the community and business.
In due course, staff and local residents will be able to benefit from electric vehicle charging points which will be powered by solar panels which will be installed at the head office building.
Furthermore following a strong financial performance in 2021, the Society is unveiling its new Community Foundation.
Colin Fyfe, Chief Executive, says: “Importantly, off the back of a good year, we have the opportunity to share our profit with the communities around us. We are delighted that we will be launching the Hinckley & Rugby Building Society Community Foundation at our AGM on 29 March. The Foundation’s purpose is to support local registered charities in Leicestershire and Warwickshire with grants of up to £5,000.
“Members are warmly invited to this year’s AGM to learn more about our financial results and the Community Foundation.”
