East Midlands output growth quickens to fastest for three months
Latest Regional Growth Tracker survey data from NatWest signalled a sharper upturn in business activity at East Midlands firms as 2024 came to a close.
The headline NatWest East Midlands Business Activity Index picked up to 50.7 in December, from 50.1 in November. The latest data indicated a marginal expansion in output across the region’s private sector, but one that was the steepest for three months.
That said, the rise in activity belied a faster decline in new business in December. The quicker fall in new orders led firms to cut their staffing levels sharply as backlogs of work were depleted to the greatest extent in 15 months. Cuts to part-time work and the non-replacement of voluntary leavers in a bid to lower costs were key drivers of the fall in employment, according to panellists.
Despite subdued demand conditions, firms were able to hike their selling prices at a faster pace in December in response to sharper input cost inflation. Anecdotal evidence stated that companies sought to pass through higher costs to customers. At the same time, the degree of confidence in the outlook improved to the strongest since last September.
Lisa Phillips, Regional Managing Director, Midlands and East, Commercial Mid Markets, said: “The East Midlands private sector ended 2024 on a mixed footing as, despite a sharper rise in output, new business contracted to a greater extent. Cost cutting remained a key priority as customers and businesses alike reduced their spending. As such, employment declined at the fastest pace since August 2020 amid greater evidence of spare capacity.
“On a more positive note, although input prices increased at a quicker pace, firms were able to pass-through higher costs to customers via the fastest rise in output charges since March 2024. Confidence to hike selling prices reflected greater optimism in the outlook for output, with expectations the strongest since last September.”
Performance in relation to UK
The East Midlands was one of only three monitored regions and areas of the UK to register a rise in output during December, alongside London and the North East. Moreover, the pace of activity growth seen in the region was slightly faster than the UK average.
East Midlands firms recorded a third successive monthly decline in new orders in the final month of 2024. Moreover, the pace of contraction quickened to the fastest since last June and was moderate overall. The rate of decrease was sharper than the UK average, however.
Nevertheless, companies were more upbeat in their expectations regarding output levels in the coming year in December. The degree of confidence in a rise in activity over the next 12 months was the strongest in three months and broadly in line with the long-run series average. Firms in the East Midlands were the most optimistic of the 12 UK regions and areas monitored by the survey.
December data signalled a loss of jobs across the East Midlands private sector, as has been the case on a monthly basis since July 2023. The pace of decline in employment quickened substantially, and was the steepest since August 2020. Moreover, the rate of job shedding was sharper than the UK average, with only Wales, the South East and West Midlands registering greater decreases in staffing levels.
Meanwhile, spare capacity reportedly burgeoned as backlogs of work contracted at the quickest pace since September 2023. Reduced new order inflows enabled firms to process outstanding business, according to anecdotal evidence.
East Midlands businesses registered a faster rise in input prices during the final month of 2024, with cost burdens increasing at the sharpest pace since last July. The rate of cost inflation was slightly softer than the UK average, however.
Despite weak demand conditions, firms were able to raise their selling prices at a steeper pace in December. The rate of inflation was the quickest since last March and was slightly faster than the UK average.
Daltons Wadkin appoints new specialist to drive Fiber Laser growth
Daltons Wadkin, a Nottingham-based multi-material machine solution supplier, has expanded its team by hiring a specialist to lead the company’s fiber laser and sheet metal offering.
Adrian Wright has joined the family-run business as a Fiber Laser Sales Manager, bringing over three decades of experience in the fiber laser and sheet metal market, working for some of the most prestigious names in the industry.
He will now lead on managing Daltons Wadkin’s exclusive partnership with CNC and fiber laser producers, Kimla, to grow the fiber laser installations across the UK and Ireland.
In 2022, Daltons Wadkin announced that it had become the sole distributor for Kimla’s range of CNC routers and fiber laser cutters, following a 15-year partnership.
Managing Director Alex Dalton said: “We’re excited to welcome Adrian to lead our fiber laser division. His deep expertise in the sheet metal arena and fiber laser sector is exactly what we need to propel our growth.
“Kimla’s fiber laser technology is truly cutting-edge, supported by our robust network of trained engineers across the UK and Ireland. Adrian’s appointment is the final piece, allowing us to bring these components together and advance confidently in the market with a dedicated expert.”
Adrian Wright said: “I can’t wait to join the team at Dalton Wadkin, and especially the fantastic opportunity to show customers and companies alike the Kimla range of products, including the incredible Kimla Fiber Lasers machines.
“Kimla and Dalton Wadkin have built up a tremendously close working relationship over the past 15 years, and I intend to fully utilise and embrace introducing these machines to customers.
“Key to our success will be showcasing our machines to their fullest potential via live demonstrations in either Nottingham or Poland. Kimla are not just machine builders but are true innovators invested in developing the fiber laser machine from the ground up.
“Designing and manufacturing their own linear motors, coupled with their unique machine design, are just two examples of what makes a Kimla Fiber machine cut materials faster with unrivalled part quality.”
Fire-damaged former cinema to go under the hammer as redevelopment opportunity
The former Savoy Cinema in Spalding, which, with a 1,500-person seating capacity, was Lincolnshire’s largest cinema when it opened in 1937, is to go up for auction this month with a guide price of £250,000-£270,000.
Converted to a bingo hall after audiences declined in the 1970s, the imposing building was damaged extensively by a fire in 2021 and has since remained disused.
Now the 15,000 sq ft cinema, which stands on a 0.7 acre site, is being offered for sale by joint auctioneers SDL Property Auctions and Eddisons Peterborough.
The auctioneers believe the building would be suitable for redevelopment and South Holland District Council has confirmed it would support proposals for a mixed-use commercial and residential scheme on the site. The Westlode Street property is close to the town centre, within Spalding’s conservation area.
Andrew Parker, auctioneer and partner at SDL Property Auctions, said: “This was once a splendid building that was a real asset to the town of Spalding and it has been disused and unloved for over three years since the fire.
“It would be great to see an imaginative mixed-use scheme bring the site back to life, perhaps retaining the original 1930s art-deco façade. Needless to say, the council’s support for a redevelopment scheme makes this a fantastic investment opportunity.”
Clegg Construction starts work on £8.1m Derbyshire school project
Contractor Clegg Construction has begun work to deliver a new primary school.
Drakelow Primary School will be part of a 2,200-home residential estate currently under construction by Countryside Partnerships on the former Drakelow power station site.
The 420-pupil primary school, being built on Marley Way, has been designed to be flexible in use and meet a range of requirements. Both the indoor and outdoor areas will maximise the learning experience, with classrooms flowing onto outdoor teaching spaces to allow for integration of inside and outside teaching, linking to the main play area.
New sports facilities, including a 3G pitch, will be included, as well as a habitat area to provide forest school experiences.
The scheme will also feature a 26-place nursery and a 45-space staff car park.
The building’s heating capacity will be met by externally mounted air source heat pumps and the school will benefit from underfloor heating fed from a low-temperature hot water system from the central heat pump plant.
Drakelow Primary School, designed by multi-disciplinary consultants ONE Creative environments, is due for completion by the end of 2025.
Michael Sims, managing director at Clegg Construction, said: “We are very pleased to have started on site to deliver this new primary school in South Derbyshire which will serve the community currently being developed on the site of the former Drakelow Power Station.
“Drakelow Primary School is a welcome addition to our strong portfolio of design and build schemes delivered across the education sector, and we are delighted to be part of the team appointed to create this important addition to the local community.”
During the development of Drakelow Primary School, the project will be registered with the Considerate Constructors Scheme and follow the CCS Code of Practice (Care for the Environment, Protect the Workforce, Respect the Community). Clegg Construction will also identify opportunities to engage with and enhance the local community and environment throughout its time on site.
Michael Moore, operations director at Countryside Partnerships, said: “Having worked together to develop the reserved matters application for Drakelow Primary School, we are pleased to now appoint Clegg Construction for the delivery phase of this exciting project.
“The new building will be a valuable addition to the Drakelow development, providing a modern, sustainable and attractive environment in which students can learn and thrive.”
Becki Smith, Associate Director – architect and education lead at ONE Creative environments (ONE), said: “We are delighted that work has started on site for the new Drakelow Primary School.
“Working closely with the Academy Trust, South Derbyshire District Council, Clegg Construction and Countryside Partnerships, we have designed the school to maximise the potential of the indoor and outdoor spaces to support a range of teaching opportunities, as well as support the community.
“Flexibility has been built into the design to meet the school’s requirements now and in the future to provide the best possible learning experiences.”
Nottinghamshire-based solicitors firm acquired
Smalleys Solicitors, based in Arnold, Nottinghamshire, will now be able to offer more legal services to businesses and individuals after being acquired by Coventry-based Askews Legal LLP, along with Cocks Lloyd Solicitors in Nuneaton, and John Mohamed & Co in Bedworth.
Key to the acquisitions is the desire to maintain the identities of the local businesses, which each have long-standing histories in their towns, while helping them to expand their offer to their communities. This will include modernising processes and aiming for further growth.
In each case, the existing partners were retiring and wanted their practices to be taken on by someone who would protect the brand and reputation they have spent years developing. All staff and the physical office locations have been retained and retiring partners are assisting with the transitions.
Smalleys Solicitors has over 20 members of staff, specialising in various aspects of law including conveyancing, wills and trusts, and family law. As well as the existing services, Smalleys’ clients will now also be able to access the additional specialisms offered across the wider Askews group.
Askews Legal LLP is a full service law firm, taking care of legal matters across criminal law, civil litigation, commercial property, public family law, conveyancing, wills, estates and trust, and all aspects of corporate and employment law.
The size of the business has doubled as result of the investment, both in terms of revenue and number of employees, which has increased from 60 to 120.
Practice manager, Pritpal Chahal, said: “We have always had a vision of growth, but we wanted to spend time developing a good solid base from which to achieve that, while at the same time setting ourselves apart as a modern law firm, flexible to the needs of today’s clients and employees.
“We felt the time was right to accelerate our plans for growth and these acquisitions are a massive step forward. We put a lot of time and effort into finding the right businesses to bring into the Askews group, and equally, they had to choose us too.
“The partners at Smalleys, Cocks Lloyd and John Mohamed & Co have all put their heart and soul into these businesses over many years and they didn’t want them to be swallowed up by a big regional business. It was important to them to see their names and reputation continue because they have built up so much respect in their communities, and we are also keen to see that continue.
“The acquisitions allow us to expand the Askews offering into new locations, while bringing more legal services to the Nottingham, Nuneaton and Bedworth areas.”
Smalleys retiring partner, Deanne Taylor, said: “Smalleys has had a presence in Arnold for around 30 years and we’ve built up an excellent reputation in that time. I’m delighted that the firm’s future has been secured by becoming part of a wider group that shares our values, ethics and commitment to providing the best possible service to each individual client.”
Rushton Hickman completes investment sale of Burton property
Rushton Hickman has completed the investment sale of 23 Station Street in Burton upon Trent. This was a rare opportunity with a strong tenant in situ.
The property is in a pedestrianised location of Burton, benefitting from high footfall. The area is well populated with nearby occupiers including Costa Coffee, Isabel’s, Coral and Domino’s.
Currently, the space is occupied by Gizili, a Turkish Street Food restaurant that has revitalised the space.
Reflecting on the sales process, former owner of the property, Mrs Jones said: “When we decided to sell the property, we were very keen to minimise any disruption to our commercial tenant in the property, Gizili Turkish Street Food.
“The Rushton Hickman team did a great job of marketing the property to create interest – and they then worked very effectively with our tenant to best schedule all the viewings. We were able to make a quick decision on the sale thanks to the enthusiasm and professionalism of the Rushton Hickman team.”
Taylor Millington, who facilitated the deal, added: “This successful transaction is a win-win for our client, the purchaser and the tenant. Each party achieved positive outcomes, which is always our goal.”
Rescued manufacturer falls back into administration
Administrators have been appointed to five entities of the Fablink Group: Wharfside Industrial Ltd, Fablink (Evenwood) Ltd, Fablink (Luton) Ltd, Fablink (Northampton) Ltd and Fablink (Wolverhampton) Ltd.
The group, employing 427 people, specialises in the manufacture of metal pressings, fuel and hydraulic tanks, operator cab assemblies and other complex structures.
It was acquired out of administration in September 2024, but since then it has lost the business of certain key customers.
The group’s management team has worked to find a viable solution to rescue the business, however, the significant loss of business has severely impacted the group’s future viability. As a result, the directors have determined that they have no option other than to place the group into administration.
On 7 January 2025, Dan Hurd and Lucy Winterborne of EY were appointed as joint administrators.
Given the lack of ongoing business, the majority of employees have been made redundant whilst the joint administrators continue to explore a sale of certain parts of the group and its assets. All employees impacted are being offered support and advice.
Aggregate Industries wins £20m contract for Leicester road maintenance
Leicester-based Aggregate Industries has won a £20m two-year contract to resurface and maintain the city’s roads.
The contract builds on a four-year contract with Leicester City Council, during which it delivered major road improvements and maintenance schemes across the city.
The business has previously held the contract for Leicester City Council’s carriageways between 2020 and 2024, and this latest contract will run for a period of a further two years, with an option of two extensions of 12 months each.
Kevin Murgatroyd, MD for Aggregate Industries’ Contracting division said: “We’re thrilled to be part of this ongoing project in our hometown of Leicester. Securing this contract is a great win for our team and showcases our proven track record in working for Leicester City Council.”
Martin Fletcher, City Highways Director, said: “After a robust procurement process, Leicestershire based supplier Aggregate Industries UK has secured a two-year contract with the city council. The company has a strong history of delivering road maintenance schemes in the region, including Leicester. We look forward to continuing our collaboration to enhance the safety, quality and longevity of Leicester’s roads for both residents and visitors alike.”
Sperry Rail works with University of Derby to bring AI into railway maintenance
An three-year project using artificial intelligence to revolutionising the railway industry has been launched by the University of Derby and Sperry Rail.
Funded by Innovate UK, the Knowledge Transfer Partnership will investigate the application of AI to automatically detect cracks in railway lines.
Dr Alaa AlZoubi, Senior Lecturer in Computer Science at the University of Derby, is leading the project. He said: “Sperry Rail are world-leaders in rail health solutions. Our partnership to develop advanced AI for railway surface inspections highlights our commitment to innovation and strong academic-industry collaboration.
“This project offers a unique opportunity to integrate novel AI technologies with a deep understanding of railway inspection needs, driving greater efficiency and intelligence in the industry.
“While existing inspection methods are effective, they often require significant time and labour resources. By integrating cutting-edge AI models with railway inspection protocols, this initiative will create automated systems capable of data analysis and predictive maintenance, reducing false detections, minimising service disruptions, and extending the lifespan of railway assets.
“It also provides a valuable platform for knowledge exchange and showcases the transformative potential of academia-industry collaboration in developing solutions that advance technology and its real-world applications.”
Bobby Gilbert, Senior Director Digital Transformation at Sperry Rail, said: “I am excited to be working in partnership with the University of Derby.
“By combining our expertise in non-destructive testing for rail flaws with advanced AI developments and the knowledge available through the University, we are well-positioned to accelerate our efforts in improving rail flaw detection. I am impressed by the calibre of the University research team, who significantly enhance the strength of our data science team.
“I believe we will see our existing AI technology greatly enhanced by developing new AI in the area of data fusion.”
2025 Business Predictions: Sam Berry, Managing Director of the Berry Group
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 Sam Berry, Managing Director of the Berry Group.
As we look ahead to 2025, we predict a year of both challenges and opportunities for the East Midlands construction sector and the wider economy.
With on-going economic pressures, including rising interest rates and inflationary costs for materials, businesses in the construction industry will need to remain agile and innovative. However, we also foresee significant opportunities driven by government investment in infrastructure, housing, and sustainability.
The East Midlands is ideally placed to benefit from its strategic location and strong transport links, making it a hub for logistics and distribution projects. This, coupled with increased demand for affordable housing, is set to result in a surge in residential developments, especially in urban regeneration areas like Derby, Nottingham, and Leicester.
Sustainability will remain a key focus for the industry in 2025. The push for net-zero targets and stricter regulations around energy efficiency and carbon reduction means construction companies must prioritise green building practices, energy-efficient designs, and the use of sustainable materials.
This shift not only aligns with environmental goals but also meets the growing demand from clients who value eco-conscious projects.
Technology will play an increasing role in shaping the future of construction. From Building Information Modelling (BIM) to drones and AI-driven project management tools, innovation will be crucial for improving efficiency, reducing costs, and ensuring high-quality outcomes.
The skills shortage remains a pressing issue, and we hope to see a greater focus on apprenticeships and collaboration with local educational establishments to build a skilled workforce capable of delivering all the ambitious projects on the horizon.
Despite these challenges, the East Midlands is well-positioned for growth in 2025, driven by its central location and strong SME base.
However, rising material costs and interest rate fluctuations could still pose challenges, emphasising the need for careful planning and innovative approaches.
At the Berry Group, we remain committed to delivering high-quality developments that support the region’s economic ambitions and create vibrant spaces for businesses and communities to thrive.
Boots sees strong first quarter
Nottingham health and beauty retailer Boots has welcomed a strong first quarter with total comparable retail sales up 8.1% Year over Year (YoY) for the three months ended 30 November 2024. The business saw growth across all categories and channels, on top of a significant increase in the prior year.
Boots.com performed strongly during the quarter, with digital sales up 23% YoY, accounting for 22% of total retail sales. Use of the Boots app continues to grow, now with 8.1 million active users. Store sales grew, with Boots destination health and beauty stores and flagships performing particularly well, as well as travel stores.
Continuing its investment in the in-store experience, Boots refurbished over 30 stores in the quarter.
These results were supported by a strong Black Friday period, with sales up 20% during the week. On the Friday itself, boots.com achieved its biggest ever day of sales, with almost five orders per second during its busiest hour. Store sales were also strong.
Beauty continued to perform well, with sales up 11% YoY for the quarter, driven by fragrance, premium beauty, and skincare.
In healthcare, comparable pharmacy sales were up 10.9%, primarily driven by services including flu, COVID-19 and travel vaccinations.
Boots also delivered over 155,000 NHS Pharmacy First consultations in England in the quarter, enabling accessible treatment on the high street for seven common conditions, including sore throat, earache and urinary tract infections. Boots Online Doctor continued to perform well, with sales more than doubling YoY.
Boots Christmas sales performance will be reported on in its Q2 earnings later this year, however early indications from the business suggest a solid Christmas trading period.
Anthony Hemmerdinger, Managing Director, Boots UK and Ireland, said: “This is another strong set of financial results, with retail and pharmacy sales seeing significant uplift alongside market share gains and increased customer satisfaction scores.
“These figures demonstrate that our ongoing transformation – from improvements to the in-store and digital customer experience to a focus on offering the very best product and service range across all price points – is working. This kind of success requires collaborative working at pace, and I’d like to say a big thank you to all of our team members for their hard work over this important trading period.
“We are relentlessly focused on our transformation journey and have more exciting plans ahead to further enhance the experience for our customers. Looking forward, we face heightened cost pressures in 2025 following the Autumn Budget, however with positive momentum behind us and a clear plan in place, the business is focused on navigating these and continuing to deliver long-term, sustainable growth.”
Rolls-Royce appoints design partners for Derby site expansion
Rolls-Royce Submarines has appointed AtkinsRéalis and Mott MacDonald as its new fissile design partners – a key milestone in the expansion of its Raynesway site.
Both AtkinsRéalis and Mott MacDonald are globally renowned engineering and development consultancies that bring with them a wealth of experience working on major, complex and high-profile projects.
In June 2023, it was announced that Rolls-Royce is planning to double the size of its Submarines site in Derby to meet the growth in demand from the Royal Navy, and as a result of last year’s AUKUS announcement.
This increase in demand will see new manufacturing and office facilities being built and will create 1,170 skilled roles across a range of disciplines, including manufacturing and engineering.
As the work will take place within the nuclear licensed site at Raynesway, the design and construction of fissile facilities adds a level of complexity and rigour above and beyond that of traditional builds.
Working as the PROPEL joint venture, it will be AtkinsRéalis and Mott MacDonald’s role to design these new facilities and work with the incoming fissile construction partner to deliver them.
Rolls-Royce Submarines Infrastructure Director Terry Meighan said: “The expansion work we have planned is of critical national importance as it enables us to safely increase our speed of manufacture, helping to deliver Dreadnought and the new SSN-AUKUS attack submarines at a much faster rate.
“The experience and deep nuclear knowledge, as well as the strong safety ethic, evidenced by the combined AtkinsRéalis and Mott MacDonald team means the design of our crucial new fissile facilities is in capable hands.”
Andy Smart, Head of Major Projects – Nuclear, AtkinsRéalis, said: “These new facilities will be vital to deliver new submarines safely, swiftly and efficiently and we’re delighted to be appointed alongside Mott MacDonald to progress these plans at pace.
“This critical project requires expertise and skillsets across nuclear fuel management, defence and complex infrastructure programmes. Collectively, we’ll use our experience across these disciplines to support Rolls-Royce Submarines in the successful delivery of this programme.”
Jeremy Reed, Global Practice Leader – Nuclear, Mott MacDonald, said: “Mott MacDonald brings over 60 years of experience delivering complex technical solutions in highly regulated, secure, and safety-critical nuclear environments.
“Combined with our commitment to excellence, safety, and sustainability, this experience, along with that of our partner AtkinsRéalis, will play a key role in supporting Rolls-Royce Submarines to deliver the successful expansion of the Derby site, continuing our longstanding commitment to support the UK submarine enterprise.”
The next milestone in Rolls-Royce’s ten-year expansion programme is to select the fissile construction partner, who will bring AtkinsRéalis and Mott MacDonald’s designs to life. They will be tasked with building the nuclear manufacturing facilities, with the winning firm being announced in the coming weeks.
Rolls-Royce Submarines currently employs more than 5,000 people and designs, manufactures and provides in-service support to the pressurised water reactors that power every boat in the Royal Navy’s submarine fleet.
Rolls-Royce is currently supporting the existing Astute and Dreadnought boat build programmes through the delivery of reactor plant and associated components.
It also provides frontline support across the world for reactor plant equipment from its Operations Centre in Derby and supports the submarines when in the Barrow-in-Furness shipyard and the naval bases at Devonport and Faslane. In addition, there are technical specialists working in offices in Glasgow and Cardiff, with a unique test facility operating in Thurso, Scotland.
Shorts’ Managing Partner takes seat on global board
Shorts’ Managing Partner Andy Irvine has been elected to the Global Governing Council and Board of Praxity – the world’s largest alliance of independent accounting and consulting firms.
Shorts has been a member of Praxity since 2018, and in the six years since joining, has forged strong relationships with member firms. The alliance provides a modern responsive delivery model that gives member clients access to quality auditing, tax, accountancy and advice around the world, whilst UK clients remain confident in the knowledge that partner firms in other territories are there to support and guide as appropriate.
Having played an active role within the Alliance and chaired the UK conference for four years, Andy’s appointment to the Global Board, reflects his commitment to the future success of the Alliance.
Mr Irvine said “I look forward to working with Steffen Aherns, Jason Drake and the rest of the Praxity board as we focus on developing the alliance for an exciting future, whilst continuing to serve our global clients with outstanding work.”
As active members of the alliance, Shorts maintain strong relationships with international colleagues. During 2024 alone, representatives from Shorts attended the North American Leadership conference, the Global Tax conference in Madrid, the Global conference in Singapore, and the North American Tax Conference in Orlando.
Housing provider launches tree replacement programme
A housing provider has launched its first ever tree replacement and maintenance programme.
Platform Housing Group – one of the largest housing associations in the Midlands – will deliver the programme across its geographical area, on land where trees are felled when they are dead, dying or diseased.
The initiative aims to ensure that every tree that is cut down is replaced.
Nicola Chamberlain, Head of Estate Services at Platform Housing Group, said: “We are delighted to announce this new programme; as guardians of our public open spaces and the flora and fauna within our communities, we feel that it is our duty to do what we can to tackle the climate emergency and provide much needed habitat for local wildlife.”
A total of 78 locations – in Worcestershire, Warwickshire, Derbyshire and Lincolnshire as well as Birmingham and Leicester – are on the team’s replacement list where trees have been felled. The work – which will cost around £14,000 to complete – will include the purchase of new high quality trees, takes and tagging, along with labour costs.
Where possible, the replacement trees will be planted in similar places to where the original trees were located, with tree species recommended by the social landlord’s in-house arboriculture surveyor and specialist suppliers. Species will include ornamental cherries, pyracanthas, silver birches and magnolias.
Nicola concluded: “We will only fell trees if there is no other alternative and all options to save the tree have been exhausted. Trees are essential for people, wildlife and the environment; we are pleased to be able to contribute in some small way to help mitigate the negative impacts of climate change.”
East Midlands entrepreneurs hold back as local start-ups plummet
A steep drop in the number of new businesses set up in the East Midlands has continued into a second month, with signs that heightening economic risk is stifling local entrepreneurs.
This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on an analysis of regional start-up data from business intelligence provider Creditsafe.
The figures show there were 1,775 businesses set up in the East Midlands in December, which is down by over a quarter (29%) compared to the 2,500 new businesses registered in October. The December figure is also significantly lower (11.51%) than at the end of 2023, when there were 2,006 start-ups in the final month of the year.
R3 also reports that the economic picture for established businesses in the region continues to be volatile and mixed. The number of East Midlands companies with late payments on their books remained high in December at 24,124, but the volume of debt owed by firms in liquidation across the region fell compared to the previous month.
R3 Midlands Chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “It’s understandable why local entrepreneurs have taken such a cautious approach over the last couple of months.
“We are facing significant geopolitical issues which could hamper company growth, while higher levels of inflation, international trade restrictions and increasing economic uncertainty are putting sizeable pressures on local companies and restricting new business opportunities.
“There are projections, however, that the UK economy will rebound in 2025. From my own professional experiences and those of my fellow R3 members, I can see that there is both strength and resilience in our local economy and, armed with the right professional support, companies should be well-placed to combat challenges in the year ahead.
“Importantly, should significant cash flow difficulties arise, it’s crucial to take professional advice as soon as possible. There is a significant amount which can be done to rescue and support local businesses if help is taken early enough.”
Peak District National Park Authority shares significant restructure proposals under financial pressures
The Peak District National Park Authority is beginning consultation with a number of staff over restructure proposals that are being driven by a need to cut costs.
The Authority is facing ongoing financial pressures due to a fixed government grant that does not take into account inflation and additional pressures such as the recent increase in Employers National Insurance Contributions, the rise in the minimum wage, the ending of the government’s rate relief scheme, and some external costs rising by as much as 150%.
Overall the Authority has faced a real-terms cut of around 50% over the last ten years. The continual squeeze on funding has happened at the same time as those using the National Park have increased and expectations about what the National Park should be delivering for nature, climate and wellbeing are rising.
It is only two years since the Authority last had to undertake a restructure programme. Those changes reduced management costs and combined several service areas whilst allowing for an investment in the Authority’s statutory planning function.
However, since the last round of changes the Authority has faced unprecedented financial pressures whilst the core government grant remains flat.
The current round of proposed changes includes making efficiencies within important functions such as customer services and communications and having to reduce the size and scope of much cherished work in the areas of community engagement, education and wellbeing.
With the ongoing support of a philanthropic donor, some transformational changes are also being proposed for the Authority’s Visitor and Cycle Hire Centres to ensure their long-term viability.
Phil Mulligan, the Authority’s Chief Executive, said: “We are facing a very challenging financial landscape. The proposals we are having to consider are extremely difficult and upsetting for everyone.
“We are looking at potentially cutting or reducing some of our high profile and much valued programmes. None of us want to make these decisions but they cannot be avoided unless there is significantly better news from government on our funding.”
The Authority has confirmed the possibility of a number of redundancies, which it is seeking to mitigate through the consideration of voluntary redundancies across the organisation. It is expected that the restructure will be concluded ahead of Authority Members needing to agree next year’s budget at their meeting on 21st March.
Rolls-Royce signs engine agreement with STARLUX Airlines
Rolls-Royce has signed an agreement with STARLUX Airlines for 10 Trent XWB-97 engines to power five Airbus A350F aircraft, firming up the options it made at the Singapore Airshow in February 2024.
This brings STARLUX Airlines’ freighter fleet to a total of ten and will make them one of the largest purchasers of the A350F.
Ewen McDonald, Chief Customer Officer, Rolls-Royce – Civil Aerospace, said: “It’s been a pleasure collaborating with STARLUX Airlines and we’re delighted that they have opted for an additional five Trent XWB-97 powered Airbus A350F. We thank STARLUX Airlines for its continued confidence in the power of our Trent engines.
“The engine will benefit from the £1bn investment we’re making to the Trent engine family that improves their durability and efficiency across all operations. We are proud to continue supporting the expansion of STARLUX Airlines and look forward to supporting these new aircraft as they enter into service.”
Glenn Chai, CEO, STARLUX Airlines, said: “STARLUX Airlines has continuously nurtured the cargo market since its inception, capitalizing on the strategic advantages offered by Taiwan’s geographical location.
“This acquisition of five more A350F freighters not only prepares us for the rapidly growing demand in the cargo market but also reflects our optimism about the potential of the international cargo market.
“The A350F is the most fuel-efficient freighter in the industry, meeting customer requirements to reduce carbon emissions and is in line with STARLUX’s ESG plan to achieve zero emissions by 2050.”
Planning approval secured for new Public Mortuary in Northampton
Plans to deliver a state-of-the-art public mortuary in Northampton have taken a significant step forward, as planning permission has been officially granted.
This major milestone paves the way for work to begin later this month on a facility that will transform bereavement and post-mortem services for families across Northamptonshire and the wider region.
Once completed in autumn 2025, the new mortuary will be a purpose-built facility, designed to deliver the highest standards of care and compassion during some of the most challenging times in people’s lives.
It will provide modern, dignified spaces for families, including private viewing and identification areas, ensuring a compassionate and respectful experience for those dealing with the loss of a loved one.
The facility will seek to provide services that are currently unavailable locally and simplify existing services by consolidating them into one central location.
For professionals such as funeral directors and healthcare staff, this will mean a more efficient and accessible service, while families will benefit from quicker outcomes and reduced delays.
Councillor Mike Hallam, Cabinet Member HR and Corporate services at West Northamptonshire Council, said: “The new mortuary is more than just a building – it’s a commitment to better care, greater compassion, and smarter, more efficient services.
“Bereavement is one of the hardest experiences anyone can go through, and this new facility will make that process a little easier by providing families with the dignity, care, and support they deserve.
“It’s also a big step forward in how we manage and deliver post-mortem services, using modern technology to reduce delays and create a better experience for everyone involved.”
Beyond its immediate services, the mortuary will play a vital role in disaster preparedness. It will be equipped to support emergency services and police in the event of a major incident, including mass fatality situations.
This capability ensures Northamptonshire is better prepared to respond to unexpected challenges while continuing to provide essential services to the community.
Construction is set to begin in early 2025, with initial works focusing on ground preparation and site readiness. The project will be delivered by Stepnells LTD, a contractor with extensive experience in delivering projects of this scale.
Construction commences on over 100,000 sq ft of industrial premises and employee facilities at Silverstone Park
Construction of over 100,000 sq ft of further industrial premises and employee facilities at Silverstone Park has commenced.
The industrial development named ‘Evolve’ will include more than 95,000 sq ft of industrial units and office space on a six-acre plot of land adjacent to both the Park’s Innovation Centre and the entrance to the neighbouring Silverstone Grand Prix Circuit.
Nine properties, all hybrid style and ranging from 7,549 to 24,638 sq ft in size, will be built as part of the development which will also feature a stylish reception area, contemporary offices, double-height workshop space and loading doors.
Demand for the space has seen several pre-lets already in talks, with performance automotive parts specialist ‘AliTech Precision’ finalising its contracts just as spades were going in the ground.
Darren Cudd, Managing Director, AliTech, said: “We are excited to join Silverstone Park’s growing campus.
“As a hub of innovation and engineering in the UK, located adjacent to the world famous circuit, we believe this is the perfect place for AliTech to further our businesses growth and we look forward to working alongside the other global leaders already based here.”
The new phase of development will also see the arrival of a new café, children’s nursery, and state-of-the-art gym.
Chris Kimber-Nickelson, Commercial Director, Silverstone Park, said: “We are excited to get this latest development off the ground.
“It will provide businesses with another high quality, contemporary working environment and smart flexible space ready for a bespoke fit-out. We are certain that the prime location – right next to the Silverstone Circuit – will also provide a buzz for businesses and their employees.”
Chris added: “The campus here at Silverstone Park continues to evolve to the needs of business occupiers and this latest phase of development is an opportunity to deliver a café, nursery, and gym, which we hope will enhance work-life balance for new and existing staff.
“This is in addition to the numerous break-out areas and green spaces, plus pathways and cycle routes that have already been created as part of the larger development of the Silverstone Park site.”
Silverstone Park is now home to more than 90 businesses employing close to 1,600 people.
Many of those businesses specialise in advanced engineering and manufacturing, and operate in areas such as aerospace, agritech, automotive, defence, energy, marine, medical equipment, motorsport (including F1), nuclear and space.
The Nottinghamshire Golf and Country Club acquired by UK’s largest country club operator
The Nottinghamshire Golf & Country Club (The Nottinghamshire) has been acquired by the UK’s largest country club operator, The Club Company.
Set in 340 acres, The Nottinghamshire is a 36 hole golf club which hosts extensive facilities including a bistro experience, wedding venue and a 30-bedroom boutique hotel.
The Club Company collection now totals 18 clubs across England.
Alan Hardy acquired the club in 2010 as Cotgrave Place and has since transformed the club venue from a traditional but struggling golf club into a thriving hospitality complex. During that time, he has focused on investing in the courses, boutique hotel, conferencing and wedding experiences, to the extent that golf makes up only half of the revenue of the club.
Hardy said: “It is with mixed emotions that I can confirm that I’ve come to the end of my 14 year journey with The Nottinghamshire. It is a journey that I am incredibly proud of, having met, worked and played with a wonderful number of people along the way.
“I am proud that we’ve created something special in that time and now have a fantastic team of over 100 people across the venues, in the clubhouse, the back office and out on the course, all of whom I will miss dearly.”
Richard Calvert, Chief Executive Officer of The Club Company, said: “We are delighted to welcome The Nottinghamshire Golf and Country Club into The Club Company portfolio. Over the last few months, I have personally experienced the dedication and professionalism of the team at The Nottinghamshire.
“This stunning club has an outstanding reputation and has been transformed under the ownership of Alan. We are committed to building on this legacy and will continue to invest in the club and its facilities for the benefit of members and visitors alike.”
Alan concluded: “This has been a truly amazing journey during which we have transformed this club into something truly spectacular.
“Being in the leisure sector, where people choose to spend their spare time and money is uplifting and inspiring. We have taken this place from an incredibly difficult position, creating a wonderfully bright future as we have done that.
“Leaving a legacy here has been my driving force and I have loved every single moment. Thank you to everyone who has been part of this story.”
