Inflation has continued its journey towards the Bank of England’s 2% target, coming in at 2.3% in April, down from the 3.2% reported in March. Measured by the consumer prices index (CPI), it is, however, slightly ahead of forecasts (2.1%). Falling gas and electricity prices resulted in the largest downward contributions to the monthly change, while the largest, partially offsetting, upward contribution came from motor fuels. There were also large downward effects from alcohol and tobacco, food and non-alcoholic beverages, recreation and culture, and communication. Meanwhile, core inflation, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.9% in the 12 months to April 2024, down from 4.2% in March. Alpesh Paleja, CBI Lead Economist, said: “A big fall in inflation was always on the cards for April, given Ofgem’s 12% cut to the energy price cap. Households and businesses will welcome a more benign inflationary environment, but it’s worth noting that many will still be struggling with a high level of prices, particularly in food and energy bills. “Today’s data further sets the stage for interest rate cuts in the coming months. While the Monetary Policy Committee is likely to reduce interest rates over the summer, they are still holding out for more definitive falls in measures of domestic price pressures. “It’s encouraging that pay growth is now a touch below the Bank of England’s forecast, but there’s still a long way for it to get closer to levels consistent with inflation at target. “The Bank will also be mindful of growing upside risks to inflation in the near-term: with the growth outlook improving at home, and tensions in the Middle East threatening to stoke commodity prices and supply pressures globally.”

The directors of a Leicester clothing company that supplied high street and online retailers have been jailed for a £1.3m tax fraud. Hifzurrehman Patel, 40, and Ehsan-Ul-Haque Dawood Patel, 46, set up a sophisticated network of front companies to evade VAT between 2014 and 2017. They were caught after a specialist rag trade taskforce made an unannounced visit to their Midlands Trading Ltd factory in December 2015. The taskforce, which included officers from HMRC, became suspicious when staff clock cards completely disappeared during a tour of the factory while the business also handed over false invoices. Investigators discovered the pair had been diverting VAT liabilities to a string of front companies, by claiming they produced clothes on their behalf. It meant they evaded paying £1.3m of VAT on the clothes they were in fact producing themselves and selling on to unsuspecting high street and online retailers. The pair were jailed for a total of nearly nine years at Leicester Crown Court on 17 May 2024. Hifzurrehman Patel of Evington Parks Road, Leicester, was sentenced to five years in prison having been convicted of conspiracy to evade VAT, contrary to section 1(1) of the Criminal Law Act (1977), and two counts of money laundering. Ehsan-Ul-Haque Dawood Patel, of Homeway Road, Leicester, was sentenced to 47 months in prison having been convicted of conspiracy to evade VAT, contrary to section 1(1) of the Criminal Law Act (1977), and two counts of money laundering. Mark Robinson, Operational Lead in HMRC’s Fraud Investigation Service, said: “Hifzurrehman and Ehsan Patel carried out a relentless and sustained attack on the tax system. They invented contracts and forged documents to evade VAT. This is money that should have been helping to fund our public services and was instead spent on cars and property. “Tax fraud is not a victimless crime. It has real consequences for the public services we all rely on and we are working hard to ensure tax cheats do not gain an unfair advantage over their law abiding competitors.” Paula Lloyd, Specialist Prosecutor in the Crown Prosecution Service, said: “While other businesses were doing the right thing by paying their taxes, these criminals thought they could enjoy a cushy lifestyle paid for hardworking taxpayers. “The CPS will be taking them back to court to confiscate any goods or assets they bought using money from their offending. “We are determined to ensure tax dodgers face the full consequences and hopefully this will make others think twice before they do the same.” A further three people were convicted for their roles in the fraud. Pravinbhai Purshotam Valland, 54, was handed a suspended two-year prison sentence at Leicester Crown Court on 17 May 2024. Mohsin Dawood Patel, 42, and Munaf Yusuf Banglawala, 62, will be sentenced at the same court on 21 June 2024.

Transreport, a pioneering tech company specialising in inclusive travel solutions, is thrilled to announce its partnership in the aviation industry with East Midlands Airport (EMA), part of the MAG Group and one of the UK’s leading airports in accessibility. With over four million passengers flying annually from EMA to over 80 leisure and business destinations, the introduction of Transreport’s flagship technology – Passenger Assistance – marks a significant milestone in the company’s journey. Transreport’s partnership with EMA will empower more passengers to fly with confidence through streamlined processes and greater accessibility, facilitating a more inclusive air travel experience for all. Winners of the 2023 Business Disability Forum “Disability Smart Inclusive Customer Service Award”, EMA is dedicated to improving customer experience for disabled and older people. This is reflected in their continuous investment throughout the airport which includes the purchase of new, and the refitting of existing, high-lift vehicles, as well as the installation of a live chat service allowing passengers to request assistance. These efforts have been acknowledged by the Civil Aviation Authority, further affirming the airport’s commitment to creating an inclusive environment. Transreport will collaborate closely with EMA to take these efforts to the next level. Recent global expansion has also extended the reach of Transreport’s accessible technology to Japanese rail, which is renowned for exceptional standards of service. There is a clear growth in demand for accessible travel within UK air travel, with 3.45 million passengers requesting assistance in 2022 according to the CAA Airport Accessibility Report. Transreport have transformed accessible travel in UK rail, partnering with train operating companies to facilitate over 2.4 million journey legs since the launch of Passenger Assistance in 2021. By expanding their reach to Japanese rail and aviation, they have diversified the transportation modes and geographies their technology is integrated with, to shape inclusive travel experiences on an international scale. Jay Shen, CEO of Transreport, comments: “The team at East Midlands Airport are already pioneers in inclusive travel. As well as being recognised for their commitment to accessibility and inclusion, they are award-winning in the accessibility space. At Transreport, our technology has been specifically designed for disabled and older people, and we are excited to work with an airport where they hold themselves to an incredibly high standard, in order to provide excellent service to all customers. “These are just some of the reasons why we are so excited to start our partnership in aviation with EMA. We recognise that disabled and older people can encounter barriers to access whilst travelling, but we also know there are many already working hard to change that – including the team at EMA. At Transreport we’re committed to reshaping those experiences into positive ones, and working with EMA, we know our technology can facilitate greater inclusion in the air travel experience.” Transreport’s innovative Passenger Assistance technology empowers staff to deliver exceptional service and support to customers. By streamlining processes and providing comprehensive passenger profiles, staff can offer personalized assistance tailored to individual needs. The technology enables seamless coordination between office and frontline teams, ensuring a consistent and elevated experience for customers throughout their journey. With real-time visibility into assistance requests, staff can proactively manage operations and allocate resources effectively. Sophisticated reporting capabilities provide valuable insights, enabling continuous improvement and enhancing operational efficiency. Transreport’s solution equips staff with the tools to provide unparalleled service, fostering a seamless and inclusive travel experience for all. EMA’s Customer & Planning Director Mike Grimes said: “We’re really pleased to be working with Transreport to become the first UK airport to offer this more personalised approach to our popular assisted travel service. Our aim is to offer an effortless travel experience to all our customers and we’re really proud that we already achieve high levels of customer satisfaction with our assisted travel service. With this new technology, we can provide a tailor-made service which will give customers all the information and choice they could want on their journey through the airport, so they can relax and start enjoying being on holiday before their plane even leaves.”

Returning sponsor, Blueprint Interiors has joined the lineup of businesses backing the East Midlands Bricks Awards 2024, supporting the esteemed Overall Winner category, the winner of which will receive a year of marketing/publicity with East Midlands Business Link Magazine worth £20,000. Blueprint Interiors a leading Midlands-based workplace consultancy and commercial interior design firm. Their approach goes beyond aesthetics to craft workspaces that demonstrably improve employee wellbeing and business performance. Located in Ashby-de-la-Zouch, they leverage science-backed design principles and certifications, such as the WELL Building Standard, to create environments that nurture a thriving workforce. Chloe Sproston, Creative Director at Blueprint Interiors, shared: “We’ve been involved in the awards since 2019 either as an award nominee or a sponsor. We continue to be impressed with both the quality of award submissions, but also the event, which attracts the elite of our region’s construction and property professionals. “This year, we’re particularly excited to sponsor the Overall Winner category, further demonstrating our commitment to showcasing the very best talent in the region’s property and construction industry.” The East Midlands Bricks Awards, which will take place on Thursday 3rd October, at the Trent Bridge Cricket Ground, recognise development projects and people in commercial and public building across the region – from office, industrial and residential, through to community projects such as leisure schemes, schools and public spaces. We also highlight the work of architects, agencies and those behind large schemes. Winning one of these awards will add considerably to a company’s or individual’s brand and enhance their commercial reach significantly. Nominations are now OPEN for East Midlands Business Link’s annual Bricks Awards. To nominate your (or another) business/development for one of our awards, please click on a category link below or visit this page. A highlight in the business calendar, winners will be revealed at a glittering awards ceremony on Thursday 3rd October, at the Trent Bridge Cricket Ground – an evening of celebration and networking with property and construction leaders from across the region. Tickets can be booked for the 2024 awards event here. Connect with local decision makers over nibbles and complimentary drinks while applauding the outstanding companies and projects in our region. Attendees will also hear from keynote speaker Paul Southby, partner at Geldards LLP, chair of the Advisory Board to Nottingham Business School, chair of Broadway independent cinema, trustee of Clean Rivers Trust, chair of Nottingham Partners, board member of Marketing Nottingham and Nottinghamshire, and former High Sheriff of Nottinghamshire. Thanks to our sponsors:      

             

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The headline NatWest East Midlands PMI® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 51.2 in April, up fractionally from 51.0 in March, to signal a modest expansion in output at East Midlands firms. The upturn in business activity was reportedly underpinned by more favourable demand conditions and a further rise in new orders. Of the 11 monitored UK regions to record a rise in output, the East Midlands registered the second-slowest upturn. Moreover, the rate of growth was slower than the long-run series average seen for the region. East Midlands private sector firms registered a sharper rise in new business at the start of the second quarter, thereby extending the current sequence of expansion to four months. Anecdotal evidence suggested the increase in new orders was due to stronger client demand. The rate of growth was modest and the second-fastest since June 2023. Business confidence among East Midlands firms remained upbeat in April, as companies continued to foresee a rise in output over the coming 12 months. Optimism was linked by firms to hopes of stronger customer demand and greater investment in new products. The level of positive sentiment sank to the weakest since December 2023, however, as higher input prices and muted customer demand subdued expectations. April data signalled a tenth successive monthly drop in employment at East Midlands firms. The rate of job shedding picked up slightly and was the joint-quickest in five months. Cost-cutting initiatives and redundancies following subdued demand conditions sparked the latest round of staff cuts, according to firms. The fall in employment contrasted with the UK trend which signalled broadly unchanged staffing numbers. Adjusted for seasonal factors, the Outstanding Business Index indicated a further contraction in backlogs of work at East Midlands firms in April. The rate of decline was little-changed from that seen in March and solid overall. Companies noted that muted growth of new orders allowed them to process incoming new work in a timely manner. Private sector firms in the East Midlands signalled a steeper increase in input prices during April, as the pace of inflation ticked up to the fastest in eight months. The marked rise in cost burdens was largely linked to higher wage bills – in part stemming from a hike in the minimum and National Living Wages – and greater imported goods prices following disruption to shipping through the Red Sea. At the sector level, manufacturers and service providers recorded sharper upticks in costs, with the latter seeing a much quicker rise. April data indicated a further, albeit softer, rise in selling prices set by East Midlands firms. Anecdotal evidence commonly attributed higher output charges to the pass-through of greater costs to customers. That said, the pace of inflation slowed to the second-weakest since January 2021 (behind only January). Although slower than the UK average, the rate of increase was slightly quicker than the long-run series trend for the region. Rashel Chowdhury, NatWest Midlands and East Regional Board, said: “April data signalled a more positive start to the second quarter, as output rose further following a quicker uptick in new orders. The rise in new business was the second-fastest since last June amid stronger demand conditions. Firms continued to cut workforce numbers, but the pace of decline was only marginal overall. “Cost burdens increased markedly on the month, as the larger increase in the minimum and National Living Wages pushed input prices up. Although the slowest for three months, the rise in selling prices remained historically elevated as firms were able to pass though greater costs to customers but maintain new sales growth.”