A Budget built on loss leaders or a leadership that might have lost its way? Was it more ‘Middle Lidl’ than Middle England?
James Pinchbeck, partner at Streets Chartered Accountants, comments on the Spring Budget.
The headline grabbing announcement from the Chancellor Jeremy Hunt’s Spring Budget, and perhaps his last before an election, was the 2% cut in rate of National Insurance (NI). This second cut follows a similar cut given in last year’s Autumn Statement and comes with an election looming.
For some it might have felt like that ubiquitous loss leader that retailers prompt to get you to buy so as to take your mind off the fact that whilst making such a purchase, perhaps one you hadn’t intended to buy, you might buy something else at higher price and margin. In this case, the reduction in NI perhaps coupled with the freezing of alcohol duty, the fuel price cap and changes to child benefit are all sweeteners to give us a sense that things are getting better and we are better off than we might be really.
This aside there were a number of key announcements that will affect both businesses and individuals.
The freeze on alcohol duty no doubt will be welcome for both consumers and the licenced trade. Perhaps though more could have been done in light of the cost-of-living crisis and the impact it is having on our pubs, clubs and eateries.
Plans to scrap the furnished holiday lets regime perhaps comes with a double edged sword in that hopefully it can address the issue of access to affordable homes for those living in holiday destinations, but equally will it adversely affect the provision of holiday accommodation for holiday makers.
Turning to property, there was a reduction in the higher rate of property capital gains tax from 28% to 24% – a move aimed to stimulate the market for sales of properties caught by the higher tax rate. The Chancellor also announced the abolition of stamp duty relief for those buying more than one dwelling, a relief known as the Multiple Home Relief.
Many small businesses including the self employed will have welcomed the news that the VAT registration threshold will rise from £85,000 to £90,000 from the start of April.
For those businesses looking to invest in plant and machinery, whilst no date was given as to when it might come into effect, the Chancellor stated that plans were in place to draft new legislation so that leased assets could be included in Full Expensing for the purchase of plant and machinery.
Whilst this may not affect many reading this, Jeremy Hunt confirmed the non-domiciliary status will be abolished and it will be replaced by a ‘simpler and fairer’ system from April 2025. The current system means that those living in the UK with overseas links and financial interest only pay UK tax on money earned here, going forward they will be required to be taxed on worldwide income.
For those engaged in the creative industries sector, news of the £1bn additional tax relief must have been as good news as perhaps being nominated for a BAFTA. Not least that measures include a tax credit for UK independent films with budgets under £15m.
Also announced was a 40 per cent relief on gross business rates until 2034 for eligible film studios. The Chancellor also said the government will remove the 80 per cent cap for visual effects costs in the audio-visual expenditure credit.
When it comes to the public sector though it would seem the only real beneficiary was the NHS with a commitment to a public sector productivity plan. There were no real announcements around the much needed support for education, skills, emergency services, nor our local authorities, all facing the pressures of the cost of living crisis and often increasing demands.
Overall, was it a Budget to gain or even regain voter confidence, or did it fall short? Did it feel more like a government that is tired and lacking ideas and one that has perhaps lost its way?
Perhaps we will know more over the next few weeks and months on the run up to the 2024 election.
For the devil in the detail there is still time to book for Streets Chartered Accountants’ post Spring Budget webinar which takes place from 11am until 12noon on Thursday 07th March.
Register to join us live and/or to receive a post broadcast recording to watch on catch up. https://www.streetsweb.co.uk/about/events/spring-budget-2024/
Grants launched for North Northamptonshire businesses looking to reduce carbon emissions
North Northamptonshire Council have launched the latest round of a grant scheme to help local businesses to increase energy efficiency, move to a lower carbon economy and reduce greenhouse gas emissions.
Small or medium sized businesses can now apply for grants up to £5,000 towards 50% of project costs, with the remaining amount to be match funded by the business.
The funding can be used for:
- lighting and lighting controls
- heating and heating controls
- insulation
- energy efficient machinery and equipment (e.g. air compressors)
- solar panels
- heat pumps
- biomass boilers
- energy storage
- building energy management systems
Business development expert joins NLT board
Mel Archbould, owner and Managing Director of Cloud-busting, a business scale-up consultancy based in Chesterfield, has joined NLT Training Services’ Board of Directors.
Mel joins the five-strong board and will play an active role in advising on and shaping the training provider’s strategy for its future growth and charitable activities across the East Midlands and Humberside.
She brings more than 17 years’ experience as managing director of her family business, Palamatic, and now her own consultancy, Cloud-busting, to NLT which was established in 1968.
Mel Explained: “I have been on a journey myself and learned a great many lessons which are transferable to other organisations, including NLT. I am excited to now be part of NLT’s journey.
“There are a wealth of opportunities waiting for NLT to bring to so many adults in careers that require certification and validation of competence to carry out their role. I am looking forward to working with the board to help structure and focus on how that continues as NLT approaches its sixtieth year.”
Mel is no stranger to NLT having used the organisation as a mechanical engineering training provider at Palamatic. In addition to its range of industry-accredited Health and Safety courses, including CCNSG, CSCS and MPQC/SPA, most recently NLT has seen an increased demand for CMI-accredited leadership and management training, both nationally and in the local area. Welcoming Mel to the board, Sarah Temperton, Chief Executive of NLT Training Services said: “NLT has taken a significant and exciting change in direction in recent years. I am delighted that Mel has joined our Board of Directors. Her experience and profile reflect NLT’s future ambitions and focus for growth as well as helping us continue to meet our charitable objectives.”Construction company expands at Oberoi Business Hub
A Derby company, which specialises in refurbishing social housing properties across the East Midlands, has expanded into larger serviced offices at Oberoi Business Hub in Pride Park in line with its growing customer base.
Gratton Construction was launched in April 2022 by experienced surveying and construction professionals Jody Waldron and Kirsty Howard and relocated to Oberoi Business Hub last summer.
The company recently added another major refurbishment and on-going maintenance contract to its growing customer base of local authority and housing association clients across the Midlands which prompted a recruitment drive.
The larger offices at Oberoi Business Hub will house the current team of nine with capacity to accommodate even further growth.
Operations director Kirsty Howard explained: “Just six months after moving our operations to Oberoi Business Hub, we have secured several contracts including a two-year programme to handle kitchen and bathroom replacements and general building repairs for a major social housing provider in Derbyshire and Leicestershire.
“This has enabled us to re-structure the business into north and south divisions with site supervisors and coordinators in both and our first directly employed trades people.
“We were keen to stay at the Oberoi Business Hub which has been a factor in our business growth. As well as a prestigious business address and central location our team have benefited from high quality serviced office space, a great support team, plentiful parking and even electric vehicle chargers.
“Having experienced such rapid growth, the team at Oberoi Business Hub have gone out of their way to accommodate our urgent need for larger office space and we are grateful for their flexibility.
“As a young growing business, it is vital to have the right support services around us who are responsive to our needs.”
Oberoi Business Hub founder and managing director Kavita Oberoi OBE continued: “Our goal has always been to provide high quality yet affordable business premises with a prestigious address and a wide range of services that facilitate growth and job creation in the local area.”
Hub manager Jodie Brady concluded: “We recognise that flexible support can be the difference between growth or stagnation for our SME hub community and will find ways to accommodate our clients wherever we can to ease the challenges of their business journey from office space to call answering and other support services as required.”
Tree scheme helps dairy’s work to boost environment and biodiversity
One of Britain’s most famous dairies – Leicestershire-based Long Clawson Dairy, producers of world-renowned Stilton – is playing a leading role in helping to plant more trees in the county.
The farmer-owned co-operative has received 75 trees from Leicestershire County Council’s free trees scheme, which are being planted across six of the farms supplying the milk for the world-famous cheese.
Ruth Grice from Long Clawson Dairy said: “It’s a great feeling to work in partnership with Leicestershire County Council’s trees team to increase wildlife habitats in our supplier farms. In total, 22 of our 33 supplier farms are based in Leicestershire, covering over 3,300 hectares.
“It would be great to see even more new trees being planted across them during the 2024/25 planting season.”
Many of Long Clawson Dairy’s farms lost a significant number of trees in the 1970s due to Dutch elm disease, and are now suffering losses caused by ash dieback. Planting new trees on the farms to make up for the losses and to increase tree numbers is now a big priority for the dairy co-operative over the coming years.
In 2022, Long Clawson Dairy recorded just over 3,500 trees across its 33 supplier farms in Leicestershire and Nottinghamshire. They also measured nearly 300 miles of hedgerows – enough to stretch from Long Clawson to Glasgow.
Ruth Grice said: “Thanks to Leicestershire County Council’s free tree scheme, we know we will be adding 75 trees to this total in 2024. Some of our farms have been taking part in the free tree scheme for over 10 years – with many of the original trees now providing perches for birds to sing from, branches to nest within and berries to feed from.”
The trees have been provided as part of the council’s ongoing free tree scheme for farmers and rural landowners across the county. Larger landscape trees are provided for replacing trees lost to disease or to enhance tree cover across farms and the rural landscape. A mixture of native trees suitable for a range of site conditions are offered by application.
New senior appointment at housebuilder
Housebuilder William Davis Homes has appointed Michele Rose as its new Group Sales & Marketing Director, covering the East and West Midlands regions.
Michele joins Loughborough-based William Davis from Bloor Homes, where she was Regional Sales Director.
With more than 30 years’ experience in the housing industry, Michele brings a wealth of skills and knowledge to the role.
“William Davis has a strong reputation for quality and excellent customer service and I’m delighted to be leading the sales team here,” said Michele.
“In my previous roles I’ve grown three different sales regions and I’m looking forward to building on that success in both the East and West Midlands regions for William Davis.”
Michele said she was attracted to William Davis Homes by its emphasis on family values and commitment to employing its own workforce.
“It’s quite unusual for a housebuilder to directly employ its own workforce these days and that’s something to be highly valued – by employees and our customers. Our staff are completely invested in producing a high quality product.
“It’s amazing to think that many employees started at William Davis as apprentices and are still here around 30 years later.”
Purpose Media goes back to school as it lands website work for academy trusts
Derbyshire full-service marketing agency Purpose Media has made a major move into the education sector after winning contracts to create 30 new websites and give digital support to two leading Midlands academy trusts.
The South Normanton-based firm has been appointed by the Embark Federation and the LEAD Academy Trust, which run 44 primary and secondary schools between them across Derbyshire and Nottinghamshire.
The work will involve creating a new group website and 27 further school websites, as well as providing video and photographic content and ongoing support for LEAD, which is based in Nottingham and operates 26 academies – with one more set to join the group.
Purpose Media will also build a new group website for Derby-based Embark as well as supplying digital support for the 23 primary and secondary schools it operates across Derbyshire.
It will also build a new website for the William Rhodes Primary and Infant School in Chesterfield.
Purpose Media has built up an excellent reputation working with firms in a range of industries across the country and overseas and Tim Lenton, the firm’s digital implementation and strategy director, says the company is looking forward to using its expertise on behalf of schools close to home.
He said: “Schools have traditionally used their websites as one of a number of different methods to keep in touch with parents and other stakeholders and it’s fair to say they haven’t been used to what we’d consider to be their full advantage.
“Our strategy will be to put them at the heart of each school’s marketing and communications activity by ensuring they have quality photographic and video content, are kept up to date with the latest policy documents and contain everything visitors need to be able to understand each school’s identity and its core values.”
Matt Crawford, trust leader of the Embark Federation, said: “We are delighted to be working with Purpose Media on a new website for the trust and also William Rhodes school.
“We have been very impressed not just by the skill of their team but also by their effective communication at all stages of the project so far. We are really excited to see the end product and are hoping to continue to work with them in the future.”
Lucy Foster, head of marketing at LEAD Academy Trust, said: “We wanted to update our academy websites to improve the user experience and engagement for parents, prospective parents, prospective employees, students, governors and key stakeholders.
“Websites remain a key source of information but as well as functionality and compliance, they also need to reflect the personality of each academy while being recognised as part of the Trust.
“By working with Purpose Media, our academy websites will offer a more modern, engaging experience that can be measured and monitored to inform future improvements.”
Demolition team starts Leicester Market revamp
The first stage in the ambitious transformation of Leicester’s historic market will get under way this week.
National construction company Speller Metcalfe has been awarded the £8 million contract to lead the revamp of the market and has already begun preparing the site for demolition.
Heavy equipment will start arriving on site, with the demolition of the old market structure expected to take a little over a fortnight to complete.
Once the site has been cleared, the city council plans to create a market that’s fit for the 21st century but retains all the character of a traditional market place.
Among the improvements for the new-look market will be better lighting, smart new paving and a shuttered perimeter that will keep the site secure at night.
All the old wooden stalls – now in poor condition – will be removed, and 84 smart new stalls installed in their place, creating an attractive environment for the fruit and vegetable traders and other small businesses. The new stalls will be set out in an improved layout to create better pedestrian routes through the market.
The existing market roof will be removed and replaced with a smaller covered area, opening up views of the Grade II* listed Corn Exchange and creating space for new trading opportunities.
On one side of the Corn Exchange, attractive, flexible and lockable units – featuring green roofs and solar panels – will be installed in front of the indoor food hall to attract a new generation of traders and a wider range of quality goods.
On the opposite side, the space will be used for temporary specialist markets and special events, while an expanded café will be relocated to a site adjacent to Dolphin Square, where it will offer its customers more outdoor seating and a much more attractive view of the market area.
City Mayor Peter Soulsby said: “This investment in Leicester Market is long overdue, so I’m very pleased that our contractors are now on site.
“If Leicester Market is to be the beating heart of the city centre once again, we need to help it adapt to reflect the way that people shop today.
“By reconfiguring the space and upgrading the environment, we can create new opportunities for new businesses that will complement the existing offer and attract new activity, and new life, to the market area.”
Leicester Market will continue to trade from its temporary site on Green Dragon Square while work to create the new-look market is under way.
Mike Dalzell, the city council’s director for tourism, culture and inward investment, said: “A final timescale for the works will be drawn up once Speller Metcalfe have cleared the site and checked what’s under the ground, beneath the old market.
“Our aim, however, is to complete the revamp of Leicester Market as quickly as we can, with the main works expected to take around 10 months.”
Rob Lashford, regional director at Speller Metcalfe, said: “We’re proud to be working on this landmark project in Leicester.
“We have a history of delivering innovative and sustainable projects which contribute to local communities, and know that this scheme will continue this success.”
Breedon acquires US firm in £238m deal
Breedon Group, the construction materials group, has acquired BMC Enterprises Inc. for an enterprise value of US$300m (£238.1m).
BMC is a supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri.
In the twelve months ended 31 October 2023, BMC recorded unaudited revenue of US$178.9m and unaudited adjusted EBITDA of US$35.5m.
Rob Wood, Chief Executive Officer, said: “The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the USA. BMC has an excellent performance track record over a sustained period and is positioned in an attractive market for future growth.
“As a high-quality aggregates and concrete business that has grown at pace, organically and through acquisitions, with a strong management team and deep local knowledge, BMC’s culture and values are fully aligned with the Breedon business model.
“The acquisition is expected to be earnings enhancing for shareholders while allowing Breedon to maintain a conservative and flexible balance sheet to pay dividends and make further bolt-on acquisitions across each of our platforms as opportunities arise.
“We are delighted to welcome our BMC colleagues to Breedon and look forward to working with them to build Breedon’s presence in the USA.”
The news comes as Leicestershire-based Breedon announced its audited annual results for the year ended 31 December 2023, in which it delivered record revenue of almost £1.49bn, while pre-tax profits slipped slightly, by 1%, to £134.4m.
Rob Wood said: “The record results we delivered in 2023 are a real accomplishment and something I am extremely proud of. The challenging trading conditions our team faced required agile and bold responses which they took with discipline and determination.
“As a result we kept our workforce safe and well, reinforced our market positions and were recognised by our clients for the quality of our products and services. For this I sincerely thank the whole team.”
Revenue and profits slip at Ibstock
Ibstock, the manufacturer of building products, has seen revenue and pre-tax profits slide in its results for the year ended 31 December 2023.
Revenue at the Leicestershire firm was down 21% to £406 million, in comparison to £513 million in 2022, as sales volumes “reduced in line with UK domestic brick deliveries.” Ibstock noted that “despite this challenging backdrop, selling prices remained stable through the year.”
Statutory profit before tax, meanwhile, dipped from £105 million in 2022 to £30 million. During the year a comprehensive operational review was undertaken to reduce fixed cost and align capacity to near term demand expectations. The resulting restructuring programme included a number of actions to temporarily reduce capacity across the business, as well as the permanent closure of two clay brick factories.Headcount reductions and fixed costs savings with an annualised value of £20 million are to be achieved, with around £5 million of this captured in 2023 and the full amount to be achieved in 2024.
Activity in the early weeks of 2024 has been in line with subdued levels seen in the latter part of the 2023 year for Ibstock, with the company noting: “While remaining cautious, we currently anticipate a degree of improvement as the year progresses.”Joe Hudson, Chief Executive Officer, said: “We have delivered a resilient performance for the year in what have been very difficult market conditions, and I am proud of the way that colleagues across the Group have responded in such challenging circumstances.
“Our results reflect both continued strong execution and the difficult but decisive actions taken to reduce headcount and realign capacity with near term market conditions.
“The organisational changes implemented during the second half of the 2023 year have created a leaner, more customer-focused business, which will deliver an enduring benefit for years to come.
“In doing so, we have also created a platform to accelerate innovation, with a particular focus on the sustainability of our products and processes. In combination with the strength of our brand and unrivalled product portfolio in the UK construction marketplace, we believe this will unlock significant value over the years ahead.
“As we focus on doing the right things to respond to market conditions in the near term, we are moving towards completion of the key investment projects that will underpin our growth as the market recovers.
“Our investment in new low cost, efficient and more sustainable brick capacity at our Atlas facility, and a significant capacity expansion in the fast-growing brick slips market, are on track and will support our medium-term growth objectives.
“Activity in the early weeks of 2024 has continued to reflect the more subdued demand environment experienced throughout the latter part of 2023. As we look further ahead, it is clear that market fundamentals remain supportive, with significant unmet demand for new build housing in the UK.
“The Group’s conviction in its medium-term prospects is underpinned by an expectation of a return to normalised conditions within its core markets combined with the incremental returns generated from our significant capital investment programme. Although the timing of this recovery is uncertain, Ibstock is well positioned to benefit and to deliver on our growth targets over the medium term.”
Clumber Consultancy to raise funds for children’s hospice
Clumber Consultancy, the specialist Pensions and ERA Service provider for the UK insolvency market, has chosen Bluebell Wood Children’s Hospice as its charity of the year.
The Nottinghamshire firm is supporting the Hospice over the next 12 months through a series of fundraising initiatives to help the vital work the Sheffield-based facility carries out on behalf of both children and their families.
Bluebell Wood Children’s Hospice supports around 300 children and families each year who are living with life threatening and life shortening conditions throughout the South Yorkshire, North Nottinghamshire, Chesterfield, North Derbyshire and North Lincolnshire regions.
It offers support in the form of respite breaks in its hospice, as well as providing support and care in the homes of families through its Community Team. It also provides holistic therapies such as physiotherapy, hydrotherapy and music therapy sessions in the hospice.
As well as looking after the poorly child it also looks after the whole family by providing counselling, bereavement support, sibling support and wider family support. The team run regular sessions in and out of the hospice for families offering fun activities such as bowling, crazy golf, cooking lessons and most recently ice skating.
Hannah Goulding, Regional Fundraiser at Bluebell Wood Hospice, said: “We’re incredibly grateful for the support we are receiving from Darren and his team at Clumber Consultancy.
“We cannot support these families without the donations we receive. It costs around £5 million each year for us to run, and we only receive around 20% funding from the UK government so we rely on the donations from individuals, business and community organisations to be here.”
Darren Toms, MD of Clumber Consultancy, added: “This is our first year since the pandemic of having a charity of the year to support and I cannot think of a better cause. Our team nominated several charities to support and this is the one they decided needed our help the most.
“We were actually invited up to visit the hospice which was a very emotional experience but emphasised what a great job the hospice do and got us all counting our blessings and reflecting on what we can do to help this incredible team and their wonderful families.
“We can’t wait to raise money for this very worthy cause and to help with some volunteering at the hospice.”
Investment zone proposed at Infinity Park Derby
Businesses based at Infinity Park Derby could be set to benefit from the proposed East Midlands Investment Zone.
One of twelve planned across the UK, the East Midlands Investment Zone would offer a range of incentives to firms based within its boundaries, including business rates retention and tax incentives, to help boost economic growth and create thousands of high-quality jobs.
The East Midlands Investment Zone would focus on green industries and advanced manufacturing, boosted by Government investment of £160 million over ten years. It would be managed by the East Midlands Combined County Authority (EMCCA) and could leverage at least £383 million in private investment.
On Wednesday 13 March, the Derby City Council cabinet will be asked to approve plans for the inclusion of Infinity Park Derby as part of EMCCA’s bid to establish an investment zone for the region.
Cllr Nadine Peatfield, Deputy Leader of Derby City Council and Cabinet Member for City Centre, Regeneration, Culture and Tourism, said: “Derby is an advanced manufacturing powerhouse, home to world-leading industry, an outstanding university and a skilled workforce.
“Having one of the East Midlands Investment Zone sites located here would be great news for the city and its surrounding areas. I look forward to seeing these ambitious plans develop over the coming months.”
Infinity Park Derby is a unique collaboration between Derby City Council, the Harpur Crewe Estate, Rolls-Royce and Infinity Park Derby LLP, which includes Wilson Bowden Developments and Peveril Securities. It was awarded Enterprise Zone status in 2016.
The Park is located to the south of the city, next to the world headquarters of Rolls-Royce Civil Aerospace, with Toyota Manufacturing (UK), Bombardier and JCB all close by.
Other proposed sites for the East Midlands Investment Zone include The Centre of Excellence for Modern Construction (CEMC), near Workshop, and Hartington Business Park in Staveley, Derbyshire.
University of Nottingham collaboration secures Manufacturing Technology award
A multi-site collaboration between the University of Nottingham, Loughborough University and Coventry University is celebrating after winning the “Manufacturing Technology” category at this year’s Collaborate to Innovate (C2I) Awards.
Made up of eight categories, the annual C2I Awards are in their eighth year and celebrate the UK’s depth of engineering talent and the role they play in addressing some of the biggest global challenges we’re currently facing.
The rapid expansion of advanced manufacturing technologies in industry means there’s an increased need for more sophisticated inspection strategies. In response to this, the Midlands Centre for Data-Driven Metrology (MCDDM) has developed “a single-click automated manufacturing metrology demonstrator” that integrates new technologies, custom-code, machine learning, and digital manufacturing trends to improve speed, reduce costs and enhance quality inspection.
Professor Samanta Piano, Director of the MCDDM and Professor of Metrology at the University of Nottingham, said: “This demonstrator is the culmination of seven years of research and we’re incredibly proud of the significant progress we’ve made in developing customised metrology solutions for advanced manufacturing applications.
“By integrating several techniques into a cohesive system, we’ve been able to enhance measurement speed and automation, bringing us closer to a streamlined, user-friendly solution that minimises complexity and increases productivity.”
The team is now moving onto a second phase, which aims to concentrate more on the speed and integration of machine learning to optimise the optical demonstrator into a single-click solution.
“To be recognised for creating cutting-edge tools and technologies that solve real world challenges is exactly what we’re looking to do here at Nottingham,” said Professor Chris Tuck, Associate Pro-Vice Chancellor for Research and Knowledge Exchange.
“We’re thrilled to have continued our streak of success at the C2I awards with another win this year, and I’d like to congratulate the team on their well-deserved win.”
New Energy Centre unveiled in Derby
A new ‘Energy Centre’ which will help reduce the carbon footprint of businesses on a major food and production and distribution hub being created in Derby has been unveiled.
In a ceremony held last week, Leader of Derby Council, Councillor Baggy Shanker, Chief Executive Paul Simpson and Mid-Derbyshire MP Pauline Latham, jointly unveiled a plaque at the official opening of the centre at SmartParc SEGRO Derby.
SmartParc SEGRO Derby is providing two million sq ft of food production and distribution space at the former Celanese site, which will deliver 5,000 jobs for Derby. And a critical part of the scheme is delivering low-carbon, collaborative food production on the park – which is where the innovative central energy centre comes in.
The first of its kind in the food industry, the Energy Centre is a shared heating and cooling system, which recycles heat from refrigeration plants and reuses it to heat water and offices. It is a future-proofed energy balancing system – designed with an ability to connect future innovative technologies.
Jackie Wild, Founder and Chief Executive of SmartParc, said: “We are very proud that our revolution in sustainable food production begins here in Derby.”
Councillor Baggy Shanker, Leader of the Council and Cabinet Member for Strategy, Governance and Finance, said: “Innovation is at the heart of everything we do in Derby and SmartParc is a perfect example of this.
“I started my career on this very site 35 years ago and worked there for 23 years so it’s really special to see it regenerated and creating thousands of jobs for local people. Developments like the energy centre are essential in putting Derby on the map as a centre for excellence, innovation and sustainability.
“We have been working really closely with the SmartParc team over the past few years and it was brilliant to see all the hard work come to life at the centre’s official opening. A huge well done to the team for transforming the site so quickly.”
It is estimated that between 2024 and 2030, the system will provide annual carbon emissions savings of around 27,000 tons compared with an equivalent system. According to SmartParc, a minimum annual seasonal efficiency of 400% is guaranteed to tenants – over four times more efficient than gas boilers.
The official opening of the Energy Centre, which was attended by around 80 dignitaries from across the region, also marked the launch of the Midlands Engine Food White Paper.
SmartParc has been working with the Midlands Engine on the document, which highlights the huge potential that exists in the Midlands to lead the transformation of the food system to deliver better food security for the region and the country.
Among the dignitaries at this week’s official opening ceremony was Sir John Peace, chairman of the Midlands Engine.
Sir John Peace said: “Launching our Food White Paper at SmartParc provided the perfect platform to call for the transformation of our food system.
“Both the report and this extraordinary site are built upon regional collaboration – clear examples of what can be achieved when partners come together to drive their industry forward.
“This Food White Paper is another excellent tool we can use as we continue to advocate for the region’s food sector, championing the exceptional strengths and opportunities to be found in the Midlands.”
Internet of Things business placed into administration
Chesterfield-based Internet of Things (IoT) business Konektio has been placed into administration.
The news comes after Tern, the investment company specialising in supporting high growth, early-stage, disruptive IoT technology businesses, announced in November 2023 that it would not invest further in Konektio, as it had “lost focus.”
Revealing the fall into administration to the London Stock Exchange, Ian Ritchie, chairman of Tern, said: “Whilst it is obviously very disappointing that Konektio has been placed into administration, it was clear to the Tern board that the Konektio business had lost focus in the second half of 2023. We therefore decided not to invest further in Konektio in November 2023 and Tern’s stake was significantly reduced.
“The nature of investing in early-stage technology businesses is that there will inevitably be the occasional failure, but this is a first for Tern. I am happy to report that the remainder of Tern’s portfolio companies continue to perform well and I look forward to reporting on their continued progress in due course.”
In March 2023 Konektio, which specialises in digital transformation solutions for the industrial and manufacturing industries, moved to Chesterfield’s Northern Gateway Enterprise Centre from nearby Clay Cross. The business raised £2.1m in December 2021 from both the Midlands Engine Investment Fund (MEIF) and Northern Powerhouse Investment Fund (NPIF), managed by Mercia and Foresight Group, along with Tern plc. The company was previously known as InVMA.Nottingham City Council sets budget and makes significant cuts
Nottingham City Council has set its budget and made significant and much opposed cuts for the coming financial year, 2024/25, at a meeting of all councillors (on 4 March).
The council had faced a budget gap of over £50m for 2024/25 due to issues facing councils across the country including increased demand for children’s and adults’ social care, rising homelessness presentations and inflation.
This has meant savings of over £36m need to be made between 2024/25 to 2027/28 in order to set a balanced budget, which is a legal requirement for all councils.
In addition, the council, has been granted Exceptional Financial Support (EFS) from the Government of up to c£66.143m – £25m for the current year, 2023/24 and £41.143m in 2024/25. EFS is not additional funding from Government but allows the council to use capital resources, including from asset sales, to fund revenue costs for services.
The council’s element of the Council Tax will increase in 2024/25 by the full 4.99% indicated by the Government, made up of 2.99% Council Tax and a further 2% precept specifically towards Adult Social Care costs.
In January, the council was issued with new statutory instructions by the Improvement and Assurance Board then overseeing the authority, which meant it had a legal duty to maximise the savings brought forward as part of the budget-setting process in order to minimise the amount it required in Exceptional Financial Support from Government.
A team of three Commissioners has now been appointed for the council by the Government to replace the Improvement and Assurance Board, which includes a Lead Commissioner, Tony McArdle; a Commissioner for Finance, Margaret Lee; and a Commissioner for Transformation to be nominated in due course.
The Commissioners have been granted extensive powers and will oversee the full range of the council’s improvement activities, including strategies to secure the medium and long- term financial sustainability of the council and plans to transform front line services.
Councillor Audra Wynter, the council’s Deputy Leader and Portfolio Holder for Finance, said: “Local government in this country is facing an unprecedent financial crisis. Nottingham was one of 19 councils confirmed by the Government as needing Exceptional Financial Support to balance their books.
“Seventeen of these are councils with social care responsibilities like Nottingham, highlighting the huge pressure we are all under to meet the rising cost of vital care services for our most vulnerable people.
“The council’s financial reserves have been impacted by decisions it has made in the past and this has affected our financial resilience. However, since 2013/14, the council’s Revenue Support Grant (RSG) from Government has reduced by nearly £100m every year.
“Over the same period, Nottingham’s ‘Core Spending Power’, a measure used by Government, has reduced by over 28% in real terms according to SIGOMA, the Special Interest Group of Municipal Authorities.
“The council has been faced with having to make some extremely difficult decisions but we have a legal duty to set a balanced budget. Our focus will be on continuing to provide important statutory services but other discretionary services that we know local people value will be significantly affected by the savings. We will do our best as a council to mitigate the impact as much as we can.”
Savings planned for 2024/25 budget include:
- Reviewing Library Service provision while maintaining a comprehensive and efficient service offer appropriate to the needs of citizens.
- Removing the council contribution towards Area Based Grants to the voluntary and charity sector and grants to arts organisations and cultural sector.
- Reducing both the Community Protection and Resident Development services. The requirement to deliver duties relating to environmental enforcement and anti-social behaviour will be met.
- Reviewing the operation of community centres seeking to remove all council contribution from their operation.
- Re-structuring and reducing tiers and overall capacity across the Adult Social Care Assessment function.
- Closure of Colwick Park Activity Centre.
- Ending school uniform support for eligible families if the Household Support Fund grant does not continue.
- A reduction in council staffing levels of more than 500 full-time equivalent posts. Every effort will be made to limit compulsory redundancies through targeted voluntary redundancy.
Number of tech company start-ups in East Midlands jumps 20%
The number of new technology companies incorporated in the East Midlands jumped by a fifth (20%) to 1,627 last year, up from 1,358 the prior year. The figures suggest the region’s tech sector remains resilient despite broader economic challenges, according to analysis by audit, tax and consulting firm RSM UK.
Sheetal Sanghvi, office managing partner, RSM Nottingham said: “It is great to see the continued growth of tech incorporations in the East Midlands. From cyber security and artificial intelligence to data analytics and fintech, businesses in the region are pushing boundaries, helping the UK lead the way in the global tech market.
“With a rich ecosystem of start-ups, established tech giants, and pioneering academic research from its universities, the region continues to be a beacon for technological innovation and entrepreneurial spirit. Many of the groundbreaking technologies and digital solutions that businesses across the UK benefit from originate from the East Midlands and this is attractive to tech entrepreneurs wanting to set up on their own.”
The national data shows a total of 51,017 tech companies were incorporated in the UK last year, up 22% from 41,972 the year before. Key sub-sectors that saw significant growth included software developers, data businesses and IT consultancies.
All regions in the UK saw an increase on the previous year, except for Wales which still incorporated 1,150 businesses, a small decrease from 2022. Tech incorporations in London rose by more than a quarter (26%) on the previous year’s figure to 26,060.
Ben Bilsland, partner and technology industry senior analyst at RSM UK, said: “Our research is testament to the resilience of the UK’s tech sector despite global challenges. The rise in tech incorporations shows there is cause for optimism in this key industry.
“Whilst it’s impossible to ignore AI as a driving force behind UK tech incorporations, especially for businesses working in data, there will be other factors to consider. London projects itself as a leading global authority in tech, and that strength is reflected across the UK by a vibrant and energetic sector that consistently supports early-stage businesses.
“But the sector has, and continues to be, marked by layoffs, so it may be that these members of the workforce have been confident enough to go it alone, thereby fuelling incorporation growth.
“The government has an important role to play if this trend is to continue. Making valuable resources, including AI compute, accessible for universities and early-stage entrepreneurs is critical.
“Funding and policy changes, including innovation reliefs, that ensure a world-class tech workforce are crucial both in terms aiding education and skilled immigration. For those businesses working in AI, clarity on future regulation will assist the ability to forward-plan.”
Tech company incorporations by year
|
Region |
2022 |
2023 |
% change |
|
East Midlands |
1,358 |
1,627 |
20% |
|
East of England |
2,853 |
3,730 |
31% |
|
London |
20,627 |
26,060 |
26% |
|
North East |
605 |
704 |
16% |
|
North West |
3,167 |
3,602 |
14% |
|
Northern Ireland |
373 |
377 |
1% |
|
Scotland |
1,280 |
1,553 |
21% |
|
South East |
4,614 |
5,160 |
12% |
|
South West |
2,072 |
2,422 |
17% |
|
Wales |
1,257 |
1,150 |
-9% |
|
West Midlands |
2,230 |
2,797 |
25% |
|
Yorkshire and The Humber |
1,536 |
1,835 |
19% |
|
Total |
41,972 |
51,017 |
22% |
Works progressing on next phases of Lincoln Enterprise Park
Construction works to deliver the next phases at Lincoln Enterprise Park are progressing to schedule with 80% of space already reserved.
Located on the A46 near Thorpe on the Hill, Lincoln Enterprise Park is progressing with phases 7 to 10, which will bring an additional 34,500 sq ft to the park and could potentially create up to 100 new jobs.
Following the continued demand for commercial property in and around Lincoln and a successful planning appeal in 2021, developer and site owner LEP Developments commenced works in October last year, acting as both developer and contractor.
With groundworks done, steel frames ups and roofs complete, works to phases 7 and 8 – which are 6,500 sq ft each – are on schedule.
In total, phases 7 to 10 will bring 13 new mixed-use units ranging from 1,451 to 11,500 sq ft to Lincoln Enterprise Park, offering in-demand expansion opportunities for current occupants and new commercial premises for other businesses.
Current occupant and bespoke kitchen and furniture manufacturer, Krantz Designs, has been on Lincoln Enterprise Park since 2020. With its expanding client portfolio and desire to manufacture all its products in-house, the company has bought phase 7 as well as securing the lease of part of another unit as part of phase 9, giving the company a total of 20,000 sq ft at the park.
Managing director of Krantz Designs, Jamie Krantz, said: “With our showroom on historic Bailgate in Lincoln, we currently manufacture about 90% of our products here at Lincoln Enterprise Park, but for some time have wanted to increase that to 100%.
“We had no desire to move from the park as it’s the perfect location for us, is well managed and has a supportive business network, therefore when Nick secured planning for the next stage of expansion, I jumped at the chance to design and build our new HQ.
“We will have approximately 30 skilled team members at the park when we move into our new spaces later this year, which will include CAD technicians, cabinet painters, machinists and office personnel, and we will be recruiting in due course to fill new roles. The team and I are pleased to be continuing our journey at Lincoln Enterprise Park.”
Managing director of LEP Developments, Nicholas Falkinder, said: “At Lincoln Enterprise Park we support economic growth by providing our premium product in a unique and highly accessible location.
“Because of what we have on offer here and the service we provide, we have been fully occupied for over seven years. Jamie and the team at Krantz Designs are a great example of the business community at the park and how we support those businesses through leasehold agreements, then on to freehold opportunities if required.
“From the outset interest in the new units has been high and this resulted in 80% pre-construction sales in just a matter of months. The majority have been taken by existing occupants, which is what we strive for, and we are welcoming some exciting new businesses later in the year.
“I’m passionate about this park and its success, and for the first time we are developer and contractor, which is an incredible journey to be on to both ensure quality and see the progress onsite each day. I want to thank our community of businesses here and everyone who has made these next phases possible.”
Phases 7 and 8 are due for completion in the summer this year, phase 9 in early autumn and phase 10 in early 2025. Two units remain available to rent or buy and are being marketed by local agents Pygott & Crone and Lambert Smith Hampton.
All contractors working on the site are East Midlands-based and include CM Civils, a Lincoln-based civil engineering company which has delivered the groundworks.
Subject to planning, there is scope for further expansion at Lincoln Enterprise Park.
Derby digital marketers’ office move gives it twice the space to innovate
A Derby digital marketing agency says it has created new space to innovate, expand and grow after it doubled its floorspace by locating to bigger offices.
JDR Group has moved into a 2,938 sq ft office on the Wyvern Business Park, on the other side of Pride Park from its previous base in Brunel Parkway, its home for the past 12 years.
David Roberts, the company’s managing director, said: “This move is a major landmark for JDR Group and it’s a wonderful step forward for us to take in our 20th year and at a time when technology is creating incredible changes in our industry.
“It’s vital that we stay at the forefront of those changes and the new offices will help us to do that, because we have extra space and a larger boardroom to bring staff together for training, invite clients and bring in external consultants.
“It will also allow us to experiment with technology to explore what’s possible and where we should be looking to innovate in the future. There is so much potential with new tools like AI, and while it will mean that some roles may no longer be necessary, it will also mean new roles are created, many of which we simply aren’t aware of yet.”
Freeths bolsters insolvency practice with partner hire
Law firm Freeths has appointed partner Su Garner to establish a Restructuring and Insolvency team in Leicester.
With more than 20 years’ experience, Su advises clients on a wide range of non-contentious restructuring and insolvency matters. Working across all sectors including construction, retail, hospitality and automotive, she has a particular focus on distressed real estate as well as formal insolvency appointments and security issues.
Su will help strengthen and grow the firm’s offering in the Midlands following recognition from the High Court Review 2023 which named Freeths as the most active in the UK with 358 insolvency filings.
Commenting on the appointment, national head of Insolvency and Restructuring at Freeths, Joey Byrne, said: “The team has expanded considerably over the last couple of years and Freeths is established as a leader in the Restructuring and Insolvency market nationally. With shared values, I’m confident Su will not only complement our team but will also be a valuable addition for our clients during this time of economic uncertainty.”
Lisa Gilligan, managing partner of Freeths Leicester, continued: “Su is a key appointment for the Leicester office to help further strengthen our regional presence as we continue to grow our practice areas. She brings with her a wealth of experience, we’re delighted to welcome her to Freeths.”
Su Garner added: “I’m incredibly excited to join such an outstanding team. The strength of the firm’s existing national offering will assist my aim in enhancing the restructuring and insolvency service across the Midlands for both new and existing clients.”
