UK economy contracts
UK government expands defence contracts for SMEs
The UK government has announced new measures to increase small and medium enterprise (SME) involvement in defence contracts, following its commitment to raise defence spending to 2.5% of GDP by April 2027. A new hub will be launched to improve SME access to the defence supply chain, and the Ministry of Defence (MoD) will introduce direct SME spending targets by June.
Currently, nearly 70% of defence spending goes to businesses outside London and the South East, but only 4% reached SMEs in 2023-24. The new hub aims to address this gap by working with suppliers across the UK to increase procurement opportunities for smaller firms, enhance competition, and accelerate innovation.
Defence spending supported over 430,000 UK jobs last year, with government contracts injecting £28.8 billion into UK industry. Regional spending increases included a 30% rise in the East Midlands (£328 million), 20% in Northern Ireland, and nearly 19% in Yorkshire and the Humber. The government says expanding SME participation will drive further economic growth, create jobs, and strengthen the UK’s defence industrial base ahead of the upcoming Defence Industrial Strategy.
Fleets in East of England rely most on independent garages
Research from epyx shows that fleets in the East of England are the most likely to use independent garages for service, maintenance, and repair (SMR), while those in Wales are the least likely.
From January 2024 to March 2025, 62% of SMR jobs for fleets in the East of England were handled by independent garages. Other regions with high independent garage usage include Scotland and the West Midlands (59%), the East Midlands (58%), and London (55%). The South East stood at 50% at the lower end, while Wales had the lowest rate at 46%.
The data, sourced from epyx’s 1link Service Network platform, suggests that fleet SMR policies, vehicle type, and the availability of franchise dealers may influence regional differences. While independent garages serviced 72% of vans, only 44% of company cars were maintained outside franchise networks. Hybrid vehicles had the lowest independent SMR rate at 32%, while independents maintained 42% of electric cars.
Epyx notes that fleet preferences and used market expectations drive these trends, with franchise dealer service histories often seen as more valuable for resale, particularly for company cars. However, the increasing share of EV maintenance by independent garages suggests a growing capacity to service electric fleets.
Stagecoach completes Chesterfield depot electrification ahead of fleet transition
Stagecoach has completed the electrification of its Chesterfield bus depot, the first of four sites being upgraded in partnership with e-fleet solutions provider VEV. The project will support the introduction of 57 electric buses in Spring 2025, replacing over two-thirds of the depot’s diesel fleet, which serves Chesterfield and northeastern Derbyshire.
The upgrade was funded through the UK government’s ZEBRA 2 scheme, Derbyshire County Council, and Stagecoach. Chesterfield is the largest depot in the initiative, with similar projects underway in Leamington, Nuneaton, and Rugby. A total of 150 electric buses will be deployed across all four sites.
The Chesterfield depot now features 27 dual 120kW DC chargers from Eko Energetyka, enabling 54 simultaneous charging points. A 2.5MVA power upgrade has been completed, and a 234kWp rooftop solar system is under construction, expected to generate 200MWh of electricity annually and reduce carbon emissions by around 48 tonnes per year.
VEV, backed by energy firm Vitol, has managed the project from fleet and power analysis to charger installation, staff training, and ongoing operational support. The company has also integrated its VEV-IQ smart charging and energy management platform, which connects with Stagecoach’s vehicle telematics to optimise charging, manage power loads, and minimise energy costs.
With Chesterfield’s electrification complete, work will continue on the remaining depots as Stagecoach transitions to a lower-emission fleet.
Derbyshire councils propose North-South split to save up to £93m
Derby City Council and eight Derbyshire district and borough councils have proposed splitting the county into two unitary authorities, claiming it could save up to £93 million over five years at a one-time cost of up to £25 million.
Their plan, now under review by individual councils, outlines two options: one placing Amber Valley in a northern council with High Peak, Derbyshire Dales, Chesterfield, North East Derbyshire, and Bolsover, while the southern council would include Derby, Erewash, and South Derbyshire. The second option moves Amber Valley to the south, keeping other districts unchanged.
Under either scenario, the northern council would face a financial deficit—£1.5 million if Amber Valley is included and £1.3 million if it is not—while the southern council would operate at a surplus of £8.6 million or £8.4 million, depending on Amber Valley’s placement.
The North council’s debts would range from £542 million to £560 million, while the South council’s debts would be between £811 million and £829 million. The plan would also cut the number of councillors from 447 across 10 councils to 148 across two, with each councillor representing 5,500 residents.
The Derbyshire County Council is working on a competing proposal without district involvement and claims its plan could save £133 million over five years, but it has not yet released full details. Initially, the county council suggested a single unitary authority for all of Derbyshire, but it later clarified it is pursuing a model with one council for the county and Derby remaining separate.
The district councils’ proposal will be submitted for initial review on 21 March, with a public consultation to follow later this year and a final submission in November.
Business leaders invited to help shape Greater Lincolnshire’s economic future
Businesses have been invited to play a key role in the future growth of Greater Lincolnshire by becoming part of the Economic Advisory Panel.
Derby secures £3.3m in government funding for economic growth
Derby City Council has approved nearly £3.3 million in government funding to support local economic growth in the 2025/26 financial year. The funds come from the UK Shared Prosperity Fund (UKSPF) and will be distributed through the East Midlands Combined County Authority (EMCCA).
The UKSPF, initially launched in 2022 with a £2.6 billion budget, aims to support communities, local businesses, and workforce development. The government has extended the programme for another year, allocating £902 million nationwide as part of a transition agreement.
Derby’s funding allocation remains in line with previous years, reflecting a redistribution based on deprivation levels. The funds will strengthen local businesses, improve employability and skills, and support community initiatives.
Derby City Council emphasised the funding’s importance in maintaining economic stability and continuing investment in key areas amid ongoing budget pressures and potential future funding reforms.
UK government halts key farm payment scheme, sparking industry backlash
The UK government has stopped accepting new applications for the Sustainable Farming Incentive (SFI), citing full budget allocation for the year. The scheme, part of the Environmental Land Management (ELM) programme, pays farmers for nature-friendly practices such as maintaining hedgerows and reducing pesticide use.
Defra stated that 50,000 farm businesses—covering over half of England’s farmland—are now enrolled in environmental land management schemes, which have a £5 billion budget over two years. However, the suspension of new applications has drawn strong criticism from farming groups.
The National Farmers’ Union (NFU) called the move a “shattering blow,” warning that farmers left out of the scheme may have to abandon environmental efforts to stay financially viable. The Country Land and Business Association (CLA) described the decision as harmful to both farming and nature. The Nature Friendly Farming Network (NFFN) raised concerns that delays in the next SFI rollout, expected in spring 2026, could leave many farmers without support for 18 months.
Political figures, including Alistair Carmichael, chair of the Environment, Food and Rural Affairs Committee, criticised the abrupt decision, warning it could further destabilise the sector. The government has defended its funding approach, stating that more farmers are now receiving payments than ever before.
Paragon Bank funds £2.9m housing project in Kettering
Paragon Bank has provided a £2.9 million funding package for the Maplefields housing development in Kettering, Northamptonshire. The project, a joint venture between Castlegate Homes and Craneview EM Ltd, will deliver 14 new homes on the former Maplefields school site on Beatrice Road.
The development includes a mix of two- to four-bedroom bungalows and detached houses, with prices ranging from £350,000 to £435,000. Properties feature garages, additional off-road parking, and large gardens. The site is located near Kettering town centre and train station, offering a 50-minute rail connection to London St Pancras.
Chris Wardrop, co-owner of Castlegate Homes and managing director of Craneview EM Ltd, led the project, with Craneview acting as the main contractor. Paragon Bank’s senior relationship director Steve Hallam and senior portfolio manager Ashling Quinn structured the funding deal.
Luxfer Gas Cylinders welcomes industry expert to drive global growth
Go-ahead given to Newark primary school extension plans
Cleaning products supplier expands with new Chesterfield facility
Widespread project delays to impact profits at Van Elle
Widespread project delays are hitting profits at Van Elle, the Nottinghamshire-based ground engineering contractor has revealed in a new trading update for the year ending 30 April 2025.
In interim results the company shared that market conditions had proved challenging. Despite benefitting from a strong order book, the trading environment and volumes remained supressed throughout January and February.
The business has seen widespread project delays, including the ongoing impact of delays to Building Safety Act approvals. These have primarily impacted trading for Rock & Alluvium, which is focused on taller residential schemes in London and the Southeast.
With over 40 projects currently in the approvals process, the majority of these are now expected to commence in FY26 and will result in a FY25 performance for Van Elle’s UK operations slightly below expectations.
At Van Elle Canada, meanwhile, further delays have been experienced as a strategic supply partner to the major infrastructure upgrade programme for the Toronto rail network. The division’s trading performance will now be weaker than anticipated.
While Van Elle has secured several key frameworks throughout FY24 and FY25 in Canada, with near-term uncertainty around the timing of key investment programmes, the business is reviewing its strategic options with its Canada operations.
As a result of the impact of the Rock & Alluvium and Canada trading performance, Van Elle now expects underlying profit before tax for the second half of FY25 to be similar to the first half.
Digital innovation company finds oasis at new Chesterfield office
EY boosts Midlands Private team with two appointments
Lincolnshire estate planning firm secures funding to expand outreach
Westwood Estate Planning, a Lincolnshire-based estate planning business, has received £8,000 in funding from First Enterprise through the British Business Bank’s Start Up Loans programme. The funds will support marketing efforts to raise awareness of estate planning and financial wellbeing.
The business provides legal services including will writing, lasting power of attorney, probate, and estate administration. Founder Gary Tonsley established the company after experiencing firsthand the challenges of inadequate financial planning when his mother passed away without arrangements in place.
The funding will enable Westwood Estate Planning to expand its client education initiatives, including seminars, newsletters, and partnerships with financial advisers. First Enterprise – Enterprise Loans, a not-for-profit lender, provides loans between £500 and £150,000 to start-ups and SMEs unable to access traditional bank financing.
Representatives from First Enterprise and the British Business Bank praised the company’s efforts to improve financial literacy and support local families in securing their futures.
Lincoln footbridge to be demolished for hotel development
A pedestrian bridge over Melville Street in Lincoln is set to be demolished in May as part of a multi-million-pound hotel project by Lincolnshire Co-op. The bridge, previously part of the former City Square shopping centre, has been deemed an obstacle to development both logistically and visually.
Lincolnshire Co-op, which has outline planning permission for the hotel, is working with the Department for Transport and other stakeholders to finalise the demolition timeline and road closures. Notices have been issued under the Town and Country Planning Act 1990, confirming the planned removal.
The demolition is expected to take place over a weekend to reduce disruption. The bridge, a popular location for city and cathedral views, will be permanently removed as part of the site’s redevelopment.
Compleat Food Group acquires The Real Yorkshire Pudding Co amid job cuts
The Compleat Food Group has acquired The Real Yorkshire Pudding Co for an undisclosed amount, shortly after announcing plans to cut nearly 200 jobs across its Nottingham and Crewe sites.
The Yorkshire-based Real Yorkshire Pudding Co, which generates £33 million in revenue, supplies both own-label and branded chilled Yorkshire puddings.
This acquisition follows Compleat’s 2024 purchases of SK Foods and Zorba Foods, which specialise in private-label party foods, dips, and deli fillings, and Harvey & Brockless, a specialty food producer and distributor.
Backed by private equity firm PAI Partners, The Compleat Food Group was formed in 2021 and employs over 5,000 staff across 15 locations. Its portfolio includes brands such as Pork Farms, Wall’s Pastry, unearthed, Vadasz, Squeaky Bean, Wrights, and Palace Culture.
ATS Euromaster closes Kettering branch as part of UK-wide restructuring
ATS Euromaster has permanently closed its Kettering service centre, one of 86 locations shutting down as parent company Michelin shifts to a mobile servicing model. The nearest remaining branch is in Northampton, with 235 centres operating across the UK.
Employees affected by the Kettering closure have been offered interviews at Halfords, which has also committed to prioritising MOT and service bookings originally made with ATS to minimise customer disruptions.
An ATS Euromaster spokesperson previously cited overcapacity, rising costs, and sluggish market growth as reasons for the restructuring. The closures are expected to impact up to 400 employees across the UK.
Humber businesses urge mayoral candidates to unify for regional growth
Business leaders across the Humber call on mayoral candidates in Hull, East Yorkshire, and Greater Lincolnshire to adopt a coordinated economic strategy to maximise the region’s potential. A joint letter, signed by major companies including ABP, Drax, Reckitt, Arcadis, Able, and Smith-Nephew, as well as organisations like the Humber Energy Board and Hull University, highlights challenges and opportunities for the area.
Concerns include the uncertainty surrounding the Scunthorpe steel plant and the Humber’s absence from the Chancellor’s recent growth speech. Business leaders argue that a unified approach is essential to securing investment and maintaining the region’s economic competitiveness.
The letter emphasises the Humber’s strengths in renewable energy and advanced manufacturing, citing the potential for 28GW of offshore wind energy and £15 billion in private investment for carbon capture and hydrogen projects. It calls for a Humber Estuary Growth Zone to align Freeport development with other key infrastructure projects, ensuring a streamlined approach to attracting investors.
