Operam Education Group – the BGF-backed education recruitment specialist – has completed its first acquisition in the further education (FE) sector in the latest in a series of strategic acquisitions. The company has acquired Nottingham-based Provision Recruitment for an undisclosed sum in a deal supported by HSBC and BGF. Founded in 2004, Provision Recruitment has built up a strong reputation in the FE sector, supporting colleges with the recruitment of lecturers. It is the third Midlands-based acquisition by Operam, joining Teachers UK and First for Education. The latest deal not only strengthens its regional footprint, but also enables the specialist education recruitment group to further expand into the FE sector across the UK, complementing its expertise in primary, secondary, SEND and tutoring recruitment. Operam CEO Eddie Austin said: “Traditionally, the business has focused on mainstream and SEND education, as part our buy-and-build growth ambitions. This is our first acquisition in the further education sector which enables us to broaden our reach, both from a geographical and sector perspective, integrating a well-established businesses into the group that has real potential to scale across different locations in the UK.” He added: “This latest acquisition is hugely complementary to our existing suite of services and means we now have the ability to support those in education right from primary school settings through to further education.” Last year, BGF committed a further £2.5 million in follow-on funding to support Operam’s buy-and-build growth strategy, alongside £2.5 million of senior debt from HSBC. BGF investor Rob Johnson added: “This is another exciting addition to the Operam portfolio – one which will further diversify both our service offering and client base. We look forward to welcoming Provision into the group, as we continue to cement Operam’s position as one of the leading education recruitment services providers in the UK.” Operam Education Group were advised by Squire Patton Boggs (legal), and Connect CF (deal origination). Provision Recruitment Limited were advised by Nelson Solicitors (legal).

Leicestershire County Council is considering how to deliver services differently as forecasts show its budget gap could top £85m by 2028.

Published yesterday (Wednesday), the authority’s four-year proposals include investing £127m more to meet growing demand, mainly in social care, and an extra £113m to cover inflation and the National Living Wage increase. A three per cent Council Tax increase for core services is planned for next year, generating £11m for front line services. A further £7m will be raised from a two per cent increase in the adult social care precept. Spiralling social care prices, growing service demand and inflation are driving up costs for councils across the country and means that for the first time, it’s planned to use up to £12m of reserves to help balance the books next year.

Pressures include:

• Surging cost of placements for children in care – with costs for just 10 children with complex needs now reaching £5m
• A 56 per cent rise in unaccompanied asylum seeking children in care and care leavers since last year
• Over £220m of net inflation and service pressures across the next four years – compared to £100m of increased income (including Council Tax)

Major redesigns of children’s and adults’ social care are already underway to bring down future demand and costs by millions-of-pounds, such as creating more new placements locally, rolling out new technology and helping more people live independently.

Controls around recruitment, procurement and other spend have also been tightened up to help bring down the council’s budget gap.

Declan Keegan, the council’s director of corporate resources, said: “Councils are facing their toughest ever budget challenge. Although we are not in crisis, we have to tackle the 20 per cent gap between expenditure and income, so need to deliver services differently. “Supporting vulnerable people remains our priority. And with costs and demand rocketing, it’s crucial we continue to transform how we work whilst also getting people the help they need. “We’re low funded, very efficient and high performing. But the Government’s autumn statement was dire for councils, with no extra funding and the national living wage increase alone adding £20m to our costs. “From stepping up finance controls, to making sure we’re not subsidising other organisations’ services, we’re doing everything we can to bring down our significant budget gap. Using our reserves to help make ends meet is clearly not sustainable.”

The four-year budget plan includes:

• A £12m budget shortfall next year – rising to £33m in 2026, £60m in 2027 and £85m in 2028
• £127m more to support vulnerable people – to pay for more home and residential care, and support people with physical disabilities, learning disabilities and mental health needs
• Major redesigns of services to manage future demand, including:
  • Special educational needs and disabilities – a new approach balancing growing demand for support with getting children the right help
  • Working with Barnardo’s to run children’s homes locally
  • Boosting ‘supported living’ – over 100 new placements created since 2020, enabling people with learning and physical disabilities and mental health needs to learn life skills and live independently
  • Rolling out ‘care technology’ – over 2,600 pieces of equipment, including falls detectors and GPS location trackers, installed over last year, benefiting over 1,000 people
• £36m of savings – including redesigning services, reducing the cost of back-office support services by maximising digital technology and smarter procurement
• A £445m four-year capital pot – for the cost of building roads, schools and other one-off projects linked to new homes being built across Leicestershire.

Closing the budget gap may lead to a reduction of about 200 posts over the next four years, the council notes – staff turnover and vacancy management will mean that the number of compulsory redundancies will be much lower.

The plan will be discussed by the council’s cabinet on Tuesday (19 December).

West Northamptonshire Council (WNC) has launched a Rural Business Grants programme to support businesses in the most rural parts of West Northants to diversify and grow. Utilising £919,772 of UK Shared Prosperity (UKSPF) and Rural England Prosperity Funding (REPF), this programme will provide up to 50% of equal match-funding of between £2,500 and £100,000 to businesses located in Defra’s designated rural areas within West Northamptonshire. Grants can be used to support the building and equipment of capital projects, for example converting a farm building for an alternative business use such as a business hub, wedding venue or for hospitality; growing rural tourism; the acquisition of food and drink processing equipment; or the purchase of commercial grade equipment to increase productivity. All projects and expenditure must be complete by 31 March 2025. To secure a grant, applicants will need to check the eligibility criteria on the WNC website and complete an online application form. This will be appraised with a final decision made by a Grant Decisions Panel which will include representatives from both local businesses and the Council. The Rural England Prosperity Fund is a ‘top up’ to the UK Shared Prosperity Fund provided by Defra and managed for the Government by the Department of Levelling Up, Housing and Communities (DLUHC) to support the Government’s levelling up agenda. It is intended to provide investment for identified rural areas facing additional challenges and can be used alongside UKSPF funding. Cllr Daniel Lister, Cabinet Member for Economic Development, Town Centre Regeneration and Growth, said: “We appreciate the unique challenges rural businesses face which is why we’ve chosen to dedicate this funding to support and enable them to diversify and grow. “Our ambition is to enable every business in West Northamptonshire to thrive and for this reason we have allocated the majority of our UK Shared Prosperity and Rural England Prosperity funding towards supporting businesses and creating employment opportunities to sustain the local economy. “We are dedicated to providing high quality support, training and guidance and wherever possible, funding to enable our local businesses to fulfil their potential and I encourage all those who qualify for this match-funded grant to apply.” The Council has appointed Ngage Solutions Ltd to manage the Rural Business Grants programme. Will Dallimore, Rural Business Development Manager at Ngage Solutions Ltd, said: “This is a great opportunity for rural businesses in West Northamptonshire and I look forward to supporting businesses through the process. “Ngage Solutions has worked with rural businesses in West Northamptonshire for over 7 years through the LEADER project and it will be my pleasure to continue this support and deliver the Rural England Prosperity Fund which will provide a well-needed boost for the rural economy.”

The Superbia Group, based in Leicester, has expanded its reach in the South East by acquiring Headley Financial Services Ltd, with new funding from Shawbrook. Established in 2019, The Superbia Group is a collective of financial services companies including Asset Intelligence Research, Asset Intelligence Portfolio Management and Financial Advisers, Furnley House. Shawbrook had provided funding for previous acquisitions and has now further supported the group with a flexible solution that delivered a day-one credit facility worth £6.7m with an additional committed facility. This will enable the acquisition of Headley and support the management team to continue its growth strategy via future acquisitions. Stefan Fura, Managing Director at The Superbia Group, said: “The Superbia Group has ambitious growth plans with a particular focus on expanding in the Midlands and South East. Shawbrook understood our strategy and structured a package that combined the funding immediacy for our first acquisition in the South East with a committed facility for our longer-term plans.” Matt Croker, corporate finance director at Heligan Group, added: “It was a pleasure to work with the team at Superbia and Shawbrook to help deliver Superbia’s 5th acquisition in less than twelve months. “The acquisition provides Superbia with a scalable platform in the South East for further bolt-on acquisitions and Shawbrook’s team had the sector and regional knowledge to deliver the funding for the overall strategy and this transaction in the timescales required.” Steve Armstrong, director at Shawbrook, said: “The Superbia Group’s immense development over the past few years is a testament to the strength of its growth model. “We overcame some tight deadlines to get them the funding when they needed and we’re very pleased to be working alongside the strong management team as they continue to expand and capitalise on further opportunities. We look forward to being part of their future success.” Heligan Group provided debt advisory and buyside support and SHMA provided legal services for The Superbia Group. Clarion provided legal services for Shawbrook with RSM and Magma providing FDD support.

The Government has said that it is minded to appoint Commissioners to oversee Nottingham City Council following the latest progress reports from the Improvement and Assurance Board and the Section 114 Report issued by the authority’s Chief Finance Officer on 29 November. The Improvement and Assurance Board has been overseeing improvements at the council since 2021. The Board issued Instructions for specific areas of work which build on the council’s ‘Together for Nottingham’ improvement plan. In a letter to the council’s Chief Executive, Mel Barrett, the Government has said while the council has made efforts to address the Instructions issued by the Board in February this year, the Board’s latest assessment is that the authority is not acting at the required pace, particularly in addressing weaknesses in finance, transformation and the underlying culture of the organisation in respect to governance and the workforce. As a result, the Secretary of State is considering exercising the powers of direction in the 1999 Act in relation to securing the council’s compliance with the best value duty. He is proposing to implement a package of measures through appropriate Directions and is minded to appoint three Commissioners, including a Lead Commissioner, a Commissioner for finance and a Commissioner for transformation, subject to representations received. The council has been invited to make representations to the Secretary of State by 2 January 2024 before a final decision is made about the proposal. However, if it is confirmed, officers and Councillors will work alongside Commissioners in the areas designated by the Secretary of State. Council Leader, Cllr David Mellen, said: “Clearly the appointment of Commissioners would be very disappointing and not something that that we would want to happen. Any decision that reduces democratic accountability, however limited and temporary this may be, should not be taken lightly. “The council has already made progress on a number of the improvements expected of us by the Board and the Government. In particular, we had set a balanced budget and medium term financial plan in March prior to the soaring inflation, high energy costs and increased demand for services supporting vulnerable people that have severely affected the finances of councils up and down the country. “These pressures have meant our budget is overspent this year leading to a Section 114 Report being issued by our Chief Finance Officer, which has clearly been a factor along with recent reports from the Improvement & Assurance Board, in the Government’s announcement that it is minded to appoint Commissioners. “Although not the cause of the overspend in the current year, we know there have been specific issues in Nottingham due to decisions made in the past which have affected the council’s financial reserves and resilience. “The current situation for Nottingham and a great many other authorities is very challenging and in much part caused by underfunding. There will continue to be difficult decisions that have to be made. But we are committed and determined to do what it is right for the city and its residents.” Chief Executive, Mel Barrett, said: “Although we have previously said that our strong preference was to continue working with the Improvement and Assurance Board, we are committed to working effectively with whatever arrangements Government put in place, so that the intervention can be as successful as possible in as short a time as possible. “While a lot of progress has been made, we need to go further and faster to consistently demonstrate we are providing Best Value for local people and we will ensure we work effectively with the Commissioners.” On 29 November a Section 114 Report was issued by the council’s Chief Finance Officer as the council will be unable to meet the legal requirement to deliver a balanced budget this year. Major challenges affecting councils across the country, including an increased demand for children’s and adults’ social care, rising homelessness presentations and the impact of inflation, have caused a £23m overspend in the council’s budget for the current year. Past issues relating to financial governance which led to the appointment of an Improvement and Assurance Board, and an overspend in the last financial year have also impacted on the council’s financial resilience and ability to draw on reserves to cover the current financial pressures being experienced.