Olympian Homes and Housing Growth Partnership (HGP) have formed an equity Joint Venture (JV) to deliver a 790-bed Purpose Built Student Accommodation Scheme (PBSA) in Nottingham city centre. The scheme, which will also include 19 affordable homes, has a Gross Development Value of c. £120 million.
Known as ‘Forest Mill’, the PBSA scheme will comprise 790 beds across three buildings. Features will include a Café & Co-Working Space, games area with table tennis, air hockey, fussball, shuffleboard, private dining, gym, yoga studio, cinema room, gaming booth and a garden terrace.
Located on Alfreton Road, the site is a 13-minute walk from the Nottingham Trent University campus, a 12-minute bus ride from the University of Nottingham Jubilee Campus and a 16-minute walk from the city centre.
The site adjacent to the PBSA blocks will see the delivery of 19 affordable homes. The three-bedroom family homes will contribute to the Council’s housing delivery targets and crucially provide accommodation for residents on low incomes.
Having acquired the site in September 2021, Olympian secured planning in June 2022. RG Construction has been awarded the build contract for the PBSA element and Tanbry Construction the affordable housing element. Enabling works began in July 2023 and main construction will start in December 2023, with completion scheduled ahead of the 2025/26 academic year.
James Lindridge, Development Director at Olympian Homes, said: “We are thankful for the pragmatic nature of Nottingham City Council in supporting our vision and addressing the supply/demand imbalance of PBSA and affordable homes within Nottingham.
“We look forward to commencing works onsite, engaging with local stakeholders and contributing to Nottingham’s ambitious growth plans. The transaction is our second Olympian PBSA funding completion of 2023 and demonstrates the high level of investor confidence in the UK PBSA sector despite the turbulent macro-economic backdrop.
“We have enjoyed working with HGP and believe this will be the start of a strong, long-term partnership.”
Mark Slatter, Chairman of Olympian Homes, said: “This is a great place making opportunity for a landmark high quality Student Accommodation scheme alongside much needed Affordable Homes and many thanks to all our stakeholders for making this happen in very challenging times.”
Colin Bennett, Investment Director, HGP, added: “Forest Mill is a bold, high specification scheme, with strong amenity that will bring economic growth to the area and create further regeneration opportunities in the city; whilst also supporting the provision of much needed affordable homes.
“We have built a strong partnership with the Olympian team and look forward to working with them in delivering this scheme and future opportunities.
“Forest Mill is landmark transaction for HGP, representing our third, and largest, equity investment in the PBSA sector to date. Having recently supported new developments in Glasgow and Dundee, we have strong appetite to grow our exposure in the sector, supporting the delivery of high quality schemes in critically undersupplied UK university cities.”
Laurie Marsh, Senior Director at JLL Living Capital Markets, which advised on the both the JV debt and equity financing structuring, said: “We are delighted to have supported the Olympian team on capital raising for another significant PBSA transaction this year.
“Advising across the capital stack allowed us to think creatively in sourcing best in class partners to help bring Forest Mill forward. The JV creation further evidences the attractiveness of the Living sector for investors and the positive momentum we are seeing building into 2024.”
Olympian Homes was advised by JLL Living Capital Markets and Freeths and HGP was advised by Shoosmiths.
Demolition has begun ahead of the next round of construction at Castleward.
Site preparation works for Phase Four – the penultimate phase – of the major city-centre regeneration scheme will pave the way for construction work to begin in 2024.
These site preparation works will include the demolition of the former Derbyshire County Transport and Tarmac sites that were transferred to developer Compendium Living earlier this year.
This latest phase, which was given the go-ahead by planners in May, will provide 112 new homes in a mix of two-, three-, and four-bedroom houses, and one- and two-bedroom apartments.
In all Castleward will deliver around 800 new homes, alongside green spaces, commercial units, and a new gateway to the city, in what is one of Derby’s largest regeneration projects.
Demolition for Phase Four is the latest milestone for the scheme, after the full completion of Phases One and Two, including the construction of a brand new primary school – Castleward Spencer Academy – and the opening of showhomes at Phase Three.
Councillor Nadine Peatfield, Cabinet Member for City Centre, Regeneration, Culture and Tourism, said: “It’s great to see work progressing so quickly at Castleward as we continue to encourage people to come and call the city centre their home.
“It’s exciting to know that while Phase Three is still in the final stages of construction, work is already well under way for Phase Four and we will be able to celebrate the opening of even more city centre homes in the near future.”
The Ashbourne Reborn programme has taken another significant step forward as Ashbourne Methodist Church’s planning application for the development of church buildings into a multi-purpose community hub has been approved unanimously.
Derbyshire Dales District Council’s Planning Committee voted in support of the Planning and Listed Building applications for the Link Community Hub.
Work can start on the church next year subject to meeting conditions relating to ecology, the protection of wildlife and flood risk.
This project forms an important part of the Ashbourne Reborn programme and will see the building of a new foyer linking three current buildings into one accessible suite, creating a flexible performance, events and worship space.
Meeting rooms of various sizes will be developed for community and business use, and the Gateway Centre will be remodelled to provide affordable quality visitor accommodation. The Cornerstone Coffee Shop will be upgraded and a community garden created with ramped access.
Work is anticipated to start in June 2024, and be completed by summer 2025.
Speaking after the meeting, Tony Walker, leader of the Link Development Team of Ashbourne Methodist Church, said: “We are absolutely delighted to have received planning permission for the full scheme as envisioned in the Ashbourne Reborn proposals.
“Our vision is to provide a seven-days-a-week community, arts and church resource which contributes to our town for decades to come. With this approval, and the funding we have, we can look forward with confidence to this vision becoming a reality.”
Image courtesy of Derbyshire Dales District Council
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).
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead. It has become something of a tradition, given that we’ve been doing this now for over 30 years.Here we speak to Kyla Bellingall, regional managing partner at BDO LLP in the Midlands.
2023 has been another year full of challenges for Midlands businesses – conflicting issues that have played a real part in how the regional economy has functioned.
Our bi-monthly Economic Engine survey of 500 mid-market businesses has consistently highlighted which pressures have had the greatest impact on businesses, with supply chain challenges, geopolitical events, and staff and skills shortages coming out on top in our latest report.
When you add into the mix high interest rates and borrowing costs, difficulty in accessing capital, changing customer behaviour, as well as the general cost of doing business, then you can begin to appreciate the significant task facing companies in the region.
While the outlook is beginning to improve, with inflation heading in the right direction, there is still a huge amount of uncertainty on the horizon with the Bank of England warning that the force of interest rates hikes is yet to filter through to all businesses, particularly those that are highly leveraged and those in sectors exposed to economic swings. Unsurprisingly, certain economists are predicting further financial woes in 2024.
As with many regions, there are still many factors at play in creating a favourable trading environment, not least of which is around Government support. An Autumn statement geared towards “removing barriers of investment” to help the economy grow, will go some way in appeasing those businesses fixed on expansion.
However, 2024 will throw up its own challenges, in the form of potential political change and more economic volatility. As such, businesses in the region must clearly define their priorities in the coming months – a focus that will undoubtedly centre on closing skills gaps, investing in efficiency, prioritising supply chain optimisation, while keeping operational costs under control.
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.”
Ashfield District Council have revealed the initial artist impression for the refurbishment and upgrade of Sutton Community Academy’s theatre.
Ashfield District Council secured the funding to upgrade the theatre, which will be rebranded and opened to the public as Cornerstone Theatre, as part of their £6.27million Future High Streets Fund.
The Council are working with Sutton Community Academy on the plans for the project. As part of the improvement work the theatre will be completely renovated and reconfigured to create a new multifunctional community space that will accommodate a wider range of high-quality performances and acts.
The new theatre will allow residents and visitors to watch professional theatre performances, cinematic experiences, music and comedy nights, as well as other community uses.
New dressing rooms and a green room, toilets – including a changing places room, foyer and box office will be created to accommodate the improved theatre. Inside the theatre itself the auditorium will be completely refurbished with new flooring, ceiling, acoustic wall treatments and doors. A new retractable seating system will provide around 200 seats, and specialist lighting will also be installed.
Cllr Jason Zadrozny, Leader of Ashfield District Council, said: “We are incredibly pleased to be able to release the details of the last of our Future High Streets Fund projects. So far we have delivered the renovation of the former Yorkshire Bank in Sutton, the old DWP building on High Pavement, and we are currently transforming another long-vacant unit on Low Street.
“The Cornerstone Theatre project is the cherry on the cake, it will allow more residents to access quality cultural events and productions, without having to leave Ashfield.”
A planning application will now be submitted to the Council in the coming days before work can start on the refurbishment. Work is expected to start in summer 2024, with a finish date of early 2025.
Cllr Matthew Relf, Executive Lead for Growth, Regeneration, and Local Planning, said: “This project will help us achieve our goals of creating a vibrant and safe night-time economy in Ashfield.
“As the new Planetarium will connect young people to space and raise their aspirations, Cornerstone Theatre will ignite their creativity and broaden minds. We are so proud to be investing in arts and culture, to allow more people of all backgrounds, young and old, in Ashfield and beyond to experience the magic of cinema, live theatre and music in an easy to access place.
“All our regeneration projects, funded through over £100million external investment, have the common aim – to create an Ashfield that is a great place to live, work, play, study and visit.”
Simon Martin, Vice Principal at Academy Transformation Trust Further Education (ATTFE), said: “ATTFE is hugely excited to be involved in the inception and the future running of the Cornerstone facility. Sutton-in-Ashfield and the surrounding area has long needed investment in and opportunities for cultural experiences of all sorts, and Cornerstone will provide these for the direct communities, neighbourhoods, and families that we serve.”
Image courtesy of Ashfield District Council
Specialist business property adviser, Christie & Co, has sold The Firs Residential Home in Derbyshire.
The Firs is a ‘Good’ rated residential care home registered for 28 service users. It occupies a two-storey, detached property with 25 bedrooms, six of which have en suite facilities, and includes a garden area with a covered pergola for the residents to enjoy.
The home is located in the large Derbyshire village of Breaston, circa seven miles east of Derby and eight miles west of Nottingham.
The Firs has been owned by Yvonne Dunbar for 17 years and was brought to market to allow her to retire.
Following a confidential sales process with Rosie Turner at Christie & Co, it has been purchased by first-time buyers, Dr Daljinder Bajwa and Gurpreet Singh Jassal.
Yvonne Dunbar, former owner of The Firs Residential Home, says: “I bought the home 17 years ago and, since then, the team and I have grown it considerably – adding eight more bedrooms and developing its reputation into the well-known, well-regarded home that it is today.
“I decided to sell to retire and couldn’t be happier to hand it over to Gurpreet and Daljinder who, I’m sure, will maintain the high standards that we’ve set and carry on growing the business. I wish them all the best.”
Rosie Turner, Senior Business Agent – Care at Christie & Co, says: “Having built a relationship with Yvonne over the years, I am delighted to have been able to assist her in the retirement sale of her beloved home, The Firs. We ran a confidential marketing process which received a good level of interest due to the home’s profitability and desirable location.
“This is another great example of the demand that exists for smaller homes in the East Midlands. While there are new challenges within deals, such as the interest rate rises and wider economic factors, signs still point towards a positive outcome for smaller going concerns within the region.
“It also shows that a new operator with great experience and business ideas, like Gurpreet and Daljinder, can still raise funding to acquire their first home. I wish Yvonne the happiest of retirements and look forward to seeing Gurpreet and Daljinder grow the business.”
The Firs Residential Home was sold for an undisclosed price.
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.
Streets Chartered Accountants covers crypto tax reporting, the full expensing tax break, the importance of recognising colleagues during the festive season, and more in its latest monthly news roundup.
It is all change for cryptocurrency tax reporting, but help is on hand
On the 29th of November His Majesty’s Revenue and Customs, HMRC, launched a new campaign to pursue unpaid tax from crypto investors. The campaign seeks to encourage individuals to come forward and disclose any unpaid tax on crypto assets including exchange tokens, NFTs and utility tokens. In part, the approach highlights their concern that many crypto assets owners are seemingly unaware of the responsibility and requirement to disclose and report taxable gains.
In the run up to Christmas many business directors, owners and managers will hopefully have or be looking at potentially sharing in the festive spirit through making gifts to their staff and/or even having a Christmas party. A bit like family and friends gifting, the nature or choice of a gift will mostly likely be based on what might have been given in the past, even the same gift each year along with affordability of the same. To a great extent when it comes to businesses the decision as to what they give their staff may in part be pre-determined by the tax treatment of any gifts.
This episode of The Streets Sessions features Stuart Burlton, MD of Make An Entrance, the UK’s largest manufacturer and retailer of coir matting and direct sales logo matting. Find out how this inspirational family business has changed from a sales and marketing operation to that of a leading manufacturer with plans for international reach. The episode also takes time out to learn more about Stuart’s role with the Federation of Small Businesses as a member of its scrutiny body as well as his passion for supporting the Federation.
Tax breaks including full expensing, capital allowances and help with funding for equipment and machinery
The Full expensing tax break for Limited Companies, which allows businesses to deduct spending on new and unused machinery and equipment from profits, was made permanent in the Autumn Statement. Companies can write off the entire cost of investment in one go, giving rise to a tax cut of up to 25p for every £1 invested. For example, a company incurring £1.5m on new machinery can deduct the entire amount in the tax year of purchase, potentially saving £375,000 in tax if taxed at the main Corporation Tax rate of 25%.
The UK economy continues to be plagued by inflation and increasing interest rates – food and non-alcoholic beverages inflation was over 15% in the year to June 2023. We are seeing higher energy bills this winter and mortgage rates continue to rise. This is why Streets want to keep you informed of news and changes that will affect your personal and business finances.
SmartMoney is the bi-monthly magazine from Streets Financial Consulting plc, Streets Chartered Accountants’ independent financial planning arm, full of news and helpful information on personal financial planning.
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.
Newark and Sherwood District Council continues work towards achieving its carbon net zero target as the installation of solar photovoltaic (PV) panels starts at the Newark Beacon.
The Newark Beacon is a modern business centre owned and managed by the District Council and offers a range of business accommodation facilities including shared office space, meeting and conference rooms, hot desks, and an onsite café.
Anyone in need can hire the site, whether it is an established company or a new business owner just starting out. It will be the second Council-owned office space to be fitted with the solar PV panels, in addition to the District Council’s main office at Castle House in Newark.
The 148 solar photovoltaic (PV) panels being fitted are estimated to generate over 40,000 kWh which equates to 17% of the Council’s annual consumption for the site and will save 12 tonnes of CO2 each year.
Several factors contribute to the large amount of energy needed to keep larger office spaces running. These include basic office necessities such as air conditioning or heating, lighting, and computers, and office buildings are one of the five largest building stock sectors in energy consumption, requiring 27.6GWh/year in the UK and 68% of total non-domestic electricity use.
Councillor Keith Melton, Portfolio Holder for Climate Change at Newark and Sherwood District Council, said: “It is great to see our decarbonisation plans well underway at a number of our sites. We do not take our commitment to achieving our carbon neutral goals lightly, and it is encouraging to see huge steps such as this being taken, alongside the other sustainability projects we are working on.
“We can all do our bit to be more energy efficient, whether it is in our offices, our homes, or schools, but large-scale investments like this have a vital role to play in creating a greener future for our community.”
Leicester businesses are to receive a significant boost to their digital and net zero ambitions, thanks to the launch of the new Accelerator project.
This project has received £215,000 from the Government through Leicester City Council’s allocation of the UK Shared Prosperity Fund.
The project, which is delivered by East Midlands Chamber and runs until March 2025, is designed to help businesses across the city to sustain, grow and innovate, with an additional focus on decarbonisation.
There are two key strands to the project:
· Net Zero Accelerator: Events, training, consultancy and energy audits to help businesses gain green business skills, identify energy efficiency improvements and plan their journey towards carbon neutrality and net zero. Decarbonisation plan support will also be available, as well as the opportunity to access an online platform so businesses can showcase the real-time environmental impact of their efforts.
· Digital Accelerator: Workshops, specialist support and bespoke consultancy to help businesses enhance their digital use and/or implement new processes, with a specific focus on manufacturing businesses to support them to switch to advanced and automated technology.
Deputy city mayor for climate, economy and culture Councillor Adam Clarke said: “We have ambitious plans to help make Leicester a net zero and climate-ready city. We know that with the right support, we can welcome all kinds of local businesses on board and show them that becoming more energy efficient is good for business and for the city.
“This new Accelerator programme for local businesses will provide expert advice and support to help them grow while benefitting from energy-efficient, low-carbon improvements, and a focus on green business.”
East Midlands Chamber deputy chief executive Diane Beresford added: “The new Accelerator project builds on the success of the East Midlands Accelerator pilot project which, in 2022, supported 382 businesses and delivered 916 business support interactions across Leicester. The new project will allow us to extend that support to further develop the digital and net zero capabilities of businesses across the city.”
Businesses in Bassetlaw can get an expert energy audit and guidance on how to reduce their carbon footprint, become more sustainable and reduce their long-term costs through a new Council run project.
Bassetlaw District Council is working with Mitie Plan Zero to carry out Energy Audits, which will provide businesses with a Heat Decarbonisation Plan for their places of work, along with the opportunity to apply for a grant of up to £5,000 to support any future costs of implementing energy efficiency and carbon reduction measures.
The project expects to support more than 50 micro, small and medium businesses across the district, and is being delivered as part of the Council’s £3.3m allocation from the Government’s UK Shared Prosperity Fund.
One of the first businesses to take advantage of the audit is the Acorn Theatre in Worksop and its Treasurer, Ian McKeer, said: “We hope the Energy Audit will prove to be very insightful and will put forward a number of ways in which we can reduce our carbon footprint and potentially make some future savings.
“We also welcome the opportunity to apply for a decarbonisation grant. As a volunteer run charitable business that is solely reliant on its own income, a grant will allow us to reduce our carbon footprint when we couldn’t otherwise afford to do so.”
As part of the project Mitie Plan Zero will support local businesses to start or accelerate their plans to reduce their carbon emissions, and in turn, their impact on climate change.
To achieve this, the Energy Audits and grants will help businesses to gain a better understanding of their carbon footprint and identify the most suitable energy efficiency measures that are unique to their building. Using the audit and its findings, businesses can also apply for funding, which will support businesses to invest in decarbonisation.
Parth Mehta, at Mitie Plan Zero, said: “This incredible initiative will provide businesses with the tools and guidance they need to embark on their journey towards a sustainable and net-zero future.
“At Mitie, we believe that innovation and sustainability go hand in hand, and we are committed to helping these businesses be aspirational and think creatively while growing in an environmentally conscious way.
“Our team will be working closely with a wide range of micro, small, and medium-sized businesses throughout the district, and we can’t wait to see the positive impact this project will have on the Bassetlaw community and its businesses.”
Funded through Bassetlaw’s allocation of the Government’s UK Shared Prosperity Fund, Cllr Darrell Pulk, Cabinet Member for Environment and Energy, said this was just one of the ways the Council is helping to drive positive change among small and micro businesses.
He said: “This is just one example of how we are helping businesses to proactively look at decarbonisation and pave the way for cost savings, which could in turn give them the ability to invest and grow.
“Our commitment to sustainability doesn’t stop there. As businesses decarbonise, they become more profitable and efficient, contributing to a greener and more sustainable future. These actions will also bring us one step closer to our district’s decarbonisation goals and our journey towards achieving the 2045 net-zero target.”
Seasoned technology leader Colin Tenwick has been appointed as chairman of Commify’s board of directors. Tenwick’s extensive experience as an executive and non-executive director of global technology businesses will further strengthen the board, as the group continues its ambitious growth journey.
With an established background in the digital transformation space, Tenwick currently serves as chairman of Oxford International Education Group and data management business Intelligent Reach.
Previous roles included chairman of Auction Technology Group, online ecommerce business Wowcher, Addison Lee Group, Bookatable, and non-executive director of AVG. A former CEO at StepStone, Colin also led international business at US tech giants, Red Hat, and Sybase.
“I am excited to be joining Commify at such a pivotal stage, and to working alongside Richard and his senior management team. In a world that’s more engaged online than ever before, Commify is providing smarter solutions for businesses to reach their customers.
“With recent backing from ECI Partners and the ambitious growth targets set for the business, I look forward to using my experience to support Commify as it builds on over twenty years of expertise, to cement its position as one of the world’s leading business messaging providers.”
Richard Hanscott, CEO at Nottingham-based Commify, said: “We are delighted to welcome Colin to the team and look forward to working closely with him to ensure that Commify continues to innovate to support our customers and our people, and to extend our reach in both new and established markets.”
Grant Thornton UK LLP’s Midlands Corporate Finance team has reported strong recent growth – both in deals and in its team – despite challenging conditions in the marketplace.
In line with the firm’s deal activity, it has made a number of promotions and appointments, including Harry Gabriel being promoted to Director.
Harry first joined the Grant Thornton team in 2014 and has risen through the ranks in his nine years with the firm. He now supports Nick Gillott, Head of Midlands Corporate Finance, in leading the regional Midlands business and leads on regional healthcare sector coverage, including private care, medical devices, life sciences and pharma.
In addition, Harry Aston and Lydia Bullock have been promoted to manager, with Harnil Motivaras also joining as a manager to add to the team’s East Midlands presence.
These appointments reflect a strong year of deals, examples include advising on Daikin Applied’s recent acquisition of HVAC service and solutions company Brooktherm Refrigeration Ltd, the majority sale of a Dudley-based leading distributor of bearings, spare parts and other safety critical components, Godiva bearings to Swedish-based Roko, and the sale of Derbyshire cybersecurity specialist Nowcomm to fast-growing, Palatine-backed IT services company FourNet.
The team’s strong year of transactions and investment in the local team lay a solid foundation for 2024, as the firm expects even more success with a robust pipeline of deals to deliver next year, despite what remains a challenging M&A marketplace.
Nick Gillott said: “It is well publicised that the M&A market has slowed significantly compared to where we were in 2021 and early 2022. Political and economic uncertainty continue to put pressure on deal timetables, but there is plenty of funding ready to be deployed for the right assets and we continue to see appetite from both domestic and overseas acquirers as they bolster their capabilities and footprint.
“Despite the more challenging market conditions, there is a resilient market for high quality assets. While we anticipate that the market will remain more difficult relative to the period post-Covid, we are optimistic as we enter 2024 with a strong pipeline and expect recent momentum in deal activity to continue.
“The promotions and appointments within the team are a result of our continued investment into the Midlands, as we continue to see great potential and access to a strong pool of talent here.”
Harry Gabriel added: “I am delighted to continue my development with Grant Thornton and support Nick in growing our business. Our regional focus, coupled with our deep expertise across a range of key sectors is driving our strong pipeline of activity well into 2024 working with both dynamic, outward-facing and resilient regional businesses and ambitious international clients looking for acquisitions in the UK.”
City Councillors will meet next week to consider what further steps need to be taken to tackle a £23m overspend in the authority’s budget caused by issues affecting councils across the country, including an increased demand for children’s and adults’ social care, rising homelessness presentations and the impact of inflation.
The council’s Chief Finance Officer issued a Section 114 Report on 29 November due to the council being unable to meet the legal requirement to deliver a balanced budget for this year.
Following the Section 114 Report, the council entered into a 21 day Prohibition Period where spending controls already in place have been further tightened with any spending not already contractually committed, or otherwise agreed by the Chief Finance Officer in his role as Section 151 Officer, immediately stopped.
Within the 21 day period, the council is required to hold a meeting of all councillors to confirm whether or not it accepts the report and to agree what actions, if any, it proposes to implement.
This meeting is due take place on 18 December when a recommendation will be considered to take immediate steps to mitigate the forecast overspend through the council’s Financial Recovery Plan and to continue the Spend Control Policy introduced by the Section 151 Officer until 31 March 2025 subject to further reviews.
Under the Spend Control Policy, ‘allowable spending’ is being approved where it is essential to meet the council’s legal duties at the minimum level or to meet existing legal commitments; externally funded spending, where the council would lose external funding if approval were not given; and spend where there is a robust business case.
Other steps proposed include a review of council’s capital programme to assess whether borrowing can be stopped or delayed and borrowing costs reduced including through the sale of assets currently owned by the authority.
In addition, a request for Exceptional Financial Support for the current financial year 2023/24 is being discussed with the Government Department for Levelling Up Housing and Communities. In practical terms this will be to seek permission to ‘capitalise’ revenue expenditure so that it is treated as capital expenditure and can be met from the council’s capital resources.
A Section 114 Report does not mean the council is “bankrupt” or insolvent, the council has stressed. It has sufficient financial resources to meet all of its current obligations, to continue to pay staff, suppliers and grant recipients in this year.
Although not the cause of the overspend, 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 impacted on the council’s financial resilience and ability to draw on reserves.
An East Midlands manufacturer is driving sustainable growth, supported by a £1.3 million investment from Lloyds Bank.
Headquartered in Desborough, Northamptonshire, OKAY Engineering designs and manufactures high performance recycling equipment and waste handling technology. This includes providing local authorities with the technology to separate the mixed recycling it collects from homes, as well as providing recycling equipment for manufacturers and commercial organisations processing waste materials.
OKAY plans to become fully carbon neutral within 10 years. Thanks to £187,000 of funding, the £9 million turnover business has just boosted its green credentials by installing 425 solar panels on its factory roof.
The 200MWh system now provides two thirds of the company’s energy demand, reducing energy bills by £1m over the panels’ 25-year lifetime. The new measures will also save 40 tonnes of CO2 production each year, the equivalent of planting 1,728 trees.
The solar panels have been funded via Lloyds Bank’s Clean Growth Financing Initiative, which provides customers with access to discounted lending for green purposes.
Earlier in the year, Lloyds Bank also invested £1.14 million to help OKAY purchase three acres of brownfield land behind its current factory.
The plan is to use one acre of the adjacent site to build a second factory to serve demand from the rapidly growing recycling industry, and the remaining two acres is earmarked for a solar farm so the company can become entirely energy self-sufficient, as well as create a second income stream selling its surplus renewable energy.
The company’s expansion and investment plans also include the team of 50 at OKAY learning new skills to automate its production lines and introduce AI.
The business has also switched 30% of its vehicles to electric vehicles, installing two charging stations onsite, and it is also upgrading its manufacturing equipment to more energy efficient models. This is all part of its aims to become carbon neutral within the next ten years.
In addition to the funding from Lloyds Bank, OKAY Engineering has taken advantage of the government’s research and development (R&D) tax relief scheme, which allows SMEs to claim Corporation Tax relief for investing in innovation. It’s also working to boost the diversity of its workforce with the launch of its own apprenticeship scheme, through which it hopes to attract more young people and women into the business and the sector.
Antonia Kay, Managing Director of OKAY Engineering, said: “The recycling industry and circular economy are becoming increasingly vital sector for the UK as we work to achieve Net Zero. OKAY is an integral part of this transition, with both the knowhow and the UK production capabilities to deliver high performance recycling technology.
“We have experience in handling of all types of waste and, as a British manufacturer, we are looking to deploy our high performance recycling equipment in ever more applications. We have big investment plans that will ultimately help drive the UK’s recycling figures to where they need to be. We’re grateful to have Lloyds Bank by our side as a trusted partner to support us with our long-term strategy.
“As a business that innovates green technology, it’s essential for us to prioritise sustainability in all our operations. The funding from Lloyds Bank has enabled us to invest in a solution that won’t only reduce our bills, but also reduce our impact on the environment. The solar panels deliver a clear financial and carbon payback, and they help make us the partner of choice for our customers.”
Richard Fear, relationship manager at Lloyds Bank, said: “As well as supporting OKAY with the investment it needs to achieve its goals, we’re also proud to see the business taking advantage of the government’s R&D tax credits, which has given a valuable boost to OKAY and to the UK’s manufacturing sector more widely.
“The business’s inclusive skills strategy also aligns closely with our commitment to supporting the development of a diverse talent pipeline in vital sectors such as manufacturing, and we’re proud that our funding is enabling this local business to contribute to the community and the future of the sector.”
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead. It has become something of a tradition, given that we’ve been doing this now for over 30 years.Here we speak to Marc Abrams, senior office partner at KPMG UK’s Nottingham office.
I think my predictions are more new year wishes! Talking to businesses around the East Midlands inadequate transport connections in the region consistently comes up as a topic of conversation, so my wish is that we see some progress on this in 2024. Discussing this with colleagues elsewhere in the country, the further you are away from London, the more that the inequality in major infrastructure spend is felt.
During all the ‘storm’ of the cancellation of HS2 north of Birmingham in the Autumn and the political ‘rebuttals’ coming out of the West Midlands and Greater Manchester, it felt as if the East Midlands was silent on this. Irrespective of the rights and wrongs of HS2, my other wish is that the East Midlands region finds a voice and an identity, so it can get itself in the heart of these and other national debates and secures the much-needed investment for the region. East Midlands devolution clearly presents an opportunity and I hope our political leaders seize the opportunity to create a similar impact of their mayoral equivalents in other regions.
The East Midlands’ unemployment rate has remained at 3.7% for the fifth month running, new figures by the Office for National Statistics (ONS) show.
It puts the region near the top of the list for having a low proportion of over-16s out of work and significantly below the UK average of 4.2%.
The data, for the period between August and October 2023, means the region’s unemployment rate has now been under 4% for the past two years, having last been above the threshold in the three months to October 2021.
The economic inactivity rate for 16 to 64-year-olds – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – remained at 20.9% for the East Midlands for the third consecutive month, above a pre-pandemic trend around the 19% mark.
East Midlands Chamber Chief Executive Scott Knowles said: “The fact our region’s unemployment rate has remained at a relatively low level for such a prolonged period is testament to the efforts and resilience of our region’s business community in the face of significant economic challenges.
“Rising economic inactivity has been one of the greatest concerns over the past couple of years as it led to a dwindling labour market, which has restricted capacity – and therefore the ability to grow, raise productivity and bring prices down.
“While this rate remains above pre-Covid levels, it’s pleasing to see this has now come down by about 2% throughout this year, giving firms more room to manoeuvre.
“However, our own research shows there is no room for complacency. Our Quarterly Economic Survey shows a net 7% of businesses have increased their workforce during the final three months of 2023, compared to a net 15% in the previous quarter – an indication of the tough trading challenges that persist. Over the next three months, a net 17% expect their workforce to expand in size, so prospects may improve.
“Many employers continue to face challenges with filling job vacancies. More than half (55%) of organisations attempted to recruit during Q4, and more than seven in 10 (72%) of these experienced problems in finding suitable staff. There are particular shortages to fill skilled manual and technical roles, as well as professional and managerial positions.”
East Midlands Chamber published its regional economic blueprint, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, in November last year, urging Government to focus on the “four Is” of investment, innovation, infrastructure and international trade.
It set out a list of policies to encourage businesses to invest in their people, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce.
Scott added: “We really need a dedicated Government policy that supports companies to invest in their people, whether that be in upskilling their existing workforce or reskilling prospective employees to fill skills gaps.
“We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution. We would also like to see Government work with businesses to offer support, and share best practice, on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”
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