Creative businesses across Nottinghamshire are set to benefit from new targeted support to help attract investment and create jobs. A county-wide consortium, known as Creative Growth Nottingham and Nottinghamshire,  is one of six areas set to share £10.9m worth of government funding as part of the latest round of the Create Growth Programme. This will help creative businesses access private investment and scale-up advice, to turn today’s start-up founders into tomorrow’s CEOs. Creative Growth Nottingham and Nottinghamshire is a partnership between D2N2 LEP, Invest in Nottingham, NBV Enterprise Solutions Ltd, Nottingham City Council, Nottinghamshire County Council, Nottingham Trent University and The University of Nottingham. The Culture Secretary is doubling the areas covered by the programme, announcing six new areas, including Nottinghamshire, that will help deliver targeted business support, bringing the total number of creative organisations expected to be supported by the programme to 1,800. Culture Secretary Lucy Frazer said: “From the famous pottery of its past to fashion brands of today, the Midlands are a place where creative industries can thrive. I want to maximise the potential in the next generation of the region’s creativity and talent for years to come. “We’re already making progress towards the ambitious goals set out in our sector vision, unveiling millions in new funding to drive growth in our grassroots and scale ups and banging the drum for creative careers.” Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management, said: “As a county already renowned for creativity and innovation, this investment is great news. “We are proud to be part of this partnership which will help creative businesses thrive, create more jobs and opportunities, especially for younger people, which will boost our economy.” Representing the wider consortium, Sajeeda Rose, Corporate Director for Growth and City Development at Nottingham City Council, added: “Securing this funding is a significant boost for our local economy, helping to support one of our priority sectors across our city and county, after all we are an area which is well-known for creative innovation and world-changing pioneers. “This government funding recognises the fantastic potential of our creative and digital sector and provides an opportunity to support them to realise that potential and achieve growth for them, and our economy. We look forward to delivering this support with our local consortium partners.” The support is expected to be launched in the New Year and it is hoped will benefit more than 60 businesses in this sector.

Derby City Council is now forecasting an overspend of £6.5m at the end of this financial year without further mitigation. This is an increase of £0.5m on the position at the end of June. Rising demand on services, especially in adult and children’s social care and housing demands for temporary accommodation, is placing continued pressure on Council budgets. High inflation continues to impact on all services, but especially on energy costs and the annual pay award, which is set nationally. The current financial position is outlined in the Quarter 2 Financial Monitoring report, which records the first six months to October and will be considered by Cabinet Members at their next meeting on 21 November. It does not include the costs incurred as the result of recent flooding due to Storm Babet. These are still being calculated and the Council will be looking to claim through the Government’s Bellwin Scheme. Without further mitigation the Council could consider using its reserves to meet the overspend, however these would have to be replenished over the medium term. The Council is already taking action to drive down costs having mitigated £2.6m of the costs of the annual pay award through controls on job vacancies. To avoid drawing so much on its reserves, it will need to cut its in-year spending, and limit recruitment, even more than it is already doing. Like councils across the country, Derby is facing unprecedented financial challenges.  Some councils including Birmingham, Thurrock and Slough have declared a Section 114 notice, meaning they can no longer deliver a balanced budget. In these cases they have faced specific, local issues but this has happened against a backdrop of deep cuts to local government funding since 2010. Paul Simpson, Chief Executive of Derby City Council, said: “Taking our usuable reserves down to the levels outlined in this report is our absolute last resort and we will be doing everything we can to mitigate against this, in the face of continued economic uncertainty and rising demand. “The long-awaited reforms of local government funding need to be bought forward to ensure that local authorities can be financially sustainable. Councils have to be there to provide and care for the most vulnerable people in our society. “We won’t have confirmation of how much Government funding we’ll get for 2024/25 until late December, by which time we will be presenting our budget proposals, which look set to be very challenging indeed. “Above all, we’re a strong Council and remain ambitious for our city. We will do everything we can to keep us on a stable financial footing.”

West Northamptonshire Council (WNC) has launched a competitive commissioning round to identify partners to deliver key elements of its multi-million-pound investment plan which will benefit the local economy and support businesses’ sustainability goals. The Council is inviting suppliers to submit tenders to deliver two leading projects; Decarbonisation and Growth & Innovation. Both projects have been allocated £625k from the Council’s UK Shared Prosperity Fund (UKSPF). The Fund, which is managed for the Government by the Department of Levelling Up, Housing and Communities supports the Government’s levelling up agenda. Among the plans for the UKSPF funding include providing business support and revenue grants up to the value of £20,000. The fund will encourage businesses to innovate and understand how they can grow their sales, profits, workforce and business as well as supporting employers to understand their energy usage and the measures they can implement to reduce emissions, increase efficiencies, and save on energy costs. The chosen supplier for the Decarbonisation project will distribute grant funding and work with local businesses to develop sustainability plans which specifically outline how they can achieve a Net Zero future and utilise Government funding to address carbon emissions: having a beneficial impact on their business, the local area and the planet as a whole. The chosen supplier for the Growth & Innovation project will distribute grant funding and work directly with businesses to deliver measures to help progress their growth journey and implement actions to increase productivity, including 121s, training, webinars and dedicated expert advice. In addition, over £800,000 of Rural England Prosperity Funding (REPF) will soon be available to support businesses in eligible rural areas. Across the three projects activities will target investment in supporting the drive to net zero, increasing business productivity and growth, and capital investment to support transformative rural initiatives. Cllr Daniel Lister, Cabinet Member for Economic Development, Town Centre Regeneration and Growth, said: “We are a local authority that recognises local employers as the lifeblood of our economy and it is for this reason, we are thrilled to be delivering the majority of our UK Shared Prosperity Fund to support local employers, improve and create jobs, boost the local economy and raise the profile of West Northants as an area where everyone can thrive with the support of a Council which is dedicated to strengthening business growth and potential. “As a Council, we’ve worked hard to carefully plan how to use this funding to realise our growth aspirations for our area and ensure this funding has a beneficial impact on the local economy whilst addressing specific challenges and opportunities as identified from the data and consultation which informed our UKSPF Investment Plan. “We have a comprehensive range of projects, initiatives and activities taking place between now and March 2025 which aim to deliver impactful interventions that will benefit the whole community; from public realm improvements to voluntary grants, to business support and upcoming funding dedicated towards supporting local people and enhancing skills. “We are looking for delivery partners who share our ambition for inclusive and resilient growth in West Northants and are particularly interested in suppliers that can provide innovative and creative approaches for both the Growth & Innovation and Decarbonisation projects.” Cllr Jonathan Nunn, Leader of West Northamptonshire Council, said: “We are delighted to be investing this UKSPF funding into local businesses. We want our funding to be inclusive and to really make a difference, to benefit the many thousands of businesses we have in this area to prosper. “These projects will not only help to grow our local economy and future-proof employment by creating a more inclusive market which is resilient to the impacts of climate change, they will also enable local businesses to diversify and invest in new technologies and energy saving measures which save them money and work towards reaching West Northants’ sustainability goals. “We strongly believe that by working together to implement sustainable practices, initiatives, and investments and considering the small but vital steps we can all make, together we can achieve our shared mission to become Net-Zero by 2045.” The tender closing date for the Decarbonisation and Growth & Innovation projects is Friday, 8 December 2023. Projects are expected to commence in spring 2024 and will run to the end of March 2025.

A new report published on 13 November, outlining Nottingham City Council’s latest financial position, highlights that a significant gap remains in the authority’s budget due to 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 report to the council’s Executive Board on 21 November says that, despite budget control measures put in place over the last few months, the funding gap remains with an in-year overspend of £23.3 million forecast. The council has stressed it is not “bankrupt” or insolvent, and that the organisation has sufficient financial resources at hand to meet all of its current obligations, to pay staff, suppliers and grant recipients. However, due to the forecasted overspend, the Council’s Corporate Director for Finance and Resources and Section 151 Officer, Ross Brown, will need to consider the appropriate next steps for the Authority, which will include a further assessment of the Council’s ability to deliver a balanced budget in year. If this assessment concludes that it is not feasible for the Council to balance its budget, consideration of the issuance of a report under Section 114(3) of the Local Government Finance Act 1988 will need to be made. Should such a report be issued, Full Council will meet to consider the report within 21 days of the issue date and an immediate prohibition period would be implemented. In this period, the spending controls already in place would be being further tightened, with the practical impact being that all spending that is not already contractually committed or required to deliver statutory duties at the minimum level, or otherwise agreed by the Section 151 Officer, would be stopped. The council noted that Senior Officers and Members are committed to continuing to work with the Improvement and Assurance Board and the Department for Levelling Up, Housing and Communities to put the council on a stable financial footing for the future.

The Competition and Markets Authority (CMA) is investigating the completed acquisition by Lindab International AB, whose UK base is in Northampton, of HAS-Vent Holdings Limited. Staffordshire firm HAS-Vent is a manufacturer and distributor of ventilation products, and strengthens Lindab’s sales and production of ventilation products. The CMA says it has “reasonable grounds for suspecting that it is or may be the case that Lindab Limited (Lindab UK), which is owned by Lindab International AB (Lindab), and HAS-Vent Holdings Limited (HAS-Vent) have ceased to be distinct.” The CMA adds that it “is considering whether it is or may be the case that a relevant merger situation has been created and whether the creation of that situation has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom.”

Nine profit warnings were issued by UK-listed companies in the Midlands in Q3 2023, up from eight in Q2 2023, according to EY-Parthenon’s latest Profit Warnings report.

The nine profit warnings issued by companies based in the Midlands region between July and September 2023 was the highest quarterly total since Q4 2022, when 14 warnings were issued.

Across all UK-listed companies, the total volume of profit warnings issued during the third quarter (76 warnings in total) was down 12% year-on-year.

The number of warnings issued over the first three quarters of 2023 across the Midlands region (22) is marginally down on the same period last year, when 25 warnings were issued between Q1-Q3 2022.

Midlands companies operating in industrial and consumer discretionary FTSE sectors issued the highest number of profit warnings (seven) in Q3 2023.

Dan Hurd, a partner at EY-Parthenon in the Midlands, said: “Listed companies across the Midlands have issued a consistently high volume of profit warnings throughout 2023. Conditions are set to remain challenging into 2024 as tightening credit conditions, rising interest rates and disruptions to supply chains continue to affect businesses across all UK.

“The manufacturing sector, once again, experienced a challenging quarter as high borrowing costs took their toll on profitability. As we enter the final quarter of the year, contingency planning will remain vital as geopolitical and macroeconomic headwinds continue to impact the UK economy.”

National profit warning figures

Prior to Q3 2023, warnings issued by UK-listed companies had risen year-on-year for seven consecutive quarters, the longest run of consecutive quarterly increases since 2008. UK-listed companies issued 86 warnings in Q3 2022 and 51 in Q3 2021. Despite the year-on-year fall, the number of Q3 2023 profit warnings remains 18% higher than the post-credit crisis quarterly average.

The report reveals that persistent inflation and rising interest rates continue to put significant pressure on UK businesses. A third (33%) of the warnings in Q3 2023 cited tougher credit conditions as a factor — the highest level recorded by EY-Parthenon since 2008.

Broader economic uncertainty also played a role across many of this quarter’s warnings, with 21% citing delayed or cancelled contracts and 18% citing weaker consumer confidence. One-in-five (20%) of Q3 warnings cited the slowing housing market as a factor, while the same number (20%) referenced cost pressures. In the last 12 months, 17.8% of UK-listed companies have issued a profit warning.

Jo Robinson, EY-Parthenon partner and UK&I turnaround and restructuring strategy leader, said: “While it’s encouraging to see UK profit warnings fall for the first time in two years, the growth of credit-related warnings indicates that pressure on businesses is unlikely to ease for the foreseeable future. In fact, we’re seeing economic stresses extend up the value chain, spreading to mid-market companies.

“It’s clear from this data that the steepest rise in interest rates in 40 years continues to take its toll, with a high proportion of warnings due to an increasingly expensive borrowing environment. This poses a risk for companies that are due to refinance and we’re already seeing this affect sectors where credit is a key activity driver, such as in the housing market.

“Unlike 2008’s global credit crisis, today’s companies, banks and consumers all have stronger balance sheets and extended debt maturities, which will continue to stagger the effect of base rate rises. This adds a layer of resilience but shouldn’t create overconfidence. Businesses that are at risk should act immediately to reshape operations to withstand future shocks. Delaying action risks damaging business value, particularly in this fast-moving market.”