Business confidence in the East Midlands fell 18 points during January to 10%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the region reported lower confidence in their own business prospects month-on-month, down four points at 24%. When taken alongside their optimism in the economy, down 31 points to -2% this gives a headline confidence reading of 10%. East Midlands businesses identified their top target areas for growth in the next six months as diversifying into new markets (33%), evolving their product and service offering (31%) and investing in their team (29%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

Businesses in the region expect staff levels to remain the same over the next year. This is up from December when a net balance of 37% of businesses reported plans to make new hires. Overall UK business confidence climbed in January, with firms reporting their highest confidence levels since July last year. Business confidence increased by five points to 22% and the net balance of businesses feeling optimistic about the economy doubled on December’s reading to 16%. Ahead of National Apprenticeship Week (6-12 February) 30% of businesses across the UK reported that they are looking at opportunities to grow by investing in staff development and training. A net balance of 17% of firms reported plans to create new jobs in the next twelve months. Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Despite a challenging business environment, it’s pleasing to see that the region’s firms are feeling upbeat and are focused on investing in skills to help set them up for growth. “Upskilling forms a key part of the recently agreed East Midlands Devolution Deal, which contains a fully devolved adult education budget, tailored to match the skills need of local businesses. For firms in the region making the most of these education opportunities and investing in training will reap rewards and will build a platform for the region’s growth for years to come.” For the second month in a row, confidence in the manufacturing and service sectors increased, with manufacturing rising to 28% (up 15 points) and services up to 25% (up seven points). Business confidence in construction was down two points to 27%, while retail confidence fell for the second month in a row to 7% (from 13%), the lowest level since February 2021. Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Business confidence continues to improve following the December boost. Firms are clearly more optimistic about the wider economy and this is driving the increase, helped by precursory signs that wage and other cost pressures may be easing. “It is still a tough environment for businesses, with high energy bills remaining a concern during the winter months, but there are grounds for optimism for 2023 if inflation starts to trend lower.”

Just under £7 million in funding for local improvements in the East Midlands has been approved by the Government. The funding which has been given the green light is part of an early investment offered to our area as part of devolution negotiations. It is not dependent on devolution proposals going ahead. It is part of £18 million on offer from the Government to the region for investment in different projects supporting local priorities, which relate to housing, the environment, infrastructure, skills, and transport in Derbyshire, Nottinghamshire, Derby, and Nottingham. The programmes which are being funded are:

• £750,000 for a new cycling and walking route in Derbyshire, a 1¼ mile link connecting Markham Vale to the existing cycle route in Staveley.
• £1.5 million for the new roundabout on the A6 at Fairfield in Buxton, Derbyshire, allowing access to housing development land. The roundabout provides access to sites for 461 new homes, including 30% classified as affordable. It also brings work to an area of social deprivation. This work has been completed, with the funding which has just been approved going towards the cost.
• £1.5 million for a new growth through green skills. The investment will enable the creation of a new £5.4 million flagship skills centre and low carbon demonstrator in our region, to be operated by West Nottinghamshire College, as well as two electric minibuses for getting students to and from the site, to support the growth of a future low carbon economy as we work towards net zero.
• £2 million for a new long-term private rental scheme to address homelessness in Nottingham City and Derby City and reduce the use of bed and breakfast accommodation for housing.
• £1.22 million for more affordable housing in Derby City, where there is currently a shortage, to provide 15 extra social houses to be let at an affordable rent. It will mean less reliance on temporary bed and breakfast placements and shorter waiting times for longer-term accommodation.

Other regeneration and net zero projects are also in the pipeline, with decisions on these expected soon. Derbyshire County Council, Nottinghamshire County Council, Derby City Council and Nottingham City Council have been working with the Government on devolution plans including a package of local powers and funding worth £1.14 billion, from 2024. If the plans go ahead, it would also mean a new regional mayor. The leaders of the four councils signed up to work on a devolution deal on 30 August at Rolls Royce in Derby. Since August, the councils have developed a more detailed proposal, which includes more information about how devolution would work in our area. The proposal was the subject of a public consultation, which took place from 14 November 2022 to 9 January 2023. Devolution would mean a new guaranteed funding stream for our region of £38 million a year over a 30-year period. Covering Derbyshire, Nottinghamshire, Derby, and Nottingham, the devolved area would cover around 2.2 million people, making it one of the biggest in the country. The devolution deal includes an extra £16 million for new homes on brownfield land and control over a range of budgets like the Adult Education Budget, which could be better tailored to the needs of people in our communities. The regional mayor would lead a new combined authority, which would include representatives from existing local councils, with decision making powers and resources moving from London to the East Midlands. Local businesses would also have a voice, as well as other organisations. Devolution would not mean scrapping or merging local councils, which would all continue to exist as they do now and would still be responsible for most public services in the area. The mayor and combined authority would instead focus on wider issues like transport, regeneration, and employment across both cities and counties.

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. The biggest challenge for employers in 2023 will be retaining and motivating their older members of staff, says the boss of a HR & Employment Law firm. Rob Tice, director of growing Derby business BMcPrecept, sees continued challenges for businesses across the UK in the new year and is urging bosses to think of innovative ways to incentivise their staff. Findings from the recent Resourcing and Talent Planning Report from the Chartered Institute of Personnel and Development (CIPD) found that recruiting for senior and skilled roles was most challenging with 58% of companies struggling in this area. Sixty per cent of companies also reported that talent was more difficult to retain compared with 12 months ago. Rob said: “Retention of staff is a massive issue for many businesses. Pay is, of course, a huge factor in keeping employees happy but flexible working and other factors are becoming increasingly important. “It is also important to bring in the right staff. Currently, we are seeing a lot of people in roles that they may not necessarily be suitable for because the Company has struggled to find the right candidate and that has a knock-on effect for management, owners and clients. “That is where honest conversations need to be had. These conversations haven’t been held because people try to avoid them; they’re afraid of the consequences on livelihood, especially with the rising cost of living. “But it’s vital for everyone that employers are honest and open.” Rob also believes that, in 2023, we will see an increase in apprenticeships and a push on workers over the age of 50 being re-employed. In November, the Government unveiled a network of dedicated 50PLUS: champions now in place across England, Scotland and Wales. It builds on £22m funding boost secured to support older workers. “Brexit hasn’t helped the jobs market but the huge drop-out of people aged over 50 in the labour market is something that is being addressed,” said Rob. “These people are seen as a huge asset to our country with their skills and experience. “We are also seeing quality apprenticeships come back in fashion, with more and more companies seeing the value of employing apprentices at all levels including degree-level apprentices.”

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 Kevin Hard, Managing Director at land promotion and property developers, Stagfield Group. It is no surprise that the cost of living crisis has caused a high degree of market uncertainty within the housing sector. Despite the current economic challenges, now is a great time for housebuilders and land promoters to look ahead and keep pushing forward with sustainability and low energy homes. Now more than ever, buyer demands and environmental concerns are influencing how we create housing developments that serve the local community. Here at Stagfield we are already predicting a greater focus on sustainability. With climate change and energy prices ever increasing, our focus is very much on providing innovative low energy homes, which helps combat the cost of living and creates desirable communities that people want to live in. With the need for housing, biodiversity and improvements to infrastructure also a strong focal point, we’re also expecting to see a greater interest in landowners who own brownfield or greenfield land, looking to realise the value of their land and bring forward development opportunities.

Hinckley business Savage Lighting, a specialist in the design and manufacture of custom high-end lighting solutions for luxury yachts across the world, has been appointed an integration partner by global automation provider, Crestron Electronics. The unique partnership represents a first for Crestron, as the international business is now working with Savage Lighting as its first LED lighting partner. Described by Crestron as ‘one of the most prestigious marine lighting firms in the world’, the partnership will see Savage Lighting creating and manufacturing custom lighting solutions for superyachts, as the company’s Managing Director Julie Clark, explains: “The integration partnership with Crestron will involve Savage Lighting creating highly customisable, easy to install and maintain lighting control solutions for superyachts, and brings together the power of the Crestron Home OS tunable lighting solutions and their DMX-C LED lighting driver to the Savage Marine line of fixtures. “Crestron products are at the forefront of technology, are user-friendly, and beautifully designed, so the partnership fits perfectly in our portfolio of high-end lighting solutions. For Savage Lighting to be appointed an Integration Partner by one of the world’s leaders in technological innovation is hugely significant for the business. “All the lighting solutions and products created under the Crestron partnership, will be designed, engineered and manufactured at our Leicestershire facility,” she adds. “Our in-house machining facilities and highly skilled teams of precision engineers and dedicated electrical engineers will handle the design and manufacture, alongside Crestron and their dedicated project management team.” Dan Kerkhof, director of Crestron Marine, explains: “Together, Crestron and Savage Lighting offer a complete lighting and window treatment solution for superyachts in a way that is unique to this market. With just two suppliers, you have an end-to-end solution with all the features and customisation options you could need. “One of the many benefits of the partnership is the simplification of the hardware that’s needed to run marine lighting, and resulting possibilities are nearly limitless.”

Former Ilkeston Town chairman David Hilton has been appointed as chairman and owner of Scunthorpe United with immediate effect. Hilton replaces outgoing owner Peter Swann, who had a ten-year period at the helm of the Iron. Mr Hilton said: “I’m pleased to say the takeover has now been completed, and the deal includes the football club, stadium and surrounding land. “The first job I’ve got to do over the next 48 hours is settle the winding up petition with the HMRC, which will help us get out of the transfer embargo we’re under, so we can bring some bodies in and strengthen the squad. “Any remaining debts will be eradicated in due course and we’ll be looking to put the football club on a sustainable model as quickly as possible, while remaining competitive in whichever division we’re in. “I can also add, if there is to be any development in and around Glanford Park, it will be purely for the benefit of the football club and to help it move forward, not for personal gain. “It’s all been done very quickly, so there’s a lot I need to digest but I fully intend to interact with supporters. I just need a little bit of time for the dust to settle so I can understand the business fully.”