Major improvement plan that could create over 12,000 jobs published for A50/500 corridor

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Regional transport body Midlands Connect has released a major report outlining a series of improvements to A50/A500 corridor. The upgrades are targeted at reducing congestion, supporting local businesses and promoting greener transport use – including the take up of electric vehicles.   The plans from Midlands Connect could create a £12 billion economic boost and help to unlock over 12,000 jobs. New research released alongside the report shows that drivers are losing over half an hour (37 minutes) every weekday due to congestion on this vital route.   The report, called Levelling-up Stoke, Staffordshire, Derby & Derbyshire: The road to success outlines a series of strategic recommendations for long-awaited upgrades, badly needed to alleviate bottlenecks along the 90km long A50/A500 corridor, which links Derby, Nottingham and Leicester to Stoke-on-Trent, Staffordshire and the North-West.    Large manufacturers such as JCB, Rolls-Royce, Toyota and Alstom rely on this key East-West route to keep supply chains moving and provide links to international markets – currently, traffic congestion on the A50/A500 threatens to stand in the way of business growth. The route sees between 60,000 to 90,000 vehicles passing along it every single day.   With deadlines to secure funding via the Department for Transport’s Road Investment Strategy (RIS) schemes fast approaching, Midlands Connect is working closely with local authorities and other partners to help turn its plans into reality. By putting together a phased, corridor wide approach, it is hoped that improvements can be brought forward and provide good value for money, something that has previously been a barrier to progress.  

Suggested improvements on the corridor include:   

On the corridor’s Western Section, running from Blythe Bridge, Staffordshire to M6 J15-16 (through Stoke-on-Trent):  
  • Strategic improvements to M6 J15 to resolve congestion, to improve safety and facilitate better flow of traffic on M6 and A500  
  • Enhancements at Sideway to make traffic flow more smoothly, including strategic changes to the roundabout and lanes at the junction, as well as addressing the signalled junctions that cause traffic to build up on the route  
  • Technology-led improvements to improve the reliability and safety of the M6 between Junction 15 and 16  
On the corridor’s Central Section that runs from the A50/A38 Toyota junction to Blythe Bridge, Staffordshire  
  • Grade separation of the A50 and local roads at two locations in Uttoxeter, with associated slip roads to provide access and other potential enhancements to support growth and boost local active travel networks   
  • Enhancements to existing roundabouts at Sudbury and Blythe Bridge to increase capacity and reduce delays   
On the corridor’s Eastern Section from the M1 to A50/A38 Toyota junction  
  • Improvements to A38/A50 Toyota junction to improve capacity, safety and general operation (recommended as immediate priority to be delivered through an appropriate source of funding).  
  • Widening of the A50 south of Derby, between Junction 2 for the A6 at Chellaston and Junction 3 for the A514 near Aston-on-Trent (recommended to be undertaken in RIS4).  
  • Building a new link road between the A50 (near junction 1) and A42 (near junction 14, Breedon-on-the-Hill). This is recommended as a long-term option to be considered for RIS5 or beyond.  
Commenting on the release, Sir John Peace, chair of Midlands Connect, said:“This report released today outlines why upgrades to the A50/A500 manufacturing corridor are crucial both to keep international markets open after Brexit and to reduce emissions by enabling more direct and efficient journeys.    “This suggested strategic enhancement plan from Midlands Connect is based on comprehensive research which proves just how economically important this 90km East-West stretch of road between Crewe and Derby is. Improvements will also make it easier for business and local communities to prepare for a future where electric vehicles and alternative fuels become the norm.   “A key location for manufacturing and industrial activity due to its fantastic links with major UK cities and local supply chains, the corridor is home to industry leading businesses including JCB, Toyota, Rolls Royce and Alstom, and will soon link the new HS2 hubs at Crewe and Stoke-on-Trent with the planned freeport close to East Midlands Airport. “However, the busy A50/ A500 has slowly become more congested over time and regular bottlenecks form at junctions during peak times. Widespread development is planned for the surrounding area, meaning that change is needed now, with this sustainability-led plan to keep locals, employees and businesses moving.”

Flooding hardship fund to support residents and businesses

A number of homes and businesses in Derbyshire were affected following heavy rain which fell over the weekend and into Monday, closing some roads and causing local disruption. Derbyshire County Council has reinstated our Derbyshire Floods Hardship Funds for residents and businesses, which were first established following floods in 2019. Residents directly affected by flooding, where water has entered their homes, can access financial help of up to £104 via a fast-track application process. Businesses of 50 employees or less whose premises were flooded will be eligible to apply for a one-off payment of £500. The initial pot of £20,000 could be extended if needed. Areas affected and eligible will be listed online. Derbyshire County Council Leader Councillor Barry Lewis said: “Residents and businesses are already facing a number of financial challenges and if they are affected by the recent flooding we know this will be devastating and could have a huge impact on them. “We realise the importance of acting immediately to help where we can, which is why we are offering this support which is available now.”

Professional services firm announces plans to acquire financial planning business

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Leeds-based multi-disciplinary professional services firm, Progeny, has announced plans to acquire Chartered financial planning firm, RU Group. The deal, subject to FCA approval, will increase Progeny’s total assets under management to over £3bn and allow the business to expand its presence in South Yorkshire and the East Midlands. RU Group are wealth management and retirement experts with a team of 48 employees based across three offices, in Nottingham, Derby and Sheffield. Becoming part of the Progeny business will give RU Group’s clients access to an additional range of legal, financial and professional services via Progeny’s multi-disciplinary offering. The RU Group were established in their current form in 2003 but the origins of the business date back over 100 years. Andy Dyke, chairman, RU Group, said: “This is a momentous milestone in the RU Group’s history, securing the future for our clients, and we’re delighted to become part of the Progeny business. “We have built a well-established firm that is also well positioned for continued future growth, with Chartered status, a strong client-first ethos and a belief in the importance of embracing technology in the future of financial advice. “What’s more, we are committed to creating long-term prosperity for our clients, placing them at the centre of our decision-making. For all these reasons, Progeny and RU Group are an obvious fit.” Neil Moles, CEO of Progeny, said: “We’re very happy to welcome a firm with the prestige and heritage of RU Group into the Progeny fold. “As a locally owned and managed company, RU Group are embedded in the communities in which they operate. They have demonstrated consistent entrepreneurial organic growth in AUM and profitability, supported by a highly qualified and well-developed team with excellent potential for the future. “We look forward to welcoming RU Group’s clients to Progeny and offering them the chance to benefit from a vast range of additional professional services to meet all their legal and financial requirements. “Our acquisition strategy is driven by our commitment to providing a high-quality multi-disciplinary service to clients, and our acquisition of RU Group is the next step in this strategy. We have a clear philosophy for growth, and clients – existing and future – will always be at the heart of this. “This is a highly significant acquisition, in size and status, and we’re excited about what we can achieve together going forward.” As a result of the deal, Ian Browne, head of advice at RU Group, will become chief of advisory services at Progeny. On Ian’s appointment, Neil added: “Ian comes with a breadth of experience having managed large teams and worked in the industry for many years, both at Standard Life and most recently in his role at RU Group. The chief of advisory services position will be fundamental to the next stage of our growth and we are looking forward to welcoming the experience and energy that Ian will bring to the business.” A team from Progeny’s corporate legal department acted as legal adviser to Progeny on the transaction. RU Group were supported by their legal adviser, Ed Foulkes of Clarke Wilmott, together with Roderic Rennison and John Chapman of Catalyst Partners Ltd.

Corby redevelopment projects showcased to Government

North Northamptonshire Council projects that are spearheading further redevelopment in Corby town centre were showcased during a Government visit last week. Minister for Levelling Up, Neil O’Brien, was taken on a tour of the sites which will benefit from a £19.9million cash injection as part of the Town Fund. The Minister visited Chisholm House in Queen’s Square, which will be repurposed and developed into a sixth form college before touring Corby train station, which is part of a scheme to form a better connection with the town centre through active travel. Cllr Jason Smithers, Leader of North Northamptonshire Council, said: “I’m delighted that Minister O’Brien visited North Northants to see first-hand the projects that are being developed in Corby town centre. “The Town Fund has provided a huge cash boost to the town and these schemes will act as a catalyst for economic growth. Creating the conditions to bring prosperity is one of the key ambitions of the council and I look forward to seeing the projects take shape over the coming months.” Minister for Levelling Up, Neil O’Brien, said: “I am truly excited by the regeneration of Chisholm House into a modern, new, carbon-neutral Sixth Form. With backing from Corby’s £19.9 million Town Deal, the Sixth Form will give hundreds of young people across Northamptonshire the opportunity to achieve their true potential. “It was also fantastic to tour Corby station and discuss government-funded plans to improve both pedestrian and cycle links from the town centre to the station. Encouraging active travel, reducing emissions and improving safety is how we create healthy, sustainable and thriving communities across the nation.” The Town Fund projects are: Sixth Form College at Chisholm House – Chisholm House will be re-purposed and renovated to be a carbon neutral building using the latest innovative technologies to bring this ground-breaking and modern building to the heart of the town centre. It will attract 16 to 18-year-old, young adults from the surrounding area. Corby Station to town centre – This project will look to improve the public realm on Oakley Road for cyclists and pedestrian usage. This main road will look to update these important links in Corby from the train station, Tresham College and the town centre, with a focus on promoting active travel along this key route. Smart and Connected Corby – This project seeks to establish Corby as a smart and green town centre through harnessing connected and clean technologies. Using the latest connected and smart technology will enable the council to monitor flows of pedestrians, cyclists, motorists, shoppers, and visitors to understand the present and predict the future. Multi-Purpose building – This project aims to provide permanent new accommodation for a modern Arts and Community Centre in a multi-use facility, located in a central location in Corby’s town centre.

Sharpest manufacturing price growth since 1976

UK manufacturing output growth picked up in the three months to February, but the balance of manufacturers expecting price rises in the next three months was at its highest since December 1976. That’s according to the latest monthly CBI Industrial Trends Survey, based on responses from 224 manufacturing firms.
  • The balance of manufacturers who expect price rises in the next three months rose to the highest since December 1976 (+77% in February 2022, +78% in December 1976).
  • Growth in output volumes accelerated in the three months to February compared with the same period one month earlier (+26% from +14%). Output increased in 13 out of 17 sectors, with growth driven by the chemicals and food, drink and tobacco sub-sectors.
  • Total order books were strong in February (+20%, from +24% in January), while export order books improved slightly and remained above their long run average (-7%, from -10% in January; average of -19%).
  • Stocks of finished goods were seen as inadequate again in February, but with some improvement shown for the second consecutive month (-14% from -17%).
Anna Leach, CBI deputy chief economist, said: “Manufacturers will be buoyed by strong order books and output growth, but amid ongoing cost pressures, almost 4 in 5 firms expect to increase prices in the next three months. “With high inflation dampening growth prospects in the wider economy, the Government must use the Spring Statement to help get businesses investing more, supporting higher growth, productivity and wages. That should start with a permanent Investment Deduction as a successor to the Super Deduction, which ends next year.” Tom Crotty, group director at INEOS and chair of the CBI Manufacturing Council, said: “It is great to see that total order books remained strong in February and that output volumes grew more quickly than in last month’s survey, increasing in 13 out of 17 sectors. “But with rising prices and inadequate stocks of finished goods, the cost-of-living crunch continues to bite across the sector, alongside continuing global energy and supply chain challenges. “While the Government must continue to address these shorter-term challenges, it must also look ahead and focus on productivity. For instance, with a future-focused approach to skills and regulation and an industrial strategy that instils confidence in manufacturers.”

Training provider transforms former newspaper offices into digital HUB

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An East Midlands training and apprenticeship provider has invested £75,000 to give Derby’s former newspaper offices a new lease of life – as a state-of-the-art digital HUB. EMA Training has created three floors of collaborative working space, break-out areas, exam suites and networking facilities inside its new Siddals Road headquarters, which was home to the Derby Telegraph until last year. It has taken just two months for EMA Training to renovate the offices, which cover almost 9,000 sq ft, ahead of a big push to promote apprenticeships and staff training as a vital component of the city’s post-pandemic economic recovery. EMA Training Chief Executive Officer, Tracey Mosley, said: “The expansion into this building is extremely exciting for us. The city has so much to offer our learners and we want to keep local talent in Derby. “The support we have had from the employers we work with; our external stakeholders and our team has been incredible. Our people are the core of everything we do, and it has been great to see their involvement in each phase come to life. “All the local businesses who helped renovate the previously empty office have done a fantastic job, in a really quick time. Together we have turned the building into a collaborative, innovative working space that supports the new hybrid way of working.” The move into the new office, which is due to be officially opened by businesswomen Eileen Richards MBE, comes after EMA Training expanded from 10 members of staff to 30 in the last two years. Mrs Mosley added: “This is such an exciting time for EMA Training and our new prominent position in the heart of the city means we will be able to bring our ground-breaking and exceptional expertise to even more young people and employers. “EMA training has gone from strength to strength in the last three years and as the city builds back better we hope that we will be an important part of this recovery.” Eileen Richards said: “I am delighted to have been given the honour to officially open EMA’s new training hub. “The East Midlands is renowned for their entrepreneurial and business spirit which is why it is fantastic that EMA are providing a place for emerging and existing talent to be upskilled through apprenticeships and training programmes to continue to add value and expertise within our region.”

East Midlands housebuilder secures £6.5m finance facility for Northamptonshire scheme

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East Midlands housebuilder Barry Howard Homes has secured a £6.5 million finance facility from Paragon Development Finance to support a 28 new build home scheme in Weedon, Northamptonshire. The ‘Grand Union Way’ canal-side development, located on Dodford Wharf Farm, consists of three, four and five-bedroom homes and is due to be complete in the summer. It is located close to the High Street of the popular Weedon village. A further 19 affordable units are also being delivered as part of the scheme in conjunction with a housing association. The deal was led on behalf of Paragon by relationship director Adrian Reeves and portfolio manager Bonnie McCloskey. It was introduced to Paragon by Matthew Cleave from MPC Estates. Barry Howard, founder of Barry Howard Homes, said: “This scheme benefits from a vibrant village life, but also has close links to Daventry, Northampton and Rugby, which of course have fantastic transport links to London and Birmingham. We have designed these family homes to enhance the village, offering good quality housing in a desirable location.” Adrian Reeves said: “We pleased to have been able to support Barry Howard Homes with this latest development. The company has built a fantastic reputation for delivering top quality homes over the past 30 years and this scheme will further cement that.” MPC Estates’ Matthew Cleave said: “Having worked successfully with Barry on a number of his transactions over the past few years, I knew that a relationship with Paragon would be very beneficial for the delivery of this scheme. As always, Paragon have proven to be a reliable partner in securing the funding with the help of Adrian and Bonnie and I am sure there will be many more opportunities for similar projects in the future.”

Council sets out budget to protect vital public services as financial pressures mount

Budget plans intended to protect essential council services in Leicestershire are to be discussed tomorrow. Leicestershire county councillors will meet on Wednesday (23) to address the challenging financial position facing the authority. The council’s proposed medium term financial strategy (MTFS) looks to manage the rising costs of caring for vulnerable children and adults while finding ways to deal with increasing inflationary costs across services and on key multi-million pound capital projects needed to support the county’s growing population and economy. The authority is proposing to increase its share of the council tax bill by three per cent from April – a two per cent rise in the basic levy and one per cent ringfenced to contribute towards adult social care. This rise is below the current rate of inflation and the lowest increase in recent years. The precept rise will also help fund other key services including children’s social care, public health, transport, education, planning, road maintenance, libraries, waste management and trading standards. Cabinet lead member for resources councillor Lee Breckon said: “The money we will receive from the Government in the coming financial year was better than anticipated but significant risks remain. “Our proposed budget will balance the books next year but we still face a gap between our income and what we will need to spend of £39 million by 2026. “Our financial strategy is prudent and deliverable though we will still need to make significant savings and that will require difficult decisions.” Cllr Lee Breckon, Cabeniet member for resources said: “It is recognised many residents will be having a hard time with the rising cost of living.
“We ask for more council tax with great reluctance and we will need to repay residents by delivering those essential services efficiently and effectively.
The pressure on the council to fund both children’s and adult social care remains considerable with rising demand in the number of vulnerable older and young people who need looking after – and the costs of the care they need rising. Overall social care costs are expected to rise by £88 million over the next four years with a significant part of that needed to pay the national minimum wage. There is also large deficit of £63 million predicted by 2026 in paying for the education of children with special educational needs and disabilities (SEND). More than half a billion pounds is also to be spent on major capital schemes between now and 2026 to provide for essential infrastructure – such as new roads and schools – to meet the demands of the county’s growing population and economy. The popular Shire Grants scheme is being boosted with an additional £150,000 to make up a £600,000 pot available annually to communities to bid in to for projects that will make a real difference for Leicestershire’s residents. The council remains committed to its target of helping to plant 700,000 trees across the county – one for every resident – and the MTFS contributes £100,000 developing a tree nursery to grow saplings towards this target, helping to make our county cleaner and greener. The MTFS also provides £50,000 to enable the cost of road closures to be waived for communities and groups planning street parties to celebrate HM The Queens’s Platinum Jubilee in June. Cllr Breckon said: “This budget will provide protection for vulnerable children and adults, builds on the Covid support we’ve provided over the past years and will continue to support. “It delivers the lowest rise in the precept in recent years. “Although we can balance the books this year, we will continue our campaign to get a better funding deal from government- and this includes working with the cross-party F20 group of the lowest funded councils in England to achieve this aim.”

Rolls-Royce signs sustainable fuel global declaration

Rolls-Royce has signed a global declaration, committing to promote the acceleration of the development, production and consumption of Sustainable Aviation Fuel (SAF).

The engineering giant, which has its civil aerospace and defence divisions in Derby, joined with other key players within the aviation industry – Airbus, Safran and Singapore Airlines – to sign the declaration at the Singapore Air Show.

The aviation industry plays a part in achieving the Paris Agreement targets, with SAF being one of the key decarbonisation levers in the sector.

The Global SAF Declaration calls on industry partners from the aerospace, aviation, and fuel value chains to embrace SAF as an important part of decarbonisation with the ambition to ensure a steady ramp up over the next 10 years.

The declaration is open to all airlines, as well as aviation and aerospace organisations, as a complement to their sustainability commitments.

Grazia Vittadini, chief technology and strategy officer at Rolls-Royce, said: “Signing the declaration is an important milestone for the aerospace industry.

“We welcome the opportunity to push for more SAF use by coming together across the value chain.

“It is important that we combine our efforts and focus into building the momentum required to drive this forward.

“We are all big advocates for the development of alternative propulsion solutions including hydrogen, hybrid-electric and electric and we also recognise that SAFs are a key building block to set us on our path towards achieving our long-term decarbonisation goals.”

Major residential scheme proposed for Nottingham

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Plans for a major mixed-use scheme on Alfreton Road, Nottingham, have been submitted to the city council. Olympian Homes is seeking Full Planning Permission to create 790 student bedspaces in 344 houses, studios, and cluster flats, along with leisure and retail facilities, and 68 residential apartments comprising 19 one-bedroom apartments, 44 two-bedroom apartments and 5 two-bedroom townhouse apartments. The development would be placed on the site that was historically home to Forest Mill, a large lace factory established in 1840. A planning statement notes: “The Mill remained open and trading until the 1950s, however, following closure the site stood empty for decades and along with a more contemporary office block to the north east corner of the site, fell into a derelict, unsightly and deleterious state of repair. The last of the Mill buildings were finally demolished in 2012 and the remaining section of office accommodation in 2020.” The site has been acquired by the applicant. The new development could reach up to eight storeys.

Multiple warehouses let at Magna Park Lutterworth

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GLP, an investor and developer of logistics warehouses and distribution parks, has leased multiple warehouses at Magna Park Lutterworth, and commenced speculative development on four units at Magna Park South Lutterworth. Magna Park Lutterworth is home to 36 different customers and occupies over 11 million sq ft of floor space across 41 buildings. The deals in the park include two spec build lettings and a build to suit transaction in the North, plus a letting of an existing building in Magna Park Central. Bleckmann, a fashion and lifestyle supply chain expert, has leased the first of the three “spec builds” in Magna Park North, taking a 200,102 sq ft building (MPN1) on a long-term lease. The warehouse will be used to service Bleckmann’s increasing number of contracts and will be the company’s second unit leased at Magna Park Lutterworth, after it acquired Tornado-186 18 months ago. Iron Mountain, an information management services company, has signed an agreement to lease MPN3, the third spec building under construction, totalling 297,194 sq ft. This will support Iron Mountain’s UK expansion strategy. MPN3 is expected to complete by the end of March 2022. LX Pantos has taken a building on a built to suit basis – MPN4, totalling 310,000 sq ft, which is expected to complete by July 2022. LX Pantos is upsizing from an existing facility and plans to use the warehouse to service LG Electronics, amongst other top brands. In a separate development, GLP has completed the letting of Hurricane-258, a 258,000 sq ft cross-docked distribution unit located within the Magna Park Central Lutterworth development, to Rhenus Home Delivery. Rhenus intends to operate the unit as a two-man lift operation in response to the further growth of their home delivery business. Following the development of 1.2 million sq ft (Phase one) last year in Magna Park South (MPS), GLP has announced it has commenced the next phase (Phase two) of speculative development in MPS, with another 1 million sq ft being constructed across four buildings. The development will see the construction of 186,000, 211,000, 256,000 and 355,000 sq ft buildings respectively. Work on-site will commence in Q2 and is expected to complete by Q4 2022. Joe Garwood, senior development director at GLP, says: “This marks an exciting time in the ongoing development of Magna Park Lutterworth, which has been firmly established as Europe’s leading logistics and distribution park. “The park has seen unprecedented development and leasing activity in recent months, with GLP completing eight deals over the course of last year totalling 2.2 million sq ft. “We are delighted to partner with such well-established companies, and we look forward to working with Bleckmann, Iron Mountain, LX Pantos and Rhenus Home Delivery and supporting them as they grow.”

Derby fabrication and precision machining business snapped up

Mersey Industries has acquired Derby-based MCE Engineering, a fabrication and precision machining business. Off the back of a record year for the business, this acquisition forms part of an ambitious journey for Mersey Industries to build a group of engineering companies in the UK, with an impetus on serving the defence, nuclear and aerospace sectors. The acquisition of MCE Engineering marks the second acquisition for Mersey Industries as it expands its footprint in the Midlands, and, in turn, the operational capabilities across the group. Established in 1996, MCE Engineering operates from a 12,000 sq ft manufacturing facility in Derby and delivers specialist metal machining and fabrication solutions to blue chip market leaders such as Rolls Royce and Bombardier. The business has a team of over 35 staff who play a key role in the ongoing success of the business. Jeremy Rowson, director of Mersey Industries, said: “We’ve been on the lookout for a high quality and well-run precision engineering company to enhance and extend our capabilities and MCE Engineering ticked all the right boxes for us. We are delighted to welcome the MCE team into the group and look forward to working with them. “We are grateful to the team at Magma Corporate Finance for guiding us through the acquisition process. Shafwaan Bheda and Irfan Ashfak provided an excellent advisory service, and Jon Kicks delivered expertly put together tax due diligence and advice. Their experience and expertise were invaluable during the transaction.” Shafwaan Bheda, senior manager at Magma Corporate Finance, said: “Mersey Industries has an extremely ambitious and dynamic management team, and this acquisition strengthens their presence and operational capabilities in their target sectors. We are extremely pleased to have advised Mersey Industries on the deal and look forward to working with the business moving forward.” Jamie Lloyd and his team at Nexus Solicitors, Manchester, provided legal advice and legal due diligence to Mersey Industries.

Strike proposed at Nottingham bakery over pay rise that could leave staff “worse off”

A strike is on the cards at Nottingham’s Riverside Bakery – the producer of quiches, flans and savoury tarts for major retailers including Tesco, ASDA, Sainsbury’s, Aldi and Marks and Spencer – according to Unite. The union says that a pay cut disguised as a rise offered to staff earning just above the minimum wage has resulted in a strike ballot. More than 150 workers at Riverside Bakery are being balloted for strike action over the pay offer that would apparently leave staff worse off by reducing overtime and premium rates. Unite general secretary Sharon Graham said: “This offer is a pay cut disguised as a rise. It would leave our members, who are already struggling with low pay and soaring inflation, worse off. I doubt customers will be impressed to learn that the quiches they buy in Sainsbury’s, Marks and Spencer and other supermarkets are being made by workers on the breadline. “Riverside Bakery should be aware that if our members vote for strike action, Unite will have their backs with all the support they need.” The ballot for strike action opens today (Tuesday 22 February) and closes on 8 March. Unite said that the latest pay offer is a serious attack on its members’ premium rates. Riverside Bakery is part of the Addo Food Group, which was bought by private equity firm PAI Partners in 2020. PAI is planning to merge Addo with another chilled food company it owns, Winterbotham Darby, to create a new company, The Compleat Food Group. Unite regional officer Cheryl Pidgeon said: “Riverside Bakery and their new owners, PAI Partners, can well afford to ensure that their already low paid workers’ financial woes are not further increased. “With the rising cost-of-living many will be plunged – if they are not there already – into in-work poverty under the current pay offer. Riverside Bakery need to put forward a deal our members can accept before this dispute escalates further.” A spokesperson for The Compleat Food Group said: “After extensive talks, The Compleat Food Group made a very favourable offer of an increase to hourly rates for the colleagues at Riverside Bakery which was rejected by the Union. “To enhance the previous offers, the final offer from the business included the fixing of overtime premiums at the 2021 rates. This was a move to further enhance hourly rates and increase differentials in advance of the forthcoming increase to the national minimum wage.”

Yü Group takes on customers of duo of bust energy suppliers

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Nottingham’s Yü Group, the independent supplier of gas, electricity and water to the UK corporate sector, has been appointed by Ofgem as Supplier of Last Resort (SOLR) for Whoop Energy and Xcel Power Ltd (Xcel) and agreed to take on their electricity and gas customer books with immediate effect.

Whoop Energy supplied gas and electricity to 262 customer accounts, of which 212 were non-domestic SME customers and 50 domestic customers, across 401 meter points. Xcel supplied gas to 274 non-domestic customers.

Under Ofgem’s SOLR process, business customers transfer to a new supplier on a flexible, “deemed,” basis with a variable tariff reflective of current market conditions. The total contribution to Group revenues is expected to be approximately £150,000 per month.

In line with previous integrations, Yü Group will integrate these new customers on to the Group’s scalable platform; and certain industry processes will continue in the coming days to complete the transfer.

Bobby Kalar, Group Chief Executive Officer, said: “I am very pleased to welcome customers of Whoop Energy and Xcel to Yü Group. We have already commenced migration onto our scalable operating platform ensuring the smoothest transition possible.

“The award from Ofgem is further testament to the strength of our business with our strong foundations, proven platform and robust hedging strategy. This follows the award and subsequent seamless integration of Ampower in November 2021 and we are proud to be working with Ofgem to ensure a stable supply of energy for UK businesses.”

Business insolvencies double within 12 months

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A dramatic year-on-year increase in the number of corporate insolvencies is highlighting the enormous challenges faced by Midlands businesses as they continue to battle the economic shockwaves of the pandemic. Latest Government insolvency statistics for England and Wales show that corporate insolvencies increased by 105% in January 2022 to a total of 1,560 compared to January 2021’s figure of 758. According to the Midlands branch of insolvency and restructuring body R3, the doubling in corporate insolvencies suggests that creditors are now starting to take action over unpaid debt, having been legally prevented from doing so since the start of the pandemic. R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “The substantial increase in company failures is being driven by a rise in compulsory liquidations, which are 131.4% higher than this time last year. “Numbers of Creditors’ Voluntary Liquidations have remained similar compared to this time last month, which suggests that many company directors are continuing to choose to close their businesses rather than attempting to carry on trading in the current climate. “These Insolvency Service figures indicate the toll the current climate is taking on local firms. Over the last two months, Midlands businesses have had to trade through a perfect storm of issues, including spiralling inflation and transport costs, new COVID measures and steep increases in energy prices. “Against a backdrop of continued pandemic-related uncertainty, there is likely to be a significant number of directors who are doubtful that their business can survive much longer. In such cases, the sooner advice is sought from a qualified and reputable source, the more potential there is for a solution. “Many R3 members offer a free consultation to those who are looking for help with their business’s finances and want to explore their options.”

Rate of store closures slowing in the Midlands, but chain operators not replacing vacant units

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Over 10,000 chain store branches disappeared from Great Britain’s retail locations in 2021. In total, 7,160 shops opened, compared to 17,219 closures, a net decline of 10,059, according to PwC research compiled by the Local Data Company (LDC). Although the net change has worsened since 2020, the number of closures per day has remained stable, 47 in 2021, compared to 48 in 2020. A decline was expected with the ongoing impact of the pandemic and as large retailers, that were on the brink of closure at the end of 2020, exited the market for good. Meanwhile, Government support for chain retailers was mostly phased out in July 2021 adding pressure to those retailers reliant on grants. The East Midlands saw 528 store openings and 1,146 closures, a net change of 618. In the West Midlands, there were 641 openings and 1,676 closures, a net change of 1,035 over 2021. The overall number of openings has declined 26% since 2019, the last year pre-pandemic. So, although there were over 7,000 new openings in 2021, many of these were the natural churn and re-siting of existing stores. Apart from takeaways, at +81, and government job centres, +33, no other category saw more than 20 net openings in 2021. In a continuation of a long term trend, store closures peaked in 2020 in the height of the pandemic. The rate of closures has been growing since the mid-2010s, as more retail and service categories have shifted online. This had previously been offset by the rapid rollout of leisure operators, such as coffee shops, food-to-go and restaurants. However, such openings have slowed down rapidly since the mid 2010s. In better news, the number of closures is now expected to slow down through 2022. The last two years have seen a shake out of some large fashion and department store chains who were on the brink of collapse. With these stores now closed, future store closures should begin to level off. Moreover, bigger chain retailers are more likely to be proactively negotiating with landlords, so the end of the rent moratorium in March 2022 is less likely to affect them. Flight from cities Since the pandemic, city centres and London postcodes have seen an acceleration in net closures as more people work from home or adopt hybrid working patterns. London is again the worst performing region by some margin. Similarly, the underperformance of Birmingham has caused the West Midlands to perform worse than the East Midlands, with towns in the East Midlands more sheltered from the surge of Covid closures. Many will be hoping that hosting the Commonwealth Games in the summer will see a reversal of fortune for Birmingham. Location matters above all else Consumer behaviour is continuing to drive the most change and the choice of shopping location is impacting the number of closures. Retail parks and standalone sites are more insulated from closures. In 2021, retail parks saw the smallest net change of any location (593), compared to high streets (4,287) and shopping centres (1,690). In percentage terms retail parks saw net closures of -4% compared to high streets at -5% and shopping centres at -7%. Fast becoming a trend, retail parks have consistently outperformed shopping centres and high streets for the past 6 years. At the same time, shopping centres have gone from the second best performing locations, in 2015, to the worst performing locations in 2020 and 2021. Undeniably, Covid exacerbated the popularity of retail parks but even since restrictions were lifted, footfall recovery has been much faster in out of town retail parks which benefit from easy access and good parking and bolstered by car travel recovering more quickly than public transport. Moreover, shopping centres have been hit particularly hard by closures of fashion retailers, department stores and casual dining restaurant chains – and therefore less attractive destinations in their own right. Sarah Phillips, Midlands retail & consumer markets leader at PwC, said: “The last two years have been tumultuous for retailers but the closures we’ve seen are an acceleration of what was happening before the pandemic. Changes in consumer behaviour, changing patterns of working and the shift to online is impacting on both retail and service chain operators. “Location matters most to consumers and whilst city centres and shopping centres falter as we have seen in Birmingham, retail parks and standalone operators have broad appeal. However, this summer’s Commonwealth Games will see a reversal of fortune for Birmingham. Multiple operators are taking note of this changing consumer behaviour and are relocating stores to where their customers need them to be. “Many of the CVAs and administrations that took place in early 2021 have now been captured, including department stores, fashion retailers and hospitality operators that have left gaps in city and shopping centre locations. There is a pressing need to radically reshape and even repurpose towns and city centres plagued by these empty units and shopfronts. To regain lost footfall, high streets must understand why retail parks are so attractive to consumers or look for ways to better serve local needs, encouraging independent retailers and entrepreneurs to take this opportunity to grow into the gaps that are emerging.” Categories almost all driven by acceleration online On a sector by sector basis the growth seen in a small number of categories is nowhere near enough to offset the declines in other categories. Leisure dominates growth, with takeaway chains buoyed by a rise in delivery as well as walk-in demand. Smaller chains and franchise operators, such as cake shops and amusement arcades, have also been able to take advantage of lower rents and vacant units to expand their footprints. The big net declines in many other categories reveal the impact of major shifts in how consumers buy and transact. The shift to online, accelerated by consumer behaviour during Covid lockdowns, continues to be the biggest common denominator for closures in both retail and services.
  • Fashion is the fastest declining category with almost 4 net closures a day. Several fashion and department store closures chains were acquired by online operators with no ambition to operate stores
  • Banks have accelerated their closure programmes during the pandemic, following several years of slowing down closures; banks have been either the number one or two top closing categories in five of the past six years
  • The move to online has even impacted the charity sector, which saw a net decline of 557 in 2021
  • However, restaurants and pubs have fallen out of the top 10 fastest declining categories, revealing their overcapacity in the mid-2010s is now beginning to even out, resulting in fewer closures
Lucy Stainton, commercial director at The Local Data Company, said: “These latest figures for 2021 show the gap between openings and closures has widened, though hopefully this marks the end of the worst of the structural decline in chain retail exacerbated by the pandemic. “2021 was an extremely challenging period for occupiers, with the first three months lost to a strict lockdown, limitations on international travel impacting tourism, increased migration to online retailing, mobility restricted across all sectors and continuing home working impacting city centres. There is no doubt that the numbers are stark and 2021 saw an acceleration in net closures across this sector, which in isolation looks dramatic. “However, it’s also worth noting that vacancy rates have started to stabilise across the market, meaning that the number of empty shops is no longer increasing. This is due to a significant uptick in independent retail and leisure businesses opening sites in units left vacant by chains. The rental tone is softening and more space has become available in prime locations previously occupied by bigger brands, paving the way for new and up and coming operators. This trend is significant for a number of reasons, not least because, in theory, the growing independent operators of today are potentially the chains of tomorrow. As these businesses gain momentum, they also gain better infrastructure and stability. “Ultimately, these latest statistics on the performance of the chain sector should not be viewed in isolation and don’t point to ‘the death of the high street’, but rather represent a last shakeout of some of the heritage brands, paving the way for new operators and so the constant evolution of physical retail continues.”

Loram UK lands seven-figure agreement to keep Network Rail’s Flying Banana moving

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Loram UK, the rail and rolling stock maintenance specialists, has agreed a major partnership with Network Rail to service its New Measurement Train (NMT). The seven-figure agreement will see Derby-based Loram UK conduct a major mid-life overhaul of the NMT, known affectionately as the Flying Banana because of its yellow livery and high-speed operation. The NMT monitors and records track condition information at speeds up to 125mph, helping identify faults before they become a safety issue or affect line performance. It also helps to prevent unnecessary maintenance work. Network Rail said the train was the “most technically advanced train of its type in the world.” The agreement is the latest between Loram UK and Network Rail and Andrew Watson, Loram UK’s international business development director, said the programme would be vital to extending the life and performance of the Flying Banana. He said: “There is only one in the UK so the work it does is vital in measuring rail infrastructure to allow maintenance to take place and keep high-speed rail going. “When you consider how important high-speed rail is to the UK, whether it is moving people or goods, the importance of the NMT cannot be understated and we are very proud to be working on it.” The train, converted from an Intercity train, is equipped with high-tech measurement systems, track scanners, and high-resolution cameras, measuring the condition of the tracks and overhead line equipment at high speed. It records data points, which are then passed to the relevant infrastructure managers to assess. Mr Watson said: “Without it and the monitoring work it does, high speed trains would not run at high speed. What we will be doing is essentially amid-life extension programme for the next 12-14 months. “We are delighted to be continuing to grow our trusted partner relationship with Network Rail to provide maintenance and service work for them.”

Nottingham CRO goes for growth with senior business development hire

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Nottingham-based contract research organisation (CRO) Cellomatics Biosciences has made a key business development appointment in support of its ambitious growth plans. Haroon Allybacus joins Cellomatics as senior business development manager. With more than 20 years’ experience in the pharmaceutical, contract research and ‘omics’ industries, Haroon has held numerous business development roles, most recently as European account manager at Human Metabolome Technologies, the global provider of next generation metabolomics. With a Chemistry with Management Science BSc Hons and an MBA in International Business, Haroon began his career in big pharma, working for Pfizer and Astra Zeneca, before moving into CROs and biotechs. Based at BioCity Nottingham, Cellomatics is a specialist preclinical CRO with expertise in five main therapeutic areas: oncology, immuno-oncology, immunology, inflammation and respiratory. Last year, the company reported year-on-year organic growth of 30 percent since its inception in 2015, following a hike in demand for its bespoke preclinical and early discovery phase laboratory services and expertise. At Cellomatics, Haroon, who has worked in international business development for over ten years, will use his extensive experience at preclinical and clinical CROs and in pharmaceutical sales to develop the company’s global client base. “I am truly passionate about the life sciences industry and believe there is nothing more rewarding than supporting companies with the development of new therapies for diseases with unmet treatment needs,” Haroon says. “The role Cellomatics plays in this process is key, and I am excited to be supporting the growth of its pipeline of business opportunities, as well as managing its strong and loyal customer base. “By applying my specialist expertise in the ‘omics’ industry, as well as my knowledge of the Nordic life sciences territories, I hope to drive further, diversified growth for Cellomatics and ensure more businesses, from early start-ups to medium-sized biotechs, can access our bespoke, innovative and practical solutions to advance their drug development programmes.” Shailendra Singh, CEO of Cellomatics, says: “Haroon is a top-performing and highly experienced business development expert, with a proven track record of success, having consistently exceeded sales and growth targets for successive companies. “Increasingly, pharmaceutical companies are relying on the robust infrastructure and clinical expertise of CROs, and as specialty drugs become a larger portion of the market, we anticipate significant growth in the EU market, especially in the immuno-oncology and immunology spaces that we specialise in. “Haroon’s in-depth experience and knowledge mean he can hit the ground running and help us tap into this growth, as we seek to become the CRO of choice for our growing global client base seeking expert support with the development of bespoke bioassays.”

New state of the art surgery proposed for Beeston town centre

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The relocation of The Manor Surgery, currently located on Middle Street in Beeston town centre, has moved a step nearer following the submission of detailed plans to Broxtowe Borough Council which, if approved, will see the Practice relocate to a site close by on Chilwell Road. The existing GP Surgery has outgrown the property following the population growth in and around Beeston, the closure of other surgery facilities in the town and the continuing move from the NHS to provide more clinical services within GP surgery premises. The new building will be constructed on a site opposite Beeston Parish Church, adjacent to the town centre shopping and leisure facilities and next to the main public transport hub a few metres from the main bus and train stops. The existing Manor Surgery provides around 445 sq m of floor space – the new surgery will provide 970 sq m which will be purpose built to the most up to date standards for surgery accommodation, capable of delivering a wide range of clinical services to the population of Beeston. The surgery has been future proofed to allow for the projected growth in patient numbers – currently the surgery has a patient list size of 13,000, which is expected to grow to around 18,000 patients by 2025. In addition, the new design provides space for a new Pharmacy unit and 265 sq m of additional clinical accommodation which will provide complimentary services alongside the main surgery function, creating new employment opportunities in the centre of the town. Louis Mok, GP Partner at Manor Surgery, said: “The Partners and staff at Manor Surgery are really excited to see the plans submitted for the new surgery on Chilwell Road. The location is ideal, prominent, easy to find and accessible by public transport. We have been keen to ensure the new building is designed to the best possible standards. “The property will benefit from Air Source Heat Pumps and a range of other energy saving facilities which will future proof the property for years to come and reduce our carbon footprint. This development will allow us to provide the best possible clinical care to the ever-growing patients in Beeston within top quality surgical premises.” Lynne Sharp, associate director of estates at NHS Nottingham and Nottinghamshire CCG, said: “We are pleased that plans for the new premises for Manor Surgery are progressing and that the practice will be able to deliver patient care in a modern and fit for purpose building for many years to come.” If the plans are approved, it is proposed to start construction in mid 2022 with completion of the new much needed community clinical facility delivered by early Summer 2023.

New board member for Octavian Security UK

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Octavian Security UK, the Nottingham-based security provider, has revealed a new face on its board. Emily James steps up as operations director less than two years after joining the company from Bretherton Solicitors, where she spent 27 years. Emily was previously the business and compliance manager at Octavian. Reshma Sheikh, Managing Director of Octavian, said: “Emily joined us during the first lockdown period of the pandemic, and over the last two years has shone brightly. This difficult time for everyone has brought to the fore some truly talented people, and Emily’s promotion to the board is well-deserved. She will be a huge asset, bringing her vast experience and knowledge to the table and I’m looking forward to working closely with her as we look forward to the post-pandemic era.” Emily said: “I’m extremely proud of this promotion and would like to thank Reshma and the other directors for the opportunity. It has been an extremely busy time at Octavian since I joined in March 2020 and the challenges have been great, but the team has shown time and time again that we can bring solutions to our clients. I am now looking forward to using these experiences as we look to grow in 2022 and beyond.”