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 Parm Bhangal, Managing Director at Bhangals Construction Consultants. Following a busy market and a lot of investment post Covid, I believe that 2024 will be much quieter year in the construction industry than we have been used to in recent years. Interest rates and the cost of borrowing has gone up significantly, which has meant some developers and homeowners looking to do bigger projects have been temporarily forced out of the market. The dramatic increase in interest rates over the last year has seen a huge impact on the property market, which in turn affects the construction industry. And because the sector is quietening, I anticipate that labour costs will continue to fall, gradually. Builders and contractors are likely to need to work harder to secure contracts and look at their price points in order to lock in longer term projects. Many tradespeople will be forced to bring prices down in order to compete and guarantee security. Lately, we have seen materials prices begin to fall too as supply catches up with demand and I think that trend will continue as we go into next year. Construction and property require such huge investment that it is currently seen as too great a risk for many. Anyone wary of the current climate is likely to hold off on investing until there is more positivity in the market.

James Pinchbeck, partner at Streets Chartered Accountants, reflects on the importance of recognising colleagues during the festive season. On 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. Certainly HMRC have made this easier, in that gifts made to employees up to the value of £50 will not be subject to any tax consequences. Perhaps then there is no surprise that often the choice of gift is a store or merchandising voucher to the value of £50. Such an approach is not to be sniffed at as it is an easy decision for a choice of gift in terms of the employer’s choice and employees’ preference. Typically, as the festive season approaches many will be enjoying the annual staff Christmas party. Again, the HMRC have made an exemption and a generous one at that. Providing a number of criteria are met, a spend of up to £150 per head can be made on the Christmas party. Such spend is exempt from both Income Tax and National Insurance and the fun doesn’t stop there! The £150 per head also applies to all attendees, so partners and spouses can be included. The festive season all too often comes and goes in a flash, even though you wouldn’t think it on the run up to the big day. Whilst the thought and goodwill of a seasonal gift and party will bring a glow to hopefully all, the time of year is also one when we reflect or give more time to think of others. As we go from Christmas to the New Year our thoughts invariably turn to the year ahead and perhaps then to thinking about what else we could do to acknowledge, reward, praise and even support team members. Such an approach doesn’t necessarily have to come at a cost or be determined by the tax implications. At Christmas it can be the case, that we rack our brain to come up with a gift for a relative or friend that we don’t see or really know that well, when really what they would have valued better was some of your time and interest in them. Perhaps then we can all look to 2024 to take time out to not only think what we could do to support our colleagues but also show we really value them. Something that may involve us taking more time for them, doing something specific or personable, even unique, to thank and support them. With busy lives and the rapid pace of life there is a real danger, that a bit like Christmas, when we buy a present it will do with little thought just to tick another off the gift list, we don’t give enough thought and time to recognise the importance and value of our colleagues. See this column in the December issue of East Midlands Business Link Magazine here.

Law firm Freeths has advised EG Group on the sale of its 218 KFC franchise restaurants across the UK and Ireland to Yum! Brands’ KFC Division. Expected to complete in the first half of 2024, this transaction is part of the global retailer’s successful portfolio optimisation strategy and continued progress towards putting in place sustainable growth and innovation. Founded by Issa brothers in 2001, EG Group is a British retailer which operates filling stations, convenience stores and fast-food restaurants across Europe, the United States and Australia. The Freeths legal team was led by Real Estate Partner Atiyya Khaliq, supported by Managing Associates Zac Clayton and Michaela Mason, Associate Samuel De La Bertauche and Legal Assistant Poppy Hinton. It comes just weeks after Freeths advised on the completion of EG Group’s £2.07bn sale of its UK operations to Asda. Commenting on the deal, Atiyya Khaliq said: “As a valued client, it’s great to see EG Group’s corporate sustainability strategy coming to life. This deal is an important step in securing growth across the UK and Ireland and it demonstrates the strength of our team’s retail sector expertise. I look forward to continuing working with EG Group on the next stage of its exciting journey.” EG Group continues to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg, Belgium and the UK, including its wholly owned bakery business, Cooplands, as well as franchise businesses with the Starbucks, Subway, Greggs, Sbarro, Chaiiwala and Cinnabon brands.

Expanding Derby retail and leisure destination, Derbion, has announced another year of significant growth with over £5.2 million invested into the centre by retailers through new lettings, store upsizes and refurbishments.

Across the year, 13 new brands have opened their doors at Derbion including three new restaurants in the recently refurbished Food Terrace, which is now fully let following a £2m investment by the centre. Chi, Tortilla and Villa Express have completed the line-up of food and drink operators which also features Popeyes, KFC and Burger & Sauce. Subway and GDK have also invested in their presence at Derbion through a refit and relocation.

Derbion has continued to expand its breadth of retailers this year, welcoming global cosmetics retailer Rituals and lifestyle brand MINISO alongside travel operator TUI and iconic fragrance company Yankee Candle. Local fashion retailer, 1NE., is the latest independent to open at Derbion as a result of the centre’s Hatch initiative, which supports small business owners to take their brand to the next level.

Alongside new lettings, over £3 million has been invested by existing retailers through refurbishments and store upsizes. Luxury watch and jewellery retailer, Goldsmiths, has revamped its showroom, extending its footprint by 1,000 sq ft to showcase a wider range of big-name brands, and will open a second store before Christmas featuring Breiting, Tudor and Omega. Renowned jeweller Beaverbrooks has increased its store to 1,628 sq ft, introducing a new standalone TAG Heuer boutique.

The centre’s longer-term development potential took a step forward in 2023 with planning permission granted for the Derbion Masterplan, subject to approval by the Secretary of State. The Masterplan is an ambitious framework for the next 10 years and beyond designed to support the existing retail and leisure centre and its significant position in Derby city centre. Proposals include new homes and commercial uses alongside public spaces and walkable streets to integrate these sites with the rest of Derby City Centre and improve connections with the River Derwent.

Managing Director at Derbion, Beth McDonald, said: “Since we transferred to new independent ownership in 2021 we have successfully delivered a strong leasing strategy that has transformed the centre with a wide range of leading retail and leisure brands, and this year has been no exception.

“We continue to broaden our offer for customers through new and exciting openings and expanded stores in addition to playing an important role in our wider community and the city of Derby.

“Our Derbion Cares charitable initiatives have included our hugely popular school uniform swap shop, designed to support families across Derbyshire with the rising cost of uniforms.

“This year we have also continued our sponsorship of the flagship running event, the Derbion Ramathon, alongside supporting the fantastic Museum of the Moon at Derby Cathedral, all helping to bring wider footfall to the city centre.

“Leasing momentum continues into 2024 and we’re looking forward to announcing our next phase of lettings in the new year.”

Residents across Derbyshire, Nottinghamshire, Derby and Nottingham will get the chance to vote for the first-ever East Midlands Mayor next May, after councils gave the go-ahead to devolution for the region. Yesterday (Thursday 7 December), Derbyshire County Council, Nottinghamshire County Council, Derby City Council and Nottingham City Council each approved plans to create the East Midlands Combined County Authority (EMCCA), which will come into existence next Spring. EMCCA is set to bring in around £4 billion of funding for the region, alongside devolved powers for transport, skills and adult education, housing, the environment and economic development. Barry Lewis, Leader of Derbyshire County Council, said: “Our shared vision is for the 2.2 million people who live and work in the heart of the country to be better connected and more prosperous – addressing years of historically low investment in our region. “Devolution brings much more control over our own area. Rather than many major decisions being made for us in London, local people would have a say in the region’s priorities. This is just the start and more benefits and funding are already starting to flow – such as the Government’s recent announcement of £1.5 billion local transport funding for the new East Midlands Mayor. “The creation of a new mayoral combined county authority will unlock the benefits of the East Midlands devolution deal and bring improved public services and a brighter future for our residents.” Ben Bradley MP, Leader of Nottinghamshire County Council, said: “I am proud we have taken this final and definitive step to bring the necessary powers and funds needed to improve the lives of the people of Nottinghamshire and Derbyshire. Devolved powers will result in better life outcomes for everyone; more investment in skills and jobs, and more control to deliver improved public transport. “It will give the East Midlands a platform and powers to bring lasting benefits and change lives for generations.” Baggy Shanker, Leader of Derby City Council, said: “I welcome this milestone moment for the city of Derby and the wider region. The East Midlands Combined County Authority is set to bring much-needed investment into our area and is the only way to get any additional funding, after years of austerity. “The ambition is for our region to – rightfully – be on an equal footing with the likes of Greater Manchester and the West Midlands, so I am encouraging the residents of Derby to have their say on how the devolved powers and funding should be used next May.” David Mellen, Leader of Nottingham City Council, said: “Nottingham has today taken a significant step towards an East Midlands Combined Authority. The extra funding this deal will bring will make a huge difference to the region. People in Nottingham will see real benefits with more investment in jobs, training and housing. It is vital that we continue to work closely with our neighbouring councils on this. “For too long, Nottingham has not had the investment it needs and deserves, and this deal will start to address this. It also brings significant powers from the Government into the region, giving us more control and allowing us to make better, more local decisions.” Plans for East Midlands devolution are similar to those already in place in other mayoral regions, like the West Midlands and Greater Manchester. The East Midlands devolution deal, agreed with Government ministers last summer, would see Derbyshire, Nottinghamshire, Derby and Nottingham benefit from a £1.14 billion investment fund. Other areas with devolution deals have been able to make their funding go even further and have greater impact by leveraging significant private sector investment. A public consultation on East Midlands devolution, carried out between November 2022 and January 2023, showed strong support for the plans among local residents, businesses and community groups. In October, the Government announced around £1.5 billion in transport funding for the East Midlands Mayor. Thanks to devolution plans, the East Midlands has also been invited to establish an ‘Investment Zone’, which will attract £160 million of support over ten years, with tax incentives for businesses that will help boost economic growth right across the region. It is estimated that the East Midlands Investment Zone will unlock hundreds of millions of pounds in private investment, creating thousands of jobs right across the region. Government will continue to work with the proposed East Midlands Mayoral County Combined Authority (EMCCA) and other partners to co-develop the plans for the East Midlands Investment Zone, including priority development sites and specific interventions to drive cluster growth, ahead of final confirmation of the plans. £18 million has already been awarded to the area during devolution negotiations, which is being spent on improving local housing, transport and skills provision. Further investment for the region would also be provided through annual Whitehall budgets and spending reviews. All four councils have now agreed to the creation of East Midlands Combined County Authority and the legal regulations around creating this new authority. The Government will now need take the deal before Parliament, as this is first of a new type of combined authority and it requires new legislation. If the legislation is passed in the coming weeks it would come into force by March 2024, meaning the EMCCA will officially come into existence. The inaugural election for East Midlands Mayor will take place on 2 May 2024.

A new package of support has been secured for Mansfield businesses following the launch of a new scheme.

Nottingham-headquartered Phenna Group, whose aim is to invest in and partner with selected niche, independent Testing, Inspection, Certification and Compliance (TICC) companies that serve a variety of sectors, has made its 15th deal of 2023, and its 4th in food and health sciences. Formed in 1993 by vets Rob Jones and Pete Eville, Leeds-based Eville & Jones (E&J) is a provider of veterinary, compliance and public health solutions to the food industry. Its UK-wide team of nearly 1,000 professionals delivers audit, verification, inspection and compliance services in the fields of animal health, public health, food safety and animal welfare. E&J works with various government departments across the UK to safeguard animal welfare within abattoirs and ensure that meat is safe to enter the food chain. E&J is also the country’s largest provider of Export Health Certification services to the private sector, enabling the export of Products of Animal Origin. Charles Hartwell, CEO of Eville & Jones, said: “My team and I are hugely excited to join Phenna Group. Our business has grown steadily over recent years and I believe with Phenna’s support, that can continue and allow us to expand more rapidly into complimentary services and geographical areas. “Since our first interaction with Paul and his team, the process has run smoothly and they have acted with great integrity and professionalism throughout. I’m confident in our ambitious future growth strategy and look forward to working with the Phenna Team to deliver it.” Paul Barry, Group CEO of Phenna Group, added: “I am delighted to welcome Charles and his team to Phenna Group. The addition of Eville & Jones really augments our fast growing Food & Health Sciences platform. “By headcount, this is our largest deal to date and their experienced team creates a UK wide footprint of experts, that we hope to leverage into new adjacent services into the future. E&J provide a critical service to the UK food industry and I’m proud to have them join Phenna Group. I look forward to working with Charles and his team to help them deliver their exciting growth plans.” Phenna Group was advised by Avonhurst and RSM. Eville & Jones was advised by Blacks Solicitors, Parsons Chartered Accountants, and Claritas Tax. The deal follows hot on the heels of Phenna Group’s acquisition of CEIMIC Life Sciences Testing Group.