Businesses react following Liz Truss’s resignation as Prime Minister
Following the resignation of Liz Truss as Prime Minister, seeing her become the shortest-serving PM in history, East Midlands business leaders are reacting.
Mike Staton, director of Mansfield-based Staton Mortgages, said: “It’s hard to imagine it but it’s pretty safe to say Liz Truss is leaving the country in a worse position than she found it. If ever there was going to be a definition of the grass isn’t always greener, Liz Truss has owned it. Liz Truss has made one correct decision in her role of Prime Minister, and she made that today by handing in her resignation.
“However, the fine print needs needs to be checked so that there is no possibility that she can perform another U-turn on this decision. How she ever got voted in shows how much of a farce the current system is. Under no circumstances should another Prime Minister be allowed to have this sort of power without being voted in by the public. Ladies and Gentleman, Liz Truss has left the building, and Thank God.”
Imran Hussain, director at Nottingham-based Harmony Financial Services, said: “Truss and her party have made a mockery of our country and we are simply left with no choice but to have a general election now or be left rudderless moving into the new year. And it’s shaping up to be a brutal 2023.”
Lewis Shaw, founder of Mansfield-based Shaw Financial Services, said: “I’m generally not speechless, and right now is no exception. We need a general election. We cannot have more of this circus. Every day we look more like a banana republic led by donkeys. Everyone I talk to agrees: let’s have an election get it over and done with once and for all, and inject some democracy back into the UK. The game is up for the Tories now; if they can make it as painless a transition as possible because that’s the only honourable thing they can do now, I’m sure we’d all be grateful.”
Tony Danker, CBI director-general, said: “The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain. That must now come to an end if we are to avoid yet more harm to households and firms.
“Stability is key. The next Prime Minister will need to act to restore confidence from day one.
“They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.”
Adam Bamford, COO of Derby-based corporate gift firm, Colleague Box, said: “Another day on the hamster wheel of British politics. What is the point in the time and expense of another leadership race? The Tories are a complete shambles with infighting at every turn. Until we have a general election we are stuck with this cycle of unending mediocrity at the top with jobs for mates. Get us a general election quickly and let us have a say.”
Rachel Hayward, Managing Director of the Derby-based business bids and tenders specialist, Ask the Chameleon, said: “It was clear she could not carry on, as there were no avenues or U-turns left. I am frankly embarrassed by our Government. What has happened to this country? This is a drama even the writers of The Crown couldn’t cook up. So what next? Or who? Can we PLEASE choose someone with credibility and a plan? Oh wait.”
East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) Chief Executive Scott Knowles said: “One of the roles of Government is to create an environment where businesses can thrive in order to create jobs, stimulate economic investment and generate wealth.
“This endless saga of political instability is anything but that and, once again, businesses are left to pick up the pieces.
“For months, they have had to endure a relentless cycle of uncertainty that has created a zero-confidence environment, hampering their ability to plan ahead and invest.
“They can at least take some consolation from the fact they won’t have to sit through another lengthy leadership election. But once a new Prime Minister is in place within the next week, they will expect the chosen individual to work with firms to find solutions to the increasing pile of challenges they face as the crisis in the cost of doing business deepens.”
Liz Truss resigns as Prime Minister
Liz Truss has resigned from her post as Prime Minister, making her the shortest-serving PM in history. The markets have thus far been quiet, but the value of the pound did rise immediately after the announcement, signaling the lack of faith in Truss’ leadership.
There is no news yet on who will take over, or who will throw their hats into the ring, but Jeremy Hunt has claimed that he will not be running for leadership.
Labour leader Keir Starmer has demanded an election.
Nottingham modern slavery experts to advise UK construction industry
Modern slavery experts at the University of Nottingham are part of a new partnership to promote ethical labour in the UK construction industry.
The ‘Alliance against Exploitation’ brings together the University’s Rights Lab; SCAPE, one of the UK’s leading public sector procurement authorities; the Gangmasters and Labour Abuse Authority; modern slavery charity Unseen; and Achilles, a leader in supply chain risk and performance management.
The partnership has been formed to eradicate modern slavery and labour exploitation across the construction sector by sharing intelligence, identifying emerging trends and committing to robust auditing procedures.
In interviews with 1,200 UK construction workers, almost half said they had not received written terms and conditions of employment while almost one in three admitted using non-standard evidence of right to work documentation to gain employment.
The interviews, conducted by Achilles across the industry, also revealed four out of five workers had not been spoken to about modern slavery.
Dr Alexander Trautrims, associate director at the Rights Lab and professor of Supply Chain Management, said: “This newly formed alliance will help to make real progress in addressing modern slavery in the construction sector through public sector procurement processes. Modern slavery continues to be a significant management challenge across the construction supply chain and collaborative initiatives like this are key to developing the knowledge that is required for progress.”
“Another robust quarter” for Dunelm
Dunelm, the Leicestershire-headquartered homewares retailer, has reported “robust trading” in an update for its first quarter.
The company said it was “pleased” with the performance during the 13-week period ended 1 October 2022, against the backdrop of a challenging environment.
Sales of £357m were down 8% year on year, which the firm said was expected, given a very strong comparative period, with Q1 last year benefitting from pent up demand and the firm’s rescheduled summer sale.
Compared to pre-pandemic, however, total sales grew by 36%.
Digital sales made up 33% of total sales in the quarter, in line with the same period last year.
Nick Wilkinson, Chief Executive Officer, said: “It has been another robust quarter for Dunelm against a very strong comparative period, which illustrates the strength and resilience of our business model and the appeal of our market-leading offer.
“Dunelm has emerged from the last two years as a bigger, better business, with total sales up 36% against the same period pre-Covid. We have benefitted from the commitment, expertise and adaptability of our colleagues and supplier partners – the same qualities that are serving the business as we navigate the current inflationary challenges.
“As we enter what will clearly be a challenging winter for consumers, our absolute focus remains on making every pound count for everyone, through a tight grip on operations. We will continue to offer outstanding value at all price points, so our customers can make their own choices around adapting to the economic backdrop. This focus on value has seen Dunelm successfully navigate previous periods of economic uncertainty.
“The landscape is a demanding one, but we feel both energised and confident in our ability to grow market share as the 1st choice for UK homelovers.”
“Solid” third quarter for Travis Perkins
Travis Perkins has hailed a “solid performance” during its third quarter, with its Merchanting businesses outperforming their markets and an improved performance in Toolstation.
According to a Q3 2022 trading update for the three months to 30 September 2022, the Northampton-based group delivered “resilient” trading with total sales growth of 10.7% and like-for-like sales growth of 7.4%.
Nick Roberts, Chief Executive, said: “The group has delivered a solid performance during the third quarter with the Merchanting businesses again outperforming their markets and an improved performance in Toolstation. We continue to benefit from our diverse end market exposure from small independent builders through to large contractors delivering national infrastructure projects.
“During the second half of the year we have seen growing macroeconomic uncertainty. We are focused on maintaining cost discipline in our businesses and the actions taken to simplify our operating structure in recent years have created the flexibility to adapt to changing market conditions.
“All of our businesses see opportunities to further develop their propositions to meet our different customers’ needs, as they seek to navigate an increasingly complex construction landscape, characterised by new environmental and safety legislation and a commitment to deliver against net zero targets. We remain confident that our market-leading businesses, backed by focused capital allocation, a strong balance sheet and significant strategic growth opportunities, leave us well placed to outperform in our markets.”
Triumph Motorcycles Ltd expands opportunities for Loughborough students through generous philanthropic donation
The largest UK-owned motorcycle manufacturing company has provided philanthropic funding to Loughborough University to support its students.
Triumph Motorcycles Ltd has provided £45,000 to support the Student Success Academy and three Opportunity Scholars.
Originally made possible through the generous donation of alumnus Chris Gill in 2021, the Student Success Academy aims to help students achieve their goals during their time at University by providing a holistic package of support through initiatives including Academic Success Coaching, Micro-Internships and the Future Black Talent Programme.
Additionally, Triumph will be supporting three students who receive cash bursaries through the Opportunity Scholarship. These scholarships are allocated to UK students living in areas of low participation in higher education, areas of socio-economic deprivation, or those entitled to Free School Meals. The Scholarship eases the financial burden to those wanting to attend university by providing them with £3,000 per year for three years. The initiative has seen a record number of Scholarships awarded, with a cohort of 53 for the 22/23 academic year.
Triumph supports scholars who began their university experience this month and are studying Product Design Engineering and Automotive Engineering.
Rolls-Royce and Alder Fuels join forces to fuel the race to net zero
Rolls-Royce has signed a Memorandum of Understanding (MOU) with Alder Fuels, a clean tech developer and greencrude producer, to further test Sustainable Aviation Fuel (SAF) as it makes the next step on its journey to commercial scalability.
The SAF, which has been produced based on Alder Fuels’ proprietary greencrude technology, is being readied for global rollout as a drop-in replacement to petroleum-based jet fuel and will be a critical tool for decarbonising the skies.
The testing, which will include flight tests on a Rolls-Royce Pearl engine, will evaluate the energy efficiency, emissions criteria, and low-carbon credentials of the SAF produced from Alder Greencrude (AGC) and is part of Rolls-Royce’s ambition to play a fundamental role in enabling the sectors in which it operates to achieve net zero carbon by 2050.
Frank Moesta, SVP Strategy & Future Programmes – Business Aviation, Rolls-Royce, said: “The use of Sustainable Aviation Fuel as a low-emission solution and its global commercial deployment are essential to the decarbonisation of medium to long-haul air travel. While we are also working on electrification, hybrid-electric and hydrogen technologies as long-term alternatives, rapid decarbonisation is within reach through this critical pathway. Through our partnership with Alder Fuels, we are taking the next steps on our journey to net zero and are committed supporters of the UN Race to Zero goal of 10% SAF use across aviation by 2030.”
“At Alder, we are on a path to transform energy on the global stage and partnership is key to our vision. As a pioneer in both industrial technology and sustainable aviation, Rolls-Royce will play a leading role in decarbonizing the aerospace industry. Their name is synonymous with the best of engineering,” said Bryan Sherbacow, president and CEO of Alder Fuels. “Our hope is that this collaboration will not only mark an important milestone for the decarbonisation of aviation, but that it will send a strong global signal to the market that the future of sustainable flight is here and the time to transition is now.”
Alder Fuels uses sustainable biomass such as regenerative grasses, forest residues, and agricultural waste products to create low-carbon Alder Greencrude (AGC) that can be converted into a drop-in SAF using existing bio and petroleum refinery infrastructure. The process, which has been developed in close partnership with the US Department of Energy’s National Renewable Energy Laboratory, can achieve greenhouse gas reductions of over 80 percent compared to fossil-based jet fuel.
The engine tests will assess the performance of AGC-derived SAF compared to fossil-based jet fuel to further support its performance as a drop-in replacement for traditional jet fuel and generate critical data for the development of a 100% SAF specification by ASTM International. In addition, the SAF will undergo a full lifecycle and criteria emissions assessment, and the data associated with this assessment will be transparently reported to advance global decarbonisation efforts.
Rolls-Royce has previously committed to ensuring all its Trent and Business Aviation engines are compatible with 100% SAF by 2023. All Trent and Business Aviation engines are already certified and ready to operate on a 50% SAF blend with traditional fossil-based aviation jet fuel.
Plans submitted for further 107,000 sq ft of industrial and warehousing space at Markham Vale
Markham Vale is set for further expansion, with detailed plans submitted for four buildings totalling 107,250 sq ft of industrial and warehousing space.
Markham Vale is a 200-acre joint venture development between property developer HBD and Derbyshire County Council. It is one of the region’s flagship industrial schemes, attracting new businesses and creating thousands of new jobs.
The development plans for Plot 6 will see the construction of four new units targeting BREEAM ‘Excellent’ standards alongside dedicated parking, electric vehicle charging bays and space for bicycles.
Richard Hinds, development surveyor at HBD, said: “It is great to get plans underway for this next stage of development at Markham Vale.
“It’s a very successful industrial and logistics location, which means demand has remained high for new space – our robust financial backing and our strong track record for delivery means that we are able to continue progressing new schemes throughout the more challenging periods for the economy, injecting much-needed Grade A space into the market.”
Derbyshire County Council’s cabinet member for clean growth and regeneration, councillor Tony King, said: “Plans for four new buildings at Markham Vale is a strong signal from our property partners, HBD that the site will continue to attract a wide range of businesses.
“Markham Vale plays a key role in helping to deliver on our commitment to building a strong, diverse, and green economy by creating jobs for local people and attracting local, national, and international businesses.
“We look forward to seeing the plans progress and welcoming more businesses to the site in the future.”
HBD recently instructed M1 Agency as joint agent alongside JLL for the delivery of the remainder of Markham Vale; 18 acres of serviced development land with the potential to deliver circa 250,000 sq ft of additional employment space for growing businesses.
Monthly fall in corporate insolvencies masking true economic picture
A month-on-month fall in the number of corporate insolvencies in England and Wales is unlikely to be a true reflection of the financial health of local businesses, warns the Midlands branch of insolvency and restructuring trade body R3.
National figures published by the government’s Insolvency Service show that the number of companies entering insolvency fell to 1,679 in September 2022, a 13.5% decrease compared to the previous month’s total.
According to R3 Midlands, when a longer-term view of the national data is taken it demonstrates more accurately what may be happening with businesses in the region. In comparison to September 2021’s figure of 1,453, corporate insolvencies have increased by 15.6%, and this month’s total is also 11.3% higher than September 2019’s figure of 1,508.
R3 Midlands chair Eddie Williams, who is also a partner at PwC in the East Midlands, said: “September’s decrease in corporate insolvencies is due to a drop in Creditors’ Voluntary Liquidations, while the year-on-year increase has been caused mainly by a rise in Compulsory Liquidations, which is probably due to the end of legislation around winding-up petitions.
“The increase in corporate insolvencies between September 2019 and September 2022, on the other hand, can be attributed to a significant increase in the number of Creditors’ Voluntary Liquidations.
“The triple whammy of the withdrawal of Covid support, the current economic turbulence and the challenging business climate are key factors in directors feeling that they are unable to continue trading and opting to close their business voluntarily.
“Currently, local companies are operating against a backdrop of mounting uncertainty, which is impacting heavily on their financial health. A volatile pound, a decline in consumer confidence and lower household spending have all contributed to weaker economic growth.
“With conditions likely to worsen before they improve, business owners need to remain alert and seek advice at the first sign of financial distress.
“Most insolvency practitioners in the Midlands region will offer a free hour’s consultation to a potential client so that they can understand more about their business, its circumstances and outline what options might be available.”
Lettings of premium new build units boosts Leicester’s trade counter offering
Following pre let deals negotiated by joint marketing agents Andrew + Ashwell and APB, four new tenants now occupy the recently completed trade counter units at Parker Drive Trade Park, Leicester.
North of Leicester city centre, the 3.8 acre site forms part of one of Leicester’s most popular industrial estates.
Parker Drive Trade Park was redeveloped from a former redundant industrial site and has become a local hub for warehouse and trade counter users, including B&Q and Travis Perkins, operating close by.
The new units of 5,000 to 8,000 sq ft deliver high quality modern warehouse accommodation and are adjacent to the first phase 35,000 sq ft premises already occupied by Selco. All four units on the second and final phase were pre-let while being developed speculatively by Trafalgar Global.
Trade kitchen and joinery supplier Howdens Joinery was the first to complete, with the company taking 8,000 sq ft. First launched in 1995, Howdens has more than 700 trade outlets across the UK and Europe. The new premises will further enhance customer service.
Leicester-based PVCU window and door manufacturer Unique Window Systems Ltd – also with larger premises nearby – has taken 8,500 sq ft to help expand business with trade, commercial and new house build markets.
City Electrical Factors Ltd (CEF) has taken 5,000 sq ft; extending the company’s broad network of wholesale distribution outlets for the electrical trade. Established over 70 years ago in Coventry, CEF has 400 outlets in the UK – almost twice as many as the nearest competitor – with the latest expansion aiming to further boost service.
Relocating to modern bespoke premises, another leading electrical wholesaler, Rexel, completes the lineup, also taking 5,000 sq ft, in providing local electricians, contractors and industrial organisations with high quality electrical products, site supplies and project solutions.
Geoff Gibson, A+A consultant, said the success of the final phase at Parker Drive Trade Park illustrates continued strong demand for modern, purpose-built accommodation.
“The dearth of high quality modern new-build trade premises has long been an issue in Leicester. Parker Drive has proven to be a particularly sought after location for trade counter activity and it is heartening to know that when we do see new development, buildings are snapped up by substantial companies able and keen to expand.”
