Monday, June 9, 2025

UK government expands defence contracts for SMEs

The UK government has announced new measures to increase small and medium enterprise (SME) involvement in defence contracts, following its commitment to raise defence spending to 2.5% of GDP by April 2027. A new hub will be launched to improve SME access to the defence supply chain, and the Ministry of Defence (MoD) will introduce direct SME spending targets by June.

Currently, nearly 70% of defence spending goes to businesses outside London and the South East, but only 4% reached SMEs in 2023-24. The new hub aims to address this gap by working with suppliers across the UK to increase procurement opportunities for smaller firms, enhance competition, and accelerate innovation.

Defence spending supported over 430,000 UK jobs last year, with government contracts injecting £28.8 billion into UK industry. Regional spending increases included a 30% rise in the East Midlands (£328 million), 20% in Northern Ireland, and nearly 19% in Yorkshire and the Humber. The government says expanding SME participation will drive further economic growth, create jobs, and strengthen the UK’s defence industrial base ahead of the upcoming Defence Industrial Strategy.

Fleets in East of England rely most on independent garages

Research from epyx shows that fleets in the East of England are the most likely to use independent garages for service, maintenance, and repair (SMR), while those in Wales are the least likely.

From January 2024 to March 2025, 62% of SMR jobs for fleets in the East of England were handled by independent garages. Other regions with high independent garage usage include Scotland and the West Midlands (59%), the East Midlands (58%), and London (55%). The South East stood at 50% at the lower end, while Wales had the lowest rate at 46%.

The data, sourced from epyx’s 1link Service Network platform, suggests that fleet SMR policies, vehicle type, and the availability of franchise dealers may influence regional differences. While independent garages serviced 72% of vans, only 44% of company cars were maintained outside franchise networks. Hybrid vehicles had the lowest independent SMR rate at 32%, while independents maintained 42% of electric cars.

Epyx notes that fleet preferences and used market expectations drive these trends, with franchise dealer service histories often seen as more valuable for resale, particularly for company cars. However, the increasing share of EV maintenance by independent garages suggests a growing capacity to service electric fleets.

Stagecoach completes Chesterfield depot electrification ahead of fleet transition

Stagecoach has completed the electrification of its Chesterfield bus depot, the first of four sites being upgraded in partnership with e-fleet solutions provider VEV. The project will support the introduction of 57 electric buses in Spring 2025, replacing over two-thirds of the depot’s diesel fleet, which serves Chesterfield and northeastern Derbyshire.

The upgrade was funded through the UK government’s ZEBRA 2 scheme, Derbyshire County Council, and Stagecoach. Chesterfield is the largest depot in the initiative, with similar projects underway in Leamington, Nuneaton, and Rugby. A total of 150 electric buses will be deployed across all four sites.

The Chesterfield depot now features 27 dual 120kW DC chargers from Eko Energetyka, enabling 54 simultaneous charging points. A 2.5MVA power upgrade has been completed, and a 234kWp rooftop solar system is under construction, expected to generate 200MWh of electricity annually and reduce carbon emissions by around 48 tonnes per year.

VEV, backed by energy firm Vitol, has managed the project from fleet and power analysis to charger installation, staff training, and ongoing operational support. The company has also integrated its VEV-IQ smart charging and energy management platform, which connects with Stagecoach’s vehicle telematics to optimise charging, manage power loads, and minimise energy costs.

With Chesterfield’s electrification complete, work will continue on the remaining depots as Stagecoach transitions to a lower-emission fleet.

Derbyshire councils propose North-South split to save up to £93m

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Derby City Council and eight Derbyshire district and borough councils have proposed splitting the county into two unitary authorities, claiming it could save up to £93 million over five years at a one-time cost of up to £25 million.

Their plan, now under review by individual councils, outlines two options: one placing Amber Valley in a northern council with High Peak, Derbyshire Dales, Chesterfield, North East Derbyshire, and Bolsover, while the southern council would include Derby, Erewash, and South Derbyshire. The second option moves Amber Valley to the south, keeping other districts unchanged.

Under either scenario, the northern council would face a financial deficit—£1.5 million if Amber Valley is included and £1.3 million if it is not—while the southern council would operate at a surplus of £8.6 million or £8.4 million, depending on Amber Valley’s placement.

The North council’s debts would range from £542 million to £560 million, while the South council’s debts would be between £811 million and £829 million. The plan would also cut the number of councillors from 447 across 10 councils to 148 across two, with each councillor representing 5,500 residents.

The Derbyshire County Council is working on a competing proposal without district involvement and claims its plan could save £133 million over five years, but it has not yet released full details. Initially, the county council suggested a single unitary authority for all of Derbyshire, but it later clarified it is pursuing a model with one council for the county and Derby remaining separate.

The district councils’ proposal will be submitted for initial review on 21 March, with a public consultation to follow later this year and a final submission in November.

Business leaders invited to help shape Greater Lincolnshire’s economic future

Businesses have been invited to play a key role in the future growth of Greater Lincolnshire by becoming part of the Economic Advisory Panel.

The Greater Lincolnshire Combined County Authority (GLCCA) has opened applications for membership and a chair of the panel, which will help build a strong and successful future for the area. This is an opportunity for those who lead or own businesses across the region to provide advice, recommendations and guidance to the GLCCA board and the new mayor. It is a statutory requirement of the new devolved authority to bring together these key people as part of a formal board, comprising of 10 panel members from the private sector. They will serve a three-year term with one selected as chair. Shaping and influencing the development of economic strategy and policy within Greater Lincolnshire, membership is also an opportunity to provide a business voice. This will allow a new elected mayor to ensure that future economic plans for the GLCCA are heard in Westminster. It is hoped the panel will see a range of businesses represented. All of them will be vital to Greater Lincolnshire’s future and align to the GLCCA’s priority growth sectors of agri-tech and food, clean energy, ports & logistics, defence, and advanced manufacturing, along with the core sectors of education, housing and construction, transport and infrastructure, small business, and the visitor economy. Key priorities of the GLCCA are to turbo charge business growth, improve the adult skills offer across the authority footprint, support the building of good quality homes, and improve infrastructure and public transport. The investment to support the development of these priorities is now being devolved down from central government with a £720m pot over the next 30 years.

Derby secures £3.3m in government funding for economic growth

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Derby City Council has approved nearly £3.3 million in government funding to support local economic growth in the 2025/26 financial year. The funds come from the UK Shared Prosperity Fund (UKSPF) and will be distributed through the East Midlands Combined County Authority (EMCCA).

The UKSPF, initially launched in 2022 with a £2.6 billion budget, aims to support communities, local businesses, and workforce development. The government has extended the programme for another year, allocating £902 million nationwide as part of a transition agreement.

Derby’s funding allocation remains in line with previous years, reflecting a redistribution based on deprivation levels. The funds will strengthen local businesses, improve employability and skills, and support community initiatives.

Derby City Council emphasised the funding’s importance in maintaining economic stability and continuing investment in key areas amid ongoing budget pressures and potential future funding reforms.

UK government halts key farm payment scheme, sparking industry backlash

The UK government has stopped accepting new applications for the Sustainable Farming Incentive (SFI), citing full budget allocation for the year. The scheme, part of the Environmental Land Management (ELM) programme, pays farmers for nature-friendly practices such as maintaining hedgerows and reducing pesticide use.

Defra stated that 50,000 farm businesses—covering over half of England’s farmland—are now enrolled in environmental land management schemes, which have a £5 billion budget over two years. However, the suspension of new applications has drawn strong criticism from farming groups.

The National Farmers’ Union (NFU) called the move a “shattering blow,” warning that farmers left out of the scheme may have to abandon environmental efforts to stay financially viable. The Country Land and Business Association (CLA) described the decision as harmful to both farming and nature. The Nature Friendly Farming Network (NFFN) raised concerns that delays in the next SFI rollout, expected in spring 2026, could leave many farmers without support for 18 months.

Political figures, including Alistair Carmichael, chair of the Environment, Food and Rural Affairs Committee, criticised the abrupt decision, warning it could further destabilise the sector. The government has defended its funding approach, stating that more farmers are now receiving payments than ever before.

Paragon Bank funds £2.9m housing project in Kettering

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Paragon Bank has provided a £2.9 million funding package for the Maplefields housing development in Kettering, Northamptonshire. The project, a joint venture between Castlegate Homes and Craneview EM Ltd, will deliver 14 new homes on the former Maplefields school site on Beatrice Road.

The development includes a mix of two- to four-bedroom bungalows and detached houses, with prices ranging from £350,000 to £435,000. Properties feature garages, additional off-road parking, and large gardens. The site is located near Kettering town centre and train station, offering a 50-minute rail connection to London St Pancras.

Chris Wardrop, co-owner of Castlegate Homes and managing director of Craneview EM Ltd, led the project, with Craneview acting as the main contractor. Paragon Bank’s senior relationship director Steve Hallam and senior portfolio manager Ashling Quinn structured the funding deal.

Luxfer Gas Cylinders welcomes industry expert to drive global growth

A gas industry expert has joined Luxfer Gas Cylinders as its Global Director of Sales, Aluminum Cylinders – thanks to a longstanding connection with the Nottingham-based manufacturer. Chris Street, who also serves as President of the British Compressed Gases Association (BCGA), not only brings extensive experience to his new role, but has the added benefit of having been a customer of Luxfer himself when he owned a gas business nearly 20 years ago. It is a unique journey for the specialty and calibration gases expert, following a distinguished career spanning over 40 years; he started his journey as an engineer, followed by senior roles with leading gas companies. In 2006, Chris acquired his own successful specialty gases business, Scientific and Technical Gases (StG) – growing the team from 6 to 72 employees in eight years. Chris has proudly been a champion of Luxfer Gas Cylinders throughout his career. “I have travelled to over 60 countries in this industry, and no matter where I go, everyone knows Luxfer makes the best cylinders. I believe the quality of the gas is only as strong as the cylinder that holds it, and Luxfer’s products have proven, time and again, to be the gold standard in reliability and performance.” His passion for the company goes beyond merely the professional, though. “I have always had a deep emotional connection to Luxfer. When StG was in a tough spot, Luxfer supported us through a critical supply shortage, and that’s something I’ll never forget. It cemented my admiration for the company and means that this role, to me, is the perfect blend of head and heart. Luxfer is an exceptional company with a world-class range of products, and I’m honoured to contribute to its next chapter.” Reflecting on his appointment, he said: “Joining Luxfer feels like coming home. My ambition is to strengthen our core aluminum cylinder business, explore new markets, and ensure the company remains the benchmark for excellence in the industry. The focus will be on being bold, agile, and always putting our customers first.”

Go-ahead given to Newark primary school extension plans

An expansion scheme that would double the size of a Nottinghamshire primary school has been approved. Nottinghamshire County Council’s Planning and Rights of Way Committee have given the green light for a single-storey extension to be built at Chuter Ede Fernwood Primary School in the Fernwood area of Newark. The expansion project will see pupil numbers increase from 210 to 420 and will help meet growing demand for school places in an area where new housing continues to be built. Eight classrooms will be built as part of the application at the Hunters Road school, which also includes additional sports pitches for rounders and football, a running track and two hard PE courts. The development would include extending the existing staff car park from 16 to 39 spaces, while there will be provision for EV charging points. Solar panels are also proposed on the extension’s roof. The project will be led by the county council with its partner Arc Partnership, a joint venture between the council and SCAPE, which will design, deliver and cost manage the improvement scheme. Chuter Ede Fernwood, which is an annex of Chuter Ede Primary School at Balderton, was built in 2012 to service the growing number of children from the new Fernwood estate and is being developed in three phases – with the application for this extension the third phase. The first two phases have been implemented and, in addition to the original school building in phase one, have seen the creation of a sports field, outdoor play area, car parking and landscaping. Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management, said: “There is no better investment in our children’s future than ensuring they get a good education. “We have a proven track record in delivering projects which has seen millions of pounds invested in building and expanding schools to provide pupils with the best facilities to allow them to learn in modern, well-equipped buildings. “This is yet another development I’m fully supportive of and the approval of this expansion scheme will provide the best environment for education and help to bring more school places to Nottinghamshire.”

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