East Midlands businesses continue to buckle under strain of economic turmoil
The number of businesses entering an insolvency process in the face of the current economic turmoil is continuing to rise, amid a perfect storm of creditors pursuing unpaid debts and directors closing their companies voluntarily before they are forced to do so.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows latest statistics published by the Government’s Insolvency Service which show that corporate insolvencies in England and Wales increased by 21.1% in November to a total of 2,029 compared to November 2021’s figure of 1,676, and by 34.8% compared to November 2019’s total of 1,505.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “The rise in corporate insolvency numbers has been driven predominantly by an increase in Compulsory Liquidations, while Creditor Voluntary Liquidations and Administration numbers have also increased.
“What we’re seeing here is a combination of creditors taking legal action to recoup unpaid debts and directors opting to close their businesses – either before this choice is taken away from them or because they have had enough of their situation.
“For nearly three years, companies have been battered by the pandemic, rising costs, reduced spending and spiralling inflation. Many business owners will now be looking to the Christmas and post-Christmas periods to generate critical income. However, given how stretched consumer finances are this year, it remains to be seen whether this will be a happy Christmas or a final one for these firms.
“R3’s message to anyone worried about the survival of their business is to seek advice as early as possible. While it’s incredibly hard to voice financial fears, having that conversation with a qualified advisor as soon as problems arise could lead to better outcomes than waiting until they become more severe.
“Most R3 members will give an hour’s free consultation to potential clients to help them understand more about their situation and to outline the possible options for resolving it.”
Construction consultants donate more than 100 Christmas hampers to food bank
A construction company have collected thousands of essential and luxury items to create more than 100 Christmas hampers to deliver to families in Northamptonshire who need support at this time of year.
It’s the third consecutive year that the team at Bhangals Construction Consultants have put together the bumper bags for SCCYC Waterside Connect, who work tirelessly to support the local community.
The 105 hampers included essentials such as pasta, rice, tins, cereal, coffee, porridge, shampoo, deodorant, shower gel, baby wipes, and toothpaste, as well as treats such as toys, chocolates, advent calendars, and biscuits.
SCCYC Food Aid, in St James Mill Road, Northampton, provide much-needed food and supplies to families living in poverty, and in crisis.
Beneficiaries consist of people facing complex issues and vulnerabilities who require critical support and vital resources.
With the current cost-of-living crisis, the hampers will be a welcome relief for many families struggling to pay bills this Christmas.
Bhangals Construction Consultants operations manager Katie Newman said: “As a team we try our best to get involved and support charities throughout the year, SCCYC Waterside Connect being one of them. We believe the work they do is incredible and when we received the information that the families who need support in our community had doubled this year, it was very upsetting to hear. As a team, we wanted to do our best to help.
“The current climate is very hard for a lot of people and now more than ever we need to help each other and support one another. We hope that these hampers will make Christmas just that little bit easier for families who might be finding things tough right now.”
Government cash boost towards cutting-edge training centre for green skills
A £5.4m training centre to boost green skills and create thousands of jobs in the low-carbon construction sector is set to be developed through a partnership between West Nottinghamshire College, Nottingham Trent University and Ashfield District Council.
The pioneering project will see the College, University and Council join forces with leading construction companies to develop a flagship training centre and demonstrator site for low-carbon building methods and retrofit of existing homes to help achieve net-zero.
It comes after they secured a £1.5m government grant to kick-start the ambitious scheme.
The funding boost, from the Department for Levelling Up, Housing and Communities (DLUHC), is part of government investment to support economic development in the D2N2 (Derby, Derbyshire, Nottingham and Nottinghamshire) region and was awarded through its devolution deal.
The facility will be based at the College’s existing Construction Centre, off Lowmoor Road, Kirkby-in-Ashfield, which will be extended to provide 250 sq m of additional training space and high-tech equipment, and through the creation of a new Civil Engineering Centre in empty premises on 3,500 sq m of adjacent land.
These two sites are also set to receive more than £6m from the Ashfield Towns fund – bringing a combined investment of more of £7.5m in construction training facilities for the D2N2 region.
Meanwhile, adjoining land will be used for training in water management and carbon sequestration – the capture, removal and storage of carbon dioxide from the earth’s atmosphere – through the development of wetland and woodland. This will provide demonstration projects and ongoing support for landowners, helping them respond to changing policy from the Department for Environment, Food and Rural Affairs to encourage increased environmental management of land.
The project, which has been developed in collaboration with the D2N2 Local Enterprise Partnership, is aimed at driving the early adoption of low-carbon technologies to make construction firms and their supply chains more competitive and productive, which will help grow the economy.
It is anticipated to support almost 100 businesses and create 3,200 jobs at qualification levels 2 and 3 over the next decade, including five jobs at the centre itself.
In addition to increasing the number of skilled workers able to work on modern methods of construction and low-carbon technology, the scheme will support D2N2’s contribution to the government’s target of creating 300,000 new and affordable homes every year by 2025.
According to labour market analysis, construction represents the D2N2 area’s sixth-largest sector, employing more than 23,000 people – and local leaders say this latest scheme provides a significant opportunity to grow well-paid, skilled jobs in delivering new-build homes and retrofits to support the move to low-carbon.
The investment from DLUHC will fund research equipment and demonstration facilities in water harvesting, water management and drainage, carbon sequestration, solar electricity generation and heating, heat pumps, electric transport, and construction plant and machinery.
The project will enable the college to enhance its construction curriculum to further meet local skills needs – complementing its existing provision in areas including rail, heating, mechanical and electrical, plastering, brickwork, and carpentry and joinery.
It will also enable NTU to broaden its Higher Education offer in construction, including new higher technical qualifications, and undertake research into the effectiveness of retrofit and new construction methods to inform future development.
All elements of the scheme will provide training, work experience, research and collaboration opportunities for students from the college and university.
Work on the facility is expected to get under way in summer 2023, subject to planning consent.
The DLUHC grant comes on top of funding from the Ashfield Towns Fund, the Education and Skills Funding Agency, D2N2 LEP, NTU and the College.
Andrew Cropley, principal and Chief Executive of West Nottinghamshire College, said: “It is excellent news that the devolution deal for D2N2 has already released this funding to enable us to invest immediately in technology and skills to respond to the construction industry’s transition to low-carbon and meet wider ambitions to achieve net-zero.
“A common issue faced by employers is the need to access more workers trained in green skills in new and emerging areas, such as rail and drainage infrastructure, heat pumps, and modern on-site and off-site construction methods.
“This investment will boost skills, earnings and economic output in a critical growth sector, and support house-building across the region. Not only will it provide enhanced training opportunities for local people, employers across the region will also benefit from a ready-made pipeline of new talent.”
Professor Richard Bull, deputy dean of the School of Architecture, Design and Built Environment at Nottingham Trent University, said: “This is a fantastic opportunity to further our reputation in the area of low-carbon construction and retrofit, and enable us to deliver high-quality education to enable the low-carbon transition in Mansfield.”
Cllr Matthew Relf, executive lead member for regeneration and corporate transformation at Ashfield District Council, said: “This is excellent news that more funding has been awarded for Ashfield to support one of the projects from the council’s £62.6m Towns Fund. It is an exciting opportunity to create state-of-the-art learning facilities in the area to complement the existing offer.
“When the new centre is up and running it will provide fantastic opportunities to give young people future-proof skills, ensuring they can secure employment in the sector. With a focus on low-carbon construction, the new training centre will be leading the way for the East Midlands.”
2023 Business Predictions: Scott Norville, Managing Director of Silverstone Leasing
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 Scott Norville, Managing Director of Silverstone Leasing.
After a turbulent three years of trading in the vehicle leasing industry, I believe things are looking up for 2023.
While there will be an element of people being hesitant to lease in personal contract hire due to all the current cost of living issues, I think we will start to see a bit more movement in production, and the stock coming into the UK will be plentiful.
Manufacturers will have to be mindful of the current market and bring in discounts so they can carry on moving products and keep customers on side.
Sadly, following one of the most volatile periods of trading for our sector, some businesses will be forced to close if they don’t focus wholly on customer service.
The introduction of the Consumer Duty, expected in July 2023, will enforce all retail businesses to ensure they are conducting themselves in a certain manner, treating the customer fairly, and having the right procedures and processes in place to ensure affordability and put the customer at the very forefront of all transactions.
All businesses will have to focus heavily on customer service. It’s not going to be a volume driven year, it will be about quality, not quantity.
Manufacturing output volumes fall at fastest pace in over two years while selling price inflation remains high
UK manufacturers reported a fall in output volumes in the three months to December, at the fastest pace since the three months to September 2020, according to the CBI’s latest Industrial Trends Survey. This fall was largely driven by the food, drink & tobacco, paper, printing & media, and mechanical engineering sectors.
The survey found that selling price inflation is expected to accelerate slightly in the next three months (though below the record high reached earlier this year). Total order books as well as export order books were reported as below normal, while stocks of finished goods were seen as adequate.
The survey, based on the responses of 220 manufacturing firms, found:
- Manufacturing output volumes fell in the three months to December (weighted balance of -9%, from +18% in the three months to November), and at the fastest pace since September 2020. Output is expected to fall at a similar pace in the three months to March (-10%).
- Output fell in 11 out of 17 sectors in the three months to December. The decrease in overall output reported this quarter was driven by the food, drink & tobacco; paper, printing & media; and mechanical engineering sectors.
- Total order books were reported as below “normal” in December, to a similar extent as in November (-6% from -5%). However, the balance remains above the long-run average (-13%). Export order books were also seen as below normal and to a greater extent than last month (-19% from -7%). This was broadly in line with the long-run average (-18%).
- Average selling price inflation is expected to accelerate slightly in the next three months (+52%, from +47%). Although expectations for selling price inflation were comfortably below the multi-decade high seen earlier in the year (+80% in March), they remained well above the long-run average (+6%).
- Stocks of finished goods were seen as adequate in December, with the balance rising slightly compared to November (+7% from +5%).
IT firm completes year of fundraising by donning festive knits for Christmas Jumper Day
An IT company in Derby is doing its bit for good causes in the run-up to Christmas.
L.E.A.D. IT Services, who are based in the CUBO co-working space in Victoria Street, Derby, raised £80 for Save the Children UK by wearing festive jumpers.
It completes a busy 12 months of fundraising for various charities. In September, staff at L.E.A.D. IT Services participated in the annual Macmillan Coffee Morning while earlier in the year, they completed a sponsored walk raising money for the British Heart Foundation.
Director Lee Jepson said: “The annual Christmas Jumper Day is an event that we always enjoy taking part in, and it’s for a great charity, too.
“This year has been challenging for so many people and after an extremely busy year, it’s nice to be able to pull together and do something festive.”
L.E.A.D. IT Services – which works with schools across the country – are also sponsors of Notts County FC Girls for the 2022/23 season and have previously sponsored the England Dodgeball Team and Derby-based Mickleover FC Girls.
Lee said: “Girls and ladies’ football is one of the fastest growing sports in the country and, after England Ladies’ success at the European Championships, there has never been a better time to be involved in women’s football.
“Community is a big thing for us; we like to get involved wherever we can and are absolutely delighted to be one of the sponsors of Notts County FC Girls.”
Formed in 2010 as Noel-Baker IT Services, the IT firm specialises in working with schools and multi-academy trusts including East Midlands-based Embark Federation and Reach2 Academy. They also work across the L.E.A.D. Academy Trust of schools – which includes Da Vinci Academy and Noel-Baker – after becoming part of the multi-academy trust in 2016.
L.E.A.D. recently welcomed Eight out of 10 Cats star Jon Richardson and his wife Lucy Beaumont to Noel-Baker where more than £14,000 was raised for local families feeling the pinch.
“It was a fantastic evening and the money raised will go a long way towards supporting families in the area over the winter months,” added Lee.
Government’s underinvestment in East Midlands illustrates why it must back region’s Centre of Trading Excellence, says Chamber
Chronic underinvestment from central Government shows it is time for policymakers to “back the East Midlands to back the UK.” That is the view of East Midlands Chamber after the latest Treasury figures indicated the East Midlands continues to receive the lowest public investment of all regions in the UK.
In 2021/22, spending per head in the region was £10,528 – below the UK average of £11,897.
Last month, Chamber delegates were joined by members and MPs at a reception in Parliament to launch a blueprint for growing the regional and national economy, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond.
It presented Government with “the big opportunity” to further develop the East Midlands as a “Centre of Trading Excellence” via a series of policy asks including investing in infrastructure projects like HS2 East, Midland Main Line electrification and the A50/A500 growth corridor.
East Midlands Chamber director of policy and external affairs Chris Hobson said: “For years, the East Midlands has been bottom of the pile when it comes to public investment and it’s held back our potential. “Recent analysis by the Chamber and East Midlands Councils found we receive just 64.7% of the UK average for transport infrastructure spending – a gap worth £1.26bn per year to the East Midlands – while we also ranked bottom or near the bottom for spending on health, education, and economic and social affairs.
“If the Government is truly serious about levelling up, it must prioritise regions like ours and work with businesses to understand where it can target investment to grow the economy.
“Our Business Manifesto for Growth offers a useful starting point in this respect as we have set out a formula for how the Government can not only grow our economy but across the country too – in other words, it can back the East Midlands to back the UK.”
Former bank gains new identity with US fried chicken giant
A former city centre bank and retail store is gaining a brand new identity with the rapid expansion of US fried chicken giant, Popeyes® UK, the master franchise for the United Kingdom.
Marketed by East Midlands commercial property specialist Andrew + Ashwell, the deal for the Gallowtree Gate former bank premises has now been completed. It will soon offer a taste of Louisiana with Popeyes® UK’s famous menu, as the chain is set to refurbish, recruit and start trading within the next month.
Popeyes® now has more than 3,000 outlets across the USA, having first opened in New Orleans in 1972. The brand made its debut in the UK in London only last year with ambitious plans to launch hundreds of restaurants. Midlands branches have opened in Nottingham and Derby, soon to be followed by Leicester.
The original banking hall, with an impressive arched atrium and marble columns, offers an open sales area covering over 2,100 sq ft of space at ground floor level, plus storage and offices on the first and second floors. For many years the building was also a popular Dorothy Perkins and Burtons clothing store. This folded early last year following the demise of the Arcadia Group.
Tom Crowley, CEO of Popeyes® UK, said: “We’re excited to be growing our presence in the Midlands with a brand new restaurant in the heart of Leicester as part of our accelerating UK rollout. We look forward to opening our new restaurant before Christmas.”
Kelvin Wilson, associate director for A+A, said Popeyes® is in an ideal location for the changing face of Leicester.
“City premises have faced major challenges everywhere over the past few years. Shopping habits are changing and today there is more of a focus on food-led eating outlets that will create an attractive leisure offering to bring people back into the centre.
“Popeyes® is a landmark building right at the heart of Leicester, close to the Clock Tower, with the Highcross and Haymarket shopping centres nearby, as well as major stores, including M&S and Boots just along the street.
“It will add an exciting new element to the various restaurants and takeaways already established around the vicinity, giving even greater choice for visitors to enjoy.”
Work to start in New Year as construction contract signed for Campus for Future Living
East Lindsey District Council has officially appointed Lindum Group to construct the £8.5m Campus for Future Living in Mablethorpe.
The signing of the build contract is a significant milestone for the Council as it marks the first council-led Town Deal project moving to the delivery stage in 2023.
The flagship project for the Lincolnshire coast and wider East Lindsey has received £8.5m from the Mablethorpe Town Deal funding from the Government’s Levelling Up agenda, supported by the Connected Coast Board.
Work will now begin on site in January with turf cutting scheduled for early February. The build is scheduled for completion and handover to the Council in 2024.
Led by a coalition of local, regional, and national partners, the Campus for Future Living offers significant potential in reducing health inequalities in Mablethorpe as well as across the district.
It presents an opportunity to put Mablethorpe at the forefront of medical technology and innovation, offering a centre for health and care related teaching, training, research and development.
Accommodation, a coffee hub and parking facilities are also part of the scheme.
Cllr William Gray, portfolio holder for communities and better ageing at East Lindsey District Council, said: “The signing of the construction contract is a milestone for the Campus for Future Living and I am delighted the council has Lindum Group on board.
“The possibilities the Campus of Future Living offers residents and the opportunities it will bring to people in Mablethorpe and our communities are truly exciting.
“The Town Deal, particularly with this project, gives us an opportunity to improve the lives and wellbeing of residents and for that change to have a lasting impact for generations.
“I look forward to seeing work start on site in the New Year.”
Lindum Group MD Freddie Chambers said: “We are delighted to be here today to sign the construction contract and we anticipate work starting on site at the end of January.
“It is a great project for Lindum to be involved in, not just because it’s the area’s first Towns Fund scheme but also because it should have a positive impact on local health care, which as a large employer of Lincolnshire people, is important to us too.
“We have been working closely with the council to develop the design of the building which also has many ‘green’ credentials. Using BREEAM Excellence guidelines as a benchmark, it will incorporate air source heat pumps, solar panels and battery storage systems. There will also be electric charging stations for mobility scooters and lots of natural ventilation. All these elements will help to reduce the running costs and operational carbon impact of the finished building.”
Julian Free CBE, deputy vice chancellor, University of Lincoln, said: “We are very excited about the Campus for Future Living and are confident it will have a positive impact on the people of Mablethorpe and beyond.
“It is fantastic to have the Campus for Future Living construction contract with Lindum signed. We are now firmly advancing to the delivery of what will be a transformative project in Mablethorpe driving better health and social care outcomes for the local community. The University is pleased to have played its part in getting to this stage and looks forward to being an active participant in the completed Centre.”
Chris Baron, chair of Connected Coast, said: “The signing of the construction contract is a significant milestone for the Campus for Future Living that brings us ever closer to getting started on site.
“With the Campus, we will have a national exemplar in medical technology and innovation in our area that is set to bring jobs, investment, and opportunities for our local communities.
“I look forward to seeing work begin and the exciting vision for this project translate into delivery on the ground.”
Opinions invited on amended plans for Ratcliffe on Soar power station site
Following consultation earlier this year, residents and interested parties are invited again to have their say on the latest plans for the Ratcliffe on Soar power station site.
A draft Local Development Order (LDO) that could give the green light to new industry and business projects and the potential of thousands of permanent highly-skilled jobs at the site is being finalised by Rushcliffe Borough Council.
A design guide and masterplan for the site has been prepared to support the redevelopment, which will guide growth and development over the coming years including the proposals linked to the previously announced East Midlands Freeport and the Development Corporation projects that could create further jobs and significant investment.
The Borough Council has made some revisions to the draft LDO in response to the consultation, comments and feedback received to date and wants to hear further views on the latest proposals by Thursday January 19, 2023 by completing the online form.
The revisions include:
- Amending the range of permitted uses on the Southern Area and land south of the A453 to those limited specifically to low carbon energy production and storage or manufacturing uses delivering the net zero transition.
- To place greater limits on the extent to which the height of buildings on the Southern Area can go above 30 metres.
- Limiting the amount of development which can be occupied before road improvements are delivered or there is agreement for their delivery. This is to ensure that the roads are able to cope with increased traffic levels and to enable the road improvements to be designed to also accommodate other major developments that are planned to come forward in the local area.
- To require a public transport strategy to be approved before new development can be occupied or brought into use. This is to help increase the number of people who will travel to and from the site by bus and train.
- To require a contribution to a traffic management study for local roads at and around nearby villages and the implementation of its proposed recommendations.
- Amendments to the LDO’s Design Guide to help better ensure that a quality new environment is delivered when the power station site is redeveloped.
- A zero-carbon technology and energy hub for the East Midlands
- Highly skilled jobs
- Modern industry and business uses, served by on-site sustainable energy generation and storage
- Advanced manufacturing, for example to produce electric car batteries
- A hub for research, development, and innovation, through links with universities, business support organisations and established industry.
