East Midlands business confidence dips to lowest level in UK
Business confidence in the East Midlands fell nine points during November to 29%, according to the latest Business Barometer from Lloyds Bank Commercial Banking – conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Wednesday 22nd November.
Companies in the region reported lower confidence in their own business prospects month-on-month, down one point at 38%. When taken alongside their optimism in the economy, down 15 points to 21%, this gives a headline confidence reading of 29%.
East Midlands businesses identified their top target areas for growth in the next six months as introducing new technology (35%), evolving their offer (33%) and investing in their team (30%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 30% of businesses in the region expect to increase staff levels over the next year, up one point on last month.
Overall UK business confidence rose three points in November from 39% to 42%, the third consecutive monthly increase, while firms’ outlook on the overall UK economy increased four points to 38%. Businesses’ optimism in their own trading prospects also continued the upward trend for the second consecutive month, rising three points to 48%.
Companies’ hiring intentions reached their highest level since May 2022, with 35% of firms intending to increase staff levels over the next 12 months, up three points month-on-month.
Firms in London reported the highest level of business confidence, jumping nine points to 56%, followed by the North West (54%), Yorkshire and the Humber (50%) and the North East (48%). Companies in the North West reported the biggest uptick in business confidence, increasing 20 points month-on-month to 54%.
Firms in the services industry reported an increase in confidence to 46% (up three points), the highest level for over two years (since September 2021), reflecting broad-based optimism in the sector. Retail confidence also rose for a second month to 42% (up five points), while sentiment among manufacturing firms reached a five-month high of 45% (up nine points) in contrast with recent shortfalls. Construction firms’ confidence improved for the first time in three months to 35% (up four points), but this still lags other sectors.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “While confidence in the East Midlands has fallen this month, it’s good to see businesses’ optimism around their own prospects remain strong. It’s also pleasing to see that firms plan to invest in growth, with many seeing opportunities for expansion by investing in new technology.
“Firms that explore new technology, such as AI and automation, can see huge benefits such as reduced costs and boosted profits. We will be by the side of local companies to counsel on the technologies which can have the greatest impact for their specific business, and provide the funding needed to realise these opportunities.”
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Business confidence rising to a 21-month high shows the resilience of UK companies, as both trading prospects and economic optimism continue to rise.
“It’s encouraging to see signs that wage expectations may be stabilising, even against the backdrop of hiring intentions increasing to an 18-month high. Price indicators in the survey are similarly up, with our data continuing to show that firms are still safeguarding their profit margins in response to past rises in interest rates, wage increase pressures, and the prospect of higher energy prices again this winter.
“Our next survey in December will reveal how firms are digesting the measures announced in the Chancellor’s Autumn Statement last week as they navigate the busy festive season and make plans for 2024.”
Section 114 report issued as balanced budget not possible for Nottingham City Council
Nottingham City Council’s chief finance officer has issued a report under Section 114(3) of the Local Government Finance Act 1988 because, in his professional opinion, the council isn’t able to deliver a balanced budget for this year, which is a legal requirement.
A report discussed at the council’s Executive Board meeting on 21 November outlines the council’s latest financial position and highlights that a significant gap remains in the authority’s budget, due to issues affecting councils across the country, including an increased demand for children’s and adults’ social care, rising homelessness presentations and the impact of inflation.
At the halfway point of the year, the council is forecasting a gross General Fund pressure of c£57m which is partly being mitigated from one-off in-year management and corrective actions (including use of previously approved reserves) reducing the net forecasted pressure for the year to c£23m.
Past issues relating to financial governance which led to the appointment of an Improvement and Assurance Board, and an overspend in the last financial year have also impacted on the council’s financial resilience and ability to draw on reserves.
This situation has led the council’s Corporate Director for Finance and Resources and Section 151 Officer, Ross Brown, to issue a Section 114(3) report to all councillors today.
The council has emphasised that it is not “bankrupt” or insolvent, and has sufficient financial resources to meet all of its current obligations, to continue to pay staff, suppliers and grant recipients in this year.
A meeting of all councillors will now need to take place within 21 days to consider the report and an immediate prohibition period takes effect from today. Until councillors have met, spending controls already in place will be further tightened, with the practical impact being that all spending that is not already contractually committed or otherwise agreed by the Section 151 Officer is immediately stopped.
The council noted that Senior Officers and Members remain committed to continuing to work with the Improvement and Assurance Board and the Department for Levelling Up, Housing and Communities to put the council on a stable financial footing for the future.
Spitfire Homes crowned Small Housebuilder of the Year
Spitfire Homes, which has two collections of design-led homes in Northamptonshire, has been crowned Small Housebuilder of the Year at the Housebuilder Awards 2023.
Spitfire is doubling down its investment in the region, with 44 new homes available in the village of Kislingbury and work now underway at a new neighbourhood at Malabar Farm in Daventry.
The 120 acre Daventry collection, Malabar, already has outline planning permission for up to 1,100 new homes in partnership with Crest Nicholson, meeting rising demand for homes due to employment growth, investment activity and strong connectivity links in the area.
The wider scheme will also incorporate 50 acres of public open space along with plans to deliver a new primary school, nursery and community centre, alongside food and retail units.
The Midlands-based housebuilder impressed across four categories at the Housebuilder Awards 2023 and was a finalist in the best refurbishment project and best design for three storeys or fewer categories. It also featured in the best marketing shortlist, with its sales director Matt Vincent a finalist in the Housebuilder Star category.
Ben Leather, Managing Director at Spitfire Homes, said: “We pride ourselves on being a forward-thinking and modern homebuilder that specialises in the creation of sustainable, high-quality homes. We’re passionate about design and customer service, and we believe we have the skills and experience to blend the latest interior trends with practical modern-day living.
“To be recognised as one of the best housebuilders in the country gives everyone at Spitfire Homes a great sense of pride. I’d like to take this opportunity to thank everyone who contributed to this magnificent achievement, as well as Housebuilder for commending us for our commitment to excellence.”
Project supports over 200 Leicestershire businesses to cut carbon
A scheme set up to help businesses reduce their carbon emissions has supported over 200 firms in Leicester and Leicestershire with funding totalling more than £1.1million.
The Green BELLE project has provided grants of up to £10,000 as match-funding to 205 local small and medium-sized companies to help cover the costs of low carbon, energy-efficient improvements to their premises.
The scheme, which was part-funded through the European Regional Development Fund (ERDF), is now closed.
Over its six years, the project has supported the installation of measures worth almost £3million, backed by private investment of around £1.8million. This has helped achieve carbon savings of around 1,500tCO2e – equivalent to the total carbon footprint of around 450 typical homes.
The types of measures supported include solar photovoltaic panels, low-energy LED lighting, insultation, double glazing and energy efficient heating.
As well as cutting their carbon emissions, businesses have benefitted from lower energy bills, with support from Green BELLE helping to achieve a total estimated reduction in operating costs of almost £700,000 across the project. About 100 new jobs have also been created at businesses that have taken part in the project.
The sorts of sectors supported by the Green BELLE scheme include arts and entertainment, education, food, construction and retail, with manufacturing accounting for almost 40 per cent of the grants awarded.
Deputy city mayor for climate, economy and culture Cllr Adam Clarke said: “The Green BELLE scheme has given local small and medium-sized businesses the support they need to become more energy-efficient, cut their carbon footprint and benefit from lower running costs.
“We have ambitious plans to help make Leicester a net zero and climate ready city. The Green BELLE scheme has demonstrated that with the right support we can welcome all kinds of local firms on board and show them that becoming more energy efficient is good for business and for the city. The feedback we have received from businesses taking part has been very encouraging.
“But we know there is still more that needs to be done. It is important that local businesses continue to be offered support to invest in low carbon, energy efficient improvements and that will require significant and ongoing support from the Government.”
Full house at Derby office building
Full occupancy has been achieved at Pentagon House in Derby.
Earlier in the year FHP announced some 21,500ft2 had been let in three separate deals. Now a further 8,592ft2 has completed, bringing two new tenants into the building.
Pentagon House is a high profile modern office building located in central Derby. The offices are situated just off the A52 at Pentagon Island, fronting both Sir Frank Whittle Road and Stores Road.
The building comprises a four storey property extending to approximately 30,000ft2 and provides newly refurbished accommodation with a modern reception and parking.
Darran Severn of FHP Property Consultants says: “Its great that we have achieved full occupancy at Pentagon House and even better, within a 12 month period. The building offers high quality air conditioned accommodation with an excellent parking ratio of one space per 250ft2.
“The ground floor suite has been let for a term of 5 years whilst the suite on the second floor has been let on a short term basis to a company who are currently refurbishing their existing offices. They will vacate in Q2 2024 and we are already in strong conversations with another Derby business to take this space.
“There has been good office activity throughout 2023 with the key drive being that tenants are looking for higher quality space with parking and close to amenities.”
Plans submitted for new facility for world’s fastest growing sport
Padel Tennis – the fastest growing sport in the world – is being brought to the centre of Mansfield by the Dubai-founded World Padel Academy (WPA).
WPA has secured their first fully owned UK venue at One Call Stadium, home to EFL League Two promotion challengers Mansfield Town Football Club (MTFC).
Padel Tennis is an urban style racket sport played in a glass and steel mesh walled court and is a mix of tennis and squash.
WPA have submitted a planning application to Mansfield District Council to develop a brand new bespoke Padel Tennis facility that will include four covered courts and a small clubhouse, providing amenities and social spaces to help create a fun experience to engage the local community.
Mansfield Town Football Club Chairman, John Radford, said: “I’ve been playing Padel regularly for a few years now in Portugal and it’s one of the most enjoyable sports you can play.
“Padel encourages teamwork, discipline and healthy competition. It’s very easy and a great way to keep active.
“Playing it regularly helps develop healthy fitness habits and I know the people of Mansfield will really enjoy the game. I’m very much looking to playing Padel at the club.”
The £1 million project is a significant investment into the town and is set to add an inclusive and accessible sports venue that the whole community can enjoy, with no limits on age or physical abilities.
Mansfield’s CEO, Carolyn Radford, said: “We are so pleased to be working with World Padel Academy as Padel will be a really exciting addition to the football club. This project fits with our vision to provide more for Mansfield and it will doubtless help enhance the mental and physical wellbeing of our community.”
WPA Mansfield will provide group activities, coaching programmes for beginners through to Academy level players and will deliver a calendar of tournaments year-round for all levels, which will help grow the next generation of GB players and professionals.
James Bowring, Chief Operating Officer, WPA UK, said: “WPA’s expansion strategy into the UK market is extensive as we are working hard to secure a network of venues across the country, but I have to say, I’m very excited to be launching our first fully managed UK venue in my hometown and introduce this amazing game to Mansfield.”
For the last six months WPA have added their expertise to grow the Padel community at Nottingham Padel Centre and the appetite for the game is developing rapidly, to the point where it’s challenging to book a court during peak hours.
Like Nottingham, WPA Mansfield will boast four Padel courts in 2024 but with one major differentiator, a purpose-built canopy structure will be erected to protect players from adverse weather, so Padel can be played all year round with no interruptions.
Theatre launches drive to raise further cash to realise revamp plans
After receiving £10 million of Levelling Up Fund money to develop the venue, Derby Theatre has launched a drive to raise further cash.
The funding the theatre has been awarded by the Department for Levelling Up, Housing and Communities had originally been earmarked for a new learning theatre called ‘Assemble’ at the Assembly Rooms.
However, after the scheme was deemed unviable, the Government agreed that the £20 million it awarded for Assemble could be divided equally between revamping the existing Derby Theatre and Guildhall Theatre.
Now, Derby Theatre, which is based in Derbion, has revealed major plans to refurbish the venue – and enhance its facilities, including the addition of a brand-new studio theatre.
However, the overall cost of the redevelopment will need additional investment. To raise that extra cash, it has launched a campaign called Derby Theatre: New Horizons.
Sarah Brigham, Chief Executive and artistic director at Derby Theatre, said: “Derby Theatre is approaching its 50th birthday in 2025. This funding will allow us to secure the next 50 years of high-quality theatre in our city.”
Derby Theatre has said it plans to use its Levelling Up funding to develop its performance, community, participation and learning spaces.
As well as the new studio theatre, which will be a versatile space for the theatre to present innovative work, there would be an improved space for learners and the community, plus improvements to the audience experience in the main auditorium.
Sarah said: “We welcome nearly 100,000 people a year through our doors to see shows and 25,000 to take part in workshops and learning activity, so we are delighted that we will be able to use this funding to offer an even better experience to our customers and encourage more people to visit us for the first time.”
As well as announcing plans for the revamp, Derby Theatre has also revealed details of its New Horizons campaign, which aims to generate support and additional funds for the project.
The campaign will look to reach out to local communities, audiences, businesses, friends and stakeholders from the region.
Marketing Derby throws weight behind city centre apartments scheme
Marketing Derby has given its backing to plans for a major new apartments scheme in Derby city centre.
Last month, Wavensmere Homes and Wilson Bowden Developments submitted a full planning application to Derby City Council to build Cathedral One, which will consist of 186 one- and two-bedroom apartments.
The nine-storey building would be constructed on vacant land bounded by Full Street to the west and the River Derwent to the east.
In the letter of support for Cathedral One submitted to the city council’s planning department, John Forkin, Managing Director of Marketing Derby, writes: “Marketing Derby is delighted to see plans submitted to bring 186 new homes onto this important site, which has laid vacant for too long.
“Wavensmere is a proven contributor to Derby’s regeneration, and we couldn’t think of a more appropriate developer for this sensitive riverside site, contributing significant benefit and positive impact to the setting of Grade-I listed Derby Cathedral and the Museum of Making and UNESCO Derwent Valley World Heritage Corridor.”
The development site was previously occupied by a police station, which was constructed in the 1960s and demolished in 2013.
Phase One of Wilson Bowden’s Full Street development was completed in 2016.
It included the refurbishment of Riverside Chambers office complex, delivery of 46 new apartments at Number One Cathedral Green, and a Premier Inn hotel.
The remaining parcel of land had been earmarked for an office development of up to 100,000 sq ft, but it is now being brought forward by Wavensmere Homes for Cathedral One.
In addition to the apartments, 2,000 sq ft of mixed-use space has been accommodated at ground floor level to overlook Cathedral Green and Full Street.
A range of uses are earmarked for this space, including a new café and residential facilities such as a gymnasium, co-working zone, and concierge point.
Currently, Wavensmere Homes is delivering the £175 million Nightingale Quarter residential scheme, which features more than 900 houses and apartments.
The company has also submitted plans for the historic Friar Gate Goods Yard site in central Derby, which could be transformed into 276 houses and apartments, and over 110,000 sq ft of commercial space.
Franklin Ellis Architects has designed the scheme.
Growing company walking on air after industrial park move
An East Midlands-based compressor sales, hire, installation and maintenance firm is expanding after moving onto the Moorgreen Industrial Park on the outskirts of Nottingham.Air Compressor Maintenance, which has taken Unit 5 at Chestnut House on the industrial park, has been established over 30 years and covers the whole of the East Midlands.Alicia Lewis, surveyor at NG Chartered Surveyors, acted on behalf of a private landlord to complete the deal.She said: “It was a pleasure to help Air Compressor Maintenance to move into their new home. This is a great outcome for Dan, Sam and the team to realise their growth ambitions as the company expands – as well as our landlord client.“Air Compressor Maintenance is a quality tenant in a quality new premises. The team at NG wish them well for the future.”
£3m funding secured to deliver ‘game-changing’ new approach to skills development in Leicestershire
Further education colleges across Leicester and Leicestershire have been successful in securing £3m in Government funding to enable them to a respond to an East Midlands Chamber-led skills initiative published last summer.
The new programmes, to be delivered as part of the Government’s Local Skills Improvement Fund (LSIF), will aim to develop future green and digital skills across the city and county.
Following the bid by a consortium of colleges, the Department for Education has awarded £3.07m to further education colleges to deliver a range of programmes responding to the Leicester and Leicestershire Local Skills Improvement Plan (LSIP), published in August.
Work led by Leicester College, North Warwickshire and South Leicestershire College, Loughborough College and SMB College Group will focus on addressing four priority areas in skills needs for the area – decarbonising transportation, green leadership skills, digital upskilling and employer skills training – via new initiatives.
These areas were earmarked for intervention in a series of recommendations that followed a trailblazer project for the Leicester and Leicestershire LSIP. Launched in autumn 2022 and led by the Chamber with its partners, it aims to bridge the gap between the skills and attributes employers need in their workforce and what is on offer from local educators.
An innovative new data-led approach was developed by the Chamber, which led to the creation of Insight Unlocked, a “collective skills intelligence observatory” that pulls together insights from existing data sources around job adverts, occupation projections and qualification levels.
A mobile app was also used to engage businesses via short daily surveys on their live requirements for skills, knowledge and behaviours, with findings from this pilot published in summer 2023.
Chris Hobson, director of policy and insight at East Midlands Chamber, said: “Businesses have been telling us for a long time now that skills gaps are one of the biggest issues holding them back from achieving sustainable long-term growth.
“The Leicester and Leicestershire LSIP is a game-changing initiative in shaping future skills, knowledge and behaviours by aligning local education with the needs of local employers, with the overall aim of improving employability.
“Having provided the evidence base through our innovative data-led approach, we are delighted that colleges have now received funding to address some of the issues identified, with a key focus on developing the green and digital skills that will be needed in the future.
“This will help us to establish Leicester and Leicestershire as the best place in the country for developing people with the skills needed for businesses to thrive, the economy to grow and individuals to succeed.”
Examples of activities in each of the four areas of the Leicester and Leicestershire LSIP are:
· Decarbonising transportation: Skills training for staff at levels three to five in green transport technologies to support a step-change in becoming carbon-neutral. New qualifications will include IMI Level 3 electric and hybrid system repair and replacement, and IMI Level 4 in diagnostics, testing and repair of electric and hybrid vehicles and components.
· Green leadership skills: Collaborative development of short, contextualised Level 3 courses, including a new green leadership health check tool for leaders, managers and decision-making staff within organisations to assess the viability of implementing sustainable energy, waste and building technologies.
· Digital upskilling: New easy-access, flexible short courses between levels three and five for digital skills in business, including digital marketing, social media, cloud computing, data analytics and an introduction to artificial intelligence.
· Employer skills training: Review further education training across Harborough and the surrounding districts, including adult provision and English as a second language across Leicestershire. Data scientists will analyse training needs of industry to gain a deeper understanding of the area and how to engage employers.
Verity Hancock, principal of Leicester College, said: “The next stage of the LSIF is a real funding boost that will extend support for colleges and training providers such as Leicester College. It will enable us to offer more high-quality training opportunities and help to develop the skills base in key local industries.”
LSIPs were introduced by the Department for Education to support more people to gain the skills they need to secure rewarding careers, while ensuring the training on offer better meets the current and future skills needs of local areas.
Education Secretary Gillian Keegan said: “This investment is about boosting local industries, building people’s skills and ultimately futureproofing our economy and the career prospects of the next generation.
“Our local skills projects will bring together regional organisations, businesses and education providers to respond to the specific needs of employers, building an increasingly skilled workforce and growing local economies.
“Whether it is green skills, construction, engineering or digital, thousands more people can now gain the skills they need to secure good jobs closer to home. These are long-term plans that will ensure every area can have a brighter future.”
