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Proposed lifeline for Derby train factory gets Chamber support
Secretary of State Mark Harper has pledged possible investment for ten new trains at Derby’s Alstom train factory, following a campaign led by Marketing Derby and backed by over 200 East Midlands Chamber members and over 300 Derby Bondholders.
A proposed rescue solution for the Litchurch Lane factory, at risk of closure due to a lack of orders ahead of HS2 in 2026, was put forward to the government by Derby City Council and Marketing Derby after months of talks failed.
Following funding approval for five Aventra train orders last month, Mark Harper has now pledged a further five “in principle.”
East Midlands Chamber Chief Executive Scott Knowles said: “The strength of feeling among the East Midlands business community to save Litchurch Lane has been phenomenal and it’s no surprise that over 200 of our members joined businesses and Marketing Derby Bondholders to give their support so quickly.
“The factory’s importance at the heart of UK train manufacture – the only such site in the country where the entire process from blueprint to building, testing to trains on the tracks – cannot be understated.
“With uncertainty hanging over thousands of jobs in Derbyshire and many more in the wider national supply chain for many months now, there was concern across the East Midlands as talks led nowhere.
“The campaign spearheaded by Marketing Derby and the city council has been a pivotal moment in securing this pledge of support from the Department of Transport.
“At the very least this news is the strongest lifeline indicator yet that a workable solution is in reach, so I would urge the government to get this deal approved and over the line, without further delay.”
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Wet weather fails to dampen enthusiasm of East Midlands entrepreneurs as monthly start-ups top 2,500
One of the wettest starts to the year has failed to dampen the enthusiasm of East Midlands entrepreneurs as 2,540 new businesses were set up in the region last month.
This is according to the Midlands branch of R3, the UK’s insolvency and restructuring trade body, who say that while the figure is a 7.13% decrease on the 2,735 recorded in February, it still indicates a sizeable appetite for new business in the region and opportunities for growth.
The R3 Midlands figures, which are based on an analysis of data from business intelligence provider Creditsafe, also indicate some improvement in the local economy as debts owed by East Midlands businesses in liquidation decreased by 17.73% last month.
In contrast, however, the number of local companies with late payments on their books has risen since the start of the year, reaching 23,610 last month compared to 23,194 in January.
R3 Midlands chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “It’s good to see local entrepreneurs seizing opportunities to set up and trade, and the monthly fall in start-ups could indicate a sensible degree of necessary caution due to challenging and uncertain economic conditions.
“Business owners should remain cautious moving through 2024 as they and their supply chain continue to be under pressure from elevated Bank of England interest rates and prices for goods and services which are significantly higher than three years ago.
“Despite welcome news from the ONS that the UK’s economy is expanding, it’s critical for directors and managers to be alert to any signs of financial distress and act on them promptly. There is a significant amount which can be done to rescue and support East Midlands businesses if professional help is taken early enough.”