Over a third of mid-sized businesses in UK unable to recruit apprentices
Over a third of mid-sized businesses in the UK would like to hire apprentices but do not have sufficient resources or guidance to do so, according to new data from accountancy and business advisory firm, BDO.
BDO’s bi-monthly survey of more than 500 mid-sized businesses reveals that almost a third (32%) of respondents want to hire more apprentices but the costs associated are too high, with the same number wanting more guidance on how to go about it.
The same number of respondents (32%) most want to see support from a future government to resolve staff or skills shortages including reform to the apprenticeship levy. This came as a higher priority than tax breaks and regulatory changes, demonstrating its importance to the businesses that sit at the heart of the UK’s economy.
Less than one in five respondents claim to regularly hire apprentices through the Apprenticeship Levy, with high costs (32%) and a lack of guidance (32%) cited as the main barriers to doing so.
Yet desire remains strong amongst businesses – a quarter of respondents said they would increase their hiring habits if they could work more closely with local schools and colleges in order to shape an apprenticeship programme.
Apprenticeship hiring levels vary significantly across the UK’s mid-market. Nearly double the number of respondents in the North West (33%) said they needed support with the skills gap, compared to their counterparts in London.
Other areas with a high number of businesses requiring additional funding and guidance to start hiring include the South West (42%) and East Midlands (40%), suggesting there remains some regional imbalance in opportunities to access training programmes.
Skills shortages remain a challenge for mid-sized businesses across the board, with almost a quarter (24%) citing that they cannot find people with the right skills because of the region they work in. This jumps to almost a third of businesses in the North West (33%) and the North East (31%).
In addition to regional cold spots, certain industries record significantly lower levels of understanding when it comes to the process of apprenticeship hiring. Almost two in five (38%) mid-market real estate companies claimed they would hire apprentices if they had more guidance on how to start a programme and 43% of technology and media companies, both high growth areas of the economy.
Richard Austin, partner at BDO, said: “As we celebrate National Apprenticeship week, the importance of apprentices to the economic growth of this country is not lost on anyone, least of all the businesses at the heart of our economy.
“These businesses are responsible for more than 8 million jobs, the equivalent of one in four across the UK and with the right level of targeted support, together we can help these businesses kick start their hiring; boosting the number of high quality opportunities on offer to our younger generations and providing the skills the UK so desperately needs.”
STEP’s first West Burton office opens
The UK Atomic Energy Authority (UKAEA) has opened its first office building at West Burton in Nottinghamshire to support the development of the UK’s prototype fusion energy plant, STEP (Spherical Tokamak for Energy Production).
The building was opened by a member of West Burton’s security team, Rebecca Parry, from Gainsborough, the third generation of Parry family to be employed at the site over the last six decades.
Speaking at the opening event, Rebecca Parry said: “I am very honoured to have been asked to officially open the first STEP building on site. In our family, West Burton is close to all our hearts.
“My grandfather, David Parry, would be extremely proud that our family were chosen to help celebrate the opening ceremony and in turn I’m so delighted that my daughter Erin can see what our family have achieved through the decades. I hope it inspires her for her future career.”
Rebecca was joined at West Burton by her five-year-old daughter, Erin, who attends a local primary school in Gainsborough, along with her father, John Parry, who worked in the control room as part of the operations team. Her grandfather, David Parry, helped to build the site in the 1960s.
Paul Methven, CEO of UK Industrial Fusion Solutions (UKIFS), the subsidiary of UKAEA Group being set up to lead delivery of STEP, said: “Today’s modest beginnings mark an important milestone for the STEP programme and delivery of a revolutionary new energy source that could be transformative for climate change in addition to creating thousands of jobs for the region.
“I would like to thank Rebecca and family for joining us today and for representing the many multi-generational families that have been part of West Burton’s past and present, and who will continue to be part of West Burton’s future.”
Members of local district councils from Bassetlaw and West Lindsey in addition to Nottinghamshire and Lincolnshire County Council joined Midlands Engine and EDF representatives to mark the occasion.
The temporary office building (330 sq. mt) will house the local STEP team and project staff as they work on the plans to deliver the prototype fusion energy plant, a first of its kind.
STEP is expected to pave the way to the commercialisation of fusion – based on the same process that powers the Sun – and the potential development of a fleet of future plants around the world.
New partnership to deliver 260 new suburban build-to-rent homes
Legal & General’s Suburban Build-to-Rent business (LGSBTR) and Miller Homes have joined forces to deliver 260 new Suburban Build-to-Rent homes in Northamptonshire.
The 260 homes are largely comprised of two- and three-bed houses featuring air-source heat pumps and solar panelling, with the first handover of units expected to take place in March 2024 and final handovers in Q3 2027.
The homes are part of masterplans which will provide not only new homes but also new community facilities, schools, and employment space, in well-connected locations.
LGSBTR is owned by Legal & General Capital (LGC), the alternative asset platform of Legal & General Group.
David Reid, Managing Director, Legal & General SBTR, said: “We’re delighted to begin a new strategic partnership with Miller Homes, simultaneously creating assets for our annuity division and other pension schemes and addressing the significant demand for quality rental housing across the UK.
“Now more than ever, we must deliver diverse residential offerings, to better accommodate the broad range of different households that exist in the market. This includes the provision of reliable, long-term rental options. At LGSBTR we are determined to meet that need with high-quality, well-managed, and thoughtfully designed properties to help people live healthy and happy lives.”
Benjamin Massey, Divisional Managing Director, Miller Homes, said: “This marks the start of an exciting long-term partnership. We are pleased to have agreed a deal with L&G to deliver 260 single-family, build-to-rent homes in Northamptonshire alongside our ongoing work to provide high quality homes in key regional markets across the UK.
“Moving forward, the inclusion of Build-to-Rent homes as part of our business model will allow us to continue to diversify our portfolio, whilst creating new opportunities for land acquisition and supporting our overall growth ambitions.”
Right Legal Group secures growth investment
Derby-based Right Legal Group, which provides will writing and probate legal services across the UK, has secured growth investment from Vespa Capital.
Established in 2014, Right Legal has supported over 30,000 clients through its RightWill service which provides a platform for people to preserve their financial assets and emotional wishes for future generations.
Right Legal has an ambitious growth strategy to invest in technology and product development, augmenting the team, further developing its training academy, and accelerating the organic growth plan through M&A.
Led by an experienced management team comprising of Carrie Caladine, CEO, and Mike Simpson, chief innovation officer, Right Legal’s 160 staff are passionate about providing tailored advice to its clients. Right Legal is also welcoming Derek Mapp who will join as chairman.
Derek has considerable experience as a CEO and chairman of technology-enabled service businesses and was introduced to Right Legal from Vespa Capital’s entrepreneur network. The Vespa Capital deal team included Nigel Hammond, Katya Hawrylak, Luke Burton and Keelin O’Sullivan.
Carrie Caladine, CEO of Right Legal, said: “We are absolutely delighted to be partnering with Vespa Capital. They have a strong track record in helping companies such as ours reach their growth potential and bring a wealth of knowledge and experience that will be invaluable as we commence the next part of our journey.
“Our team have worked so hard over the first 10 years to establish our first-rate service and business model, and we look forward to building on the strong foundations and helping many more clients to preserve their legacies.”
Luke Burton, investment director at Vespa Capital, said: “Carrie, Mike, and the broader team at Right Legal have built a quality-leading, innovative, and differentiated leader in the will writing and probate sector.
“From our first interaction we were continually impressed by Right Legal’s expertise and high standards, their professionalism, and their drive to disrupt and innovate for the benefit of their customers.
“We are excited to support Right Legal’s ambitions by backing their growth strategy and investing in their team, technology, and product development to continue to deliver high-quality customer service.”
Right Legal’s shareholders were advised by Arrowpoint Advisory, Geldards LLP, Mazars LLP and Fairgrove Partners.
Vespa Capital was advised by Squire Patton Boggs, Grant Thornton, CISOselect, Continuum and Lockton UK.
Businessman who went on the run sentenced to four years in prison
A Leicester businessman who was last year found guilty of selling fraudulent franchise licences to victims across the UK and who went on the run before the trial, has been sentenced to four years in prison and banned from being a company director for 15 years.
Nazir Abdul Rashid Daud, formerly of Landseer Road, Leicester, was previously found guilty on three counts under the Fraud Act 2006 in relation to false representations made between 2015 and 2018 and a further charge of fraudulent trading under the Companies Act 2006, and was convicted in his absence at Leicester Crown Court on 2 December 2022.
He had gone on the run before the trial, and was arrested on 25 October 2023 and remanded to prison to await sentencing.
He appeared at Leicester Crown Court on Wednesday 31 January, where Judge Ebrahim Mooncey imposed the four-year prison sentence as well as ordering Mr Daud to pay prosecution costs of £30,046.
His company, Payrolls Direct Ltd, was fined £973,000.
The prosecution was brought following an investigation by Leicestershire County Council Trading Standards Service, which received statements from 18 victims.
The court heard that Mr Daud was the sole director of Payrolls Direct Limited, which he set up in 2014. Mr Daud had advertised franchise licences for a new cloud-based payrolls system, which he was selling for between £5,995 and £9,995.
Franchisees would sign up clients, process payroll for each employee of the company they signed up, and Payrolls Direct would take 20 per cent of the fee, with the franchisee keeping the rest.
Mr Daud claimed that buying a franchise licence would allow people to earn between £250 and £2,000 per month, depending on how much time they put into the business and how many clients they signed up. Advertising for Payrolls Direct also promised franchisees initial training, ongoing unlimited support, marketing materials and networking opportunities with successful franchisees.
But the court heard that statements from 18 franchisees who spoke to Trading Standards during the investigation revealed that only one was able to sign up any clients, and as the promised unlimited help, support and training was never provided, the franchisees were unable to use the payrolls system, leading to the contract with the clients being terminated.
In all, the cash value of the fraud was put at more than £320,000, with witnesses describing further ‘out of pocket’ losses, including thousands of pounds spent on advertising and months of work spent fruitlessly working to gain clients.
Harpreet Giani, representing Mr Daud, said that Payrolls Direct was originally conceived as a legitimate company, but it spiralled out of control.
He said: “Mr Daud wants to come clean now. He understands he’s probably going to receive a long prison sentence.”
Passing sentence, the judge said: “A lot of people had dreams of making it work. They invested a lot of time and made decisions that affected their families. It wasn’t just a monetary value.”
Mr Daud’s co-defendant Anthony Raybould was previously sentenced to 22 months imprisonment, suspended for two years, after he pleaded guilty to the offences when he appeared at Leicester Crown Court in December 2022.
Gary Connors, head of Leicestershire Trading Standards, said: “This form of fraud provides a quick financial return for the perpetrators, leaving the victims in financial and emotional turmoil.
“The franchise sector is heavily reliant on trust rather than regulatory controls and by nature potential new entrepreneurs must be persuaded to make a significant ‘down payment’ for the promise of financial success.
“These are often complex and resource intensive investigations, but the legitimate UK franchise industry is a major contributor to the UK economy and must not be undermined by this form of fraud operating within the sector.”
The Secretary of State for Transport signs off Compulsory Purchase Order and Side Road Orders for A614
A multimillion-pound scheme to improve five junctions along the A614/A6097 corridor edges one step closer following confirmation of the Compulsory Purchase (CPO) and Side Road (SRO) Orders for the scheme from the Secretary of State for Transport.
Nottinghamshire County Council is now in a position to formally secure land at Ollerton Roundabout, Lowdham Roundabout and Kirk Hill, East Bridgford as well as temporary rights of access to facilitate construction of the new areas of highway along the major road network.
Whilst plans have been designed to minimise the amount of land needed and use land that is already owned by the council, 57 plots of land will be required, of which 19 are owned by private individuals.
Nottinghamshire County Council Leader, Councillor Ben Bradley MP, said: “This is fantastic news for Nottinghamshire. We’re already negotiating with landowners to try and acquire the necessary land and rights by agreement where possible and I’m pleased to say that negotiations have so far been very positive. I’m thankful to those landowners for working with us.
“Now the legal processes have been formally signed off, we can move to purchase the land needed in preparation for work to start, which I’m delighted to say should be early Autumn, subject to Government approval.”
The scheme, funded by the Department for Transport (DFT) and Nottinghamshire County Council, is a key element of the council’s strategy to improve local and regional connectivity and support growth and investment in the area.
Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management at Nottinghamshire County Council, said: “Improving access to training and jobs and helping businesses to move goods more efficiently is central to making the county’s economy stronger.
“Residents will be able to view the latest plans, find out more and meet the contractors at events in the summer.”
Sherwood MP, Mark Spencer said: “I’m delighted that we are making progress with the A614 improvements. The residents of Bilsthorpe, Ollerton and Edwinstowe have waited long enough. I’m grateful to the County Council for all their help.”
The works are expected to last 24 months and it is anticipated that improvements to Ollerton Roundabout will be complete and open to traffic by November 2026. Improvements to Mickledale Lane junction will be progressed separately and funded by the council at a cost of approximately £5m.
New Lubbesthorpe hits major milestones
Blaby District’s community at New Lubbesthorpe is celebrating a whole series of major milestones.
Construction is starting on the first local centre with work already underway on the 66-bedroom care home which will feature in the mixed-use scheme.
Progress on the centre’s two-storey building, which will house a Sainsbury’s Local store, three additional retail units, a café and bistro and GP surgery, is expected to begin within weeks.
Both are scheduled to be finished by next spring, completing the Tay Road feature square which includes New Lubbesthorpe Primary School.
Developers have also reported a major residency achievement – as at the end of December some 1,022 homes were occupied. And one of the partners, Davidsons Homes, has begun work on the next 163 properties as part of Phase 2 of the scheme.
Another developer, David Wilson Homes, recently received planning permission to install solar panels on its houses – the first advance of its kind at New Lubbesthorpe.
Other sustainable features making a difference to the community are dedicated bus services – NovusDirect, running into Leicester city and NovusFosse which journeys to Fosse Park.
The popularity of NovusDirect has seen the number of buses on the route increase from two to three, running up to every 20 minutes on weekdays. Residents are also able to rent a car through the Enterprise Car Club. These initiatives are coordinated by GO Travel Solutions and funded by landowners, the Drummond Estate.
The very latest development approved is the restoration and conversion of the historic but derelict Abbey Farm. Old buildings on the site, which would otherwise have fallen into further decay, will be transformed into homes and offices.
Councillor Ben Taylor, Blaby District Council Portfolio Holder for Planning Delivery and Enforcement and Corporate Transformation, said: “It’s exciting to see the progress being made at New Lubbesthorpe with all these milestones being achieved. I’m sure residents are delighted work is commencing on the new local centre. It will be a most welcome addition.
“With new homes under construction it’s fantastic to see the neighbourhood growing and evolving. We now have more than 1,000 homes occupied and people report a real sense of community. Clubs and groups are thriving and residents enjoy social activities and events as well as sustainable travel options.”
New Lubbesthorpe will eventually feature more than 4,000 new homes and is being developed in phases over two decades. Ground was broken in 2015 and the first families took residence in 2017.
Edwalton development land sold for executive homes
FHP, working with sister company FHP Living Limited, have completed the sale of a development site on Melton Road in Edwalton, for housing on behalf of a private client.
David Hargreaves of FHP said: “The site was 1.5 acres and had the significant benefit of planning consent being in place for 9 detached executive homes, each of 4,500-5,500 sq ft each.”
Jules Hunt of FHP Living, who has sold a number of similar houses in the area over the past couple of years, said: “This is one of the best small development sites to hit the market for a long time and unsurprisingly attracted a lot of developer interest.”
Hargreaves said: “Despite the undoubted strength of the site in terms of its location and planning permission being in place, our clients had a pretty rough ride with this sale, as indeed did many vendors selling development sites this past 18 months, with 2 sales collapsing.
“This was due firstly to the Russian invasion of Ukraine and the subsequent levels of inflation which fed into much higher build costs.
“Thereafter we had the Liz Truss budget and the resulting record increases in base rates from 1.00% to 5.25% which undermined confidence and made developers and their funders pretty nervous about any form of property development.
“However, despite these ‘head winds’ the many hours we put in to selling this site, the hundreds of phone calls and our dedication to the job we were eventually rewarded with a sale to a local family development company who, once terms had been agreed, exchanged contracts and completed the acquisition quickly.”
Hargreaves concluded by saying: “The buyers and their solicitors were great, they were quick and they did exactly what they said they would do, which was a nice change after the previous sales had collapsed – I guess we got our due reward in the end as did our clients.”
The price achieved equated to circa £285,000/plot or £1,700,000/acre.
£1.5m funding boost for university partnership with ITP Aero
The University of Nottingham, Manufacturing Technology Centre and ITP Aero are celebrating after being awarded £1.5m in Government funding to support a three-year Laser Welding research and development project.
The three-year project, known as LADDER (Laser Automation and Design Development for future Engine Requirements), will see a total investment of £2.59m, both from ITP Aero itself and the Government’s Innovation Funding Service. This significant milestone reflects a shared commitment to investing in technology across the East Midlands.
Also a research partner on the project is the Manufacturing and Technology Centre (MTC) in Coventry. Together with the university and ITP, they will bring world-class expertise to the project, with the aim of developing and implementing an innovative laser beam welding (LBW) solution, as a robust joining technology for complex sheet-metal aeroengine fabrications.
The use of laser beam welding produces narrow welds with a small heat-affected zone, at high production rates. The highly repeatable process offering low-distortion will be used in the short term to reduce the costs associated with non-conformance. In the longer term, it is recognised that stringent new emissions targets will necessitate further increases in engine temperatures, meaning higher performance and more complex products will be needed. Design specifically for LBW will enable increased functional capability to be achieved on a range of commodities, while at the same time increasing integrity and cost competitiveness.
Rob Mitchell, Head of Engineering for ITP Aero UK, said: “This is a real milestone for us in ITP Aero UK. We are a young company in the UK, but a site with a huge amount of aerospace heritage.
“This is our first stand-alone project where we have sought and secured Government funding and underlines our commitment to invest in the UK in line with our research priorities. I am delighted we are able to work closely with our partners in the MTC and University of Nottingham to develop this industry leading capability in the UK.”
Professor Chris Bennett, Director of the Institute for Aerospace Technology at UoN, said: “This is an exciting opportunity to work with a company with a growing presence in the aerospace sector in the UK and globally.
“This project builds on existing strengths and a history at Nottingham in the field of welding modelling, while being at the cutting edge of Aerospace manufacture and allowing us to consider some of the challenges associated with the production of real components.”
Matthew Kite, Director of Power and Energy, Industrial Sector at the MTC, said: “After a long association with ITP Aero’s Hucknall site, it is a real pleasure to accompany them on the next stage of their new journey, whilst also having the opportunity to work closely with the University of Nottingham, one of our founding partners.
“With our extensive experience in laser-based collaborative projects in the Aerospace sector, combined with ITP Aero’s commitment to the adoption of new technologies in this area, we have a real opportunity to boost the UK’s expertise.” Logicor expands UK footprint by forward funding 500,000 sq ft Derby distribution warehouse
Logicor, an owner, manager and developer of European logistics real estate, has expanded its footprint in the UK by agreeing to forward fund a 500,000 sq ft distribution warehouse on a prime logistics site in Derby.
Planning permission has already been secured for the warehouse on Infinity Park Derby.
Throughout the construction phase, and when the building is complete, there is the potential to create over 1,300 jobs.
The development will be sustainably built and will target EPC A and BREEAM Excellent certification. In addition to solar panels, LED lighting and air source heat pumps, there are plans for extensive landscaping with 112 trees, wetland habitats, bird boxes and bug hotels to improve the levels of local biodiversity at the site.
Employees on the site will have access to nature trails, cycleways and footpaths to promote sustainable travel.
Construction is due to start early 2024.
Charlie Howard, Managing Director, UK at Logicor, said: “Infinity Park Derby fits perfectly with our strategy of further growing our footprint in areas where we know demand for quality real estate continues to outstrip supply.
