East Midlands businesses share what they want from next Government ahead of party conferences
Long-term strategies for energy and industry are top of the wishlist for the region’s businesses ahead of the next General Election, according to a new study by East Midlands Chamber.
Speeding up the rollout of full-fibre broadband and 5G connectivity, greater investment in road and rail infrastructure projects, and better incentives for upskilling and reskilling people followed closely behind as priorities.
The chamber of commerce for Derbyshire, Leicestershire and Nottinghamshire asked businesses to provide views on 20 policy asks in its latest Quarterly Economic Survey, with the development of a long-term energy strategy for the UK ranking as being the most important.
Results were compiled to establish a list of top priorities for businesses, which has been published ahead of the upcoming Labour and Conservative party conferences in October.
Chris Hobson, director of policy and insight at East Midlands Chamber, said: “With a General Election drawing closer on the horizon, it’s hugely important for the voice of businesses to be heard by the next Government in order to drive sustainable economic growth that delivers jobs and prosperity.
“After many years of policy flip-flopping, economic shocks and the resulting uncertainty this has created for businesses, long-term planning appears to be front and centre of minds.
“A long-term energy strategy is understandably top of the list given the huge rise in utilities costs for firms and households over the past two years combined with the opportunities business see to deliver future solutions in this space.
“It’s closely followed by a comprehensive industrial strategy that finally addresses the UK’s perennial productivity problem – which is crucial to growing output, creating jobs and bringing down inflation.
“In our regional economic blueprint, A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, launched in Westminster last year, we highlighted the importance of infrastructure – that is, both digital and transport – as one of ‘four Is’ to spearheading growth.
“Businesses are telling us they want to see real improvements across broadband and 5G connectivity, which are both crucial to 21st century working, while investing in our roads and rail is crucial to their future success – an important consideration at a time Government is deliberating over the future of HS2 and our region continues to be bottom of the pile for public transport investment.
“We have also spoken in our manifesto about ‘getting the basics right’ and ‘growing our competitiveness the right way’, and both these themes are reflected in our survey as firms tell us they want the broken business rates to be made fit for purpose and better incentives to support the net zero agenda.”
Policy priorities for East Midlands businesses
The responses on policy priorities were gathered by East Midlands Chamber in August and September 2023 as part of its Quarterly Economic Survey, in which 296 businesses across Derbyshire, Leicestershire and Nottinghamshire took part.
They were presented with a list of 20 policy asks of Government and asked to score them based on importance to their organisation, providing additional comments as to why. The top 10 priority areas, in order, were:
· The development of a long-term Energy Strategy for the UK
· The development of a long-term Industrial Strategy for the UK
· Speeding up the rollout of full-fibre broadband
· Greater investment in local infrastructure projects (road, rail)
· More flexible/generous incentives for investment in staff development/reskilling (including application of Apprenticeship Levy)
· Greater investment in major infrastructure projects (road, rail)
· Speeding up the rollout of 5G technology
· Comprehensive reform of the business rates system
· Greater investment in integrated public transport networks
· More flexible/generous incentives for developments associated with the green agenda.
Property developer snaps up 54-acre industrial & logistics site in Daventry
Property developer Godwin Developments has exchanged contracts with a consortium of landowners on a 54-acre site in Daventry, which it intends to transform into a high-quality, sustainability-led employment hub.
The site – known as ‘South East Gateway’ – benefits from an existing allocation of 32 acres in the Daventry Local Plan for industrial, logistics and business uses. It is well positioned off the A45 London Road at the southeastern entry point into the town, next to similar uses, and offers quick access to the M1 Junction 16 which lies only 6 miles away.
Marcus Phayer, development director, industrial and logistics, at Godwin Developments, said: “We are really pleased to have secured this key allocated employment site in Daventry. With its proximity to the town centre and the M1 motorway, as well as the Grade A specification we have in mind, we are certain it would attract strong interest from potential occupiers.
“Our proactive and collaborative approach, combined with our proven track record, has enabled us to conclude this deal despite the current turbulent market conditions.
“We are keen to work closely with West Northamptonshire Council and local stakeholders, and are targeting a planning submission for circa 500,000 square feet of employment space in the first half of 2024.
“We also continue to seek opportunities in well-established distribution corridors, close to major population centres and transport networks – whether they are ‘oven ready’, allocated for employment, or strategic land promotions.”
Godwin Developments was advised by Fisher German and Irwin Mitchell, with Howkins and Harrisons acting as the disposing land agent. Retained advisors will be Fisher German, CBRE, and Howkins and Harrison.
Merger sees East Midlands legal practices join forces
Two long-standing East Midlands solicitor firms, Nottingham-based Rotheras Solicitors LLP and Leicester-based Bray & Bray Solicitors, have merged, becoming Rothera Bray LLP.
The merger will entail all existing partners and staff of Bray & Bray and Rotheras Solicitors, joining together to create a 200-strong team with 27 partners, and all clients of both firms will come under the new LLP.
Employees will continue to operate from all existing offices with an enhanced service offering across a greater geographical range.
Christina Yardley, CEO at Rothera Bray LLP, said: “Rothera Bray is a merger of two thriving firms coming together as one, committed to our people focused approach as the firm that everyone can grow with.
“As well as expanding our geographical reach and the breadth of expertise we can offer to clients we are proud to become one of the top 200 UK law firms by revenue for the first time.”
Tim Gladdle, senior partner at Rothera Bray LLP, said: “The merger is an excellent opportunity for us to expand the expertise within our teams whilst growing and developing our offering to clients across the East Midlands and nationally.
“Both of our firms have a long history in Leicester, Nottingham, and Derby, and we have found a natural symmetry in our goal to serve our clients with integrity and excellence.
“We look forward to aligning our approach and values in a merger that will strengthen our market offering which will benefit from new technologies that will streamline processes and infrastructure, adding further value to our client experience.”
Productivity growth fourth fastest in East Midlands
The East Midlands has seen the fourth fastest rate of growth in productivity in the UK, coming after Northern Ireland, Wales and the South East, according to new analysis by PwC UK.
The research shows that the East Midlands demonstrated the third biggest improvement between 2011 and 2021, when compared to equivalent regions in the UK, improving by 6.7%.
The Tracker demonstrates that the regions with some of the highest productivity growth rates between 2011 and 2021, including the East Midlands, have benefited from some of the largest amounts of investment as measured by Gross Fixed Capital Formation as a share of GVA in 2020.
If such regions continue prioritising investment and are successful in translating this funding into improved efficiency, they are likely to see significant boosts to their long-term productivity rates.
The report follows the latest edition of PwC’s Good Growth for Cities Index, which found that six of the seven East Midlands cities included were out-performing the UK average on delivering against the public’s priority on transport, which measures the average commuting time to work, and on work-life balance and hybrid working following the pandemic.
The new findings come as part of PwC’s look into productivity across the UK, which analyses productivity progress, with a focus on the key sectors that contribute to UK growth including manufacturing, construction, and services.
Alex Hudson, market senior partner for PwC East Midlands, said: “It’s pleasing to see the East Midlands productivity experiencing positive growth. The tracker underlines the close relationship between strong productivity growth, talent availability and high skills levels.
“Skills is a key area of growth for our region, with some fantastic universities on our doorsteps and access to talent across a variety of sectors including manufacturing, technology and ESG.
“Our region continues to attract investment and will benefit further from the investment zones that were announced earlier this year, where we will receive £80m of support over five years.
“PwC is committed to growing in the East Midlands, using our convening power to bring together businesses and government to make positive changes for the region. Working collaboratively and focussing on some key areas for growth, such as the skills agenda, will lead to improvement across the board for the region.”
Derbyshire care home enhancement works complete
Three landmark care homes in Derbyshire have finished pivotal works this summer to improve facilities for residents.
Led by Midlands-based contractor, G F Tomlinson, and delivered for Derbyshire County Council through the Pagabo Refit and Refurbishment Framework, the works have included a range of improvements to bring the ageing buildings up to an approved standard to enhance the experience for residents.
The three schemes include £3.1m works to Briar Close House Care Home in Borrowash, £2.9m works to New Bassett House Care Home in Shirebrook and £2.7m works to Rowthorne Care Home in Swanwick, all of which started in summer 2021 and are due to be finished by autumn 2023.
Derbyshire County Council commissioned the improvements as part of a scheme of major refurbishment works to council-run care homes across Derbyshire.
Improvement upgrades included asbestos removal, structural roof repairs, new insulation, partition alterations, new ceilings, plaster works, repairs to doors and ironmongery together with the installation of new sprinkler and fire safety systems and new kitchen facilities. The schemes were finished off externally with hard and soft landscaping which included new planters, pergolas, and decorative garden areas for residents to enjoy.
The landscape improvements have ensured that all outdoor spaces are safe and accessible, with wider paths and raised beds to enable residents to tend to and enjoy new planting areas. The outside areas have also been designed to be Dementia friendly – and include a sensory garden with lights, wind chimes and fragrant flowers and plants specifically to stimulate participation.
Civils works involved the construction of new footpaths and roadways to improve circulation and make the homes easily accessible to care staff and visitors. New drainage has also been installed throughout the sites.
As part of their commitment to the environment and supporting local wildlife, G F Tomlinson installed hedgehog highways at each care home.
Each project achieved scores ranging from 38 to 41 ‘Very Good’ on the National Considerate Constructors scheme, in recognition of the consideration the contractor gave to residents, staff and nearby neighbours during the construction period.
Giving back to the local communities, G F Tomlinson provided a range of social value opportunities at each care home. At Briar Close, the team provided 24 days of work experience to students from local schools and colleges. Other initiatives included Christmas gifts to local residents and furniture replacement following the handover of each area.
At Rowthorne, a new washing machine and temporary kitchen was fitted, local litter picks and hedge cutting took place and 15 days of work experience for local young people was provided. The company also donated a defibrillator to the Rowthorne and New Bassett Care homes on completion of the schemes.
At New Bassett Care Home, old wardrobes and timber pergolas were disposed of, and the care home entrance slabs replaced, along with moving furniture back in after works and re-fitting curtains, all of which were not part of the original works package.
Chris Flint, Managing Director at G F Tomlinson, said: “Delivering these pivotal works for three main care homes in the county has been a tremendous honour and we’re proud that the improvements will ensure the preservation of these much-needed residential care homes as part of the local social care provision.
“Despite delays due to Covid-19 vaccination requirements, as we approach completion, we’re looking forward to residents moving back into the new and enhanced homes which will significantly improve their quality of living.
“We’d like to say a big thank you to our different site teams for delivering exceptional quality and going above and beyond to deliver social value opportunities in the local communities.”
Scott Rice, Project Manager, Concertus Derbyshire Limited, said: “Projects like this make a real difference to the lives of our most vulnerable elderly people. At all times, GFT acknowledged they were working in what are in reality people’s homes. The homes remained occupied during the works which took place over a number of phases.
“GFT worked closely alongside the home management in order to minimise any disruption – the site teams and operatives have been recognised by the home managers for their consideration towards the residents.
“Covid threw us a curve ball, and throughout the project the nature of working in phases on old buildings led to many unforeseeable issues arising which were dealt with smoothly and efficiently.
“We have been kept appraised of progress and changes at all stages which has resulted in remarkable high-quality improvements to what were very tired and outdated properties.”
Elliott Talbot, Framework Manager for Pagabo’s Refit and Refurbishment Framework, said: “We’re delighted to see these care home improvements reaching completion thanks to the great work of G F Tomlinson.
“Our Refit and Refurbishment Framework allowed Derbyshire County Council to find the most suited contractor for this project and streamlined the whole procurement process. A massive well done to everyone who made this scheme a reality.”
East Midlands sees second-biggest fall in high-reward R&D business spending in UK
East Midlands business spending on the most valuable forms of innovation has fallen more than almost any other region of the UK, according to analysis of new Government statistics by Ryan, a global tax services and software provider.
Expenditure on high-reward research and development (R&D) fell in the region by 4.4% from £1.94 billion in 2020/21 to £1.86 billion in 2021/22. Only the North East had a bigger fall in spending.
The data is captured by HMRC and is based on claims made for R&D tax relief, which rewards businesses for qualifying activity.
The number of tax relief claims for R&D projects made by East Midlands businesses also shrank, falling by 1.6% to 5,790 claims. In total, East Midlands businesses claimed £335 million in R&D tax relief, with an average claim value of £57,858.
Overall, UK-wide innovation spending that qualifies for tax relief rose 8% to £44.1bn in 2021/22. However, the number of first-time claimants has fallen for the second year running.
R&D projects carried out by UK companies introduce new products and services to the marketplace, which play a critical role in economic growth as they attract investment, boost exports and lead to the creation of more skilled jobs.
R&D tax relief was introduced in 2000 to encourage and reward innovation and results in either a reduction in a limited company’s corporation tax bill or a cash lump sum for companies seeking to resolve a scientific or technological uncertainty.
Nigel Holmes, director, research and development at Ryan, said: “While business spending on R&D has bounced back quickly from the pandemic, the East Midlands lags behind most of the country. It is also the only region to see both a fall in spending and a fall in claims.
“Unlocking innovation plays a big role in driving economic growth and employment, and so it is important that business leaders do what they can to encourage research and development in their region.”
Derby businesses to hear about crime-fighting plans at Safer Business Action Day
Business owners, city officials and police officers in Derby will join forces to fight crime including shoplifting and vandalism during the city’s first-ever Safer Business Action Day.
The Derbyshire Business Crime Reduction Partnership (BCRP) will bring together partners from Derby’s St Peters Quarter and Cathedral Quarter Business Improvement Districts (BIDs), Derby City Council’s enforcement and support services team, and Derbyshire Constabulary at Derby QUAD on Tuesday 17 October from 10am.
They will meet with local businesses to provide a range of crime prevention information, including raising awareness of local issues, conduct joint enforcement patrols and carry out targeted intervention of offenders.
Derbyshire BCRP is run by East Midlands Chamber in partnership with the Derbyshire Police and Crime Commissioner Angelique Foster. Membership is currently funded by the St Peters Quarter and Cathedral Quarter BIDs, and its 300-plus members can access Disc, an online crime information-sharing system that connects businesses with local police forces.
Safer Business Action Day – part of a national initiative that aims to deliver a focused operation in engagement, intelligence, prevention and enforcement – takes place as the British Retail Consortium warns retail crime is soaring across the country, and Office for National Statistics data shows the number of shoplifting incidents reported to police increased by 24% in the year to March 2023.
Jackie Roberts, project manager for Derbyshire BCRP, said: “With the latest figures highlighting how shoplifting is becoming a rising concern for high street businesses and their employees, it’s never been more important for us to work together on these issues.
“The successful prevention of crime requires contributions from a wide range of people on the ground, including businesses, BIDs, council teams that oversee the city centre and police officers.
“We are therefore delighted to be hosting our first-ever Safer Business Action Day to raise awareness about our presence, highlight local issues and work together on strategies that will ultimately make our high streets safer and more resilient.”
Brad Worley, BID manager for the Cathedral Quarter and St Peters Quarter BIDs, said: “Safer Business Action Day is a critical initiative that brings together a diverse group of stakeholders, recognising that the successful prevention of crime demands collective efforts from businesses, city partners and law enforcement.
“In a time when retail crime is on the rise nationwide, it’s imperative for us to collaborate, raise awareness and strategise together to safeguard our high streets and enhance their resilience.”
Angelique Foster, Derbyshire Police and Crime Commissioner, said: “Economic prosperity for Derbyshire and Derby city is reliant on healthy profitable organisations. We must do all we can to help our hard-working Derbyshire businesses succeed and that is why I am fully supportive of this type of initiative.
“I am also working with the police and other partners to find the most effective ways we can help to prevent business crime and catch criminals. Like Derbyshire residents, our businesses expect and deserve a strong local policing service to protect them, and I will work with them to ensure this service meets their needs.”
Business owners and managers are invited to also meet with Angelique and Councillor Hardyal Dhindsa, cabinet member for communities and street pride at Derby City Council, to hear of plans for the city. The event is open to all businesses.
Market Harborough Building Society appoints new chief engagement officer
Market Harborough Building Society (MHBS) has appointed Lesley Vernon to the newly created executive position of chief engagement officer.
In her new role, Lesley will take ownership for bringing together the Society’s members, community partners and colleagues and engaging them in delivery of its ambitious Thrive! Agenda, focused on growing its savings and mortgage membership, investing in essential community projects, and becoming an employer of choice in the region.
Since the launch of the Thrive Agenda in January this year, the Society has already invested £2m in a unique initiative to purchase six homes to enable affordable housing for those who need it most, and has donated over £100k to support local food banks to support people impacted by rising living costs. The Society also recently revealed its Charity of the Year, selected by its members, Cransley Hospice.
Iain Kirkpatrick, Chief Executive at MHBS, said: “I’m personally delighted to welcome Lesley to MHBS in this very purposefully created role. We’ve made great progress with our Thrive Agenda this year, investing in some very worthwhile local causes.
“I’m genuinely excited by what we can achieve by really connecting our members, community partners and colleagues for the benefit of each other, after all it goes right back to the reason building societies were first introduced.”
Commenting on her role Lesley said: “I’m thrilled to be joining the Society in this new role and at such an exciting time. It’s a fantastic opportunity to bring together everyone in the MHBS family – our members, community partners and colleagues – in a truly unique way, and to unite behind the common goal of improving the lives of everyone in our communities.”
Lesley has over 25 years’ experience in financial services and joins MHBS from The Nottingham Building Society where she was most recently head of customer. She has held senior roles in other financial institutions, such as Santander and Alliance & Leicester, and is Chair of Trustees for the Stonebridge City Farm charity.
Business confidence increases in the East Midlands
Business confidence in the East Midlands rose eight points during September to 33%, making it one of only three regions to report an incline in confidence according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the East Midlands reported higher confidence in their own business prospects month-on-month, up 14 points at 38%. When taken alongside their optimism in the economy, up one point to 28%, this gives a headline confidence reading of 33%.
East Midlands businesses identified their top target areas for growth in the next six months as investing in their teams 41%, evolving their offer 40% and investing in new technology 40%. The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 5% of businesses in the region expect to increase staff levels over the next year, down 22 points on last month.
Overall UK business confidence fell five points in September from 41% to 36%. Firms’ outlook on their own trading prospects remained strong at 41% despite a five-point drop on last month, and their optimism in the UK economy also remained robust at 30%, down by seven points on August’s reading.
Businesses’ hiring intentions remained upbeat with 26% of firms reporting plans to increase their staff levels over the next year, down five points on last month.
Companies in London reported the highest levels of business confidence for the second consecutive month at 44% (down eight points month-on-month). Firms in Yorkshire reported the second highest reading at 40% (up eight points month-on-month), followed by those in the North West at 38% (up four points month on month).
The fall in business confidence this month centred around the retail and services sectors, following strong sentiment in August. Retail confidence fell to 32% (down 12 points) dragged down in particular by trading prospects, while services confidence declined to 36% (down eight points). Construction confidence also fell to 36% (down eight points). However, manufacturing was stronger, with confidence rising to a three month high of 36% (up six points).
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s fantastic to see that overall business confidence in the East Midlands has risen, it’s a testament to the region’s resilience given it’s one of just three UK regions to see an increase in confidence as we head into the colder months.
“While hiring and staff retention remains a challenge for businesses far and wide, it’s encouraging that the region’s firms still plan to recruit and invest in their people. When it comes to making the most of wider growth opportunities, keeping a keen eye on working capital will be key, and we’ll remain by their side to provide the support they need to boost their potential.”
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “While the gains in business confidence we saw in August have not been maintained, it’s important to see the wider trend clearly reflected in the data which paints a very different picture to this time 12 months ago, when the economy was in significant difficulties.
“Despite some month-to-month movements, if you look at the year in quarterly time periods, confidence has steadily risen from 20% in the first quarter, 26% in the second and now an average of 27% in the third.
“Although the economic environment remains uncertain with inflation and interest rate pressures playing their part, the recent decision by the Bank of England to leave interest rates unchanged is likely to help businesses feel more upbeat about the future, which may underpin confidence in the last three months of the year.”
New contract means all UK and Australian nuclear subs will have Rolls-Royce power
Nuclear reactors made at the Rolls-Royce site in Derby UK will power all of next nuclear attack submarines to be built under the trilateral AUKUS programme.
Contracts worth £4bn were signed over the weekend involving Rolls-Royce, BAE Systems, and Babcock Marine represents a significant milestone for both the UK and the trilateral project as a whole, in the lead up to build the future class of nuclear-powered attack submarines, known as SSN-AUKUS.
The contracts will progress the programme through the design, prototyping and purchase of main long lead components for the first UK submarines, allowing construction to commence in the coming years and ensure the stability and resilience of our domestic supply chain.
Building on more than 60 years of British expertise in designing, building and operating nuclear-powered submarines, the D2L2 contracts will support thousands of highly skilled jobs in the UK – a clear demonstration of how the AUKUS programme supports the Prime Minister’s priority to grow the economy.
Alongside the design development and long-lead procurement, infrastructure at the submarine shipyard in Barrow-in-Furness and the nuclear reactor manufacturing site in Raynesway, Derby will be developed and expanded where needed to meet the requirement of the future submarine build programme.
The aim is to deliver the first UK submarines into service in the late 2030s to replace the current Astute-Class vessels, and the first Australian submarines will follow in the early 2040s. They will be the largest, most advanced and most powerful attack submarines ever operated by the Royal Navy, combining world-leading sensors, design and weaponry in one vessel.
Construction of the UK’s submarines will take place principally in Barrow-in-Furness, while Australia will work over the next decade to build up its submarine industrial base, and will build its submarines in Australia with Rolls-Royce supplying the nuclear reactors for all UK and Australian boats.
