Confidence is starting to return among East Midlands entrepreneurs after a steep fall in the number of businesses set up in the region in April and May, but a sudden hike in the number of local companies with late payments highlights the perilous financial position many are forced to navigate due to current economic challenges.
This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on a monthly analysis of regional data from business intelligence provider Creditsafe.
R3’s figures show there were 2,519 businesses set up in the East Midlands in June, which is a 17.77% increase compared to the 2,139 new businesses registered in May. The June figure is the highest percentage rise in the UK and is also almost one fifth higher (17.66%) than the 2,141 start-ups established twelve months previously in June 2024.
In contrast, however, the number of companies in the region with late payments on their books rose sharply in June to 25,710 from 24,269, which is the highest monthly total for the East Midlands over the past 12 months.
R3 Midlands chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “It is encouraging to see East Midlands entrepreneurs rallying against the effects of a very uncertain economic outlook, which includes tax rises, tariffs and spiralling fuel and energy costs.
“At the same time, however, it is concerning to see the rise in the number of local companies with invoices on their books which are overdue for payment. This is leaving many businesses in an increasingly perilous cashflow position and highlights the importance of taking sound steps to minimise financial exposure at all stages of a company’s lifecycle.
“For those directors with serious cashflow concerns, whether the business is a start-up or more established, R3’s advice is to seek professional help and to do it as soon as possible. The sooner support is sought, the more opportunities there may be to assure a company’s survival and future success.”
Shining a light on the region’s property and construction industry, nominations are OPEN until Friday 15th August for East Midlands Business Link’s 10th annual Bricks Awards.
With 10 categories available to enter, make sure to take this opportunity to showcase outstanding businesses, teams and projects at the prestigious event.
One such category is Deal of the Year, which can be entered here.
Sponsored by Frank Key, the winner of this category will be the deal that has truly pushed the boundaries over the last 12 months – from jobs created to complexity, size and scale. However, that’s not to say the biggest deal will automatically win; the deal which has had most impact in the East Midlands is what we’re looking for. The winning deal will have displayed courage in a tough market to deliver a great outcome for all concerned.
It’s completely free to submit a nomination and making the top three finalists in your category also wins you free tickets to the awards ceremony.
Last year the award was won by heb Surveyors for their deal at The Oaks, Mansfield, with FI Real Estate Management (for their deal at The Quad, Chesterfield) and Freeths (for their deal at the former Boots factory site, Beeston) runners up.
Robert Maxey, partner at heb Surveyors, said: “It was an honour to take home the Deal of the Year award at the East Midlands Bricks Awards 2024, especially because the other nominees in the category were so strong! It was extremely pleasing to see recognition of our team’s efforts and the event provided a great boost to morale.
“Celebrating excellence in our region’s property and construction sector, and offering a great chance to catch up with local professionals, I’d encourage other businesses to get involved with an entry, to showcase your business and the impact it is making in the industry.”
Submit your nominations for Deal of the Year here before entries close on Friday 15th August.Guests network at the East Midlands Bricks Awards
Winners will be revealed at a glittering awards ceremony on Thursday 2nd October,at the Trent Bridge Cricket Ground (4:30pm – 7:30pm) – an evening also offering an opportunity to establish new connections with property and construction professionals from across the region, and hear from keynote speaker Councillor Nadine Peatfield – Leader of Derby City Council, Cabinet Member for City Centre, Regeneration, Strategy and Policy, and Deputy Mayor of the East Midlands.
Other award categories open for entry include: Responsible Business of the Year, Developer of the Year, Sustainable Development of the Year, Commercial Development of the Year, Contractor of the Year, Excellence in Design, Architects of the Year, Most Active Agent, and Residential Development of the Year. All entry forms can be accessed here.
The Overall Winner award will also be presented at the event. This award cannot be entered, with the winner selected from those nominated for the event’s other awards. The Overall Winner of the East Midlands Bricks Awards 2025 will also receive agrand prize of a year of marketing/publicity worth £20,000, with the opportunity to split or gift the marketing to a charity of your choice.
The East Midlands Bricks Awards 2025
What: The East Midlands Bricks Awards 2025
When: Thursday 2nd October (4.30pm – 7.30pm)
Where: Derek Randall Suite,Trent Bridge Cricket Ground, Nottingham
Keynote speaker: Councillor Nadine Peatfield – Leader of Derby City Council, Cabinet Member for City Centre, Regeneration, Strategy and Policy, and Deputy Mayor of the East Midlands
Tickets: Available hereDress code: Standard business attire
Thanks to our sponsors:
Business activity across the East Midlands neared stabilisation during June, according to the latest NatWest Regional Growth Tracker, as the decline in new orders eased.
At 49.7 in June, the headline NatWest East Midlands Business Activity Index picked up from 49.3 in May to signal the slowest decrease in output levels since January. Although companies reported that economic uncertainty and lower new order inflows dampened activity levels, others saw some signs of improving demand conditions.
Nonetheless, a ninth successive monthly drop in new business weighed on hiring decisions, as employment was cut further. The modest decrease in new sales reportedly stemmed from economic uncertainty and the non-renewal of contracts. At the same time, business optimism dipped from May’s recent high and was historically subdued.
On a more positive note, inflationary pressures softened as input costs and output charges rose at weaker rates. Moreover, muted demand conditions led to the weakest increase in selling prices since January 2021.
Lisa Phillips, regional managing director, Midlands and East, commercial mid market, said “Although still signalling a decline in new orders, firms in the East Midlands recorded a near-stabilisation in output in June. A less marked drop in new sales coincided with further expectations of greater activity in the coming year.
“That said, cost pressures relating to the recent hike in the Minimum Wage and National Insurance contributions continued to influence business decisions, as employment fell at a solid pace and business confidence in the outlook was dented.
“On a more positive note, rates of increase in input costs and output charges softened. In fact, selling prices were raised to the smallest extent since the start of 2021 as firms sought to entice customers amid challenging demand conditions.”
Performance in relation to UK
The slight decrease in business activity in the East Midlands contrasted again with an expansion across the UK as a whole.
The pace of decline in new orders eased from May and was the second-slowest since December 2024. Nonetheless, the modest decrease in new sales reportedly stemmed from economic uncertainty and the non-renewal of contracts. Of the 12 monitored UK regions and nations, the East Midlands recorded the second-fastest fall in new orders (slower than only Northern Ireland).
June data signalled further optimism at East Midlands firms regarding the outlook for output in the coming year. Panellists stated that hopes of stronger demand conditions and planned product releases underpinned confidence.
The latest drop in employment extended the current sequence of contraction that began two years ago. The pace of job cutting accelerated and was slightly quicker than the UK average, as firms attributed the fall in headcounts to the non-replacement of voluntary leavers amid cost control measures.
Meanwhile, the pace of cost inflation softened to the weakest since December 2024 and was slower than the UK average.
A new state-of-the-art rail innovation centre is taking shape in Derbyshire, poised to redefine research, development, and training within the UK’s rail sector. Located near Chesterfield, the DRIIVe Rail Innovation Centre will combine advanced research facilities with a comprehensive training ecosystem, enabling rail businesses to stay at the forefront of technology and talent development. Slated for completion in 2026, the centre will provide a mix of digital labs, practical workshops, and dedicated spaces for cutting-edge projects.
The centre will cater to a range of training needs, offering everything from technical qualifications to postgraduate programs. Its collaborative environment will also foster connections between suppliers and businesses developing the next generation of rail solutions.
Supported by local authorities through the Staveley Town Deal, the centre will play a key role in strengthening the region’s rail ecosystem, benefiting both regional suppliers and national projects. The strategic location will enable businesses to engage with a skilled workforce, while the centre’s focus on innovation will position the UK rail industry to compete globally.
This development reflects an ongoing commitment to skills training, technological advancement, and industry collaboration in the railway sector.
East Midlands Airport is revamping its layout to boost capacity for both cargo and passenger operations, responding to increasing demand in both sectors. The airport has initiated changes to its aircraft stand spaces as part of its long-term strategy to support growth across its operations.
The new layout includes optimising the east and west aprons to accommodate more wide-bodied cargo planes, with capacity now doubled to seven stands. Additionally, the central apron will gain four new stands to accommodate the increasing passenger traffic, with a focus on expanding existing infrastructure to meet future needs. This includes updating apron markings, enhancing ground service areas, and improving lighting systems to support increased operations.
As cargo volumes continue to rise and more airlines like SunExpress begin services, the changes are crucial in ensuring the airport can handle both sectors without compromising operational efficiency. By making better use of available space and enhancing airfield functionality, East Midlands aims to remain competitive in both logistics and passenger services.
These developments are designed to future-proof the airport’s position as a vital hub for air cargo while accommodating the growing demands of air travel.
Hortons, the estate agency brand founded in Leicester by local entrepreneur Adam Horton, has expanded into Essex, as it takes a step toward becoming a national brand.
Launched in 2016, Hortons was one of the first brokerages in the UK to pioneer the self-employed estate agency model. Today, the firm operates across more than 30 areas nationwide and continues to grow.
“Our agents are fully invested in the success of every sale because it’s their business too,” Horton explained. “That creates a different level of service and commitment, and it’s a big part of what’s driven our growth.”
The latest expansion sees Hortons launch in Essex, led by new partner Danielle, and follows moves into Sussex, Surrey, and London. Horton says the brand’s growth has been driven not by loud recruitment campaigns, but by building a high-performance culture that attracts ambitious professionals.
“We’ve stayed true to our values throughout,” Horton said. “We’re focused on building a credible brand with productive, high-quality agents who are proud to represent it – and that approach is working.”
Midlands Connect’s flagship scheme, a transformational rail improvement which will benefit 7 million people across the region, has been given the green light.
Midlands Rail Hub is a blueprint for faster, better and more frequent connections across the Midlands.
Two new ‘chords’ and 10+ engineering interventions throughout the region will allow more than 20 million extra seats for passengers and up to 300 extra trains every day.
Chancellor Rachel Reeves highlighted the scheme in her Comprehensive Spending Review in June. Today’s announcement goes beyond this, providing the capital investment needed to make it a reality.
Maria Machancoses, chief executive of Midlands Connect, said: “This is a breakthrough moment for our region, one which will led to a fundamental shift in opportunities and investment, and we will see growth in jobs, housing and in our economy as a direct result.
“We are beyond thrilled to welcome this Government commitment, and it is a testament to the determination of our mayors, leaders, MPs and partners across the region who have championed this scheme.
“Midlands Rail Hub is a once in a generation chance to change our collective future for the better.”
The scale of this announcement is a huge step forward in delivering the overall ambition of Midlands Rail Hub – to boost frequency and capacity to as many places as possible across the region.
It is a vote of confidence in a project which is expected to create nearly 13,000 construction jobs and serve up to 50 stations and destinations across the Midlands and beyond.
Thanks to the work of the co-sponsor partners involved – Midlands Connect, the Department for Transport, Network Rail and West Midlands Rail Executive, it will progress to Full Business Case completion in 2028, with parts of the scheme entering into service in the early 2030s.
Harris Lamb’s Commercial Agency team has hailed the East Midlands industrial market one of the most resilient and dynamic in the UK, with demand for stock within the region consistently outstripping supply.
Competition for space in Nottingham is particularly fierce, according to Scott Osborne, director, who said that the team was entering Q3 of 2025 with a significant need for new stock to meet the unrelenting demand from occupiers.
“The East Midlands – and Nottingham in particular – continues to show real strength, with enquiry levels remaining robust and healthy. Across the board, we are experiencing a steady flow of requirements from both local and national occupiers, with demand particularly strong for modern, well-specified units in strategic locations,” said Scott.
“Despite broader economic uncertainties, the appetite for industrial and logistics space across the region has remained remarkably resilient, and we are consistently working with occupiers seeking space from sub-5,000 sq ft units right up to large-scale distribution facilities, with location, connectivity, and specification being key drivers of decision-making.
“The biggest challenge we face is the volume of stock needed to fulfil the high enquiry levels we’re receiving, and we are actively seeking new instructions throughout the East Midlands to meet occupier demand.
“My colleagues within the West Midlands are seeing an increase in speculative high-specification logistics facilities to satisfy the need in the region, and we need more of that here – from developers looking to speculatively build, to landlords with upcoming voids or refurbishment projects, we are keen to hear from anyone with industrial space coming to market.”
Scott said that the forecast for the second half of 2025 was extremely positive.
“In the nine months since I joined Harris Lamb, I’ve had the opportunity to immerse myself in what I acknowledge as one of the UK’s most dynamic and resilient commercial property sectors, and have contributed to a number of exciting instructions and supported a wide range of clients with their industrial property needs across the region.
“It’s an exciting time to be part of this sector, and I’m looking forward to further strengthening our presence across Nottingham and the wider East Midlands, helping clients navigate a fast-moving market with confidence and clarity.”
A partnership between local businesses, community organisations, and civic leaders in Derby is transforming the city centre into a safer, more vibrant hub, particularly after dark. This collaborative effort has led to the city earning the esteemed Purple Flag accreditation, recognising high standards in managing the night-time economy.
The initiative involves a variety of stakeholders, including Marketing Derby, Derby’s Business Improvement Districts (BIDs), the University of Derby, Derbion, Derbyshire Police, Vaillant, and Derby Museums. Their combined work focuses on improving safety, accessibility, and cultural appeal in the evenings. The University of Derby has spearheaded student safety efforts, while Derbion has provided late-night shopping and events. The BIDs have ensured visible policing and coordinated city centre management.
Vaillant’s involvement in community initiatives highlights the importance of a united approach to civic responsibility. The collaborative work not only strengthens Derby’s night-time economy but also fosters a more inclusive and engaged city.
These efforts reflect a commitment to building a city where both residents and visitors feel welcome and secure, with the aim of further enhancing the evening experience for all.
Funding for a significant upgrade of the A46 Newark bypass will ‘end the daily grind’ for local businesses and the economy.
The stretch of A46 between the Farndon Junction, to the west of Newark-on-Trent, and the A1 to the east of Newark-on-Trent, is the last remaining stretch of single carriageway between the M1 and A1 and consequently queuing traffic is a regular occurrence, often impacting journey time reliability.
Midlands Connect’s research has previously found traffic speeds are frequently below 20 mph around Newark resulting in unreliable journey planning, rising export transport costs and business unproductivity.
Government’s announcement to upgrade this section will reduce journey times and ease congestion on this important route.
Commenting on the announcement of funding for Newark bypass, the CEO of Midlands Connect Maria Machancoses, said: “Midlands Connect has long called Newark bypass the last piece of the puzzle – supporting housing, local jobs and vital connectivity to the Grimsby and Humber ports.
“We are over the moon that funding has been allocated for the scheme and it’s something we have continually advocated for as a critical project for Midlands.
“This announcement is the beginning of the end of the daily grind for commuters and residents who have endured sitting in tailbacks, making their lives a nightmare. We look forward to working with partners to deliver this regionally significant project.”
The scheme will:
Improve traffic signals at Farndon roundabout to achieve smoother traffic flows in peak hours.
Provide a new dual-carriageway bridge over the A1.
Enlarge and partially signal Winthorpe roundabout to reduce congestion and improve journey reliability.
Create a new grade separated junction at the Cattle Market roundabout.
The main issue affecting the route is traffic congestion. The A46 Newark bypass is a heavily trafficked route, with an average of 15,440 and 16,290 vehicle passing through the corridor northbound and southbound respectively, per day.
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