Middle East conflict impacts half of UK firms, says BCC
Half of the UK’s businesses now say they have been impacted by the conflict in the Middle East, almost double the proportion who said they were affected in late October last year.
The main impacts cited by businesses are increased costs, shipping disruption and delays, and uncertainty on oil prices, and some firms report cancelling work in the Middle East because of the conflict.
The findings, from the BCC’s Insights Unit, also show a rise in impact since February 2024, when firms were asked specifically about Red Sea disruption, and two-fifths (37%) were affected.
Shipping container rates have fluctuated significantly since the current Middle East conflict began in October 2023. The cost of shipping a 40ft container from Shanghai to Rotterdam has risen from just over $1,000 then to just under $4,000 now, having peaked at over $8,000 in July.
William Bain, Head of Trade Policy at the BCC, said: “Alongside the grim human impact of the ongoing conflict in the Middle East, the situation continues to have economic reverberations around the world.
“The effect on businesses here in the UK has continued to ratchet up the longer the fighting has continued.
“If the current situation persists, then it becomes more likely that the cost pressures will build further.
“Certain sectors of the economy are obviously more exposed to this than others. But with the on-going war in Ukraine, wider geopolitical uncertainty, and the prospect of tariffs looming, the UK needs to think carefully about its trade strategy.
“We need to seek out new deals with like-minded nations on critical raw materials, components and minerals to ensure their supply. And we must lean more heavily into the digital trade revolution to reduce costs and make exporting and importing simpler.
“The use of economic diplomacy can also not be underestimated. The UK has a powerful brand and distinctive reputation around the world which we must harness to greater positive effect.
“Overseas trade is vital to growing our economy. We must do everything we can to see businesses through these tough times, and then set a laser-sharp focus on expanding exports for the future.”
Keepmoat prepares for work on £65m project in Grimsby
Work on a major housing development in North East Lincolnshire at the former Western School site is a step closer this week, with the completion of the land agreement with Doncaster-based housebuilder Keepmoat.
The housebuilder will regenerate the 22.9 acre brownfield site involving a £65m investment to create aboty318 properties, including affordable housing and retirement dwellings.
Ben Hindley, Regional Land and Partnerships Director at the company, said: “It’s always an exciting time at Keepmoat when we’re able to commence construction on a new development, particularly when it leads to the provision of affordable housing to people who really need it.
“We’re working closely with North East Lincolnshire Council and Ongo to develop the area and provide local people with a great place to live and work. The site is a great example of the public and private sectors working together, unlocking funding being obtained by the authority enabling the Council to obtain outline planning permission and complete key infrastructure. We look forward to obtaining planning permission and making a start on site.”
The former school site was closed more than a decade ago due to falling numbers and an over-provision of places, with pupils reallocated at the time to other schools in the area.
Funding to progress the site was obtained through the Homes England Accelerated Construction Programme, enabling North East Lincolnshire Council to prepare the site and complete key utility, site preparation and access works, as well as developing and securing the outline planning permission a few years ago.
This was followed by Keepmoat designing the transformation of the site and securing planning permission earlier this year, subject to the signing of a Section 106 agreement.
2,000 farmers plan mass lobby of Government over farm tax changes
They say they want to bring to life the impacts of this policy change on their farms, on British farming and on food supply, and to urge their MPs to ask the Chancellor to reconsider the new measures.
The NFU says that since the Autumn Budget was announced, it has been working flat out to make the case to Treasury and wider government that the decision it has made to change Agriculture Property Relief and Business Property Relief must be overturned, and to corral public and media support for farmers.
NFU President Tom Bradshaw said: “We believe the Treasury has built this policy on the wrong data, and the changes it proposes will not deliver what it wants to achieve. It will not protect family farms, it will destroy them. The shock and anger among members has been acute. And it’s been heard.”
Within just four days of its launch, a campaign to stop the family farm tax won the support of more than 160,000 people, and millions more are expressing their concern across social media.
The NFU says there have been more than 2,500 stories across national and regional press, and broadcasters have carried the story strongly.
Mr Bradshaw added: “Behind the scenes, we’ve represented members’ shock, anger and fear to ministers, along with the evidence of why this policy doesn’t work. Be in no doubt that ministers and MPs know how furious and betrayed people feel.”
New ‘cleanship’ vessels make their first calls at Hull
Shipping company Ahlmark Lines AB has invested in a pair of ships with a smaller-than-normal environmental impact, and they have made their maiden voyages to the Port of Hull.
The M/V Mangen and M/V Unden were built by Royal Bodewes in the Netherlands earlier this year. They are general cargo 5050 Eco Trader ice class 1A mini bulkers, both with a gross tonnage of 2,999 tons. Both vessels have a CleanShip notation, meaning the vessels have been designed to control and limit emissions. The vessels burn less fuel compared to older vessels and generate fewer CO2 emissions. They have a new efficient bow form which allows for smoother sailings and LED lighting is used throughout as a further energy saving measure.
Andrew Dawes, Director of the Humber ports said: “It’s heartening to see a company who were one of the first to move Swedish timber through Hull, and have been here for over 40 years, invest significantly in greener ships.
“As we move to enable the UK’s clean energy transition, we fully support our neighbours in getting ready for tomorrow by acting today in their investments to help decarbonise the maritime sector with new technology.”
Danny Carmichael MD Ahlmark Lines (UK) Ltd said: “This is a very exciting time for the Ahlmark Group in taking delivery of these fine vessels. It demonstrates the commitment being made to our customers by ensuring our tonnage is reliably up to the task, environmentally sound and performing efficiently to meet their requirements.”
Ahlmark Shipping (UK) Ltd operates a terminal in King George Dock at the Port of Hull handling about 300,000 tonnes of goods every year. The company offers stevedoring, warehousing, customs clearance and ships agency services. The two new vessels were designed to supplement Ahlmark Lines’ liner services between ports along the east coast of Sweden and the UK.
The company, one of the first shipping lines to move Swedish timber through Hull, sees the company ship 25% of Swedish timber to the UK, making the east coast port one of the largest for sawn timber imports.
Chancellor aims to increase investment by creating ‘pension megafunds’
The government is exploring the possibility of creating ‘pension megafunds’ as part of the biggest set of pension reforms in decades.
It says the move will unlock billions of pounds the could be invested in new businesses and infrastructure projects.
Chancellor Rachel Reeves will use her first Mansion House speech in the role to announce bold action to tackle the fragmented pensions landscape, deliver investment and drive economic growth.
She intends to introduce the reforms through a new Pension Schemes Bill next year, will create the new funds by consolidating defined contribution schemes and pooling assets from the 86 separate Local Government Pension Scheme authorities.
These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential, offering to deliver up to £80 billion of investment for new businesses and critical infrastructure while boosting defined contribution savers’ pension pots.
She said: “Last month’s Budget fixed the foundations to restore economic stability and put our public services on a firmer footing. Now we’re going for growth.
That starts with the biggest set of reforms to the pensions market in decades to unlock tens of billions of pounds of investment in business and infrastructure, boost people’s savings in retirement and drive economic growth so we can make every part of Britain better off.
The UK pension system is one of the largest in the world – with the Local Government Pension Scheme and Defined Contribution market set to manage £1.3 trillion in assets by the end of the decade. However, the pension landscape is fragmented and lacks the size needed to invest in exciting new businesses or expensive projects like infrastructure. The government’s analysis – published today in the interim report of the Pensions Investment Review at Mansion House – shows that pension funds begin to return much greater productive investment levels once the size of assets they manage reaches between £25-50 billion. At this point they are better placed to invest in a wider range of assets, such as exciting new businesses and expensive infrastructure projects. Even larger pensions funds of greater than £50 billion in assets can harness further benefits including the ability to invest directly in large scale projects such as infrastructure at lower cost.Train operator names new director of customer service
Train operator Northern has appointed Alex Hornby as its commercial and customer director.
Starting next week, he will lead the train operator’s sales, marketing, commercial development and customer experience functions.
He moves to the role from McGill’s, the UK’s largest privately-owned bus operator, where he was group MD. .has held a number of senior roles in the bus industry, including that of managing director and then chief executive of Transdev Blazefield between 2015 and 2023. He was also commercial director of trentbarton from 2010 to 2015.
Tricia Williams, MD of Northern, said: “Alex has a brilliant track record of creating customer-centric services and products that grow demand. His experience in public transport, mostly in the commercial bus sector, will be a great addition to our director group and we’re thrilled to have him on-board.”
Mr Hornby said: “This is an incredible role and I’m excited to get started. With the support of colleagues across the network and the potential for growth in the region, I know we have the ability to power economic growth.
“We can also be a valued asset to our customers, supporting their communities and helping to generate prosperity across the North of England.”
Hornby, who was born in Liverpool and now lives in Harrogate, studied transport management at Aston University in Birmingham.
Northern is the second largest train operator in the UK, with nearly 2,500 services a day to more than 500 stations across the North of England.
Council stands up for employers in the adult care sector
Standing up for employers in the adult care sector Lincolnshire Councty Council has written to the Government asking it to shield adult care providers and colleagues in the voluntary sector from the impact of the budget’s tax rises.
The Lincolnshire Care Association and Lincolnshire Voluntary Engagement Team have lobbied the council to highlight the consequences of the rise in the national living wage and employers’ NI contributions on services, the county council is calling on government to rethink its plans to avoid putting providers under additional financial pressure.
Council Leader Martin Hill said it was understandable that adult care providers and their colleagues in the voluntary sector felt let down by the government. “We share their serious concerns about the impact of the changes announced in the budget. These will create huge challenges for the sector, put added pressure on council budgets at an already difficult time, and likely have knock-on effects on NHS services.”
He said that although there had been indications that public sector organisations likethe NHS, would be reimbursed for the extra staffing costs, most care providers were privately run and wouldn’t receive any direct government support. “Many care providers already struggle to balance the books, and these changes will bring extra unwanted pressure,” he said.
“The council greatly values the work of social care providers and has a duty to take into account the actual cost of providing care when setting its rates. However, we do need to work within our budget. Although the government has announced some extra funding for social care, they should really step up and do more to protect providers.
“We are currently making a detailed assessment of the impact the changes will have on our adult care costs. We will need to discuss with providers how best to tackle the challenges this presents, including how to minimise any resulting disruption to the services more than 10,000 vulnerable residents rely on.
“To hit care providers, and other small businesses, with extra taxes is extremely short-sighted. At a time when the care sector is looking to government for a more stable and sustainable model for the future, it has instead added further pressure to an already struggling system. So, we are calling on the government to do the right thing and protect these vital services.”
Government promises permanent cut to high street business rates
High street businesses across the UK will benefit from permanent cuts to business rates for retail, hospitality and leisure properties for the first time from 2026, following the introduction of legislation in Parliament.
The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses.
Until then, 250,000 retail, hospitality and leisure properties will receive 40% relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system. This support is alongside the Budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties from inflationary increases. Taken together, this is a package worth over £1.6 billion in 2025-26.
To further support retailers, the government is also introducing legislation to increase the Employment Allowance from £5,000 to £10,500, meaning 865,000 employers will not pay employer national insurance next year.
James Murray, Exchequer Secretary to the Treasury, saidt: “For too long the business rates system has been working against our high streets.
“Today is a major step towards our new system that will support retail, hospitality and leisure businesses on our high streets to succeed. This Bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.”
The government also plans to increase the Employment Allowance – discounting National Insurance bills – from £5,000 to £10,500 from April next year.
The increase to the Employment Allowance will mean that 865,000 employers will not pay any employer National Insurance next year, and 250,000 employers will pay less National Insurance than they are now.
It will allow firms to employ up to four National Living Wage workers full time without paying employer National Insurance on their wages.
The eligibility of the allowance will also be expanded to include all eligible employers, rather than just those with a wage bill of less that £100,000 a year.
Craig Beaumont, Federation of Small Businesses Executive Director, said: “We are pleased to see James Murray and the whole Treasury team take this important step forward – legislating for the significant increase to the Employment Allowance which FSB strongly championed, to protect smaller businesses with employment costs. But also taking a decisive step forward on business rates reform.
“For far too long, permanent business rates reform has been put into the ‘too difficult’ box. It is extremely encouraging on rates to see Ministers standing up for small firms in retail and hospitality and taking long-term action necessary to the future of our high streets – we look forward to continuing to work in partnership with the new Government to make sure no small businesses whatsoever are blocked from achieving their ambitions by a rates system that has not simply not kept pace with the needs of a modern economy.
“This follows important action announced by the Business Secretary to tackle the scourge of late payments and to take forward an Industrial Strategy to unblock the supply side barriers holding small firms back from their full potential.”
Officials sign off finance deal that could see commercial flights at Doncaster Sheffield by 2026
South Yorkshire Leaders have today approved £3m of funding for South Yorkshire Airport City which could see commercial flights departing from the former Doncaster Sheffield Airport in Spring 2026.
The South Yorkshire Mayoral Combined Authority Board agreed to provide £3m from existing earmarked resources, so City of Doncaster Council can progress with reinstatement activity and continue commercial negotiations.
South Yorkshire’s Mayor, Oliver Coppard, said: “I remain completely committed to reopening Doncaster Sheffield Airport and creating a world leading sustainable aviation hub. That’s why, together with the MCA board, we have authorised the release of £3m for City of Doncaster Council in support of their plans for the airport.
“This money is part of the £138m that South Yorkshire Mayoral Combined Authority have already committed to releasing, subject to the right deal being struck with the right partner.
“DSA and the wider Gateway East site has huge potential to play a leading role in the economic regeneration of South Yorkshire and the North of England, which is why it’s so important we get this right. The deal we sign must offer a secure future for our airport, create growth in the economy, and offer real value for taxpayers.”
Initial assessment of the Full Business Case highlights the significant opportunity around South Yorkshire Airport City which could deliver 5,000 direct jobs, a Gross Value Add (GVA) uplift of £6.6bn, and a benefit cost-ratio of 9:1 – anything greater than 1.0 is expected to deliver a positive net present value to an organisation and its investors.
South Yorkshire Mayoral Combined Authority (SYMCA) and City of Doncaster Council are working at pace but there are still a series of milestones to be delivered to ensure the airport is fully operational for passenger flights in 2026.
Commercial negotiations between City of Doncaster Council and the bidder are still ongoing, with a particular focus on the level of public control and investment.
Subject to agreement over the business case, the MCA Board have previously agreed in principle to provide £138m in support of Doncaster’s Place Investment Plan that could be used to reopen DSA and create a world leading sustainable aviation hub at Gateway East.
Mayor of Doncaster Ros Jones said: “This is another successful stage completed in our plan to see planes take off from Doncaster once again.
“This support from South Yorkshire Mayoral Authority (SYMCA) and South Yorkshire leaders is critical in helping us to reopen our airport and realise the incredible potential for Doncaster, South Yorkshire and the wider region. I would like to thank them for their unanimous support.
“We have identified a bidder to manage and operate the airport as we aim to see passenger flights return in Spring 2026.”
Councillor Jones and the rest of the SYMCA Board remain determined to ensure an appropriate level of public control over decisions impacting the future of the airport, and to take as much time as necessary to get the deal right. As a result, the paper that was presented to the Board recommended that City of Doncaster Council is given more time to conclude commercial negotiations. The release of £3m funding, which was approved today, allows for the delivery of time critical activity including work on CAA accreditation and standing up the necessary infrastructure.
Due to the nature of the proposed public investment in the project from City of Doncaster Council, and in line with all public subsidy, it is thus appropriate to refer the details of public support to the Government’s Subsidy Advice Unit (SAU). The SAU will continue to consider the proposal with an ultimate response expected in January 2025.
Spencer wins Science and Innovation Centre project for Reckitt’s
Construction and engineering specialist Spencer Group is to reconfigure part of Reckitt’s Science and Innovation Centre in Hull.
Spencer’s Building and Civil Engineering team will remodel part of the ground and first floor of the facility and fit out vacated areas for laboratories and fragrance evaluation, as well as creating new ancillary spaces.
The project brings together Hull-based Spencer Group and global giant Reckitt, which has its roots in the city, to ensure the Science and Innovation Centre continues to fully meet the company’s evolving needs.
Opened in 2019, the £105m Science and Innovation Centre is the global technical innovation hub for household name consumer health products such as Nurofen and Strepsils. It features state-of-the-art laboratories, as well as large open-plan working and collaboration areas.
Rob Bratherton, Operations Director at Spencer Building and Civil Engineering, said: “This is a very exciting project and an excellent fit for us, as we’re highly experienced at working in tightly-regulated sectors which have high levels of quality control.
“Our Spencer Building and Civil Engineering team brings together expertise from other sectors, to ensure we’re able to deliver facilities of the highest quality, to precisely meet the needs of our clients.
“This is especially important for research and development facilities, which incorporate complex laboratory rooms and sensitive technology.”
With both companies founded in Hull, the project demonstrates the commitment of Spencer Group and Reckitt to flying the flag for the city.
Reckitt’s story began in 1840, when Isaac Reckitt relocated to Hull and opened a starch mill in Dansom Lane, on the site that the business still occupies.
Beginning with a workforce of just 25 people, the business has grown to now employ more than 40,000 colleagues in more than 60 countries across the globe, and to become the company behind many instantly-recognisable household products.
Spencer Group was founded in Hull in 1989 by Charlie Spencer, now the company’s Executive Chairman. Now employing more than 400 people, the business specialises in the design and delivery of complex engineering and construction projects across a range of sectors including rail, renewable energy, bridges and materials storage.
