Four in five firms say increased NI contributions are part of ‘powder keg of costs’
The overwhelming majority of businesses say the rise in employer National Insurance contributions will force them to change their plans, according to new research by the BCC Insight’s Unit, in partnership with professional services firm AAB.
With under six weeks until the NI rise comes in, 82% of firms say the tax hike will cause them to rethink. With 58% of surveyed businesses saying it will impact recruitment plans, and 54% that it will affect their prices. More than a third of firms suggest investment (36%) and day-to-day operations (30%) will be impacted. Only 18% feel the rise is unlikely to cause any change.
More than 1,200 businesses took part in the online research, carried out between Monday 20 January and Monday 10 February. 91% were SMEs with fewer than 250 employees.
The survey showed most firms are dissatisfied with the policy making process. Over three quarters (79%) of responding businesses do not feel the impacts of new policies are being properly assessed and only 14% believe they are. A similar proportion, 77%, do not feel changes are moving at the right pace, while 16% do. But businesses were more likely to say they understood the rationale for policies – 42% said they understand why new policies are being made, although a larger proportion, 52%, did not.
The findings also highlight significant concern about elements of the proposed Employment Rights legislation. The majority (55%) say the planned changes to statutory sick pay will force them to change their plans, including 33% saying it will change recruitment plans. Against this, 45% think that it is unlikely to cause their organisation to make any changes.
Just under half (45%) of businesses say ‘right to switch off’ proposals will impact their plans, including 36% feeling it will affect day-to-day operations. Just over half (55%) do not foresee it causing them to make any changes.
Alex Veitch, Director of Policy at the British Chambers of Commerce said: “The clock is ticking down to the National Insurance rise, and firms are already telling us they are sitting on a powder keg of costs.
“Most are saying they will have to raise prices and reconsider recruitment plans. That’s unlikely to create an environment that fosters growth, the key priority for government. Ministers need to read the room and recognise the impact this tax hike will have.
“The government has pledged to retain the National Insurance tax position through the life of this parliament, but our new evidence should give pause for thought. We need the government to publish a wider tax roadmap for business, setting out the direction of travel for costs like national insurance and business rates.
“Business rate reform must be an urgent priority, creating a system that incentives investment. Getting on with planning and skills reforms will also remove blockers to growth.
“Our survey also shows growing concern about aspects of the government’s employment rights legislation. Some of the proposals are completely disproportionate to the reality of how businesses are operating. Ministers should allow more time for consultation with business about the policy detail and implementation. Government must listen and think again.
“We welcome recent announcements on infrastructure projects which will help boost local economies and supply chains across the country. The upcoming strategies on industry, infrastructure and trade are also vital to help shape the economy for the long-term.
“But that’s small comfort for businesses feeling the cost pressure of National Insurance right now. With prices likely to rise and recruitment challenges ahead the outlook remains deeply concerning.”
Esh Construction leads social value delivery conversation in Rotherham
More than 100 people from South Yorkshire businesses came together as Esh Construction delivered a networking event to lead the conversation on meaningful social value delivery in Rotherham.
Megan Roberts, Esh’s Social Value Manager for Yorkshire, was joined by Barnsley & Rotherham Chamber of Commerce Chief Exec Carrie Sudbury to host the event at Wentworth Woodhouse, which enabled conversations to go past the discussion of social value, with representatives from the South Yorkshire Careers Hub, Rotherham Hospice, Skills Street and the Work-wise Foundation, among others, coming together to celebrate successes and focus on ‘doing the doing.’
Megan opened the conversation by discussing Esh’s Constructing Local strategy which has been built around six key E’s – economy, education, engagement, employment, even greener and employees. Alongside, guest speakers Carole Foster, Fundraising Manager at Wentworth Woodhouse Preservation Trust and Simon Hartley, Skills Consultant for RNN Group UK shared aligned values throughout the morning.
She said: “It was incredible heading down to the main networking area to see all our exhibitors in deep conversation and many of our visitors gaining new contacts. I am so grateful to our key speakers and exhibitors for getting involved and making the event a success.”
In Rotherham alone, Esh Construction has delivered £2.1 million worth of social value return on investment across its schemes since 2023. With community engagement being built across employment, education and the third sector, Chamber Chief Executive Carrie acknowledged there are always opportunities for more businesses to capitalise.
She said the Chamber encouraged all businesses to have conversations which were important to the Borough. “Through all of this, through the people, the voluntary sector, service providers, retail and hospitality, the golden thread if collaboration and conversation.”
Yorkshire Building Society shares £1m with four charities to boost employability
Yorkshire Building Society is to share £1m between four charities serving Bradford from a fund dedicated to improving employability in the district.
Bradford Central Foodbank, The Cellar Trust, Lower Grange Community Association and Smart Works have been given grants by Yorkshire Building Society Charitable Foundation to support projects in some of Bradford’s most deprived wards over the next three years.
Laura Newton, Trustee of Yorkshire Building Society Charitable Foundation, said: “The Building Bradford Skills Fund aims to address specific challenges around skills and employment faced by communities in Bradford.
“The funding will enable established charities to deliver targeted support in the areas that need it most, which will deliver real impact. Each of the beneficiaries demonstrated a clear understanding of the challenges faced by communities in Bradford and are offering innovative, place-based solutions.
“Supporting Bradford Central Foodbank, Smart Works, Lower Grange Community Association and The Cellar Trust to deliver their employment and skills programmes will help to transform the lives of thousands of people in the city and create a brighter future for many communities.”
Bradford Central Foodbank provides emergency food parcels to people in crisis. As well as providing food, it works to address some of the root causes of food poverty. The Charitable Foundation has funded a job coach at the Foodbank since 2022, who helps clients with job searching, CV writing, and job applications. Funding from the Building Bradford Skills Fund will allow this service to continue, as well as formalise the charity’s volunteer training and enable it to offer accredited courses in warehousing, manual handling, customer service, and food hygiene.
The Cellar Trust supports people with serious mental illness and those at risk of mental health crises in Bradford and surrounding areas, helping nearly 12,000 people annually. The charity uses a peer-led approach with staff and volunteers who have personal experience with mental health issues. The funding will support a Pathways to Employment service to support and empower people who have experienced mental health challenges into work. The service will offer one-to-one support from Employment Support Workers with lived experience of mental health issues and unemployment, and help clients move towards employment goals.
Smart Works supports unemployed women in Yorkshire by providing career coaching, interview clothing, and job success tools, with a view to boosting women’s confidence and helping them to secure employment. The funding will allow Smart Works to increase its presence in Bradford, addressing specific barriers faced by local women, and establishing a local team that will improve visibility and access to its services, with a long-term goal of embedding the service into the community.
Lower Grange Community Association aims to transform lives and break the cycle of unemployment in Bradford. It focuses on employability, breaking down barriers to employment, youth empowerment, and supporting entrepreneurship. The funding will enable the charity to deliver programmes, workshops and support services focused on important topics such as enhanced English for speakers of other languages, workplace English, digital skills, vocational training, entrepreneurship and youth employment accelerators.
Hotel in Yorkshire Dales National Park sold
Specialist business property adviser Christie & Co has sold Yorebridge House, a destination hotel, restaurant and bar in the heart of Wensleydale.
Yorebridge House offers 12 individually designed ensuite bedrooms with sweeping views of the surrounding countryside. The stone building is Grade II listed and set within six acres of private grounds.
The hotel – a multi-award winning five-star venue – is also home to The Orangery restaurant, a bar with roaring fire, a versatile function room which regularly hosts events and celebrations, and the Laurent Perrier wine-tasting room. There are also a further two rooms licensed for marriage and civil partnership ceremonies.
The hotel has been owned by David and Charlotte Reilly for 19 years: “We have thoroughly enjoyed our years owning Yorebridge House and we are delighted to be handing over the reins to David and his team, who we know will nurture this fantastic business and its wonderful team of staff and continue to improve and develop it for a very exciting future.”
The hotel has been sold to DWC Hotels. Director David Whitehead said: “We are super excited about taking Yorebridge House on to its next chapter, with the development of a mini spa and barn conversion to add more accommodation. This is a unique venue and we are privileged to have been able to secure it and move forward in our business goals for the company.”
Jennifer Boynton, Associate at Hay & Kilner, who provided legal advice to DWC Hotels, said: “It’s been a pleasure to advise and work with DWC Hotels on their acquisition of Yorebridge House. This purchase demonstrates that the leisure and hospitality industry remains buoyant and the demand for businesses in the sector continues.
“We wish them well with their new venture operating this iconic, boutique Dales hotel, which will be a great acquisition to their already successful portfolio.”
David Lee, Regional Director – Hotels at Christie & Co, who managed the sale, said: “I have known Dave and Charlotte Reilly for a number of years and we all worked closely together to firstly agree an exit strategy, and then during the process of selling the hotel to maximise interest but limit disruption to the day-to-day running of the business.
“We were pleased to conclude the sale of Yorebridge House to David Whitehead. Yorebridge House is one of the finest examples of a boutique hotel in the country and it was a privilege to be involved in the sale. I would like to thank Dave and Charlotte for the opportunity and would like to wish David every success in the new venture and his expansion plans.”
The hotel was sold off an asking price of £3,800,000.
Sheffield court jails former Brookside actor for £13.6m modelling agency fraud
A former Brookside actor and his associates have been jailed for a total of 23 years by Sheffield Crown Court for their part in a £13.6m fraud that ran for more than eight years.
Former Brookside actor Philip Foster and eight associates had sentences handed down after a six-year investigation by National Trading Standards, whose work uncovered an extensive network of sham modelling agencies that cruelly exploited the dreams of aspiring young models and their parents.
Foster was the ringleader of the operation. He orchestrated the fraud from Spain, using a network of associates based in England who operated a string of sham modelling agencies and photography studios in cities across the country, including London, Manchester, Leeds, Bristol, Coventry, and Nottingham.
More than 6,000 victims were deceived by the group – mainly young people and mothers – who ended up parting with substantial amounts of money under the false promise of securing paid modelling work.
Judge Dixon said: “The business worked on the basis of greed taking what they could where they could. Some people were so convinced by the level of deception that they took out payday loans, which gives a clear indication as to how manipulative and cynical the fraud was. It was horrible, despicable, dishonest behaviour and every single one of you deserves to go to prison.”
The fraud worked by setting up a photographic studio in the area and running a social media advertising campaign. People who responded were given the false impression that a model agency was interested in them, with emails telling them they had potential. Victims were then invited to a ‘free’ test shoot at the photographic studio, which turned out to be a ruse to try to extort money out of them.
At the test shoot, victims were given a studio experience, handed glossy brochures and told how successful other people had been. They would then be told that they passed their studio test and that modelling agencies were interested, but they needed to purchase their portfolio photographs from the studio in order to join an agency and become an agency model.
Victims were duped by the group who, between them, gave a good impression of running successful model businesses and lied to them about their potential. Millions of pounds were taken from aspiring models, with some coerced into financing the upfront payment through credit deals arranged by the fraudsters or taking out expensive payday loans.
Instead, victims received poor quality digital photographs that stood no real chance of landing them professional jobs. Virtually none of the victims received any paid modelling work.
The sham agencies were often dissolved after short periods, rebranded repeatedly to avoid detection, and paid no tax. Money from the scam was laundered through UK bank accounts before being transferred to Spain or carried in cash on commercial flights by co-conspirators.
The investigation traced substantial sums to Foster, who lived in luxury abroad and purchased high-end watches and cars with the proceeds of the fraud. The investigation heard how many victims, left financially and emotionally devastated, described feeling humiliated and betrayed. Some experienced lasting distress that affected their confidence, wellbeing and their ability to trust others.
The sentences, which were handed down today in the absence of Philip Foster, who is currently living in Spain, are as follows:
- Philip Foster, aged 49, Edificio Marina Mariola, Marbella, Spain, sentenced to 8.5 years for conspiracies to defraud
- Michael Foster, aged 27, Snowdon Lane, Liverpool, sentenced to 3.5 years for conspiracy to defraud
- Paul Evans, aged 39, no known address, sentenced to 3.5 years for offences related to money laundering
- Jamie Peters, aged 52, Pentland Place, Warrington, sentenced to 24 months, suspended for 2 years, for conspiracy to defraud
- Lisa Foster, aged 42, Manchester Road, Astley, sentenced to 18 months, suspended for 12 months, for conspiracy to defraud
- Emily Newall, aged 29, Bolton Road, Kearsley, Greater Manchester, sentenced to 10 months, suspended for 12 months, for conspiracy to defraud
- Atif Qadar, aged 44, Larkswood Drive, Crowthorne, sentenced to 12 months, suspended for 12 months, for conspiracy to defraud
- Paul Fleury, aged 57, Manchester Road, Swinton, Manchester, sentenced to 18 months, suspended for 12 months, for conspiracy to defraud
- Aslihan Foster aged 39, Tredington Road, Coventry, sentenced to 18 months, suspended for 12 months, for an offence related to money laundering
Doncaster clean energy company continues installation of equipment for Northern. Ireland Water
Doncaster-based CPH2 has completed Level 1 of the Site Acceptance Test for its electrolyser at Northern Ireland Water’s site in Belfast.
CPH2’s commissioning teams have been on site since early January, assembling the system. This is the first of three stages within the test. The Level 1 SAT signifies verification that mechanical and electrical components are checked for completion and that the MFE’s build is in line with with documents and meets relevant safety standards. The test was undertaken by Lagan MEICA Limited, the Contractor to Northern Ireland Water, and was overseen by engineering design specialists Arup.
Lagan MEICA Limited is now proceeding with Levels 2 and 3 of the SAT protocol, with completion expected during the first half of 2025.
CEO Jon Duffy said: “The Level 1 SAT test of the MFE110 is a very positive first step toward the key milestone of achieving first production of hydrogen and oxygen on a customer’s site using MFE scaled technology. We look forward to the continued progress of the process, culminating in what will be a proud moment for the team at CPH2 and Northern Ireland Water as our technology becomes fully functioning in the production of oxygen and hydrogen.”
Manufacturing M&A rebounds
UK manufacturing M&A activity grew by 11% in 2024, rebounding to levels last recorded in 2022, despite the continued pressure of rising costs, labour shortages and geopolitical tensions, according to accountancy and business advisory firm BDO.
BDO’s Manufacturing Deals Review reveals that 782 UK manufacturing deals were completed in 2024, up from 707 deals reported in 2023. Despite this buoyancy, the sector is not without its challenges as businesses look to implement the rises to employer’s NI costs and minimum wage levels and prepare for the proposed employment law changes.
Analysis shows that deal activity slowed somewhat in the first half of 2024 but gained momentum following the Autumn Budget with 475 deals completed in the latter six months. Additionally the findings show an urgency for deal completions in view of anticipated changes to Capital Gains Tax and Business Asset Disposal Relief. Furthermore there was an increasing interest from entrepreneurs considering exit both of their ownership and the UK.
Businesses in the engineering services subsector were the most prolific deal doers seeing a 26% increase in activity and representing almost a third (32%) of all completed transactions for the year. This was followed by businesses in the packaging & materials sector which saw deal volumes increased by almost a fifth (18%), and accounting for 11% of all completed transactions.
Separate research from BDO and Make UK reveals that over a quarter (26%) of UK manufacturing business are considering a sale of all or part of their business within the next two years. This increases to over a third (35%) across the next three to five years, suggesting a positive shift in M&A sentiment as many business leaders look to implement their strategies.
Roger Buckley, UK Industrials M&A Partner at BDO, said: “Last year proved to be a busy year for manufacturing deals but upcoming policy changes are now weighing heavily on business confidence, recruitment plans and growth intentions. Many businesses will be hoping for a boost in sentiment when the Industrial Strategy is announced later this year.
“Looking ahead we expect to see a solid year of M&A activity. Valuations are holding firm and there remains a large cohort of cash-rich investors who believe in the long-term prospects and broad opportunities for growth within the sector. These businesses now need government to offer incentives that will support their investment in new technologies and onshoring or reshoring operations.”
SMEs promised share in work from increased defence spending pledge
Thousands of small businesses in the UK will receive government support to ensure they benefit from the historic decision to increase defence spending to 2.5% of GDP.
The government has announced plans for a new hub to provide SMEs with better access to the defence supply chain and committed to set direct SME spending targets for the Ministry of Defence by June this year. This is a chance for small, often family-owned, firms to bring their innovations, their agility and their expert workforce to the task of strengthening Britain’s defences. It will help create new jobs, boosting the economy of small towns and suburbs in the UK.
It follows the Government’s historic uplift in defence spending to 2.5% of GDP by April 2027, with a commitment to hit 3% in the next Parliament. This investment in defence will deliver the stability that underpins economic growth, and will unlock prosperity through new jobs, improving the lives of people in every corner of the UK.
Defence Secretary John Healey said: “For too long small businesses felt locked out of defence, but we’ve listened and we’re acting. Today’s announcement will ensure that smaller firms benefit from increased defence spending, attracting new suppliers and fast-tracking the technologies of the future into the hands of our Armed Forces. This a new era for defence and we will ensure it plays the fullest part in our national economic growth.
“The new hub and investment targets will ensure this increased spending directly benefits SMEs as much as possible – supporting jobs, growth and innovation. This is a vote of confidence in the prospects of up to 12,000 SMEs, supporting them to raise finance and train workers with confidence. It marks further progress to deliver the government’s Plan for Change, putting more money in people’s pockets and rebuilding Britain.”
Nearly 70% of defence spending goes to businesses outside London and the South East, bolstering local economies from Scotland to the North West. However, only 4% of this spending went to SMEs in 2023-2024, which is why the Government is stepping up to provide more support to SMEs and help them get their foot in the door in the defence supply chain.
The new Hub will work with suppliers across the nations and regions of the UK to ensure that it fully meets their needs. This will strengthen defence procurement through increased choice and faster access to innovation. It will keep the UK at the forefront of defence technology, improving the capabilities available to our Armed Forces, the competitiveness of UK industry and growing potential exports benefits.
Third Lincolnshire library launches business hub
Businesses in Grantham are being offered access to a business hub at the town’s library with flexible and confidential workspaces with modern technology.
The move will mean a new IT suite equipped with business software, as well as drop-in working zones kitted out with acoustic booths and ‘bubbles’ for interviews and online meetings.
Facilities have been designed with flexibility in mind, meaning the spaces can be used as additional study space for library users, as well as by local education providers, community groups, and more.
Visitors can also look forward to a refreshed and redecorated library, with new carpets fitted throughout.
Cllr Martin Hill, leader of Lincolnshire County Council, said: “We’re investing in a suite of new facilities to support the town’s small businesses, providing three new flexible working areas to meet their needs.
“By listening to residents and businesses and implementing creative solutions like business hubs, we can continue to ensure that Lincolnshire’s libraries remain the beating heart of community life.”
Grantham is the third library in Lincolnshire to benefit from the addition of business hubs, following Lincoln and Spalding libraries, and work is expected to start later this summer.
Spilsby Market relaunch aims to boost local economy
Spilsby Market will relaunch on Monday, 4 March, following efforts by East Lindsey District Council and Spilsby Town Council to revitalise the weekly event. The market aims to attract more traders and visitors, support local businesses, and provide residents with fresh, locally sourced products.
As part of the initiative, the council has introduced a 50% reduction in market fees. Pitches now start at £7.50—among the lowest in the region. The market will operate every Monday throughout the year.
