It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Sally Appleton, a partner at independent accounting firm, Saffery, in Yorkshire. There’s no doubt 2024 was a year of two distinct halves. The first part was dominated by the legacy of high inflation. Businesses had to manage their cost base and this inflationary environment carefully, but thankfully inflation did ease midway through the year. In the second half of the year, the focus was around the new government and what the Budget would have in store for businesses and individuals. Since then, impending hefty increases to National Insurance bills have dominated and this will remain a key factor in 2025. There’s now a greater concern around labour and the associated cost base, and for those watching cash carefully, this cost is suddenly their priority – especially in businesses that are very labour intensive. Hospitality, leisure and retail businesses for example, that often employ lots of people, face soaring costs and detailed planning and cash flow forecasting is more important than ever, because charging customers more isn’t necessarily the answer in a price sensitive market. On the other hand, there are businesses that want to invest in new technology and AI that might reduce the need to employ so many people. This would also see them taking advantage of the favourable corporation tax treatment that’s available for certain types of investments. Entrepreneurial businesses will always see opportunities, but lots are having to weigh up whether the National Insurance burden and other cost pressures mean they delay their expansion plans. Yorkshire is also home to lots of farms, rural businesses and family-owned firms, which are suddenly having to navigate the changes to inheritance tax and reevaluate their succession plans, and this will remain a theme during 2025. In fact, the importance of revisiting succession plans in 2025 should not be underestimated, following the tax reforms announced in the Budget, including the £1 million limit on the value of assets qualifying for 100% Business Property Relief (BPR) or Agricultural Property Relief (APR). Crucially, there are also a lot of macro-economic factors at play, with the likes of the US and China increasingly impacting what happens on a very local level here in Yorkshire. Often our local economy can be susceptible to sudden changes in global markets, especially when it comes to supply chains and local businesses that operate worldwide. As an accountant and trusted business and tax adviser, our role is also constantly evolving. We must have the best people in our team to ensure that we can provide quality advice as well as always adding value to our clients. Our core aim is to look after our clients’ business interests and work out how we can turn changes into opportunities. This spans day to day planning and cash flow management right through to creating the most efficient succession plans. We are also keen to develop local networks and bring businesses from similar industries together to learn from each other and share best practice, which is all going to be important as we head into 2025.

Elected Mayors from across the UK have come together to launch a ‘Mayoral Innovation Exchange’ to foster collaboration, enable innovation, and share best practice between mayoral combined authorities. The inaugural event was hosted in South Yorkshire by Sheffield Hallam University and PwC at the University’s Advanced Wellbeing Research Centre. It was the first time that the UK’s elected mayors have come together since the Government published its English Devolution White Paper in December 2024 – which places Mayoral Combined Authorities at the forefront of delivering growth and raising living standards. South Yorkshire Mayor Oliver Coppard welcomed Mayors to discuss issues including harnessing data to tackle common health challenges, procuring environmentally sustainable public transport fleets, and aligning local skills systems to support the delivery of critical infrastructure such as new housing. Specialists from PwC, who work across the public sector in health, Higher Education and transport, facilitated sessions to share best practice, including international examples, and stimulate discussions and ideas. Mayors and representatives from each of the combined authorities also learned more about projects being pioneered by the Advanced Wellbeing Research Centre and its partners, which focus on innovative new ways to increase people’s physical activity, improve health outcomes and drive economic growth. Findings from the inaugural innovation exchange will influence the work of combined authorities across priorities such as health, skills and transport, whilst also shaping how Mayors collectively influence the Government around the devolution agenda. The next Mayoral Innovation Exchange will be hosted by the North East Mayoral Combined Authority. South Yorkshire’s Mayor, Oliver Coppard, said: “As Mayors we are already tackling some of the biggest issues that face our communities – whether that’s improving public transport, boosting skills and training locally or growing our economies. Mayors are making a difference and are here to stay. “Now, as the number of Mayors and Combined Authorities across the country grows, we have the chance to tackle national challenges and help the whole country to thrive. The Mayoral Innovation Exchange gives us the opportunity to share the brilliant work we’re all doing in our regions – and also plan how we work together nationally, with Government, to renew our country.” Katie Johnston, local and devolved government leader at PwC, said: “Less than a month since the Government published its English Devolution White Paper, it’s an important step forward bringing the Mayors together and collaborating to solve the biggest challenges facing cities and regions. “Bringing PwC’s sector knowledge and expertise from across the UK, and facilitating the convening of ideas, we hope to help solve some of society’s most important problems and explore the art of the possible with leaders from the combined authorities.” North East Mayor Kim McGuiness said: “Mayors stand ready to address the long-standing challenges that for too long have held our communities back and stifled people’s potential. From helping people with poor health find and stay in work, to getting our skills and training offer right, and building better public transport, mayors are working together to reimagine public services. “Working with a government committed to devolution and empowering local leaders, we have ambitions to transform the prospects of the people we serve, helping unlock opportunity and prosperity for our regions and the country.”

A Yorkshire-based building services engineering company has been awarded a three-year maintenance contract to carry out all electrical maintenance works for Hull College. GW Power was established in Hull in 2014 by managing director, Daniel Haley, who started his career as an apprentice at the college. He said: “It’s a real full circle moment for me! We have been awarded the electrical maintenance contract for the full college estate following a competitive public tender, with several companies bidding for the work.” GW Power provides a full range of renewable energy, mechanical and electrical solutions to public sector clients and businesses across all industries. The company now employs a 43-strong team and is actively recruiting electricians, plumbers, gas and heating engineers, renewables specialists and apprentices throughout 2025. Daniel added: “In the past 12 months we have employed five apprentices from Hull College, and they will no doubt get the chance to work with our team at the college over the coming years thanks to this contract win.” Head of facilities and contracts at Hull College, Matthew Blowman, said: “We’re thrilled to partner with GW Power. The company’s expertise, reliability and commitment to delivering exceptional standards of service makes it the perfect choice to support the smooth operation of our campus. “We look forward to working together to ensure our facilities continue to offer an exceptional experience for our students and staff.” Daniel added: “Hull College played a pivotal role in shaping my career, and I’m incredibly proud to be awarded this contract. Walking through its doors as a young apprentice sparked the journey that brought me here today. “This partnership allows GW Power to give back to a place that means so much to me, while continuing to nurture the talented apprentices who are the future of our industry.” GW Power-Safe expects its turnover to reach £12m in 2025.

ASOS is making changes to its global distribution network, with US customers set to be served from the online clothing retailer’s Barnsley fulfilment centre. As a result the business will mothball its Atlanta distribution centre.

Due to these operating changes, ASOS expects a £10-20m annualised EBITDA benefit from FY26 onwards.

In a statement to the London Stock Exchange, ASOS said: “With success over FY23 and FY24 in reducing stock levels by c.50% and launching its new commercial model which requires lower stock holding, ASOS can offer better access to product for its global customer base while further reducing its distribution capacity and increasing the efficiency of its operations.

“Having successfully transformed the US into a profitable market over FY24, ASOS sees further opportunity to re-invest in the areas that matter most to its customers by optimising its global distribution model. From H2 FY25, US customers will be served from ASOS’ automated UK fulfilment centre in Barnsley, and through a smaller, more flexible local US site.

“This will offer ASOS’ US customers an enhanced product offering, including a broader assortment and faster speed to market of the best and most exciting product, while offering competitive delivery speeds and lowering the total fulfilment cost per order. ASOS will also roll-out Partner Fulfils in the US in FY25, further broadening the breadth and depth of the best product from our partner brands.

“As such, ASOS will mothball its Atlanta distribution centre in H2 FY25 and will formally market the site following the completion of the multi-year warehouse automation project.”

Seven employees will be directly affected by the change in operations and will be offered alternative roles where feasible, and third-party logistics partners will make efforts to redeploy several hundred staff to nearby sites, according to ASOS.

The company added: “As a result of these operating changes, ASOS expects a £10-20m annualised EBITDA benefit from FY26 onwards, assuming a reduction in US de minimis thresholds, and a similar benefit to free cash flow from FY26 onwards, with potential for additional working capital benefits.

“In FY25, it expects the impact on adjusted EBITDA to be broadly neutral. ASOS expects c.£190m of adjusting items predominantly relating to non-cash fixed asset impairments, resulting in a corresponding negative impact on reported profit. The impact on FY25 free cash flow is expected to be broadly neutral. ASOS re-iterates all other FY25 and medium-term guidance.

“ASOS remains excited about the opportunity in the US market and believes that its new operating model will better serve its US customer-base, while generating a better return on investment.”

It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Peter Garrett, MD at Keyland Developments Ltd. I’ve completed a number of predictions pieces over the years and fully understand that it’s impossible to forecast the unpredictable. For example, how many people looking forward into 2020 included the likelihood of a global pandemic? And how many in late 2021 predicted the start of Vlad’s ‘special military operation’ in February 2022? So, caveats regarding seismic world events in place, here are a few of my property predictions for 2025. Early indications suggest the Labour government will continue to demonstrate serious intentions to revive the economy by getting Britain building again. The 1.5m new homes is certainly a stretch target and it will shortly become very clear – if it’s not already – that one term in office is too short a period to deliver the changes needed to tackle a housing crisis that has been decades in the making. But demonstrating that the changes ushered in by the brand new NPPF are working is exactly what Labour must do if they are to achieve that all important second term in office. The Green Belt review will be a battle that is fought based on lots of mis-information; getting Joe Public to understand that Green Belt is not a landscape designation would be a good starting point. Even better if people also understood the negative implications of restricting development around our major cities to how those cities looked (and the populations they accommodated) in the 1960s. The UK’s population in 1965 was c54 million; in 2025 it will be pushing 70 million. All those extra people need somewhere to live and work and the size of our major cities as defined in the mid-1960s simply cannot accommodate them. Even with the Government’s push for development, I think the vast imbalance between supply and demand will ensure that house prices continue on their upward trajectory through 2025 and beyond. There doesn’t seem to be a limit on how far the relationship between average earnings and average house prices can be stretched.