Drop in inflation’s welcome, but it’s not a game changer, says BCC

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The British Chambers of Commerce says that although the slight dip in inflation is welcome, it’s far from a game-changer for business. Reacting to the latest inflation data released this morning, Stuart Morrison, The organisations Research Manager Stuart Morrison says underlying price pressures within the economy are clear following the Budget, and the path ahead on interest rates this year is likely to remain slow and cautious. He said: “As our research clearly shows, firms are having to make difficult decisions to manage the upcoming rises in national insurance contributions and the minimum wage. Our latest survey shows most firms expect to raise their prices in the next three months, while business confidence has dipped to 2022 levels. Labour cost pressures have grown significantly and are particularly acute in the hospitality sector. “We need quick government action to ease the cost pressures companies are facing and create new opportunities for investment. Ministers should focus on accelerating business rates reform, giving infrastructure projects the green light and boosting exports.”

Inflation slows

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UK inflation slowed in December, according to new figures from the Office for National Statistics (ONS). Measured by the Consumer Prices Index (CPI), inflation came in at 2.5% in the 12 months to December, down from 2.6% in November, and lower than expectations. Significant downward contributions to the change came from restaurants and hotels, alcohol and tobacco, and clothing. Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.2% in the 12 months to December, decreasing from 3.5% in November. Martin Sartorius, Principal Economist, CBI, said: “Inflation remained moderately above the Bank of England’s 2% target in December, reflecting the impact of ongoing price pressures such as strong wage growth. Looking ahead, we expect inflation will stay elevated this year, partly due to Autumn Budget measures contributing to higher prices. “Persistent, above-target inflation supports our expectation that the Monetary Policy Committee will loosen policy at a gradual, quarterly pace throughout 2025. The next rate cut is still likely to come in February, which will bring some respite for businesses and households as they continue to face high borrowing costs.”

More than 100 projects to share in AI research to help small firms

Small businesses across the country will be helped to boost their productivity and efficiency through AI tools set to be trialled – from tech that predicts potholes before they form, to AI models that help farmers make their dairy cows produce greater yields. The 120 projects will receive a share of £7m in UK Government funding, enabling them to test AI tech that could give a boost to a whole range of businesses: from agriculture, to transport, to construction and more. AI is set to be the defining technology of the 21st Century. It is already boosting businesses’ productivity and overhauling public services like healthcare and education.  The government is taking action to help Britain’s businesses and job-creators embrace AI, so they can be more productive and competitive. The support announced today is focused on how AI could help smaller companies tackle pressing challenges to their businesses, and how researchers can use this tech to take on everyday problems we all live with. This backing is what the Government’s Plan for Change looks like in action, giving people the tools they need to harness the power of new technologies like AI, which will ultimately grow the economy and benefit everyone. Other projects include:
  • Using AI to cut food waste – and thereby protect profit margins – at a bakery by accurately predicting sales and forecasting how much of each product needs to be made daily.
  • Road-testing an AI tool that can predict potholes before they form, so roads can be repaired earlier and more cheaply, and before they cause expensive damage to vehicles.
  • Trialling an AI model that anticipates where mould is likely to grow in buildings, so they can be remediated before they become a health and safety issue.
Science and Technology Secretary Peter Kyle said: “Putting AI to work right across the economy can help businesses cut waste, move faster and be more productive. “The huge range of projects receiving funding today, from farmers and bakers to those tackling potholes on our roads and mould in residential properties, demonstrates the truly limitless benefits of AI that are there for the taking.

“And take them we will, with our 50-point AI Opportunities Plan, published yesterday, to unleash AI across the UK, delivering a decade of national renewal and firing up our Plan for Change.”

Ørsted’s latest donations push community fund to £3m in grants

Wind farm developer Ørsted’s latest funding round sees the East Coast Community Fund hit the £3m milestone in grants awarded since launch in 2017. From creating live music alongside professional orchestra Manchester Camerata to over 700 volunteers being brought to action on Eastern beaches, seventeen organisations have been awarded a share of over £226,000 in the last quarter of last year. Ørsted operates six wind farms on the East Coast. The East Coast Community Fund is a legacy project from two of the wind farms: Hornsea 1 and Race Bank. These two windfarms have a combined capacity of nearly 1.8 gigawatts, meaning they can power electricity for 1.5 million UK homes. Imran Nawaz, Senior Advisor & Community Benefit Fund Manager for Ørsted, said: “It’s been a fabulous way to start 2025, hearing about all these incredible projects. Well done to the worthy organisations, we’re looking forward to seeing the impact of their efforts and continuing our commitment to supporting local communities.” Hannah Bester, Senior Manager, Volunteering & Citizen Science Team at the Marine Conservation Society said: “Funding will enable us to engage with over 700 volunteers across eastern England, from South Holland to the East Riding of Yorkshire. Many of our volunteers take part in citizen science activities, like Beachwatch where they collect, record, and remove beach litter. “Beachwatch positively impacts our marine environment by collecting valuable data evidence to influence policy change on problematic litter, like single use plastics and sewage related items, while also removing litter pollution and encouraging positive behaviours through volunteering in the outdoors.” The full list of organisations awarded grants in the latest round of the Community Benefit Fund are as follows:
  • Angle for the Community, Running Costs and Volunteer Training, £2,880
  • Samaritans of Boston, Being There for Listening and Outreach, £9,900
  • Wrangle Parish Hall, Internal LED Lighting Conversion, £2,800
  • Sussex Bowling Club, Second Rescue of Sussex Bowling Club in Cleethorpes, £5,000
  • The Boston Preservation Trust, Fydell House:Repairs, Improved Accessibility and Dedicated Volunteer Space, £33,000
  • Ren’s Rescue, Ren’s Withernsea Wildlife Hub, £3,224
  • Rock Foundation UK Limited, Heneage Road, Grimsby – Creating a Sustainable Future, £16,000
  • Shalom Youth Centre, Youth Worker East Marsh, Grimsby, £26,908
  • Voluntary Action North East Lincolnshire, Cleethorpes – Backyard Nature Clubs, £5,000
  • Bells and Whistles Exercise Group, Paths & Potholes, £1,500
  • Boston Squash & Racketball Club, Energy Efficiency (Insulation) Improvements, £5,000
  • Favour Foundation Limited – Your Place – Oasis Garden Hub and Garden Volunteer/Buddy Scheme £20,878
  • Hornsea and District Indoor Bowls Club Ltd, Battery Storage System, £18,720
  • Orchestras Live, Intergenerational Music-Making Activities Engaging Community Groups in Withernsea and Hornsea, £15,000
  • Synergy Grimsby CIC, Woods, Waves, Walks and Workshops, £28,000
  • Marine Conservation Society, The Power of the East Coast Community for Ocean Conservation, £23,267
  • Citizens Advice South Lincolnshire, Rural Outreach, £9,810

Council to consider refurb plan for Sheffield Town Hall

Next week Sheffield City Councillors will discuss protecting the long-term future of the Grade I listed Sheffield Town Hall, with a view to developing a plan and identifying the right people and companies to carry it out. If the proposals are approved by the Strategy and Resources Committee next week, the next stage would involve appointing a project delivery team to progress the design work, alongside developing a comprehensive engagement plan – but commercial uses such as conversion to a hotel have already been ruled out. Committee Chairman Cllr Tom Hunt said: “The Town Hall is at the heart of Sheffield’s democracy and public life. From council meetings and elections to weddings and citizenship ceremonies, the building has a unique place in the life of our city. “We are setting out a path to ensure that the Town Hall is fully restored and refurbished so that it can continue to serve everyone in our city. This is a significant opportunity and, if proposals are approved, we look forward to working with the public and heritage organisations to undertake this important work.” The proposed restoration plan includes:
  • Addressing critical building compliance and defects to enable the building to be used fully.
  • Preserving and celebrating the building’s historic and cultural significance.
  • Enhancing accessibility and safety for public use.
  • Introducing a sustainable maintenance model to ensure the building’s long-term future.
A key aspect of the project involves developing a shared vision through robust stakeholder and community engagement, ensuring the Town Hall remains a vibrant civic hub.

UK firms to be offered protection against ransomware attacks

UK businesses are set to be protected by new world-leading ransomware proposals to tackle the threat of cybercrime, which is estimated to cost the UK economy billions of pounds every year. Aiming to strike at the heart of the cybercriminal business model and protect UK businesses by deterring threats, proposals include banning all public sector bodies and critical national infrastructure, including the NHS, local councils, and schools, from making ransomware payments, in order to make them unattractive targets for criminals. This is an expansion of the current ban on payments by government departments. This is in addition to making it mandatory to report ransomware incidents, to boost intelligence available to law enforcement and help them disrupt more incidents. The proposals will help the government deliver on its Plan for Change by protecting the public services and infrastructure people rely on from disruption and huge costs. Security Minister Dan Jarvis said: “With an estimated $1 billion flowing to ransomware criminals globally in 2023, it is vital we act to protect national security as a key foundation upon which this government’s Plan for Change is built. “These proposals help us meet the scale of the ransomware threat, hitting these criminal networks in their wallets and cutting off the key financial pipeline they rely upon to operate.” Ransomware is malicious software which infects a victim’s computer and demands a ransom from them in order to give them back access to their system, for their data to be restored, and often for the hackers not to publish the victim’s data on the web. Carried out largely by Russian affiliated criminal gangs, ransomware attacks continue to pose the most immediate and disruptive threat to the UK’s critical national infrastructure, according to the National Cyber Security Centre’s Annual Review last year. They also cause more disruption and pose a greater risk than other cybercrimes.

York supports businesses in fighting domestic abuse

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York businesses are being encouraged to help contribute to the fight against domestic abuse.

A free-to-attend Domestic Abuse: Awareness for Businesses session is being run by the City Council on th morning of February 4th at the Priory Street Centre.
The session, led by the council’s Domestic Abuse Engagement team, will help employers and public facing businesses recognise the signs of an abusive relationship and understand what they can do to support colleagues and customers who are experiencing this. Attendees will hear from speakers representing key organisations supporting victim-survivors of domestic abuse and will gain valuable insights into domestic abuse, its effects on local businesses, and how employers can support those affected. Cllr Lucy Steels-Walshaw, Executive Member for Health, Wellbeing and Adult Social Care at the Council, said: “Whether as employers or public-facing spaces, businesses have a key role to play in promoting awareness and support available for victims and survivors of domestic abuse. “Going to work, or visiting a customer-facing business, might be one of the only opportunities where someone experiencing abuse can open up about what they’re going through. “It’s so important for colleagues and employers to be able to recognise the warning signs and to create a safe space at work where employees and customers alike can speak out about an abusive situation and access the support they need. “Domestic abuse is everyone’s business and I urge members of York’s business community to join us for this important session and learn how they can support victim-survivors and create safer spaces for those affected.”

Google to be put under the microscope in first-of-a-kind investigation

The Competition and Markets Authority has launched its first strategic market statusdesignation investigation under the new digital markets competition regime which came into force on New Year’s Day. The investigation will assess Google’s position in search and search advertising services and how this impacts businesses and consumers including advertisers, news publishers, and rival search engines. Google’s services have generated significant benefits in the UK. Its search services are a gateway through which millions of people and businesses access and navigate the internet. In the UK, Google accounts for more than 90% of all general search queries, and more than 200,000 UK advertisers use Google’s search advertising. Search is vital for economic growth. It facilitates businesses connecting with each other, with investors, and with their customers. And it generates a wealth of data that can be used to develop new AI products and services to foster innovation. The CMA says that given the importance of search as a key digital service for businesses and the economy, it is critical that competition works well. Effective competition ensures people benefit from greater choice, new and innovative services, and have control over their data. Search services are also important as a route to access the news. Effective competition could help ensure that people can access a wide range of content and that publishers are treated fairly for the use of their content. For businesses, effective competition could keep down the costs of search advertising, equivalent to nearly £500 per household per year, in turn lowering prices across the economy. An effective, competitive market could also allow businesses to innovate in a way which creates alternatives to traditional search services, including by, for example, ensuring that new AI start-ups can compete with Google and other existing players on an equal footing. Under the digital markets competition regime, the CMA may designate firms with SMS in relation to a particular digital activity. Once designated, the CMA can impose conduct requirements or propose pro-competition interventions to achieve positive outcomes for UK consumers and businesses. Sarah Cardell, Chief Executive of the CMA, said: “Millions of people and businesses across the UK rely on Google’s search and advertising services – with 90 per cent of searches happening on their platform and more than 200,000 UK businesses advertising there. That’s why it’s so important to ensure these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services.

“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal – for example in how their data is collected and stored. And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.”

Chief Executive of Rotherham Council steps down

The Chief Executive of Rotherham Council, Sharon Kemp, has announced that she will step down from the role in late spring 2025, after nine years at the helm of the authority.

Ms Kemp has led the authority since 2016, driving forward an improvement journey at the Council which saw the return of powers from Government, and the Council’s Children’s Services transformed from a failing service to consistently being rated Good by Ofsted since 2017. The organisation’s progress in recent years has been independently recognised, with an external corporate review in 2023 finding that “Rotherham Council serves the town well and is today an impressive organisation.” The endorsement coming on the back of the Council being named the ‘Most Improved Council’ in the country at the Local Government Chronicle (LGC) Awards in 2022. Sharon said: “Rotherham is a great place. It’s been an honour to play a part in the Council’s journey here over the last nine years, serving the elected representatives and residents of the Borough. “I feel proud to be part of what the authority and the wider Rotherham partnership has achieved, and in working alongside such dedicated colleagues who care deeply about making a positive difference to the life of the Borough. “I remain committed to making significant progress on our ambitions in my remaining time in this role, and to ensuring a smooth transition to the new Chief Executive when they are appointed.” Cllr Chris Read, who has been Council Leader throughout Ms Kemp’s tenure, said:“Sharon will leave Rotherham Council this year in vastly better position than when she arrived nine years ago, in no small part because of the determination, integrity, commitment and values she brought to the role. “She is an exceptional public servant, recognised by the government’s request for her to support Nottingham City Council’s improvement journey. We are enormously grateful for her time with us and wish her every success for the future.”

Plan to grow West Yorkshire’s multibillion-pound visitor economy unveiled

A new plan to grow West Yorkshire’s multibillion-pound visitor economy has been unveiled by tourism bosses in Leeds. It follows West Yorkshire achieving ‘Local Visitor Economy Partnership’ status from VisitEngland, which is a strategic partnership between the region’s five local authorities, chaired by Mayor Tracy Brabin. The new four-year strategy, developed by the partnership, sets out how the region aims to build a better and more productive visitor economy, attracting more visitors and inward investment to drive growth, create jobs and help businesses thrive. It comes as Bradford UK City of Culture 2025 kicked off its landmark year on the world stage this weekend, with a year of culture expected to attract over 15 million people and £130 million of visitor spend in the economy, supporting the creation of 7,000 new jobs. Tracy Brabin, Mayor of West Yorkshire, said: “This is going to be a truly iconic year for West Yorkshire, with Bradford UK City of Culture 2025 acting as a beacon to attract millions of people from around the world to our region. “This is just the start for West Yorkshire. With our bold plan, we’re going to build on our heritage to create a brighter future, ensuring these visitors come back for many more years to come. “We’re harnessing the legacy of this once in a generation opportunity, creating more opportunities through partnership and public investment, and driving forward our ambition for growth in a stronger, brighter West Yorkshire that works for all.” Andrew Stokes OBE, VisitEngland Director, said: “Great destinations are great places to live and work as well as to visit and strong governance can drive place-shaping and shift local and wider perceptions of the place which can contribute to local pride. “Well run destinations can also attract new investment, increase income and create new jobs, and this new ambitious strategy for West Yorkshire will be central to achieving that. “At VisitEngland, we look forward to continuing to work with the West Yorkshire Local Visitor Economy Partnership, their board, and their partners, to help realise the ambitions set out in this four year growth strategy.” The new ‘Destination Management Plan’ outlines how West Yorkshire will build on its strengths to attract more visitors, by collaboratively promoting its vibrant cities, rural landscapes, national museums, a UNESCO World Heritage Site at Saltaire, and by continuing to harness the rise in film and television productions set in the region. Investment into new initiatives, and the development of new national cultural institutions like British Library North, The National Poetry Centre and Brit School North are also expected to turbocharge opportunities for the region. In 2023, West Yorkshire welcomed 71 million people to the region, adding £5.77 billion to the local economy and supporting 52,412 full time jobs.

New MD steps in at Henry Boot Construction

Lee Powell has assumed his role as Managing Director of Henry Boot Construction, part of Henry Boot, having previously served as CEO of GMI Construction. During his time at GMI, Lee led the company’s expansion in the Midlands and North of England, overseeing a range of large-scale projects for major clients such as Siemens, Bruntwood and Muse. He has also held senior roles at Wates Construction and Caddick Construction across a 28-year career in the construction industry. As Managing Director of Henry Boot Construction, Lee will focus on growing and expanding the firm’s order book while continuing to uphold the company’s strong values of health and safety, customer satisfaction and operational excellence. Lee said: “Joining a highly reputable and long-standing business such as Henry Boot Construction was an opportunity I couldn’t miss, and I look forward to working with a very talented and dedicated team. “The business has fantastic values and an outstanding reputation for quality. We will be looking to build on these strong foundations and continue expanding our reach further into the East Midlands and the north east of England. “We’ll also be diversifying our scope – creating a balanced private sector portfolio to complement our heritage in the public sector, alongside expanding into additional sectors such as purpose-built student accommodation. “As we face a rapidly changing construction environment, my focus will be on delivering exceptional outcomes for our clients, driving sustainable growth and ensuring we remain a trusted partner for both the public and private sectors. “We will also strive to be a leading example in proactive compliance under the Building Safety Act, while also championing carbon reduction and wider sustainability initiatives.” Tim Roberts, CEO of Henry Boot, added: “We are excited to welcome Lee Powell to Henry Boot Construction and I look forward to working closely with him. His extensive experience and leadership will be invaluable as we look to drive the business forward and build on our legacy of excellence. “Lee’s deep passion for delivering high-quality projects aligns perfectly with our values and vision for the business.” 2025 is set to be a positive year for Henry Boot Construction, with the company leading several key projects across the East Midlands, Humberside and Yorkshire, including the £36 million redevelopment of Rotherham Markets. The appointment of Lee Powell as Managing Director coincides with the addition of James Smith, who joins as Finance Director this month. These appointments build on the addition of Chris Weathers, who joined as Commercial Director last year. Chris has over 25 years’ experience in the construction sector. He spent 14 years at Caddick Construction before holding senior commercial roles within Tier 1 and Tier 2 contractors, including Wates Group and GMI. Chris is taking a hands-on approach, focusing on evolving the company’s processes and expanding its private sector portfolio. James brings a strong background in finance, having worked in practice before entering the construction sector with GMI in 2012, where he progressed to the role of Finance Director.

£4.7m grant secured for restoration of Canada House in Sheffield

Harmony Works Trust has secured a £4,677,306 grant from The National Lottery Heritage Fund, contributing significantly to the proposed restoration of Canada House in Sheffield city centre. Harmony Works Trust, awarded official charitable status in August 2023, purchased the Grade II* Listed Canada House from Panache retail brand for £1.6 million last year and plans to transform the building into a music hub for the region. The grant, made possible thanks to National Lottery players, adds to the project’s growing support base, which also includes funding from the Architectural Heritage Fund, Sheffield City Council, South Yorkshire Mayoral Combined Authority, the UK Government’s Levelling Up Funding, and multiple local trusts and foundations. Originally built in 1875 as offices for the Sheffield United Gas Light Company, the iconic Canada House will be transformed into a central new home for music education, offering an all-in-one practice, rehearsal and performance destination. Located in the heart of Sheffield city centre, the inclusive hub can be easily reached via bus, tram and train from across the region. Once fully refurbished, it will become home to many organisations including the Sheffield Music Academy, Sheffield Music Hub, Brass Bands England, Music in the Round, Choir with No Name, Orchestras for All, and Concerteenies, while also working closely with The University of Sheffield, Sheffield Hallam University and The Sheffield College.  Emily Pieters, Project Director at Harmony Works, said: “We are incredibly grateful to The National Lottery Heritage Fund for supporting our ambitious project. While we are not quite over the line yet, this funding commitment is a major step in preserving the historic Canada House, and realising our long-term vision of creating a vibrant new music hub that will inspire and nurture the creative potential of young people and their communities.”  Reflecting on the building’s history, Pieters continued: “In the 1980s, Canada House was known as TurnUps nightclub, a popular spot for young music lovers. It’s amazing to think that in just three years time, these walls will again be filled with music – this time, created by young people for others to enjoy.”  Helen Featherstone, Director for England, North at The National Lottery Heritage Fund, said: “It is fantastic news that we’re supporting the restoration of Canada House in Sheffield, a truly fantastic building. “Saving heritage is a priority for the Heritage Fund and thanks to money raised by National Lottery players, this project will safeguard the historic building by bringing it back into use as a music hub and providing exciting opportunities for young people and communities across South Yorkshire.” Cllr Martin Smith, Chair of Economic Development and Skills Committee at Sheffield City Council, added: “Culture runs through every community in Sheffield, and we are committed to putting it at the heart of everything we do. Harmony Works will be a home for inspirational music education and opportunity in our city. “Not only will this benefit young people across South Yorkshire, but this further funding will also allow us to protect an important heritage asset.”

Contract to build Whitby Maritime Hub to be considered for approval

Plans to launch a multi-million pound development to place Whitby at the forefront of the maritime and offshore renewable energy sectors and help to boost job opportunities for local communities are set to be considered by councillors. Executive will consider proposals next week to approve a contract to build the Whitby Maritime Hub, which is aimed at providing a greater breadth of career paths in the historic port. Building on Whitby’s proud fishing and sailing heritage, the hub in Endeavour Wharf is set to address the need to develop a better supply of technical skills in the maritime sector and put the town at the forefront of the growing renewable energy sector. The hub would also provide accommodation for maritime businesses and service providers to support economic growth in the coastal area. Executive member for open to business, Cllr Mark Crane, whose responsibilities include economic growth and harbours, said: “We have long recognised the need to ensure that there is a diverse and sustainable range of job opportunities for all our communities, and especially those on the coast. “The plans for the Whitby Maritime Hub present us with a significant chance to achieve just that, opening the door to new economic growth and helping to create the next generation of skilled apprentices and professions by providing first-class training and facilities for a range of maritime industries. “The proposals to enter into a contract to start work on the development will be considered carefully by executive members to ensure that we provide the best value for taxpayers while also capitalising on the opportunity to create what we hope will be a landmark development on the North Yorkshire coast.” The funding for the project is set to come from the £17.1 million given to Whitby as part of the Government’s Town Deals programme. A total of £37.3 million was awarded under the programme to both Whitby and Scarborough in 2021. Planning permission for the development was approved by North Yorkshire Council in August last year and the executive will now be asked to approve proposals to enter into a £9.6 million contract with developers from Willmott Dixon. If the plans are approved by the executive, it is hoped that construction on the Whitby Maritime Hub will start early this year for the development to open in the spring of 2026. A report to be considered by the executive next week (January 21), has recommended that North Yorkshire Council initially remains as the operator of the building with the potential for a community interest company to be developed to take on the running of the facility. The chair of Whitby Town Board, Barry Harland, said: “This would be a major development for Whitby, and we want to ensure that the opportunities which it presents are felt by the local community as well as attracting some of the leading talent in the maritime sector. “Whitby has a proud maritime heritage, and we want to make sure that this continues throughout the 21st century.” The hub has been designed to blend in with the existing views of the town. There will be space for classroom-based training, engineering workshops and marine biology laboratories, offering opportunities for training and employment in areas ranging from marine biology to emerging industries, such as off-shore wind. There is also due to be an office space for marine-based start-up businesses and other maritime industries. The offices are intended to be occupied by local, regional and national businesses and organisations, making Whitby a hub of maritime activity. This would enable new and innovative commercial opportunities in the maritime and marine sectors to support growth in the local economy and reduce a reliance on seasonal employment, such as tourism. Cllr Neil Swannick, the member for the Whitby Streonshalh division, said: “The chance to provide a far greater range of job opportunities here in Whitby would benefit not just people living here in the town, but also across a far wider area. “The hub would give Whitby an economic boost and move the town away from a reliance on seasonal tourism and hospitality, which will provide us with a far wider economic base to increase job prospects on the coast.” Cllr Phil Trumper, who represents the Whitby West division, added: “The proposed development of the hub presents a significant opportunity for Whitby to place itself at the front and centre of the maritime and offshore renewable energy sectors. “There would be a more diverse range of jobs available in the town which would help ensure that local people, especially in the younger generations, can remain to pursue a career here.”

Yorkshire Water appoints partners to £850m framework

Yorkshire Water has appointed seven contract partners to its new complex non-infrastructure works framework, worth £850m, which covers the 2025 – 2030 delivery period (AMP8).

The partners have been selected across the framework to deliver on the utility’s increased investment in non-infrastructure clean and wastewater assets over the next five years.

Partners selected onto the framework are Barhale, Galliford Try, Glanua, Kier, Mott MacDonald Bentley, Tilbury Douglas, and Ward & Burke.

Partners will provide civil engineering, mechanical, electrical, instrumentation, control and automation and building capability and expertise to the utility as it increases investment in its clean water and wastewater networks across Yorkshire.

The utility will undertake its largest ever environmental investment programme in the AMP8 period, with plans to invest £8.3bn across the business recently approved by Ofwat, the water industry’s regulator.

Rachael Fox, head of programme delivery at Yorkshire Water, said: “We’re looking forward to working with our chosen partners as we embark on an ambitious investment programme from 2025. There’s a big challenge ahead – not only to meet new regulatory requirements, but to meet customer expectations too – and effective collaboration will be key to our success.”

Make UK partnership offers AI support to businesses

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A new partnership with Protex AI will build on Make UK’s existing health and safety expertise by offering members direct access to AI-powered technology enabling businesses to gain greater visibility of unsafe behaviours in their facilities, helping them make informed safety decisions. Dan Hobbs, Protex AI CEO, said: “Through this collaboration, UK manufacturers will gain access to powerful AI-driven tools that identify and mitigate risks before they lead to incidents, ultimately supporting a safer, more productive work environment.” Together, Protex AI and Make UK aim to harness cutting-edge AI technology to elevate safety standards across manufacturing sectors and help organisations achieve a proactive, data-driven approach to health and safety. Chris Newson, Environment, Health and Safety Director at Make UK says: “By combining Make UK’s industry expertise with Protex AI’s innovative technology, we are paving the way for a safer, smarter manufacturing future.”  

Hull and East Riding of Yorkshire leaders agree Capital Programme funding

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£24.6 million of funding secured as part of Hull and East Yorkshire’s devolution deal is in line to be spent on key projects, after approval was granted by the Leaders of Hull City Council and East Riding of Yorkshire Council. They have agreed to proposals to formally allocate ‘in year’ capital funding awarded as part of the deal struck with the Ministry of Housing, Communities and Local Government to devolve powers to local decision makers. Projects to benefit will include flooding and coastal programmes, as well as transport spending for Bridlington, Hessle, Howden, Pocklington, and the Kingswood area of Hull. There will also be money for the Queens Gardens refurbishment in Hull and the Rawcliffe Bridge Solar Farm. £4.6 million will go towards building houses on brownfield land. The Chief Executive of Hull City Council, Matt Jukes, said: “I’m delighted that we’ve been able to sign off on this investment, which will provide benefits for the city and the wider area. “It allows us to tackle issues that are challenging for our region, such as flooding, and invest in vital new infrastructure, such as transport connectivity, and cultural regeneration, whilst also allowing for the building of more homes.” The Chief Executive of East Riding of Yorkshire Council, Alan Menzies, said: “It’s fantastic to secure key funding for our region, as part of the devolution process. “This funding will play a crucial role in supporting local residents and improving flood prevention measures, transport, and infrastructure.” The Capital Programme funding is part of work arising out of Hull and East Yorkshire’s devolution deal, which involves the creation of a Mayoral Combined Authority (MCA). A £400 million investment fund will be available to the MCA, which will be led by a mayor to be elected in May 2025.

High winter demand for gas reduces reserves to ‘concerningly low levels’

Plunging temperatures and high demand for gas fired power stations have reduced UK winter gas storage to concerningly low levels, according to Centrica.

The UK’s gas storage is under pressure this winter as the UK battles both extreme cold and high gas prices. The ongoing colder-than-usual conditions in the UK combined with the end of Russian gas pipeline supplies through Ukraine on 31 December 2024 has meant that gas inventory levels across the UK are down. As of the 9th of January 2025, UK storage sites are 26% lower than last year’s inventory at the same time, leaving them around half full. This means the UK has less than a week of gas demand in store. Gas storage was already lower than usual heading into December as a result of the early onset of winter. Combined with stubbornly high gas prices, this has meant that it has been more difficult to top up storage over Christmas. The situation is echoed across Europe. By 7 January 2025, despite many countries mandating minimum storage levels ahead of winter, European storage was at 69% capacity, down from 84% at the same time the previous year. The UK’s total gas storage capacity is around 10 per cent or less than in France, Germany, or the Netherlands. As energy demand spikes due to the freezing weather, the UK has seen a particular strain on its gas storage. Despite being full ahead of winter, current gas inventory at Rough, the country’s largest gas storage site, which is operated by Centrica, is 20% lower than at the same time last year. Rough has played a crucial role so far this winter by supplying almost 420 million cubic meters of gas since early November, enough to heat three million homes every day. Chris O’Shea, Group Chief Executive of Centrica, said: “The UK’s gas storage levels are concerningly low. We are an outlier from the rest of Europe when it comes to the role of storage in our energy system and we are now seeing the implications of that. As we work towards Clean Power 2030, long-duration energy storage will be needed more than ever in order to help balance a system that is increasingly reliant on renewables. “Energy storage is what keeps the lights on and homes warm when the sun doesn’t shine and the wind doesn’t blow, so investing in our storage capacity makes perfect economic sense. We need to think of storage as a very valuable insurance policy. Like any insurance policy, it may not always be needed, but having more capacity helps protect against worst-case scenarios. “If Rough had been operating at full capacity in recent years, it would have saved UK households £100 from both their gas and their electricity bills each winter. We stand ready to invest £2bn of our own money in upgrading and redeveloping the Rough gas storage facility but we urgently need the cap and floor model recently announced for long duration energy storage to be applicable to Rough. With that, we can create thousands of new jobs in construction and safeguard a vital national asset. Without that, UK consumers will continue to have higher energy bills than is necessary.”

2025 Business Predictions: Martyn Kendrick, regional director of Yorkshire and the Humber at Lloyds

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 Martyn Kendrick, regional director of Yorkshire and the Humber at Lloyds. As we look ahead to 2025, Yorkshire’s diverse and dynamic economy is well-positioned to drive growth across key sectors. The technology sector continues to lead the way, with businesses ramping up investment in digital transformation and automation to tackle longstanding productivity challenges in the North. From AI-driven tools to cloud-based platforms, these innovations are helping firms operate more efficiently and stay competitive in an evolving landscape. Yorkshire’s professional services sector, anchored by Leeds’ position as home to the second-largest legal hub outside London, is also set to thrive. As businesses navigate more complex regulatory challenges, the demand for expert advice is rising, solidifying the region’s reputation as a thriving leader in legal and professional services. Industrial manufacturing remains a cornerstone of Yorkshire’s economy, with a renewed focus on sustainability and innovation. By adopting energy-efficient processes and leveraging advancements in green technologies, manufacturers are staying competitive while contributing to the region’s net-zero ambitions. Yorkshire’s attractiveness lies in its diversity, and by embracing its many sectors’ strengths, businesses across the region are creating opportunities for long-term prosperity in 2025 and beyond.

New warehouse supports growth of York logistics specialist

Celkom Transport Ltd has invested in a new 50,000 sq ft warehouse at its York site. Utilising an existing building that it has fully refurbished to industry specifications, the newly opened facility will provide additional 3PL pallet storage and fulfilment options for customers. Celkom has benefitted from sustained growth as a shareholder member of the Pallet-Track network, and the new warehouse will help increase the distribution of goods nationwide. Celkom Transport already provides 24/7 operation for customers using a diverse transport service from vans to temperature-controlled HGVs. As part of a new warehouse division, the additional space will facilitate in-bound transportation and fulfilment and improve outbound haulage services as part of a new one-stop-shop facility. As part of the Pallet-Track network, Celkom’s new warehouse will further enhance its offer through providing single pallet distribution, storage, and fulfilment, to full loads. Lukasz Komamicki at Celkom said: “The new space cements our long-term vision for growth. We can now provide a complete commercial offer allowing customers to have full control of their pallets and goods at any one time. “Importantly, it will facilitate the best service possible by incorporating our haulage division and warehousing groupage within the Pallet-Track network.” Taking 12 months to renovate, the new warehouse incorporates several sustainable features, including full solar panels on the roof which provide self-generating electricity. Electric forklifts will help move the 2,500 pallets which can be stored inside, supported by LED movement sensor lighting. Five new jobs have been created as part of the investment, with longer-term plans for growth on the site. Stuart Godman, CEO of Pallet-Track, said: “We congratulate Lukasz and the Celkom team on their continued success, which is driving significant growth for their business and the Pallet-Track network. “As an agile and customer-focused business, we are immensely proud to work with Celkom to provide their customers with a high-quality service, driven by our network and supported with real-time updates through our tracking software. “Celkom’s investment in sustainable features, such as solar panels and electric forklifts, futureproofs the business and aligns closely with Pallet-Track’s own commitment to carbon neutrality, after becoming a Carbon Certified Business in 2024.”

Fewer firms take on new employees, BCC survey finds

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Fewer than a quarter of firms took on new employees during the last quarter of 2024, the Insights Unit at the British Chambers of Commerce has discovered in its latest survey of almost 5,000 firms, 90% of the SMEs. Just 24% of responding businesses said they had increased their staffing numbers over the last three months, down from 27% in Q3. 60% said their workforce had remained constant, and 16% reported a cut in staff. Construction and engineering firms continue to struggle the most finding staff, with 83% reporting recruitment issues. Manufacturers are not far behind with 82% having difficulty, followed by 81% of businesses in the transport and logistics sector. At the other end of the scale, 69% of marketing and communications firms faced problems. Labour costs continue to be the main pressure businesses are facing to raise prices in Q4, cited by 75% of firms. That’s up significantly from 66% in the previous quarter. The pressure is currently felt most keenly in hospitality (87%), then transport (84%), construction (82%) and manufacturing (80%). More firms are reducing investment in staff, with 19% of responding businesses reporting a cut in training spend compared with 13% in Q3. Meanwhile, 22% said they had increased training investment, down from 25% in the previous quarter. 60% of businesses said training investment had remained the same. Jane Gratton, Deputy Director Public Policy at the BCC said: “Our latest concerning results are likely to represent just the tip of the iceberg. Business confidence has been hit hard since the Budget. Employers are now having to plan for a significant increase in employment costs, with steep rises in national insurance and the minimum wage coming down the track in April. This will inevitably impact on recruitment, retention and staff development. Firms tell us they will have to make some tough decisions to balance the books. “The cuts in training investment are also worrying because improving skills is a vital part of driving economic growth. Our data shows firms are facing significant challenges recruiting the right people. The problems in the construction and manufacturing sectors are particularly concerning. “Cost pressures are already casting a shadow over recruitment, employment and training efforts. However, the full impact of these challenges will only become apparent later this year. “If businesses are to grow and meet future demand, they need a functioning labour market. This means addressing skills shortages, removing barriers to workforce participation, and creating the right conditions for firms to invest in their people.”