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
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.”
NFU calls for ban on personal meat imports after Foot and Mouth outbreak in Germany
An outbreak of Foot and Mouth disease in a German water buffalo herd has prompted the NFU to call for a ban on personal meat imports into the UK.
President Tom Bradshaw said: “The confirmed outbreak of foot-and-mouth disease in Germany is very worrying news for all livestock keepers across the EU.
“We welcome the swift action taken in reporting the disease so that we can minimise the risk to all livestock keepers, and it is now paramount that we make sure our borders are secure so that we don’t risk importing the disease into the UK.
“With so much uncertainty about where this disease is and where it came from, and knowing the impact this horrendous disease can have, we’re calling on the government to ban personal imports of meat, milk, and meat and milk products, unless accompanied by official veterinary documentation.
“The government must also ensure that those fighting illegal meat imports, including Border Force, have the resources they need to stamp out this practice.”
An outbreak of the disease has been confirmed in a herd of water buffalo near Brandenberg to the west of Berlin. It’s the first instance of FMD in Germany since 1988.
The cases were confirmed on 10 January and affected three water buffalo out of a herd of 14. The remaining animals in the herd have been culled to prevent further spread. 200 pigs on a nearby farm have also been culled as a precaution.
A 3km exclusion zone and a 10km surveillance zone have been put in place around the IP (infected premises) and the German authorities are slaughtering all susceptible livestock within 1km, including wild boar within 1km of the IP.
Additionally, no animals or their products can be taken out of this area.
Business Lincolnshire offers fully-funded advice to startups and new businesses
Business Lincolnshire is inviting budding entrepreneurs and early-stage businesses across Greater Lincolnshire and Rutland to take advantage of the fully funded Business Lincolnshire Start-Up Academy.
In 2024, almost 500 individuals and early-stage business owners were given specialist advice by the Business Lincolnshire Growth Hub. Almost 300 attended a workshop or met an adviser, going on to launch 24 new businesses and creating 25 jobs.
Councillor Colin Davie, Executive Councillor for Economic Development, Environment and Planning at Lincolnshire County Council, said: “These figures highlight the entrepreneurial spirit thriving in our region. The success of the Start-Up Academy underscores our commitment to fostering a robust business environment in Greater Lincolnshire and Rutland.”
The programme is led by Malcolm MacPhee and Andy Byrne, Business Lincolnshire’s specialist advisers. From business planning and cash flow forecasting to practical advice for overcoming challenges, Malcolm and Andy are there to guide you every step of the way – and it’s all fully funded.
Dedicated Doncaster advocate marks ten years as Chamber’s Chief Exec
Dedicated Dan Fell is celebrating ten years as Chief Exec of Doncaster’s Chamber of Commerce, and predicts great things ahead for South Yorkshire.
Having been the youngest ever CEO of an accredited UK Chamber, he is now looking forward to what he predicts will be great things in the future.
Among other things, he played an integral role in winning City Status, was one of the founding members of the local University Technical College, and has been a prominent voice in the successful campaign to reopen Doncaster Sheffield Airport.
Doncaster Mayor Ros Jones, said: “It is testament to Dan and his incredible leadership that he is celebrating a decade at the helm of Doncaster Chamber. I congratulate Dan on this milestone celebration and look forward to continuing working with him, Doncaster Chamber and the wider Team Doncaster partnership to Deliver4Doncaster.”
Beyond South Yorkshire’s borders, Dan has also been a key part of the overarching British Chambers of Commerce network over the past 10 years, sitting on various working groups and commissions that are dedicated to tackling the most pressing economic issues of the day.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “Dan has been a great friend to our entire network throughout his decade of service as Chief Executive of Doncaster Chamber. He has been a true champion for businesses in his region, which was recognised in his nomination for our national President’s Award this year. He has a huge amount to be proud of during his 10 years at the helm.”
Dan said: “I have had the privilege of working with some incredibly talented and dedicated individuals who have achieved remarkable feats for the good of our city. I have seen intrepid entrepreneurs grow fantastic businesses from the ground up, industry-leaders really putting our city on the map, and strategic partners joining forces to achieve more together than they ever could on their own.
“It is thanks to their extraordinary efforts and sky-high ambitions for Doncaster that we have come so far over the past decade. Here at the Chamber, we are obviously pleased to see Doncaster starting to thrive and are proud of what has been achieved here but, ultimately, we are far more interested in the next ten years than we are in the last. It is with that in mind that we launched our optimistic vision for the decade ahead, Doncaster ’35: A Manifesto for a Winning City, at our 2024 business conference.
“Developed in close collaboration with our members, this document envisages a future in which Doncaster is seen — both within and without — as a place that is vibrant, dynamic and at the bleeding edge of developing trends. To get us to this point, the manifesto is frank about the challenges that we currently face, whilst also outlining the exciting opportunities before us and the practical steps that need to be taken for Doncaster to unlock its full potential.
“From the Chamber’s perspective, we will be rolling up our sleeves in 2025. Among other things, we will be: mobilising businesses behind “Keep Doncaster Tidy” volunteering days; thinking about how we can use our platform to help employers reach those who are further removed from the labour market; launching a transport forum; and exploring new avenues for increased collaboration between the private and public sectors.
“If we can achieve all of this and, alongside our Team Doncaster partners, continue to build upon the successes of recent years, then I am confident that the decade ahead will be just as prosperous, exciting and rewarding as the last one.”
Lincolnshire car wash operator fined £20,000 and banned from directorship
The owner of a Lincolnshire hand car wash has been fined £20,000 and banned as a company director for five years after employing illegal workers.
Mohamed Hamza, 34, hired the workers from Syria and Egypt at the M&H Car Wash on Enterprise Way in Pinchbeck, who were discovered during an Immigration Enforcement visit in 2022.
Kevin Read, Chief Investigator at the Insolvency Service, said: “Mohamed Hamza hired two people who did not have the right to work in the UK, contravening the Immigration, Asylum and Nationality Act 2006. This represents a serious breach of legislation and of the standards expected of company directors.
“Hamza’s directorship ban means he cannot now be involved in the promotion, formation or management of a company in the UK until January 2030.”
Hamza, of Granville Road, Peterborough, had been the sole director of M&H Car Wash Ltd since it was established in February 2019. Immigration Enforcement officials visited the car wash in January 2022, discovering a Syrian man in his 20s and Egyptian man in his 30s with no right to work in the UK. M&H Car Wash was fined £20,000 for the immigration breach which remained unpaid when the company entered liquidation in August 2022 with liabilities of more than £44,000. Minister for Border Security and Asylum, Dame Angela Eagle MP, said: “Anyone who thinks they can profit from illegal working in the UK can think again. This case demonstrates there is no hiding place from law enforcement and I am pleased to see justice has been served. “We know that many people who come to the UK and end up working illegally often do so under extremely poor conditions and are frequently sold a false narrative about their ability to live and work here.“That’s why we’re ramping up our enforcement work to tackle smuggling gangs and make sure those who abuse our immigration system face the full consequences.”
Growing membership of Bed Federation continues its fight against rogue traders
The Skipton-based National Bed Federation, the trade association representing UK bed manufacturers and their suppliers, has grown its membership by more than 7% in 2024 and now has a total of 86 members, including 54 of the UK’s leading bed manufacturers.
About 30% of its members are also based in Yorkshire, and its members include Harrison Spinks of Leeds, Healthbeds (Smeaton Brothers) of Rotherham and fillings supplier John Cotton Nonwovens of Mirfield, all of which are longstanding members.
The growth of the membership against a generally challenging economic backdrop has been welcomed by exec director Tristine Hargreaves. “The addition of these new members, and retention of our existing manufacturer and supplier base, is a very positive foundation for our work in 2025 and underscores the value we have been working to deliver for the membership,” she said.
“We continue to maintain a focus on reducing the huge increase in ‘counterfeit’ mattress sellers that prey on cash-strapped consumers. They are trading in dangerous and often illegal products from websites, social media platforms and from the backs of vans across the UK, something we have seen skyrocket in recent years.
The 54 NBF manufacturers produce beds under more than 100 brands, and collectively generate around 75% of the UK’s £2.3 billion bed industry revenue. Simon Williams, head of membership for the NBF added: “As an association we may be over 100 years
old, but the focus of our work is squarely on the 21st century issues that affect the industry and consumers. Improving the amount of bed waste that is recycled is a cornerstone goal for us again in 2025, and tackling the plague of social media ads pushing products that do not meet UK trading standards is key to protecting consumers and manufacturers alike.”
Fire-damaged former cinema to go under the hammer as redevelopment opportunity
The former Savoy Cinema in Spalding, which, with a 1,500-person seating capacity, was Lincolnshire’s largest cinema when it opened in 1937, is to go up for auction this month with a guide price of £250,000-£270,000.
Converted to a bingo hall after audiences declined in the 1970s, the imposing building was damaged extensively by a fire in 2021 and has since remained disused.
Now the 15,000 sq ft cinema, which stands on a 0.7 acre site, is being offered for sale by joint auctioneers SDL Property Auctions and Eddisons Peterborough.
The auctioneers believe the building would be suitable for redevelopment and South Holland District Council has confirmed it would support proposals for a mixed-use commercial and residential scheme on the site. The Westlode Street property is close to the town centre, within Spalding’s conservation area.
Andrew Parker, auctioneer and partner at SDL Property Auctions, said: “This was once a splendid building that was a real asset to the town of Spalding and it has been disused and unloved for over three years since the fire.
“It would be great to see an imaginative mixed-use scheme bring the site back to life, perhaps retaining the original 1930s art-deco façade. Needless to say, the council’s support for a redevelopment scheme makes this a fantastic investment opportunity.”
Barnsley Council reveals development plans for the Seam Digital Campus
2025 Business Predictions: Oliver Bottomley, Associate Director, Land and Development at Vivly Living
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 Oliver Bottomley, Associate Director, Land and Development at Vivly Living, the Yorkshire-based residential property builder and developer.
With mortgage rates falling, this will increase the number of buyers in the market. This will help with the ‘next step’ buyers, who have been put off since Liz Truss’s disastrous budget. With the New Labour Government’s decision to scrap stamp duty reduction for first time buyers, we should see a lot of sales in the first three months of the year.
The new National Planning Policy Framework (NPPF) has told local councils to play their part to meet housing need, with new immediate mandatory housing targets for councils to ramp up housebuilding and deliver growth across the country. Hopefully this will break the over-complicated planning system which is geared in favour of objectors and not development.
As we look at 2025, we are planning to do 60 sales, up from the 38 of last year. We have planning permission for over 100 homes and we intend to have spades in the ground at new sites in Yorkshire from Q3 2025. Overall, despite the stagnant economy and the unpopular Budget, the outlook for 2025, for residential property developers at least, isn’t too gloomy. There is a real need for new homes, which the new Government recognises, and the planning reforms are a major step forward.
Sheffield manufacturer fined after employee’s legs crushed
A Sheffield manufacturer has been fined after a steel pallet landed on an employee, leaving him permanently disabled.
The 800kg load crushed Wayne Hatton’s legs during a night shift at Amber Precast Ltd’s factory on 14 January 2021.
Mr Hatton, from Doncaster, had his right lower leg amputated with two toes on his left foot also being removed following the incident at Davy Business Park.
The pallet was being removed from a reinforced concrete cast when it fell onto the father-of-two, who had only recently been employed by the firm as a supervisor.
The then 46-year-old spent seven weeks in hospital and now has a prosthetic leg after his right lower leg was amputated.
A Health and Safety Executive (HSE) investigation found the pallet had not been secured onto the lifting chains of the overhead crane before being removed from the concrete cast. This meant the pallet was not supported whilst being moved.
The investigation also found Amber Precast Ltd failed to consistently implement a system of work to ensure the pallet could be removed safely. Mr Hatton, now 50, and other members on his team had not received any information or instructions on how to remove the pallet safely.
Amber Precast Ltd, of Davy Business Park, Prince Of Wales Road, Sheffield, pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc. Act 1974. The company was fined £60,000 and ordered to pay £5,406.31 in costs at Sheffield Magistrates’ Court on 9 January 2025.
HSE inspector Jane Fox said: “This incident could so easily have been avoided with the correct instruction and implementation of an agreed safe working procedure. Amber Precast Ltd left its employees to work out their own methods of completing the pallet removal task, instead of providing them with suitable training and equipment so it could be done safely every time.”
This prosecution was brought by HSE enforcement lawyer Andy Siddall and supported by HSE paralegal officer Rebecca Withell.
Avant Homes submits plans for £66m housing development near Barnsley
Housebuilder Avant Homes has asked Barnsley council planners for permission to build a £66.5m scheme of 300 homes in Thurnscoe.
Located on land off Thurnscoe Bridge Lane, the proposed development will comprise a mix of two-, three- and four-bedroom homes.
If given the go ahead by Barnsley Metropolitan Borough Council, work could start in May 2025, with the first residents expected to move into their new homes in January next year.
Subject to planning being granted, the development will be delivered by Avant Homes West Yorkshire. MD Richard Hosie, said: “As a housebuilder, we are committed to build quality new homes for everyone in places where people want to live.
“Our proposed development in Thurnscoe represents an opportunity to deliver on this and provide practically designed, energy efficient homes ideal for a range of buyers.
“We look forward to Barnsley Metropolitan Borough Council considering our plans to build a new and thriving community in Thurnscoe.”
West Lindsey Chief Exec to retire this summer
West Lindsey District Council Chief Exec Ian Knowles is to retire at the end of June 2025, marking the conclusion of a distinguished career in local government spanning more than 30 years.
Ian Knowles was appointed as Chief Executive in 2019, after being Executive Director of Resources. Under his leadership, West Lindsey District Council has achieved considerable progress in transforming services, regenerating communities, and addressing some of the district’s most pressing challenges.
Among his key achievements is the council’s progress on the former RAF Scampton site. Despite significant obstacles, Ian and the leadership team are advancing plans to purchase the site from the Home Office, enabling the delivery of an ambitious £300 million investment programme. This development will revitalise RAF Scampton as a hub of heritage, innovation, and economic opportunity for West Lindsey.
Ian has also overseen the build of a brand-new central depot, a new crematorium, and a new leisure centre in the district – all delivered on time and in budget. In addition, there has been significant levelling-up initiatives, including the construction of a four-screen Savoy cinema in Gainsborough, alongside additional projects aimed at boosting the local economy, improving infrastructure, and enhancing the quality of life for residents.
In addition to these landmark developments, Ian spearheaded the implementation of critical internal improvements at the council. This included introducing a brand-new finance system to streamline operations and enhance efficiency, as well as a new customer records management system to improve service delivery and strengthen engagement with residents.
Ian said: “It has been an honour to lead this outstanding council and work with dedicated colleagues and partners to achieve meaningful change. West Lindsey is a place where people, businesses, and communities can really thrive and reach their full potential.
“We have worked to deliver on our shared vision of ‘Moving Forward Together’ to improve services and prosperity for Our People, Our Place, and Our Council. I am proud of what we have accomplished and confident in the district’s bright future and the amazing team we have here at West Lindsey.”
York launches scheme to create more employment opportunities in the city
Members of York’s business community are being encouraged to take part in a new movement to increase opportunities for York residents to get into the world of work.
In partnership with City of York Council, 4front Partners will deliver the Ambitious About Employment project, which will help businesses tap into the pool of hidden talent represented by those from diverse communities who may struggle, under existing recruitment practices, to access work.
This group includes those with Special Educational Needs and Disabilities (SEND), neurodivergent individuals, young people and more.
Businesses will receive expert advice and training on making their recruitment practices as inclusive as possible, as well as support to find and onboard new talent into their organisations.
Cllr Pete Kilbane, the council’s Executive Member for Economy and Culture, said: “Embedding diversity and inclusion into HR practices is not just desirable, but essential for businesses to succeed in a competitive marketplace.
“We see again and again the positive impacts that diversity has on all aspects of our community, including in the workplace.
“We know that so many businesses in our city are already committed to providing opportunities for a wide range of people to take part in rewarding employment, and we hope that this project will support them and encourage more businesses to make their recruitment practices accessible for all.”
Adopting inclusive recruitment practices means designing a system that is accessible, inclusive and supportive for everyone.
Attracting a more diverse workforce can support business innovation, enhance an organisation’s reputation, improve employee retention and much more.
Businesses who are interested in accessing this support can sign up to one of three online masterclasses, where internationally-renowned Human Resource Management expert Professor Jo Ingold will guide attendees through the fundamentals of inclusive recruitment and cover the practical approaches businesses can adopt to make their recruitment practices more accessible.
Small firms urged to enter competition highlighting international trade
SMEs are being encouraged to enter the ‘Made in the UK, Sold to the World Awards’ scene created by the Department for Business and Trade.
The awards, entry for which is open until March 9th, celebrate the international sales success of SMEs across the UK and provide a stepping stone for further growth and opportunity. This year, two new categories have been added: Digital & Technology, and ‘Export Services’ – the latter aiming to recognise the contribution of logistics and distribution businesses that facilitate UK exports.
Other categories cover Advanced Manufacturing & Construction; Agriculture, Food & Drink; Consultancy & Professional Services; Creative Industries; Education & EdTech; Financial Services & FinTech; Healthcare; Infrastructure and Engineering; Low Carbon Energy; Retail and Consumer Goods.
Lloyds Bank has joined as a partner for the 2025 awards, in addition to the founding partner, the Chartered Institute of Export & International Trade. The winners’ package has been updated to include a year’s free business membership to the Chartered Institute; an export masterclass with a Lloyds Bank trade expert; professional photos of their business; and an invitation to the winners’ reception in London. They will also receive a trophy, certificate and digital badge, and bespoke promotion on the DBT’s channels. Those that are highly commended will also receive a year’s free membership to the Institute.
Gareth Thomas, Minister for Services, Small Businesses and Exports, said: “When small businesses export, it opens a wealth of incredible opportunities. These awards are a testament to the innovation that British SMEs display day in, day out.
“As we enter the new year, our Plan for Change is about ensuring businesses across the country can thrive and grow. This will boost jobs and wages and firms that export are at the forefront of that growth. I encourage all those who have started on the exporting ladder to enter and showcase their success.”
Two of last year’s winners have since seen growth in revenue and expansion into new markets. Intralink, an international business consultancy and winner of the Consultancy and Professional Services category, has enjoyed 10% growth in revenue and expanded into Finland, Norway, China and South Korea. SimVenture, the winner of the Education & EdTech category, has seen 30% year-on-year growth and grown into the Middle East.
‘Reeves’ first budget weighs heavily on business,’ says Chamber Chief Exec
Hopes were high of a further cut in interest rates in December were dashed when the Bank of England’s Monetary Policy Committee voting to hold interest rates at 4.75%.
And with the realities of the Chancellor’s first tax raising Budget starting to hit home, there is much unrest in the business community about higher overheads which will show themselves more clearly in the results for the first quarter of 2025, says the Hull and Humber Chamber.
Chamber Chief Exec Ian Kelly said: “The quarter three figures showed a slightly improved picture with many indicators showing something of a bounce back, but our Quarter 4 results have seen the majority of those gains go into reverse.
“It is clear that increased costs caused by higher overheads and a substantial increase in the cost of employing staff thanks to Rachel Reeves’ first Budget are weighing heavily on the minds of business leaders across the Humber region.
“Most firms say they are now planning to increase their prices in the coming months, while at the same time cutting investment in training and equipment.
“Cashflow and profit expectations are also down as firms look for ways to reduce the impact of higher overheads in the midst of a tightening economy, not helped of course, by the Bank of England’s decision in December to delay a further cut in interest rates which had been hinted at by Bank of England Governor Andrew Bailey when he met senior Chamber Business Leaders at a private lunch in Grimsby in October.”
Nationally, The British Chambers of Commerce said: “The worrying reverberations of the Budget are clear to see in our survey data. Businesses confidence has slumped in a pressure cooker of rising costs and taxes.
“Firms of all shapes and sizes are telling us the national insurance hike is particularly damaging. Businesses are already cutting back on investment and say they will have to put up prices in the coming months.
“The Government is rightly coming up with long-term strategies on industry, infrastructure and trade. But those plans won’t help businesses struggling now.
“To help business we need to see quick action in three specific areas. Firstly, Ministers should accelerate business rate reform to create a system that incentivises investment.
“We also need the Government to speed up infrastructure investment, to help SMEs in supply chains across the country. Finally, it’s crucial to support exports, prioritising a better trading deal with the European Union.
“Without urgent Government action to ease the pain on businesses, the challenging economic landscape will get worse before it gets better.”
Survey reveals divide in business sentiment after the budget
As UK businesses prepare to implement the tax changes announced in the October Budget, new research from Simply Asset Finance reveals a divide in business sentiment and prospects for growth.
Mike Randall, CEO at Simply Asset Finance said: “The initiatives introduced in the recent budget are a silver lining for medium-sized businesses, with many of the measures evidently enabling them to pursue growth with renewed confidence providing the resources and stability needed for innovation and expansion. However, there is a pressing need to extend similar support to micro-businesses, as they continue to bear the brunt of unique challenges and uncertainties that threaten their ability to thrive.
“The reality is that there’s no ‘one-size fits all’ policy for SMEs – nor for their financing either. Policymakers, lenders, and industry leaders must work together to provide the necessary support to help businesses of all sizes thrive, creating a more balanced and resilient future for the UK economy.
“For finance providers, it’s about flexibility and trust. Whether it’s by offering debt restructuring, showing pathways to investment, or exploring ways to help businesses manage through seasonal fluctuations, there are concrete steps that can be taken to support SMEs and help them grow despite the current uncertainties. Only by leveraging the resilience and entrepreneurial spirit of UK businesses, can we unlock the potential of businesses of all sizes, broadening support and fostering a balanced and thriving economy.”
Despite grappling with changes to NI and the minimum wage, the survey, carried out in the wake of the budget, shows that almost one in five businesses are more inclined to invest in their business now that there is greater clarity on the Government’s economic roadmap. In addition, over half of businesses questioned believed the recently-announced reduction in business rates for retail, hospitality, and leisure will enable growth.
But a closer look at the data shows that smaller businesses and micro businesses are likely to fare much worse than medium-sized companies following Chancellor Reeves’ interventions, says the company.
The research reveals that medium-sized businesses are more likely to find that the announced policy changes will bolster their outlook and plans for 2025 than those at the other end of the spectrum. More than half see the business rate reduction as a growth opportunity, while 48% believe the fuel duty freeze will support their expansion. Infrastructure investments are also seen as key drivers, with 46% expecting transport spending to boost growth, and 43% viewing energy infrastructure improvements as essential. With these resources at their disposal, medium-sized businesses could be poised to leverage these policies for sustained success in the year ahead.
However, the mood among smaller businesses, especially micro-businesses, is much bleaker. Over half of micro-businesses believe rising national insurance contributions will hinder their growth, compared to 46% of small businesses and 40% of medium-sized businesses. Similarly, nearly half fear the impact of potential capital gains tax increases, a concern less pronounced among small (40%) and medium-sized (38%) firms. Adding to this, micro-businesses face the highest levels of uncertainty, with 7% unsure about their future—far higher than the 2% of small businesses and 1% of medium-sized businesses.
Farming organisations demand full consultation on inheritance tax changes
In the letter, farming leaders criticised the lack of consultation with the industry and professional practitioners prior to the announcement of the proposed changes to Agricultural and Business Property Relief.
The Treasury has so far committed to only a very limited ‘technical consultation’ on one specific aspect of the proposals, relating to the policy on charges on property within trusts. That consultation will happen early this year. The letter urges the Chancellor to use this opportunity to carry out a far more comprehensive review of the proposals.
Part of the letter said: “We urge the government to extend this consultation to cover other aspects of the policy, to ensure that it does not have the many negative consequences we believe it will have, in its current form, on family farms, environmental land management and food security.”
Key areas of concern that the group is urging to be part of a bigger consultation include; the impact of the changes on farming profitability and the viability of farming businesses, the options for older individuals for whom, until now, the most effective tax advice had been to hold their farms until death, and the impact on the tenanted sector.
Farming organisations emphasised that expanding the consultation will ensure the reforms to APR and BPR “will better enable the government to meet its fiscal objectives, while ensuring that working farm businesses are not periodically broken up on death, and that land available for tenancies is not reduced, given the serious negative impact these outcomes would have on growth and employment in the rural economy and on the nation’s food security”.
Following the sending of the letter this week, NFU President Tom Bradshaw said: “Farmers are at the heart of our rural communities, producing food and protecting the countryside for future generations, but the government’s proposed changes to inheritance tax put all that at risk.
“As a significant group of food and farming organisations from across the UK, we are urging the Chancellor to listen to our concerns.
“The government must extend its consultation on these reforms to safeguard the future of British farming. Without action, these changes risk tearing apart businesses that have been built over generations, undermining rural communities and jeopardising UK food security for years to come.”
Stone company fined almost £20,000 after failing to protect workers
A company that produces stone products and its director have been fined a total of just under £20,000 after repeatedly failing to protect workers from exposure to Respirable Crystalline Silica (RCS).
The Health and Safety Executive (HSE) carried out several inspections on Warmsworth Stone Limited, which produces carved stone masonry products using limestone, sandstone, granite and marble, at the company’s site at Knabs Hill Farm on Clayton lane in Thurnscoe, starting in May 2023.
Following these inspections, the company was served with seven improvement notices, which covered several failures including exposure to stone dust, control of legionella bacteria and inadequate welfare facilities.
When HSE inspectors returned in September 2023, five of the improvement notices had still not been complied with – despite the company being given an extension to do so following another visit in August.
The company had shown reckless disregard of several health and safety issues including the assessment and control of respirable dust, and the company’s standard of health and safety management was far below what is required by health and safety law, leading to HSE’s proactive prosecution for failure to control the exposure of workers to RCS.
Stone workers are at risk of exposure to airborne particles of stone dust containing RCS when processing stone, by cutting, chiselling and polishing. Over time, breathing in these silica particles can cause irreversible, life-changing and often fatal respiratory conditions such as silicosis, chronic obstructive pulmonary disease and lung cancer.
After the hearing the HSE inspector Charlotte Bligh said: “The company management responsible for health and safety were neither informed nor competent enough to carry out their role under the law.
“Over time, the basic measures to secure the health of all on site had not been taken, there had been no attempt to assess health risks and existing control measures had not been properly maintained.
“The company failed to take the initiative in health and safety matters and seek guidance, instruction and competent advice on implementation and communication of those measures necessary to control the risks at the site.
“The provision of suitable protection for worker’s health is a basic requirement that this company has failed to meet. HSE will not hesitate to take appropriate action against those that fail to comply with the requirements of enforcement notices.”
Warmsworth Stone Limited of 1-3 Sheffield Road, Warmsworth, Doncaster, South Yorkshire pleaded guilty to breaching section 21 of Health and Safety at Work Act 1974 by failing to comply with an Improvement Notice, breaching Regulation 7(1) of the Control of Substances Hazardous to Health Regulations 2002 by failing to adequately control employee exposure to a substance hazardous to health namely RCS and breaching Regulation 9(2)(a) the same Regulations by failing to have local exhaust ventilation subject to a thorough examination and test at least every 14 months.
They were fined £18,000 and ordered to pay costs of £4,064.
Director Simon Jonathan Frith pleaded guilty to being a director of a company that had breached Regulation 7(1) of the Control of Substances Hazardous to Health Regulations 2002 by failing to adequately control employee exposure to a substance hazardous to health namely RCS and breaching Regulation 9(2)(a) of the same Regulations by failing to have local exhaust ventilation subject to a thorough examination and test at least every 14 months, those offences being committed with his consent, connivance or neglect.
He was fined £1,062, and ordered to pay costs of £3,782.
The HSE prosecution was brought by enforcement lawyer Iain Jordan.
