UK economy stands still in July
The UK economy failed to grow in June – the second month in a row, in contrast to an expected rise by 0.2% month-on-month.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, showed no growth in July.
It reflects a modest rise in services output which was offset by drops in both production and construction: services output grew by 0.1% month-on-month, construction output fell by 0.4% month-on-month, and production decreased by 0.8% month-on-month.
Ben Jones, CBI Lead Economist, said: “The figures suggest the UK’s recovery remains on track, though sector performance remains mixed and growth over the second half of the year will probably be a bit slower than in recent quarters.
“Ahead of what promises to be a difficult budget next month, the government is treading a narrow path to put the public finances on a sustainable footing while maintaining the confidence of business and investors in the recovery.
“The government must remain focussed on its agenda for long-term growth. This means avoiding further pressures on business costs and providing firms with the certainty and long-term commitments over tax, regulation and infrastructure that will give them confidence to invest.
“By doubling down on the recently announced planning reforms, introducing a Net Zero Investment Plan and implementing a clearer, fairer and more competitive business rates system, government has an opportunity to supercharge investment and UK growth over the next Budget period and beyond.”
Yorkshire Water tech trials could turn fatbergs into fuel for its van fleet
UK first trials of a cutting-edge fats, oils and grease Recovery Hub at Yorkshire Water’s wastewater treatment works in Hull are helping the company to improve environmental performance while lowering costs, says Chris Clemes, chief executive of engineering technology company EcoClarity.
And that means waste fats and oils could be converted into biodiesel to fuel Yorkshire Water’s van fleet.
Yorkshire Water’s waste services manager James Gudgeon said: “We are working with EcoClarity towards the potential nirvana of being able to harvest the FOG from our sewer network and turn it into biodiesel that fuels our vans. That’s the end goal.
“As a water company, we suffer from thousands of preventable blockages each year from fats going down sewers. FOG blockages, or fatbergs impair the performance of wastewater assets which can cause sewer overflows, that can impact the environment.
“Water companies can spend a significant amount of money on staff and equipment costs to remove FOG from our sewers and send it to landfill – which also has an environmental impact. Additionally, network failures caused by FOG blockages carry the risk of costly environmental performance fines.”
As part of Yorkshire Water’s drive to increase efficiency within its operations, the water utility works alongside technology consultancy Isle to identify the latest technologies and innovations in clean and wastewater.
“In 2021, Isle suggested working with EcoClarity on our wastewater site, at a time we were looking to grow our imported waste business. The EcoClarity proposition gives us the ability to import different types of waste that we would not normally be able to treat.”
Yorkshire Water is the first UK water utility to install EcoClarity’s patented technology – located at its Hull wastewater treatment site. The modular, containerised EcoClarity system was introduced in February 2024 and will be used to treat FOG wastewater generated onsite during cleaning and maintenance procedures, as well as loads from waste management companies.
Dental studio signs lease to double the size of its footprint at The Springs
Family-runVitruvian Dental Studio has agreed a new 15-year lease for a 1,664 sq ft unit alongside its existing 1,632 sq ft unit at The Springs in Leeds.
Since opening its first studio at The Springs in 2021, Vitruvian has acquired over 10,000 customers, operating five surgeries and a consulting room. The expansion will allow Vitruvian to add three further surgeries, another consulting room and an on-site laboratory to support same day smile transformations with teeth straightening, veneers, implants and dentures. The practice expects to create fifteen new support jobs at The Springs alongside its team of expert dental consultants.
Building on its success at The Springs, Vitruvian Dental Studio recently announced the expansion of its footprint beyond Leeds, with its second location at The Glass Works in Barnsley. This new studio will further enhance the practice’s reach and accessibility, bringing its renowned dental services to a broader audience.
Vitruvian was set up by dental surgeons Dr Katy Nolan and Dr James Nolan who qualified at the University of Leeds. The couple who are both highly regarded in cosmetic dentistry have recruited a team of expert and specialist dentists in every field of dentistry to allow patients to receive expert care for whatever they require.
James Nolan said: “In just three years we have grown from a start-up business to now serving over 10,000 clients with an expanding wait list.
“The Springs has proved to be a fantastic location for us with its accessibility and highly contemporary environment that fits perfectly with our brand proposition.
“To be able to expand through premises just next door is a huge benefit and The Springs management team have been exceptionally supportive throughout our journey.
“It has indeed provided a secure launch pad for Vitruvian, and we are delighted to also announce our next studio opening in Barnsley.”
Rachel Vickers, Senior Commercial Manager at Scarborough Group International , developer and asset manager of The Springs and Thorpe Park Leeds, said: “As well as serving the East Leeds community, Vitruvian provides a fantastic convenience for around 7,500 people who work at the established Thorpe Park Leeds business estate.
“Through reputation the practice has achieved a major milestone with over 10,000 patients and this is a great example of how a well-placed and inviting environment with plentiful shops and attractions can support independent businesses with great vision.
“Our lettings strategy has always been to secure a blend of high street brands alongside independent businesses to achieve a strong dynamic for retail, leisure and amenity at The Springs Leeds and increased footfall, month-on-month, is testament to that.”
Government in talks to ‘get Britain working again’
Experts advising government on how to tackle the ‘greatest employment challenge for a generation’ have met Work and Pensions Secretary Liz Kendall for the first time.
At its first meeting, members of the new Labour Market Advisory Board offered new approaches to shape government work on economic inactivity, tackling the root causes for people remaining out of work such as poor physical and mental health, and how the group can help the government reach its ambition of an 80 per cent employment rate.
The Board will develop new ideas and initiatives for the Work and Pensions Secretary to consider as she sets about bringing down the levels of economic inactivity, with the UK being the only G7 country whose employment and inactivity rates haven’t returned to pre-pandemic levels.
Liz Kendall said: “Spiralling inactivity is the greatest employment challenge for a generation, with a near record 2.8 million people out of work due to long-term sickness. Addressing these challenges will take time, but we’re going to fix the foundations of the economy and tackle economic inactivity.
“The board’s knowledge, expertise and insight will help us to rebuild Britain as we deliver our growth mission, drive up opportunity and make every part of the country better off.”
Paul Gregg, Chair of the Labour Market Advisory Board said: “Having studied the UK’s labour market across several decades, it is clear that the current labour market faces a deep-seated set of challenges. “We have seen a sharp increase in economic inactivity and long-term sickness, most notably in our young people post-pandemic. Further, real wage growth has been heavily supressed for 15 years hitting living standards and government tax revenues. Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labour market.“I look forward to working with members of the board and the Secretary of State to support her vision for growth and examining positive solutions to address inactivity and harness the true potential of the UK’s labour market.”
Lincolnshire County Council sells land at Kirton to grow local economy
Lincolnshire County Council has sold 10.16 acres of development land to expand Kirton Distribution Park.
The purchasers – Melbourne Holdings – will initially be constructing ‘Stonebridge Business Park’, a 25,000 sq ft space comprising 9 new industrial units, on the land.
Cllr Colin Davie, executive councillor for economy at the county council, said: “This sale marks an important development for the well-established Kirton Distribution Park, paving the way for the phased development that will significantly enhance the area’s economic landscape.
“As a council we have responded to a growing demand for more industrial space in the county. We’re committed to supporting businesses to start up, grow and re-locate in Lincolnshire, creating jobs, supporting local supply chains and enhancing the local economy.”
Lucie Bryant, Director at Melbourne Holdings, said: “We are delighted to further our commitment to supporting employment and industrial growth in Lincolnshire with our recent acquisition and proposed development at Kirton Distribution Park.
“The purchase comes after recently securing planning permission to deliver a diverse range of warehousing that will support start-ups, growing businesses, large companies and international trade in this key strategic position, reinforced by Lincolnshire County Council and Boston Borough Council.
“The units will be available off plan via our appointed agents Pygott and Crone, and we look forward to working with current and prospective requirements with design and builds opportunities being considered.”
Law firm to offer free advice briefings for business
Experts at law firm Rollits will address issues ranging from how to handle serious incidents involving charities to social media threats on smart phones as part of the next series of free breakfast briefings.
The company, with offices in Hull and York, will present a series of three briefings for the charity and education sectors with some content relevant to both audiences.
The first in the new season of charity briefings will take place on Wednesday 16 October. Gerry Morrison, Partner and Head of Charities, and Senior Solicitor Harriet Wheeldon will present jointly on how charities should deal with serious incidents if they occur and what can be done in the first place to prevent them.
James Peel, Data Protection Partner at Rollits, will join the second session on Wednesday 12 February when the focus will be on the legal duties relevant to charity trustees in respect of charities and data protection.
The third session on April 30, 2025 will look at how charities can take practical steps to avoid and mitigate the risk of serious incidents involving staff and volunteers. Gerry and Harriet will be joined by Rollits’ Employment Partner Ed Heppel to discuss the responsibilities of trustees as employers and in respect of recruiting volunteers.
MEANWHILE, the first in the series of education breakfast briefings will take place on Thursday 7 November and will bring together James Peel and Ed Heppel from Rollits’ specialist Education team, and Sarah Young, founder of Young Plus Ltd and a highly experienced education professional who works in partnership with the Rollits’ team to provide a wider range of advice and support to clients in this sector.
The first session will examine the challenges presented by the growing use of smart phones among adults and children and the implications for employers, employees, learners, parents and wider stakeholders with regard to social media use and the risks associated for schools and colleges.
The second Education Briefing on Thursday 30 January, 2025 will look at effective governance and supporting board members and trustees, with Ed Heppel and his colleague in the employment team Lucy Trynka adding an HR and discrimination dimension to the final event on Thursday April 3, 2025, which is entitled “A Positive Approach to Menopause”.
Caroline Hardcastle, Head of Rollits’ cross-disciplinary Education sector team said: “The breakfast briefings have been very popular in the past because of the variety of subjects which we’ve covered – all wide ranging yet connected in many ways – and because of our ability to draw on our in-house experts to present exemplar case studies and give a very practical strategic and operational view of each topic.
“These ‘bite size’ opportunities for continuing professional development and learning aim to give a practical training resource to sector leaders and to enable then to share their experiences and best practice with fellow professionals.”
Goole chemicals business takes majority stake in West Yorkshire firm
A Goole-based chemicals business which manufactures products for cycling and automotive brands has made its first acquisition with the backing of its long-term investor, PHD Industrial Holdings.
Technikraft has acquired a majority stake in Delta Fluid Technology, a West Yorkshire business which provides private-label metal-working fluids. The deal will enable Delta’s co-founder Andrew Fletcher to realise his investment, though he will remain with the company as a Consultant and Director.
Delta, which was established in 2012, has a turnover of around £5m and employs 13 people. It will continue to operate from its existing plant at Sherburn-in-Elmet under the leadership of its current Managing Director, Pat Flanagan.
Established in 1987, Technikraft formulates and manufactures products for automotive, household and industrial cleaning, handcare and cycling brands.
PHD Industrial Holdings first invested in 2018. Since then, Technikraft has increased turnover from £6m to over £10m, expanding its team with key hires in operations, procurement, and sales.
Following the retirement of the founders in 2023, the company is now led by Managing Director James Clews, who has focused on enhancing processes and productivity to prepare for future growth.
James Clews said: “This deal marks a pivotal moment for both businesses and will make us a stronger force in the market. Our mission is to use chemistry to power other companies’ brands. By working in partnership with Delta, we can offer customers a wider product range and enhanced capabilities, enabling them to simplify their supply chains.
“Both businesses will also benefit from numerous synergies and be able to leverage our collective experience and routes to market. We’re looking forward to working with the highly skilled team at Delta as we continue to power our customers’ brands and pursue further growth.”
Philip Price, Director at PHD Industrial Holdings, said: “PHD’s investment model focuses on enabling traditional businesses to achieve long-term, sustainable growth and, as Technikraft shows, it provides a genuine alternative to a trade sale for owners seeking an exit.
“We work with owners to help plan their succession while also investing in the business to prepare it for future growth. We are confident that the Delta acquisition is just the first of many strategic moves for Technikraft.”
Over £4m allocated from Mayoral Investment Fund in York and North Yorkshire
Affordable homes projects and local authority infrastructure schemes are to benefit from more than £4 million of mayoral funding.
Mayor of York and North Yorkshire David Skaith is utilising the Mayoral Investment Fund to support schemes across the region.
Funding allocations were approved at a meeting of York and North Yorkshire Combined Authority, which included two schemes led by North Yorkshire Council. A project to provide a new harbour boat hoist in Scarborough has been allocated £700,000 and an electric vehicle charging infrastructure improvements programme will receive £175,000.
Improved infrastructure created by the Scarborough harbour boat hoist would safeguard 15 jobs, improve business supply chains and enable increased days at sea by the fishing fleet.
Improvements to electric vehicle charging infrastructure would see the replacement of 37 charging points in the Hambleton area, and 13 in the Craven area.
In Hambleton, the previous contractor/supplier has gone into liquidation, and this project will ensure that public facilities are brought back into service, in the shortest possible time, with the latest technology.
In Craven, the contractor has withdrawn from public infrastructure to focus on home charging, but the charging points cannot be transferred to another supplier and therefore need replacement with current technology.
In addition, appraisal work will take place to consider funding two further North Yorkshire Council schemes – Harrogate A61 major junction improvements and Selby Station gateway contribution – and three projects from City of York Council. These are: Movement and Place Transport Study, Our City Centre Regeneration and Cultural Passport for Young People Programme.
The Combined Authority approved Mayoral Investment Fund support for three York and North Yorkshire Brownfield Housing Fund schemes. A total of £3.36 million will be allocated to: Lowfield Lane phase two, York; Ordnance Lane, York and Neville House, Gargrave.
This will support the building of 181 homes in total, all of which are affordable. Money from the Mayoral Investment Fund is in addition to £12.7 million already secured for the York and North Yorkshire Brownfield Housing Fund from the Ministry of Housing, Communities and Local Government.
At the same meeting, portfolio holders for housing and transport were confirmed. Cllr Carl Les, leader of North Yorkshire Council, is housing portfolio holder, with Cllr Pete Kilbane, deputy leader at City of York Council, portfolio holder for transport.
David Skaith, Mayor of York and North Yorkshire, said: “I’m pleased that, as a Combined Authority, we are in a position to enable important projects right across our region.
“We’re using devolved funds to make a real difference. In this case, supporting key infrastructure projects, which support our economic and net zero ambitions, and another round of funding for affordable housing. Creating affordable homes will help us to reduce inequalities, raise living standards and create stronger communities.”
Schneider Electric to invest £42m in new North Yorkshire manufacturing site
Schneider Electric is investing £42 million in a new manufacturing facility in Scarborough, North Yorkshire.
More than 200 jobs will be created to meet the increased demand for electrical equipment to drive the UK’s move to cleaner energy including renewable energy sources, electric vehicles, and intelligent, energy-efficient buildings.
The site, which is almost triple the size of Schneider Electric’s existing Scarborough facility, is a blueprint for sustainable design and operations in the manufacturing industry. It is poised to become a net-zero plant and will use modern technology to reduce energy waste and maximise the use of renewable energy. It is expected to be net-zero in Scope 1 and 2 emissions when it opens in early 2025.
Scarborough is a long-established manufacturing base for Schneider Electric, currently employing 450 people. It specialises in the manufacture of low-voltage switchgears which protect and distribute electricity and are crucial to the rollout of sustainable and energy-efficient operations such as EV charging infrastructure and net-zero buildings.
Kelly Becker, President at Schneider Electric, UK & Ireland, Belgium & Netherlands, said: “Sustainability is at the core of our purpose, culture and business. We’re proud to be investing in and developing innovative solutions which will deliver immediate and lasting decarbonisation in the UK, while bolstering the creation of local, green jobs in Yorkshire.
“The region has long been part of our operational presence in the UK, and we’re excited to expand this as part of our commitment to investing in the UK’s green economy. The new facility in Scarborough represents a pillar of innovation in net-zero, and one which will be an industry benchmark for the transition to sustainable, energy efficient buildings.”
Business and Trade Secretary Jonathan Reynolds said: “This huge investment from Schneider Electric will not only safeguard existing jobs but create 200 new ones. Increasing investment is a mission at the heart of this government, and our modern Industrial Strategy will help us deliver long-term, stable growth that supports skilled jobs.
“Our commitment to becoming a clean energy superpower is steadfast, and investments like these in North Yorkshire make a huge contribution to bolstering the UK as a leader in energy management and automation. We’re showing investors that Britain is back as a stable place to do business, helping to secure the investment needed to make every part of our country better off.”
David Skaith, Mayor of York and North Yorkshire, said: “York and North Yorkshire has a well-established and thriving manufacturing sector, which is home to an abundance of leading and specialist companies.
“So, it is fantastic to see Schneider make this huge investment in their future in Scarborough.
“This new manufacturing facility will drive new, quality jobs in Scarborough and help us go beyond net-zero to become England’s first carbon negative region.
“Leaders like Schneider attract other manufacturers, and we welcome investment as we look to become a production and advanced engineering hub of excellence.”
Operations will relocate to the new facility at Scarborough Business Park, less than 500m from Schneider Electric’s existing premises. Schneider Electric will be its anchor tenant, which will be managed by principal contractor Caddick Developments.
Alistair Smith, Director at Caddick Developments, said: “As a long-standing Yorkshire business with sustainability at its heart, we are delighted with Schneider Electric’s commitment to Scarborough Business Park which further bolsters our strong track record of delivering industrial projects throughout the UK as we seek to build developments that support people, community and planet.
“Schneider Electric’s expansion will deliver much-needed jobs for Scarborough and its commitment to the net-zero agenda will ensure that this facility operates as a gold standard for sustainable growth and energy efficiency.”
The investment in Scarborough is in addition to a £7.2 million facility upgrade to Schneider Electric’s site in Leeds, announced in October 2023, meaning the company will create more than 300 jobs in Yorkshire over the next ten years.
Hotel in Yorkshire Dales National Park sold
Specialist business property adviser, Christie & Co has sold Kearton Country Hotel and Tearoom in Thwaite, Yorkshire.
The hotel is located in the Yorkshire Dales National Park which is highly popular with leisure guests and tourist attracted by its rolling hills, picturesque valleys and numerous quaint villages and towns.
Dating back to the 1800s, the stone building comprises six en-suite letting rooms and two letting apartments as well as a bar, restaurant, gift shop and tea room. To the back of the property is a large lawned beer garden with views of Shunner Fell mountain.
Kearton Country Hotel and Tearoom has been owned and operated by Paul and Wendy Lyons for over 10 years, who sold to seek retirement. They say: “We have owned the business for over 10 years and were initially attracted to it by the stunning location, the local people and the lovely way of life it offered us.
“It is with a heavy heart that we have decided to sell to seek retirement and we are certain that the new owners will be welcomed and supported as we have, by guests and residents alike.”
The hotel has been purchased by couple, Adam and Caz Edwards, who are excited to take over the popular and well established business.
Caz says: “Adam and I are very excited about the future and feel fortunate to have the opportunity to take the business and the building to the next level, and to build upon the great reputation which Paul and Wendy have earned.
“We have planned a sympathetic refurbishment in the New Year, while maintaining the ambiance and much-loved character of the property and promoting traditional values of a warm welcome, good service and a comfortable stay. ”
Mark Worley, Hospitality Director at Christie & Co who handled the sale, says: “I am delighted to have been able to help Paul and Wendy with the sale, and also wish Adam and Caroline all the best with their new venture.
“The sale is another example of the demand for hotel and leisure related businesses in national parks, coastal towns and tourist led locations from buyers both from within the industry and from other walks of life.”
