Government Minister visits British Steel at Scunthorpe
Secretary of State at the Department for Business and Trade Kemi Badenoch has visited British Steel at Scunthorpe and said it had been fascinating seeing first-hand the important work that goes on there every day, and Scunthorpe’s steelworks’ significance for the local economy, and for our steel industry generally, cannot be overstated.
“It’s a crucial time for the industry as our country moves towards net zero and I know steelmakers are working hard to make changes to cut their carbon emissions.”
Under discussion were the significant challenges Britain’s steelmakers face, and the pressing need for support from the UK Government on the journey to net zero.
British Steel is the UK’s only manufacturer of structural sections and these go into three out of four major construction projects in this country. It is also the only company in the UK making rail and special profiles.
In addition to this, it provides thousands of highly skilled and well-paid jobs while an estimated 19,000 people are employed in its supply chain.
The company says it wants to progress discussions with the government as a shareholder – which has invested £330 million in capital projects at British Steel in three years – is committed to transforming the business with further planned investments providing the government can give assurances of a competitive landscape for energy and carbon.
Bank of England raises interest rates to 4.5%
The Bank of England has raised interest rates from 4.25% to 4.5%, with inflation anticipated to stay higher for longer than previously expected.
The 12th successive increase sees rates sit at their highest level since the 2008 financial crisis.
The Bank is now expecting the inflation rate (currently at 10.1%) to be over 5% at the end of the year, rather than below 4%, as forecast in February, thanks to high food prices and a resilient job market.
The Bank’s official inflation target is 2%.
Martin Beck, chief economic advisor to the EY ITEM Club, reacted: “The Bank of England’s approach since late 2021 of consistently increasing interest rates continued this month. A 7-2 majority on the MPC voted to raise Bank Rate by 25bps to 4.5%, adding to the most significant tightening in monetary policy in over 30 years and lifting the policy rate to the highest since October 2008.
“In the view of the majority on the MPC, another rate rise was justified by an economy more resilient than expected, persistent strength in domestic price and wage setting, and a tight jobs market. The impact of the first factor was revealed in the biggest upgrade to growth forecasts in the MPC’s history. Thanks in part to further falls in wholesale energy prices, previous predictions of a prolonged recession have been revised away and the Bank of England now expects the economy to expand 0.25% this year and 0.75% in 2024, versus declines of 0.5% and 0.25% in its last forecast in February. That said, the Bank of England’s forecast for growth next year is still below the latest consensus of 0.9%.
“With the latest rise in Bank Rate widely expected, the big uncertainty in advance of the MPC’s latest decision was the message the committee would send about the likelihood of yet more rate increases in the months ahead. On that score, the MPC kept the door open to more tightening if inflation proves “persistent”, retaining the data-driven approach it has set out in recent meetings. And there was no sign of push back against current market interest rate expectations, which, in advance of May’s meeting, saw Bank Rate peaking at 4.75%-5% later this year.
“The EY ITEM Club is warier about expecting further increases in Bank Rate. Granted, the Bank of England thinks inflation will fall less rapidly than in its last forecast, mainly due to an assumption of higher food price inflation, with the Consumer Price Index (CPI) measure predicted to be just above 5% at the end of this year. And the Bank of England still sees significant upside risks to the inflation outlook from “second round effects” of high inflation feeding into domestic prices and wages.
“But there’s now a lot of monetary tightening in the system, and the impact on activity and prices comes with a lengthy lag. The Bank of England’s own estimate is that only a third of the impact of rising rates has yet been felt by households. And the Bank’s central forecast shows inflation falling well below the 2% target during 2025. Since the Bank of England targets headline inflation, it will be increasingly difficult to present a justification for more rate rises while also forecasting a substantial undershoot of the inflation target.
“What’s more, the next couple of months are likely to bring a significant decline in headline, core and services inflation, as lower energy prices push down headline inflation and, indirectly, weigh on underlying inflationary pressure. This should further depress inflation expectations among the public, feeding through into lower wage demands, constraining businesses’ ability and willingness to put up prices.
“But the hawkish skew of today’s announcement, with upgrades to growth and inflation forecasts, suggests one more rate rise wouldn’t be out of the question. And if the Bank of England’s expectation of greater stickiness in inflation proves true, the prospect of rate cuts may be delayed until well into 2024.”
Developers consider green energy storage park straddling the A46 south of Lincoln
A team led by Windel Energy has announced it’s in the early stages of developing proposals for Fosse Green Energy, a solar and energy storage park about six miles south west of Lincoln, on both sides of the A46 in North Kesteven.
With an anticipated generation capacity of 300 to 360GWh (Giga Watt Hours) per year, the solar and energy storage park could provide enough clean energy to power approximately 110,000 homes.
Land extending north and south of the A46 Fosse Way is being explored for the development. To the east of this area options are being considered for transporting electricity through either underground cables or an overhead line to a connection point into the national grid.
Gary Toomey, MD at Windel Energy, which is leading the Fosse Green Energy project said: “Following March’s ‘Green Day’ announcement, the last few months have highlighted the growing need to find practical solutions for combatting climate change and reaching the UK’s net zero targets while also tackling a cost-of-living crisis affecting everyday energy bill prices.
“As a result, stepping up the amount of home-grown clean energy being delivered to British homes is an increasing necessity.
“We are pleased therefore to announce our plans for Fosse Green Energy, which will aim to responsibly provide reliable and sustainable energy, benefit local communities and environments, and help the UK reach its net zero targets.”
Preliminary work is currently being undertaken to identify the most appropriate areas for development. A number of options for a grid connection corridor east of the site are being considered. The corridor would transport electricity through cables to a connection point into the national grid.
The findings from this work will be shared through an initial public consultation, anticipated to take place this summer, with further consultation planned ] early next year.
“As our proposals for Fosse Green Energy evolve, we are committed to consulting widely and effectively to deliver the best results for local communities,” explains Mr Toomey.
“We are keen to engage in a responsible and sensitive way, and welcome conversations with residents, business owners, and other stakeholders as the project, and plans for our summer consultation, progress.”
Work begins on transforming Castleford and Pontefract markets
Work has begun this week on modernising Castleford and Pontefract markets.
They will be transformed to enhance their quality and look, to attract new traders and ensure they continue to play a significant role in bringing more shoppers to the town centres and contributing to the local economy.
Castleford and Pontefract are the latest to undergo renovations, as part of Wakefield Council’s commitment to fund improvements, totalling £6.47 million, at four local markets.
Normanton was the first to benefit and its fresh look was unveiled in March.
The market hall at Castleford will be made brighter and more modern. Plans include a new social space and additional seating, to encourage visitors to spend more time at the market.
New doors, lighting and signs will be installed, along with improvements to the entrances and roof. The planned works are expected to last for the rest of the year and be completed by January 2024.
Pontefract market’s revamp includes redecorating the walls and ceiling, heating repairs, replacement shutters, electrical upgrades, and window and door replacements. The contractors will be on site for the next four months and work is due to finish in early autumn.
Shoppers will still be able to visit the markets as they will remain open throughout this time.
Next year, refurbishment of the fourth and final market in the improvements programme, South Elmsall, will start.
Cllr Denise Jeffery, leader of Wakefield Council, said: “Our markets have been a part of our economy for a very long time, offering employment and opportunity for people to start and run their own business.
“This investment shows our commitment to securing their future for traders and residents. They play an important role in the lives of our communities, and we want to see more people visit our markets and experience all they have to offer.”
Bathroom firm set to scale-up with £150,000 investment
A specialist bathroom installer for people with limited mobility has secured a £150,000 investment from Finance Yorkshire.
The Walk in Bath Company was established in 2018 by husband-and-wife Jules and Kirsty Allen. Jules has 18 years’ experience in the mobility industry.
The Shipley-based business provides UK-manufactured walk-in showers and bathrooms for customers with disabilities or limited mobility. Design features include a low threshold to make it easier to get in and out of the bath, secure locking and safety grab rails.
The investment, from Finance Yorkshire’s Business Loans Fund, will enable The Walk in Bath Company to recruit new field and service team members, while adding more firepower to its marketing.
Since the investment, the company has seen its sales increase by 20% on the first quarter of 2023. The number of installations it has carried out is up 50% on last year.
Jules Allen, Managing Director, said: “I set up the business after hearing too many horror stories about people selling products with little care for customer service. There was a gap in the market for someone who puts care and attention to detail first.
“It is not just about selling people a bath or shower. We get to know customers and advise them throughout the process, finding the right option for their mobility and home.
“This investment from Finance Yorkshire will support the next stage of our growth with a mobile-friendly website, brand new TV campaign and the addition of fully employed installers.”
Alex McWhirter, Chief Executive of Finance Yorkshire, said: “Within a few years, Jules and Kirsty have established themselves as one of the UK’s fastest growing suppliers of walk-in baths and showers. Their commitment to customer service is well received by customers and we look forward to seeing the business scale-up further.”
Women in Leeds’ tech sector join forces to ignite female students’ passion for digital
Inspiring tech role models recently met with 135 female secondary school students from across Leeds to share their experiences of working in tech, discuss digital skills and galvanise local young women with the confidence to pursue careers in the sector.
On 4 May 2023, the city’s fifth #GirlTechLeeds event took place at the Asda Merchandising Centre of Excellence and Exhibition Centre. Co-funded by Netcompany and Leeds City Council, #GirlTechLeeds connected young women with female professionals from tech companies like Infinity Works, AND Digital and BJSS and cross-sector digital employers including Sulzer and Page White Farrer.
Founded and delivered by Ahead Partnership, leaders in developing ESG solutions and delivering measurable social impact through business partnerships, the interactive tech and digital experience day involved exciting practical activities such as panels, workshops and careers networking. Reaching out to 12-14-year-old female students at a pivotal stage before they make their GCSE subject choices, the event helped to equip the young women with up-to-date information on opportunities in tech and the skills required to succeed.
Megan Lipp, head of development at Ahead Partnership, said: “We were extremely proud to host our fifth #GirlTechLeeds event, which is testament to the popularity of this initiative among the city’s schools and businesses alike.
“This event forms part of the calendar of activities comprising our Growing Talent Digital Leeds programme, which sees businesses collaborate and commit to a meaningful, long-term approach to opening up digital skills to people from all backgrounds.
“By enabling students to meet face-to-face with employers, we’re providing a platform for them to ask questions and gather careers advice from professionals already succeeding in this space. This is a practical way for our sponsoring businesses to play their part in shaping a more inclusive future for digital and tech and raise the profile of opportunities available to the next generation of talent.
“#GirlTechLeeds has proven so successful that we are now planning #GirlTechPlus later in the year for Post-16 students in Leeds to reap the benefits too.”
Kirstie Van Oerle, partner at Netcompany, said: “It was great to be in the room and collaborating with so many other forward-thinking employers from across the city’s business community through #GirlTechLeeds.
“Businesses like ours need a strong talent pipeline and benefit from fresh ideas in order to thrive, which makes engaging the next generation of the workforce a priority. Sadly, women are still underrepresented in the sector, so we’re helping to proactively tackle this issue through targeted activities like #GirlTechLeeds, working with Ahead Partnership to reach female students from right across the city.”
After speaking to employers and learning more about the different roles available in digital, the number of students interested in digital careers rose to 90%, with 95% of the young participants confident that they understood the skills needed for a successful digital career.
#GirlTechLeeds forms part of Growing Talent Digital Leeds, a wider careers and skills initiative being delivered by Ahead Partnership to connect digital employers with young people from underrepresented groups and areas in the city. Through masterclasses, careers panels, festivals and events, the programme aims to help young people understand the importance of digital skills for future roles.
New deals and project delivery fuels growth for Caddick Group
Major deals completed and a raft of successful delivery milestones have contributed to a rise in profits and turnover at Yorkshire-headquartered Caddick Group.
The Group, which includes businesses such as Moda Living, Caddick Developments and Caddick Construction, has seen a considerable rise in turnover (28%) and profits (41.8%) as compared to the prior financial year after a record year of delivery.
Group turnover for the year ending August 2022 stood at £492m, with pre-tax profits up to £58m. The continued strong performance reflects an increasing geographical reach across the UK and investment in a healthy pipeline of future opportunities.
The Group continues to increase its long-term development pipeline and remains particularly focused on a twin property strategy of Living and Industrial/Logistics, driven forward by Moda Living, which delivers and operates institutional grade rental homes across the build-to-rent, single family rental, student accommodation and co-living markets; Caddick Developments, which is one of the largest privately owned multi sector property developers delivering high quality commercial spaces across the UK; and Caddick Construction, which boasts more than 40 years’ experience delivering new build, refurbishment and civil construction projects across a range of market sectors.
The Living and Industrial/Logistics sectors are underpinned by the strong fundamentals of robust occupational demand and constrained supply. As a consequence, investor and occupier appetite in these sectors remains strong. In this context, the Group has recently announced the funding and commencement of a number of new schemes.
Johnny Caddick, Caddick Group, said: “Our focus on Living and logistics has proven its resilience and strength through recent years, putting Caddick Group in a strong financial position. Our work to secure a market leading pipeline of opportunities across our sectors has given us the headroom to invest for our future and secure a bright outlook for the Group.
“We have a national geographical reach, with projects now on site in the North of England, Scotland, the Midlands and the South. As a privately owned business, we have the flexibility to take decisions quickly and react at speed to evolving market conditions. Our expanding team has worked tirelessly to ensure we are in rude health, giving us the confidence to invest in our future, which is reflected in an expanding pipeline with a GDV approaching £10bn.”
College’s £500k machinery investment welcomed by local manufacturers
A £500,000 investment by East Riding College in manufacturing and engineering machinery to upskill local workforces has been welcomed by some of the region’s largest firms.
The Beverley-based college, which is part of the TEC Partnership group of education providers, has purchased four pieces of specialist equipment that will help businesses train their employees in the latest production technology, boosting both workers’ skills and business efficiency.
The new machinery was demonstrated to representatives from companies including JR Rix and Sons, Atlas Leisure Homes and Cranswick plc at a recent breakfast event.
At the event the college also launched its offer of bespoke courses tailored to the needs of individual businesses, whether they are seeking to train apprentices or upskill more experienced workers in the use of the new equipment.
Among the business attendees was Andy Harris, director of Brough-based Dearing Plastics, which designs and manufactures plastic products and components for markets in the UK and abroad.
He said: “We pride ourselves on high levels of customer satisfaction, which relies on a combination of first-class service, fast and effective production equipment and – most importantly – professional, fully-trained staff with technical expertise and practical know-how.
“The investment East Riding College has made in its new equipment, and the flexibility of the packages to train local workers in using them, will be of great benefit to local manufacturing and production businesses.
“I’m looking forward to seeing how we can work together to maintain and enhance the skills of the team at Dearing Plastics.”
Chris Dodsworth, East Riding College’s Head of Faculty (Automotive, Construction and Engineering), said: “We were delighted to welcome businesses to our event and showcase not just our new equipment but also the breadth of training options we can offer them.
“The businesses that attended are already successful and clearly committed to ensuring their employees have the skills they need to fuel their future growth.
“Our investment in the new machinery and learning packages will enable us to support them in their growth ambitions by upskilling their current workforce and building the skills of the next generation of workers.”
The new equipment – a 6-axis measuring machine, metallurgy testing machine, robotic arm programming machine and 360-degree camera research kit – is typically used in engineering and manufacturing, including toolmaking and fabrication.
Definition Group acquires creative marketing agency
Definition Group, the brand alignment group with offices in Leeds, has continued its strategic expansion by acquiring London-based creative marketing agency OTM.
The deal marks Definition Group’s seventh acquisition and the third in the last twelve months as it continues its ambitious buy and build growth programme, bringing together like-minded specialist consultancies to define, align and deliver brand and marketing services for clients.
The deal brings the group’s annual revenue to £14m and grows its team of specialists to 120.
OTM is a creative marketing agency that specialises in B2B technology, financial services and the public sector with clients including HSBC, SS&C Advent, 8×8, ION Group, Transport for London and TPXimpact. The agency uses its audience insight model – Human Affinity – to develop “impossible to ignore” brand strategies and campaigns spanning lead generation, content creation, asset delivery and performance.
Jennie Gerry, Managing Director of OTM, will join the Definition Group operational board following the deal.
The acquisition is set to deepen Definition Group’s presence in the technology, financial services and public sectors whilst boosting its ability to deliver integrated services spanning brand insights, strategy, experience and communications, helping clients to enhance reputation and deliver growth.
The Group’s 300-strong client portfolio spans national and international businesses and organisations in the public, private and third sectors, including ABB, Benenden Health, Direct Line Group, David Lloyd Clubs, Lego, Lloyds Banking Group, Guinness World Records, HS2, Merlin Entertainment, Sky, Sony Music and UK Parliament.
Heather Baker, Definition Group CEO, said: “OTM is a great strategic fit, bringing complementary expertise and experience to the group. As a team of specialist consultancies that work side by side we are uniquely positioned to help organisations define their brand vision and deliver it in a manner that is aligned both internally and externally.
“Now, with OTM in the mix, we have enhanced our ability to deliver consistent, integrated, end-to-end solutions.”
Jennie Gerry, Managing Director of OTM, said: “We’re excited by the potential of what lies ahead with Definition Group. A huge part of the appeal is working alongside a highly talented team of specialists to accelerate the scale of what we can now deliver – for our clients, our team and our business.”
Corporate finance and debt advisory services were provided to Definition by Andy Miller at Sentio Partners. Legal advice on the transaction was provided to Definition by Dahren Naidoo at Freeths and to OTM by Bryan Rickman, a consultant solicitor to Keystone Law.
University of Hull celebrates innovation and growth at first-ever Innovate North Awards
Businesses from across Yorkshire and Lincolnshire were recognised at the University of Hull’s first ever Innovate North Awards last night, which was a celebration of innovation, growth, talent and progress towards reducing carbon emissions.
The University of Hull’s Vice-Chancellor, Professor Dave Petley, said: “Our first ever Innovate North Awards celebrated excellence across our local business community and our ambition to partner with companies from across the Humber region and beyond. Congratulations to all the winners and to all the nominees, who have done so much to make these awards so special. “One thing that stands-out about all the winners – on top of their remarkable achievements – is their wide diversity. From charities, engineers and manufacturers to Information Technology and packaging specialists, they sum up the entrepreneurship, and creative and innovative thinking that’s the bedrock of the region in which we live. I look forward to seeing each and every one of them achieve even greater things.” He added: “The University of Hull is committed to developing and strengthening its relationships with businesses and industry stakeholders to unlock economic growth and tackle social challenges. The Innovate North Awards are part of our work to bring this strategy to life, giving us the opportunity to raise awareness of the many ways in which we can support and champion local businesses.” Among the winners was North Yorkshire-based Specialist Marine Consultants (SMC), which received the award for Growth. SMC, which has its headquarters at Humanby near Filey, was keen to grow its market share within the booming global offshore wind sector. The business was supported by the University of Hull to develop an industry-leading software solution that allows offshore wind farms to plan and track the real time movements of vessels and personnel, enabling them to calculate their carbon footprint, operate more safely and improve project efficiency. This has enhanced SMC’s ability to win business from some of the largest offshore wind producers in the world, fuelling its rapid growth. Paula Gouldthorpe, Development Manager for the Hull and Humber region for the Federation of Small Businesses (FSB), who was part of the judging panel that had the difficult task of choosing a winner from the impressive shortlist, said: “Specialist Marine Consultants (SMC) demonstrated all-round success in demonstrating growth, not just in turnover and profit but also in their reduction in costs; a well-deserved win.” Meanwhile, the Innovation award went to Beverley-based Pulse EV, which has filled a gap in the market for UK-produced, electric all-terrain vehicles. The business was supported by the University of Hull, receiving access to space, facilities, funding and expertise so it could build, test and refine its environmentally friendly vehicle prototypes. There’s growing demand for everyday, all-terrain vehicles that can be used on farms, and in fields, forests and open spaces, but the vast majority of quad and all-terrain vehicles are imported, and powered by petrol or diesel engines. Pulse EV plans to formally launched its range of all electric off-road vehicles later this year. Maggie McGowan, Deputy Director in the Government Office for Technology Transfer, who was also on the judging panel, commented: “Pulse EV is delivering a very tangible innovation with huge potential. I could see there being a huge market for their highly innovative EVs, not just in the UK and EU but also further afield.” Lincolnshire-based Lindum Packaging emerged victorious in the Net Zero category, having drastically reduced the amount of plastic wrapping and Carbon Dioxide emissions involved in transporting goods. The business, which has its headquarters at Stallingborough near Grimsby, received a £50,000 grant from the University of Hull to help develop its Mobile Pallet Test Lab. The first of its kind in the UK, the Lab allows customers to test pallet stability and learn how they can improve it for more effective, cost-saving and sustainable logistics. Within six months, the business helped its customers save just under 320 tonnes in Carbon Dioxide emissions, the equivalent of taking 65 petrol cars off the road for a year. Judge Alan Raw said: “Lindum Packaging’s Mobile Test Lab, and their ability to collate rich data, has created an incredible solution, allowing brands to very quickly reduce their use of plastics and CO2 emissions.” East Yorkshire’s M.B. Roche & Sons received the Talent award in recognition of its forward-thinking approach to sourcing skilled talent, and supporting diversity and inclusion. The Hessle-based civil engineering, infrastructure and construction contractor demonstrated its commitment to diversity and inclusion by doing everything from hiring apprentices to encouraging people from disadvantaged backgrounds to consider a career in construction. Judge Paula Gouldthorpe said: “M.B Roche & Sons has been really forward thinking by using alternative solutions to traditional employment methods to bring skills into the business, which is really important when looking to beat the skills gap.” The winner of the hotly contested People’s Choice category, which was chosen in a nail-biting live vote on the night, was Fitmums & Friends, a charity affiliated to England Athletics that started life in East Yorkshire and now runs a series of volunteer-led, community fitness groups for people across Yorkshire and Lincolnshire. Fitmums & Friends successfully secured funding from the University of Hull, which allowed it to develop an innovative information management system and accompanying app for both members and volunteers to use. All of the Innovate North Award nominees were among the 675 businesses that have received European Union-funded innovation support through University of Hull programmes such as the Aura Innovation Centre, SparkFund, the Flood Innovation Centre and the Humber Internships Programme in recent years. Overall, this support has resulted in 170 new products being launched, a 400-tonne reduction in carbon emissions, the creation of 195 jobs and increased sales of around £85 million for the small to medium enterprises involved.