Hiring activity plummets across the North
The latest KPMG and REC, UK Report on Jobs: North of England survey revealed substantial drops in hiring activity for both permanent and temporary staff across the region in November. Meanwhile, vacancy trends turned negative, having posted renewed declines. Starting salary and temp rate inflation nevertheless picked up on the month.
The KPMG and REC, UK Report on Jobs: North of England is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England.
Permanent hiring activity declines at sharpest rate since August 2023
As has been the case on a month basis since July last year, there was a further decrease in the number of people placed into permanent roles across the North of England in November. The rate of contraction was substantial and the second-fastest seen in nearly four-and-a-half years. There was still some hiring hesitancy following the Autumn Budget, according to panel reports. Of the four monitored English regions, only the South recorded a sharper drop in permanent staff appointments than that seen locally.
Having moderated in October, November survey data pointed to a renewed and marked drop in temp billing across the North of England. The decrease in billings received by recruiters was the most pronounced for just shy of four-and-a-half years and the fastest of the four monitored English regions. According to anecdotal evidence, the downturn reportedly reflected muted demand for temp staff.
Having registered broadly no change in October, vacancy trends turned negative for both types of staff across the North of England in November. Permanent job openings were down for the first time in nine months. The rate of decrease was solid, the sharpest for 50 months, but the slowest seen by region. On a monthly basis, November’s drop in temp vacancies marked the fourth of the year so far. The rate of decline was the quickest since mid-2020, but slower than the UK average.
Steep growth trend for permanent staff supply sustained
Recruiters based in the North of England signalled another marked rise in permanent staff availability in November. The uplift in permanent staff supply was linked by panel members to a combination of redundancies and greater interest among candidates for new opportunities. The rate of expansion picked up slightly from October and remained stronger than the UK average in November.
November survey data highlighted a further rise in the supply of temporary workers across the North of England, as has been the case on a monthly basis since March 2023. The respective seasonally adjusted index did tick down from October’s recent high, but was nevertheless consistent with a robust increase in availability. The local rise was also the slowest of the four monitored English regions. An uplift in redundancies was the primary reason behind the latest increase in temp staff supply, according to panellists.
Starting salary inflation hits three-month high in November
The seasonally adjusted Permanent Salaries Index pushed further above the crucial 50.0 mark in November, thus indicating a faster rise in pay offers to new permanent workers across the North of England. With that, the rate of growth was also the sharpest seen for three months. The local rise in starting salaries for permanent workers was the strongest of the monitored English regions.
Recruitment consultancies across the North of England recorded another rise in temp staff pay in November, thereby stretching the current run of inflation to exactly a year. Though only modest and historically subdued, the pick up from October was sufficient enough to mean the North recorded the strongest rate of inflation of the four monitored English regions.
Phil Murden, Leeds Office Senior Partner at KPMG UK, said: “We’ve seen permanent hires decline month-on-month this year and November marked the sharpest drop in placements since August 2023. This highlights the scale of the challenges within the Yorkshire labour market.
“Many businesses across the region that paused hiring practices ahead of the Autumn Budget remain hesitant to recruit as they come to terms with the Budget impact especially in relation to the changes to National Insurance.
“That said, the prospect of interest rates reducing next year should provide a stronger footing for firms across Yorkshire to feel confident to enact their growth plans in 2025, with investment in skills often being a crucial part of that.”
Neil Carberry, REC Chief Executive, said: “No one should be surprised that firms took the time to re-assess their hiring needs in November after a tough Budget for employers. The drop in vacancies nationally was led by private sector permanent roles, and slower permanent recruitment billings across the month also reflected this trend.
“The real question now is whether businesses will return to the market as they go into next year with greater certainty about the path ahead.
“Let’s not sugar coat that the North has seen the most pronounced fall in temporary billings for just shy of four-and-a-half years. But do not rush to judgement because the North was a bit of an outlier on this compared to other UK regions. And recent history shows that firms are likely to rest more on temps while they manage the current economic uncertainty.
“We expect the next monthly report will serve to emphasise again the value of flexible forms of work to companies and people who need to find work quickly after redundancy. For policymakers, ensuring new regulations support rather than weaken our flexible jobs market is vital – especially after the Budget. Ensuring rules introduced by the Employment Rights Bill are tailored to protect agency and temporary work really matters for people.”
Hull firm completes £5m extension project for rail operator
Rail infrastructure specialist Spencer Group has finished work on a £5m extension to the East Midlands Railway cleaning facility in Derby that the company built ten years ago.
The capacity of the train company’s Under Frame Cleaning centre at the Etches Park Depot has ben more than doubled, with capacity up for two cars to five.
As part of the £5m project, Spencer Group’s specialist rail engineering team also constructed a two-storey, 30 sq m staff welfare facility housing a canteen, locker rooms, changing rooms, meeting rooms and office space.
Tony Cairnes, Spencer Group Site Agent said: “Working on a live depot is always challenging and access is very restricted, so collaboration between all parties is essential for a project like this.
“Having more than two decades of experience in the rail engineering sector, Spencer Group is highly experienced in working in tightly-restricted environments such as this and we are trusted by clients to work efficiently with other teams, suppliers and contractors to deliver projects to the highest quality, on time, and with as little disruption as possible to the wider site operations.
“Throughout the project we’ve worked closely with the client to adapt to their needs and we’ve been on a design journey with them to implement changes to ensure the facility meets the needs of the team members who will be working there.”
New service aims to offer faster advice for SMEs
Businesses across the UK have been promised quicker and easier help, support, and advice through a new service announced by the Business Secretary to mark Small Business Saturday.
The Business Growth Service, launching in the first half of next year, is claimed to offer UK-wide business support with a revamped web offer developed to work in partnership with small businesses, local and devolved governments across the UK, with locally led delivery at its core, to ensure the service provides the information and resources smaller firms need from government.Small businesses consistently say that they find the business support landscape fragmented and complex, with only 26% of UK SME employers reporting in 2023 to have sought external advice or information in the last year.
Humber region to be given £85,000 to boost maritime economy
The Humber region is one of nine maritime clusters across the UK earmarked to receive a share of government funding to help secure investment for local industry and deliver skills, training and educational programmes.
It’s to get £85,000 to help unlock regional economic growth to revitalise coastal towns and cities, help build the UK’s economy and break down barriers to opportunity, as well as driving innovation in the sector.Maritime Minister Mike Kane said: ”The UK is a proud maritime nation, with our coastal communities being vital in unleashing our full potential and unlocking economic growth across the country.
“By investing in our excellent maritime clusters, we can deliver jobs, skills and training for local communities and turbocharge growth by delivering investment into the sector.”
Chris Shirling-Rooke MBE, Chief Executive of Maritime UK, said: “Today is an incredible milestone for the maritime industry across the United Kingdom of Great Britain and Northern Ireland. The maritime cluster development fund will create a real impact and make a tangible difference to our most precious of places – our coastal communities.
“Having been on this incredible journey with partners at the Department for Transport for more than 6 years, this labour of love for all of us is a testament to the power of collaboration and partnership. I look forward to seeing all of our maritime clusters thrive and creating those vital jobs and growth where they’re needed most.”
Large employers pledge funding for SME apprenticeships
Large employers in West Yorkshire have pledged a total of £9m to fund hundreds of apprenticeships in smaller firms.
In a major boost for SMEs a new £3m package for apprenticeships has been announced by Mayor Tracy Brabin this morning on Small Business Saturday.
The new funding is part of a regional scheme that links large employers with smaller businesses to fund new apprenticeship opportunities. So far, £6m from large employers has been delivered to create 1,000 apprenticeships in SMEs.
By working with large employers like Bradford-based Morrisons, the Mayor has helped to ensure that funding which would otherwise go to the Treasury has instead been used to support local SMEs.
The Mayor praised the large employers that are part of her apprenticeships scheme for helping to “keep the West Yorkshire pound in West Yorkshire”, by using the percentage of their annual pay bill that must be spent on apprenticeships – known as “the apprenticeship levy” – to support SMEs in the region.
Other large employers to “transfer” some of their apprenticeships funding to other businesses and public sector organisations include ASDA, which has funded new apprentice PCSOs and call handlers in West Yorkshire Police; Howdens, which has boosted the number of construction workers building vital new infrastructure for the region; and Card Factory, which has provided funding to upskill more people into essential healthcare roles, bolstering the frontline of the NHS.
The Mayor of said: “By teaming up with our region’s biggest businesses, we’ll create £9 million of apprenticeships in smaller firms, giving a thousand people the skills they need to succeed.
“Our apprenticeships scheme is putting more money in people’s pockets, growing the workforce of our small and medium-sized businesses, and keeping the West Yorkshire pound here in West Yorkshire, boosting our economy.
“By partnering with business, we’re upskilling people into the vital jobs we need to build a stronger, brighter region.”
Clare Grainger, Group People and Corporate Services Director at Morrisons, said: “We’re proud of Morrisons’ ongoing commitment to apprenticeships, building skills and supporting the next generation of leaders in our company.
“In partnership with the West Yorkshire Combined Authority, Morrisons has shared £1 million of apprenticeship funding to help other local businesses and public sector organisations develop their workforces.
“This is an important part of our commitment to the region and will help to ensure critical sectors have the skilled professionals they need.”
Name change announced for major Lincoln property development
The new neighbourhood being created by the largest development project to take place in Lincoln for decades will be called Charterholme, it was revealed today.
Previously referred to as the Western Growth Corridor, Charterholme has been more than 100 years in the making and will evolve over the next 25 years to create 3,200 homes, shops, a business park, leisure village, community services and improved transport infrastructure.
The unveiling of the community’s official identity is a significant milestone for the scheme, which is being brought forward by City of Lincoln Council in partnership with city-based regional construction business Lindum Group.
Construction of Charterholme is already under way, with a new signalised traffic junction at Skellingthorpe Road and Birchwood Avenue and a new access road into the site now complete.
Planning permission has been granted for the first phase of 52 homes at the Skellingthorpe Road end of the site, with construction due to start this year.
Civil engineering company GRAHAM has been appointed by City of Lincoln Council as the main contractor to design and build the eastern access over the railway for vehicles, cycles and pedestrians, linking Charterholme to Tritton Road.
Cllr Naomi Tweddle, City of Lincoln Council Leader, said:“We’re delighted to launch Charterholme, and start a new chapter for this exciting project within the city.
“Working with partners to bring our vision for this area of the city to life has been incredibly rewarding.
“Charterholme will be somewhere our communities can thrive and have a real sense of belonging, and its creation is a key priority for the council. The Charterholme name will help provide a strong sense of place for all those who choose to live there.
“I would like to thank all those involved with the project for helping us get to this point, the hard work and collaboration from City of Lincoln Council and Lindum has been a great success, and we can’t wait to see the development grow and evolve.”
Tramlines and Tramlines Fringe bring multi-million-pound boost to Sheffield economy
This year’s Tramlines Music Festival and The Fringe at Tramlines provided a combined £7.3 million boost to Sheffield’s economy.
Tramlines is one of the UK’s longest running, city-based music festivals and a highlight in Sheffield’s year-round calendar of events and festivals.
Whilst Tramlines in Hillsborough Park is a ticketed event, 2024 also saw the return of the Fringe at Tramlines – in Association with Sheffield BID – a free, city centre event taking place in Sheffield’s outdoor spaces, pubs, bars and music venues.
A report, to be discussed at an Economic Development and Skills Committee meeting next week (Thursday 12th December), has now revealed some of the major benefits of the festival to both the city and its residents.
Following a review, the main Tramlines event in Hillsborough Park, which took place earlier this year in July, has been estimated to have generated around £5.45m for the economy, with over 108,000 people attending the event over the course of the weekend.
In addition, The Fringe at Tramlines is estimated to have generated approximately £1.86m of economic benefit, with approximately 45,000 attendees.
Councillor Martin Smith, Chair of the Economic Development and Skill Committee at Sheffield City Council, said: “Events like Tramlines are hugely beneficial to the city.
“They bring visitors from across the country and beyond, and this in turn brings a boost for Sheffield based businesses. Whether it’s seats in restaurants, cups of coffee, beds in hotel rooms or even people ordering taxis, it is all for the benefit of the Sheffield economy and the people of Sheffield.
“On top of that, the festival helps to raise much needed funds for Sheffield-based charities, and organisers offer work placements to local people and students, donate tickets to local communities and offer paid opportunities to local and emerging artists.”
The Tramlines Trust – the festival’s official charity and fundraiser – also raised over £62,000 at the 2024 event. £32,000 will be granted to Sheffield and Hillsborough charities, with over 50% to go directly to Hillsborough.
Some of the organisations to benefit include A Mind Apart, which provides inclusive theatre education, and Kids Plant Trees, a group dedicated to enhancing local green spaces through youth-led tree planting.
Holme Lane Community Garden received funding to expand its urban garden, while Hillsborough Pumas Under 12s, Hillsborough Arena Sports Association and Hillsborough Hornets Disability FC will use grants to boost facilities and opportunities for youth in sports.
This year, the festival also continued to shine a spotlight on Hillsborough’s businesses through the ‘Hillsborough Hotspots’ guide, showcasing where to visit before heading to the main event.
In addition to promoting these local businesses online and at the festival, Tramlines provided heavily subsidised stalls for local traders in their ‘Little Hillsborough’ area, with all infrastructure provided by the festival.
In total, they worked with 125 local businesses with over 1200 local staff working the event.
The Fringe also did its bit to support local businesses, bringing business to 40 venues across the city.
Diane Jarvis, Head of Business Operations at Sheffield BID, said: “The Fringe at Tramlines is a vital component of Sheffield’s vibrant cultural landscape.
“It not only enhances the festival experience for attendees but also significantly boosts the city centre economy. By drawing thousands of visitors to the city centre, the Fringe supports our businesses, from independent shops to hospitality venues, and provides a platform for nearly 400 local and emerging artists.
“This event exemplifies the collaborative spirit of Sheffield, showcasing the best of what our city has to offer and reinforcing our commitment to fostering a thriving business community. The estimated economic benefit of £1.86m represents 9.7% of the total spend in the city centre during July and is a very welcome uplift to the trading environment.”
Both events also support local, upcoming talent. Local groups were offered the opportunities at this year festival through the Sarah Nulty Power of Music Trust.
Since moving to Hillsborough Park in 2018, Tramlines has offered 296 slots to local artists and since 2022, they have welcomed 47 young artists through their development programmes, providing a platform to connect the artists with their aspirations of performing on a major stage in front of thousands of people.
On top of this, The Fringe at Tramlines provided opportunities for almost 400 local and emerging artists and groups to take to the main stage at Devonshire Green.
Forecourt operator acquires longstanding site in South Yorkshire
Specialist business property adviser, Christie & Co, has sold Bawtry Road Service Station in Rotherham, South Yorkshire.
Located on Bawtry Road, a busy main road linking the M18 and M1 motorways on the outskirts of Rotherham, the business benefits in high volume fuel sales from passing and commuter trade. In addition to fuel, the business also includes a kiosk shop, which provides a range of convenience items.
The business has been purchased by Mr. Tanvir, an existing forecourt operator with several sites in the North East. Mr. Tanvir purchased the business as he saw it as a perfect opportunity to expand his portfolio.
He comments: “We intend to create a modern, Premier branded convenience store and expand the range of products on offer, including hot food and drinks to go.”
Andrew Birnie, Director at Christie & Co who handled the sale, says: “Bawtry Road Service Station provided an excellent opportunity for a potential new owner, and we had a number of enquiries as soon as the business was listed.
“We quickly secured a deal with the purchaser, Mr. Tanvir, who has exciting plans for the business going forward – I wish him the best of luck in this venture.”
Barnsley engineering company invests in expansion to meet global demand
A Barnsley engineering company which designs and builds bespoke polyurethane processing equipment has invested in expansion of its manufacturing and stock facilities.
CTM UK Ltd is a leader in the supply of polyurethane (PU) processing technologies to worldwide clients in a diverse range of sectors.
It is a pioneer in the bespoke building of systems for offshore windfarm, oil and gas industries where PU is essential to seal and protect pipes and cables under the sea.
The company’s growing global reputation as a specialist in this field has led to significant growth since 2002 and it has now invested in an upgrade of its premises, to give the business more room to grow.
CTM has added a 100 sq m mezzanine floor to its existing 500 sq m unit at Zenith Park, enabling it to restructure its workshop, streamline production, expand storage space and increase the volume of spare parts it can hold in stock.
The company’s £30,000 investment has been backed by a Business Productivity Grant, secured with the support of Barnsley Council’s Enterprising Barnsley programme. The grant, which covered a third of the cost of the project, is supported by the South Yorkshire Mayoral Combined Authority (SYMCA) and part-funded by UK Shared Prosperity Fund (UKSPF).
Director of CTM UK Ltd, Shane Wootton, said: “Very few businesses worldwide do what we do, and we’ve built a global reputation over 30 years. We’ve always been committed to innovation and investment, and the only thing holding us back from doing more at this stage has been a shortage of space.
“So, this expansion and restructuring of our site is a huge bonus. It has allowed us to optimise workflow and dramatically increase productivity.”
CTM, which is led by Shane and his wife Ruth Wootton, estimates that the additional workspace and improved layout will enable them to work on more projects at the same time, speed up builds and increase productivity by 45-60 percent. It will also allow them to take on much larger system builds than they were previously able to handle.
The larger storage area, which can accommodate much higher component stock levels, has already boosted the spare parts, repairs and servicing side of the business, with nearly 30 percent more orders being despatched daily.
Mayor of Barnsley Cllr John Clarke JP, on an official tour of CTM’s expanded premises, said: “CTM is a small but mighty manufacturing Barnsley business which punches way above its weight in the global polyurethane equipment industry.
“It’s impressive to see the CTM team use their experience, expertise and ‘can-do’ attitude to design, build and deliver whatever their customers need. It’s not surprising the company has become the preferred supplier across many industries and especially for offshore clients working in challenging environments.
“We’re very proud to support CTM’s expansion at this time and look forward to seeing this innovative company continue to grow as part of Barnsley’s diverse industrial economy.”
Shane said: “We’re very grateful for the support we’ve received from Enterprising Barnsley to back our investment. They’ve stepped up in these difficult times to help us secure finance which has enabled us to move faster with our plans to increase capacity and efficiency and achieve significant growth sooner.”
Enterprising Barnsley has also backed staff development at CTM, supporting its new Business Unit Manager to hone skills in drafting and negotiating commercial contracts, along with enabling its design and programming team to expand and update their electrical schematic software know-how.
Plans approved for £120m residential development in Hull
Plans have been approved for a £120m development which will bring 450 new homes to a neighbourhood in Hull.
A planning application by East Yorkshire-based housebuilder Beal Homes for a 52-acre site west of Richmond Way in Kingswood has been given the green light by Hull City Council.
The “hybrid” application included full planning permission for the first 214 homes and associated works, as well as outline plans for a further 236 homes.
The approved plans also include engineering works to raise the embankment on the nearby River Hull, and improved drainage measures, to enhance flood resilience for the whole of the Kingswood area.
These works will also involve creation of a 3m-wide gravel riverside footpath and cycleway for local residents to enjoy on the crest of the raised embankment along the full eastern boundary of the development site.
The development will also include provision of a large managed country park, planted with more than 800 trees, and Beal will make a financial contribution to enable 99 new primary school places.
Hull City Council’s Planning Committee granted approval for the scheme, subject to conditions.
Beal Land Director Chris Murphy said: “We’re pleased to have received planning consent to proceed with our latest major investment in Kingswood.
“We have worked very closely with the local authority and statutory bodies to develop and refine these plans, which will bring much-needed new homes to the area and offer wider benefits to the local community.
“Kingswood is a thriving and growing neighborhood with continuing high demand for new homes, which this development responds to.
“As well as increasing the availability of high-quality homes in the area, the development will benefit the entire Kingswood community through the riverbank works and creation of a new footpath and cycleway on the raised embankment.”
The full planning permission for the first 214 homes covers a range of two, three and four-bedroom house types, including terraced, semi-detached and detached homes.
