Leeds has welcomed another pioneering healthcare business to bolster its reputation in the MedTech sector following the addition of a medical VR specialist to the KPMG@Nexus innovation hub.Netherlands-headquartered SyncVR Medical implements VR and wider XR (extended reality) in healthcare organisations by providing hardware, software, workshops and research. The company was founded in 2019 and already works with more than 180 healthcare providers across eight countries, including supplying to 80 per cent of the Netherlands’ hospitals and 10 NHS trusts in England.SyncVR is the latest high-growth business to join KPMG@Nexus, which brings together the brightest minds from business, technology and academia from across the globe and has its physical base in a state-of-the-art innovation hub on the University of Leeds campus.As a new resident of KPMG and Nexus’ joint incubation space, which they launched earlier in 2022, SyncVR will be part of a vibrant community of like-minded entrepreneurs and innovators, and introduced to academic experts, skills and talent to further support its growth.Euan West, senior partner at KPMG in Leeds, said: “This is another great example of how our partnership with Nexus and the University of Leeds is backing innovative companies and fostering collaboration between industry and academia. Universities are critical drivers of talent and fresh thinking that businesses and regional economies depend on.”SyncVR Managing Director Ari Billig cited the healthcare “buzz” across Leeds, including the city being home to NHS Digital, as a major factor in the business being excited to join the project.They added: “We’ve already been able to launch several pilots with the Leeds Teaching Hospitals NHS Trust and start a study within the University. Leeds being home to NHS Digital creates a high level of focus on digital innovation within the city, which in turn creates endless opportunities for entrepreneurs. We look forward to our future collaborations and are thankful for KPMG’s support to help us access and develop them.” Dr Martin Stow, Nexus director, said: “We’re really proud to play our part in helping an overseas business at the heart of healthcare technology innovation to arrive and continue to scale in the UK. The addition of SyncVR will continue to build the reputation of KPMG@Nexus as a centre of excellence in the MedTech industry, that makes a real difference in the healthcare settings it supports.“We look forward to working with Ari and the team as they benefit from access to extensive collaborative research and consultancy opportunities across the University and our wider network, and continue to innovate and grow.”
Yorkshire & Humber manufacturers see tough year ahead
Manufacturers in Yorkshire & Humber are looking at a tough twelve months ahead with the sector likely to contract in the face of a deteriorating economic outlook at home and abroad according to a survey published today by Make UK and business advisory firm BDO.
The forecast was made in the Make UK/BDO Q4 Manufacturing Outlook survey which shows manufacturing contracting by -3.2% in 2023. This comes on the back of a forecast -4.4% contraction this year, although Make UK stressed the number for this year is relative to a very strong 2021 which reflected the pandemic bounceback.
However, given Make UK has consistently been revising down its forecasts for manufacturing growth in 2022 throughout this year from 3% in March to 1.7% in July, 0.6% in September and now, a contraction of -4.4% (1), it highlights the extent to which conditions for the sector have weakened significantly, especially in the final quarter of the year.
In the last quarter, output in Yorkshire & Humber declined in line with the national picture at a balance of -5%, although orders held up and remained in positive territory again in contrast with the national picture. Given this feeds into future output Yorkshire & Humber may escape the worst of the declines likely in other UK Regions. Despite this weaker picture recruitment intentions remain strong in the Region given labour shortages and the scramble to attract and retain talent.
As well as downgrading its forecasts for manufacturing Make UK is forecasting GDP growth of +4.4% this year but, a contraction next year of -0.9%.
In response, Make UK warned of the danger of policymakers sleepwalking into an acceptance of little or no growth as a normal economic scenario. It re-iterated its call for Government to develop a wide-ranging industrial strategy with a long-term vision at national and regional level.
Furthermore, while the Chancellor took some welcome measures in the Autumn Statement to help ease the short-term pressures on business, Make UK said more measures will be needed if economic prospects continue to weaken. These should include:
- Alleviating labour shortages with temporary easements to the migration system and ensure manufacturers have the funds to train and retrain employees by expanding the tax exemption for work related training into a wider Training Investment Allowance
- Tackling the increased cost to business by extending business rates reliefs for retail, hospitality and leisure to manufacturing
- Spurring on much needed immediate investment by allowing first year allowances
- Re-thinking recent decisions on the R&D tax relief for small businesses to ensure manufacturers are not deterred from investing in critical innovations
Dawn Huntrod, region director for Make UK in Yorkshire & Humber, said: “There is simply no sugar-coating the outlook for next year and possibly beyond. Even for a sector as resilient as manufacturing these are remarkably challenging times which are testing even the best and most successful of companies to the limit.
“As a result, while the Chancellor has already brought in some welcome measures to help ease the cost pressure on companies in the short term, it may not be too long before we see him having to bring more firepower to ease cost pressures.
“However, the bigger issue is that the UK risks sleepwalking into an acceptance that little or no growth is the norm. Government needs to work with industry as a matter of urgency to deliver a long-term industrial strategy that has growth at national and regional levels at its heart.”
Steve Talbot, head of Manufacturing at BDO in Yorkshire and Humber, said: “Input prices for UK manufacturers are rising rapidly. Without the right long term government assistance we will see businesses holding onto their money to keep their operations running, rather than looking to invest in future focused initiatives for the longer term.
“This could result in manufacturing businesses missing opportunities to invest in automation and green initiatives, which will have an impact on the future competitiveness of the sector as a whole. The new government still needs to provide clarity on the support they will give manufacturers so they can plan their future with confidence.”
British Steel secures ‘top supplier’ status from Caterpillar for tenth consecutive year
Scunthorpe-headquartered British Steel has achieved the highest-possible supplier status from heavy plant company Caterpillar for the tenth consecutive year.
Dominic Hill, Customer Quality and Technical Manager, and David Waine, Commercial Director, visited Caterpillar in Illinois to be awarded a plaque recognising the company’s ‘Excellent Supplier’ status.
Dominic said: “Excellent is even more demanding than the previous gold standard, especially around quality, so Caterpillar has very few suppliers achieving it. To achieve this top level for 10 consecutive years is a truly remarkable accomplishment. This standard continues to require very demanding quality targets, equivalent to less than 0.02% rejections or repair, as well as just short of 100% delivery on time.
“It also requires ongoing work in cost saving initiatives and development projects, something we excel at. The installation of our new laser gauge is taking our width control to a whole new level and we’ve also introduced two brand new products, including one where we jointly designed a totally new concept of lightweight track shoe with Caterpillar.
“And to help them manage their overcapacity of demand for heat treatment, we have helped join up different parts of Caterpillar’s supply chain too.”
2022 saw a 67% reduction in suppliers achieving the top level due to the higher new standard, largely as a consequence of global supply chain challenges.
David said: “Delivering virtually 100% on time has been especially tough. Caterpillar said they’re particularly proud of us being able to achieve this requirement in such a difficult climate.
“As ever, we’ve been working hard to maintain our positive relationship with Caterpillar as well as developing innovative products and ways of working.
“The Caterpillar supplier evaluation is very demanding and covers all aspects of the business, so for us to stay in the topmost category is a great credit to every single one of us, very well done to all.”
Five arrested in till fraud scam after international investigation
Five people have been arrested on suspicion of being behind a multi-million pound global fraud using software to hide till sales/
The arrests follow an extensive investigation leading to enforcement action in the UK, US and Australia. More than 100 HMRC officers visited 90 businesses across England, Scotland and Wales in a week of coordinated action.
The businesses are suspected of using an Electronic Sales Suppression tool to manipulate their takings to evade paying tax and HMRC has used data to identify thousands of potential users.
These businesses can now make a voluntary disclosure to correct their records and pay the right tax. HMRC will follow up with those who don’t come forward, which could lead to more severe penalties.
It is suspected the system was designed and sold by a group based in Staffordshire. Sales are put through the till as normal, but the system allows records to be manipulated by deleting sales and routing card payments through an offshore bank.
The group is also suspected of selling the system to businesses in the US and Australia.
The latest operation follows a HMRC investigation in May into a different ESS system. Three people were arrested and investigations are ongoing.
HMRC’s Director of Fraud Investigation Simon York said: “This was a highly sophisticated, truly global attack on the UK and our international partners. The group behind this activity is suspected of enabling thousands of businesses to evade tax in a large-scale, technologically-enabled fraud.
“HMRC’s ground-breaking response, with internationally co-ordinated action, marks a significant moment in our efforts to close the net on those we suspect of designing, supplying and using electronic sales suppression software.
“Most businesses pay the tax that they owe. HMRC is on the side of this honest majority and our action helps to ensure they are not being under-cut by tax-evading competitors.
“This is just the beginning of our work in this area, and we already have other suspected suppliers in our sights. We are urging all users of these types of systems to come to us, before we come to them.”
British Chambers of Commerce predicts five-quarter recession
The British Chambers of Commerce organisation expects the UK economy to remain in recession for five quarters before an anaemic recovery in 2024, but believes inflation has likely peaked at 11%.
In the immediate term, the BCC is now forecasting a five-quarter recession for the UK economy which began in Q3 this year. The annual expectation for GDP growth in 2023 is now -1.3%, broadly in line with the OBR and Bank of England’s predictions. However, unlike the Bank of England, the BCC expects the economy to grow in 2024, albeit at 0.7%, which is around half of the OBR’s forecast.
A key contributor to the 2023 economic contraction is a sharp fall in household spending as consumers face rising energy costs, falling real wages, frozen income tax allowances and higher mortgage payments. A poor outlook for the global economy means exports are also likely to fall, although they will be outstripped by a sharper decline in imports.
The mini-budget in September 2022 is expected to have had a long-term impact on borrowing costs for both businesses and consumers. Alongside the effect of changes in corporation tax and business rates on already dwindling business confidence, this is likely to lead to a 3.0% contraction in firms’ investment in 2023.
Businesses and consumers will continue to face high costs due to inflation, but the upward spiral is now thought to have peaked for Q4 2022. This is down from the previous BCC prediction of 14.0%, thanks in part to the Government’s energy price guarantee. The CPI rate is expected to slow to 5.0% in Q4 2023 and finally drop below the Bank of England’s target to 1.5% in Q4 2024. However, this simply means prices will stabilise at a very high level and Government plans to reduce energy support after April 2023 could put upward pressure on inflation again.
The forecast for the Bank of England’s interest rate has changed dramatically following the mini-budget of September 2022; the rate is now expected to increase to 5.25% by Q4 of 2023. Although the impact of energy and raw material costs on inflation is likely to reduce in 2023, there remains a likelihood of upward wage pressure as workers seek to increase their income.
Overall investment is expected to fall by 1.8% in 2023, with business investment expected to fall even further by 3.0% in 2023, down significantly from a previous prediction of a 0.6% increase. This follows recent BCC research showing significant falls in business confidence in recent months. Household consumption is also expected to fall by 2.3% although Government spending is expected to increase by 4.6%.
The overall picture for 2024 shows a return to growth but not at a level which will compensate for the five quarters of a shrinking economy. Net exports, household spending and business investment will all return to positive growth but with government spending dropping, the recovery will by lacking in strength.
Alex Veitch, Director of Policy at the BCC, said: “Our research has shown that business confidence has been falling for months. It is now clear that the September mini-budget and Autumn Statement have had a further chilling effect.
“Very few firms will be willing to invest as they face into a wall of higher prices, interest rates and taxes.
“The very real worry is that the UK will get left behind by our competitors, once the economy emerges from recession, as growth remains so weak.
“But it is not too late to turn this around. With concrete action on infrastructure investment, skills, trade, and green tech we can put the economy in a much stronger position.
“The next Budget, due in March 2023 will be a real acid test of whether the Government fully understands the scale of the problems ahead and is prepared to act.
“In the meantime, the forthcoming announcement on energy bill support for businesses will be watched closely by firms for signs that the Government grasps the size of the challenges they face.”
Duo of new recruits for electrical engineering firm Smith Brothers
Yorkshire-based high voltage engineering and contracting firm Smith Brothers has expanded its workforce with the appointment of two key hires and a pair of promotions.
The onboarding coincides with promotions for existing colleagues too, as the business focuses on continuing to build its industry-leading engineering capabilities and innovative sustainable energy solutions for public and private sector customers.
Joining as SHEQ manager, Mark Bush will oversee health and safety within the organisation, to ensure the welfare of colleagues on-site and in the offices – protecting both mental and physical health. An experienced Safety Health Environment and Quality specialist, Mark has a wealth of experience in the electrical transmission sector – notably with Morrison Energy Services, Babcock International Group, and Siemens Wind Power.
Elsewhere, Jerry Connolly has been appointed as a quantity surveyor, to manage the commercial elements of projects. Most recently having worked on the delivery team for Morrison Delivery Services, Jerry brings 41 years of experience on a wealth of builds, such as the Qatar airport extension, Mersey Gateway Bridge, and Eagles Meadow, Wrexham.
Meanwhile, Liam Smith has moved into the position of operations manager – having first joined the company as an apprentice in 2006. In his new role, Liam will support on the delivery of all design projects, services, and infrastructure – orchestrating the day-to-day running of all the site staff.
And finally, Alex Dixon has been promoted to tendering manager, and will oversee all incoming and outgoing project bids – with the aim of filling Smith Brothers’ order book for 2023 and beyond.
Speaking about the organisation’s growing workforce, Dave Ogden, Smith Brothers commercial director, said: “At a time when sustainable power generation is a topic at the forefront of many minds, we are incredibly proud of the business we have – and central to that is our people and our culture.
“Our new colleagues will prove critical to building our reputation in the high voltage power electrical engineering sector, and build on already impressive customer retention levels. In terms of the promotions within the team, they are thoroughly deserved and, from our point of view, it is important we recognise our colleagues and consistently provide an environment where they can continue to develop.”
Established in 1999, Smith Brothers has bases in Elland and Sheffield and has worked with a vast range of organisations ranging from major nationwide utilities providers and blue chip brands, to local SMEs and construction partners.
Businesses could get up to £5,000 to help with energy bills thanks to West Yorkshire Mayor’s new fund
A new £1 million fund to help businesses struggling with energy bills has been launched by the Mayor of West Yorkshire, Tracy Brabin.
This will offer up to £5,000 to help individual businesses with practical solutions to reduce costs, including help to buy a more efficient boiler or install low-energy lighting.
The scheme is part of a multimillion-pound package of measures from the West Yorkshire Mayor to help people and businesses with the escalating cost of living crisis.
Tracy Brabin, Mayor of West Yorkshire, said: “We are stepping in to support our local communities and businesses at a time of national crisis, helping to keep people warm and fed this winter.
“Our business support scheme will provide urgent help to bring down bills this winter and make firms more resilient to future energy price hikes.
“This will help to protect jobs and livelihoods now, whilst also improving energy efficiency across our region which is a vital part of achieving our net zero carbon ambitions.”
Amanda Beresford, chair of West & North Yorkshire Chamber of Commerce, said: “Businesses large and small are struggling to cope with unprecedented rises in the cost of powering their operations.
“Everyone is crying out for support so that they can weather the present storm and get back to doing what they do best in creating jobs and innovating new products and services.
“The grant scheme will hopefully help achieve just that.”
To further help businesses, an advisory scheme to help small and medium sized firms to reduce their bills by being more energy efficient and sustainable will be extended later this year, with a further £10.6 million investment.
York starts to gear up for next year’s National Apprenticeship Week
City of York Council’s Apprenticeship Hub is urging local businesses and training providers to get involved in National Apprenticeship Week starting on February 6th next year.
The York, North Yorkshire and East Riding Apprenticeship Hub is working in collaboration with City of York Council and NYBEP to host a ‘Skills for Life’ Apprenticeship Exhibition Event at York Racecourse from 1pm – 6pm on Wednesday 8 February.
Businesses and training providers are being invited to book their free stand at the event, which attracted over 350 visitors last year.
Aimed at people across the region wanting to start their career, up-skill or re-train, the event is designed to promote the huge range of learning opportunities on offer and present the diversity of industries offering training and employment for prospective apprentices of all ages.
Cllr Andrew Waller, the council ‘s Executive Member for Children, Young People and Education, said: “Apprenticeships cover a wide range of ages, and qualifications and so are a fantastic way for young people to kickstart their career, or for people later in life to take a new direction and learn new skills. The previous Apprenticeship Exhibition Event was exceptionally popular and I hope that local businesses and training providers will take this opportunity to book their free stand now, so they can meet hundreds of budding apprentices next February.”
If you’re a business or training provider with vacancies to promote, contact vicky.wright@apprenticeship-hub.co.uk to secure your free place.
Fiona adds volunteer HMRC role to work at Andrew Jackson Solicitors
Andrew Jackson Solicitors tax partner Fiona Phillips, pictured above, has been appointed to a three-year unpaid role as a member of HMRC’s General Anti-Abuse Rule independent advisory panel.
Fiona has joined the 10-strong GAAR panel of UK-based senior tax practitioners and legal professionals, all of whom are independent of HMRC. The panel, which was established in 2013 to coincide with the General Anti-Abuse Rule coming into force, provides opinions on cases and approves HMRC Guidance on the question of whether “the entering into and carrying out of the tax arrangements is a reasonable course of action in relation to the relevant tax provisions”. Fiona said:“Obtaining the opinion from the GAAR advisory panel, which is independent of HMRC, is an important element of the operation of the general anti abuse rule.” She is a chartered accountant and chartered tax adviser with over 30 years’ experience advising and guiding private and public companies through all aspects of their corporate tax affairs. She has a special interest in advising property clients on Stamp Duty Land Tax and VAT.Accountants’ charity arm to give £25,000 to Showground education project
The newly launched Duncan & Toplis Foundation is to donate £25,000 towards an educational project currently under construction by Lincolnshire Agricultural Society.
The donation will go toward redeveloping the charity’s existing exhibition centre, previously used for Covid-19 vaccinations, at Lincolnshire Showground.
When it reopens, the building will be known as the EXCO Centre for Education, with LAS looking to install IT infrastructure for audio visual equipment and classroom equipment. The Society has already spent £900,000 on the project, and is looking to raise a further £100,000 to enable completion.
Adrian Reynolds is MD of Duncan & Toplis, and also a Chair and Trustee of the Duncan and Toplis Foundation. He said: “Duncan & Toplis has supported agriculture since it was founded in 1925, so it’s fitting that the first donation from our new foundation should be to the Lincolnshire Agricultural Society. Even today, 25% of our business stems from the food and farming sector and the new EXCO Centre, as a local project for the good of the community, marries perfectly with the objectives of our foundation.
“This centre will educate future generations on the importance of farming, food production and the countryside and help launch great careers in the industry and we’re proud to give it our support.”
Duncan & Toplis employs more than 400 people and supports more than 12,000 businesses and individuals. The organisation has been supporting local people and communities since it was established in 1925 through both its work supporting clients and its charitable efforts.
The Duncan & Toplis Foundation will primarily support initiatives that seek to improve the quality of local communities, with causes such as the provision of food and shelter, mental health, palliative care and youth employment among those given priority support.
