Hiring intentions remain strong despite recession fears
Hiring intentions among UK businesses remain strong despite a turbulent outlook across output and inflation, according to the latest Business Trends report from accountancy and business advisory firm, BDO.
The BDO Employment Index soared to 114.79 in July, its highest level since January 2019, up 0.23 points on June. Staff shortages heightened by Brexit and the COVID-19 pandemic have been driving a buoyant labour market as firms push hard to recruit. This can be seen in the unemployment rate which stood at 3.8% in the three months to May.
However, BDO’s Inflation Index shows no sign of slowing, reaching a further record high of 118.72. Growth was driven by increases across both the input inflation and consumer inflation indices, with the former recording its highest ever reading of 121.19 due to a weakening currency, supply side shortages and significant supply chain disruption.
This tough inflationary environment and the threat of a recession look to diminish employers’ hiring intentions towards the end of this year, mirroring the trend of decline that was seen by the Employment Index during the 2008 financial crisis.
In line with the decline in economic activity, BDO’s Optimism Index fell 0.30 points to 101.53, its lowest point since April 2021. While both the services and manufacturing subindices experienced a fall, the overall decline was driven mostly by the latter with a 0.69-point decrease.
Lower business confidence aligns with an overall dip in BDO’s Output Index, which remains below 100, the measure indicating long-term growth, for the second consecutive month. However, the Output Index posted a slight increase overall of 0.42 points in July to reach 98.66, led by an uptick in consumer activity across the manufacturing and services subcomponents.
Kaley Crossthwaite, partner at BDO LLP, said: “Reports of a less optimistic outlook are by no means surprising as the economy now faces the prospect of a recession towards the end of the year. Although it’s encouraging to see recruitment intentions remain strong, we know that talent shortages are an issue, with many businesses reporting they are struggling to find people with the right skills.
“Despite the current hiring activity, we’re likely to see demand for labour and the Employment Index decline later in the year, with employers devoting their resources to managing inflation, interest rate rises, and ever-growing energy costs.”
Key moment for Brighouse Deal as £19.1million plans submitted
After an extensive consultation over the past three years, the Brighouse Deal plans that will write a new chapter in the story of the town have been submitted to the Government.
The business cases for the £19.1m proposals have been approved by Calderdale Council and the Brighouse Town Deal Board, made up of representatives from the town’s private and voluntary sector, community and residents’ groups.
It will now be for the Department for Levelling Up, Housing and Communities to review the plans and, once this review is complete, release the funding allowing work to begin on making the Deal developments a reality.
The approved projects put forward are:
- Brighouse Welcome – £400,000 to develop the public realm on the edge of the town centre and enhance the welcome to everyone – pedestrians, cyclists, public transport users or car users who’ve parked just outside the town centre and then walked in. It will encourage active lifestyles, contribute to Calderdale’s climate commitments, and create a place that enhances Brighouse’s profile as a destination. It aims to increase the number of commuters walking and cycling.
- Canalside & Thornton Square – £6 million to improve outdoor recreation opportunities and the image of Brighouse to existing and potential residents and businesses via enhanced connectivity to the Canalside, and to harness the historic value of Thornton Square to provide a quality event and community space which enhances Brighouse’s image as a quality destination for residents, businesses and visitors. It aims to increase the number of visitors to the Canalside and the number who visit cultural and heritage events.
- Brighouse Retail & Leisure – £9 million to enhance the retail and leisure offer of Brighouse’s town centre by prioritising people, enhancing the streetscape and providing opportunities to sit and meet friends to increase footfall, dwell times and support the 24-hour economy. The ambition is to increase by 30 per cent the time spent in Brighouse and the amount spent in shops, cafes, and restaurants.
- Market Revitalisation – £3 million to deliver a new market building on the Canalside with 40 fixed and pop-up market stalls with supporting infrastructure, including new toilets and spaces to sit, meet and rest. It is hoped this will help start-up businesses by providing a route for them to use pop-up stalls occasionally, through to fixed market units, through to a permanent commercial space in the town centre.
- Industry 4.0 & Skills – £650,000 to put high-tech manufacturing at the heart of the town’s future by creating an Industry 4.0 Hub where small and medium sized businesses can explore how digital technology can improve their productivity and increase innovation. It will provide the capacity for 70 new apprentices by working with partners led by Calderdale College.
Mablethorpe set to be a leader in medical innovation
Mablethorpe is set to be a leader in the development of medical technology and innovation after the government gave the go-ahead for the Campus for Future Living.
£8.5m in Town Deal funding has been approved for the campus which will put Mablethorpe at the forefront of medical technology and health and care related teaching and research.
And, in more good news for the area, the government also approved the first phase of the ‘mobi-hub’. Mablethorpe Town Centre Transformation and Mobi-Hub are two projects within the Mablethorpe Town Deal that are aligned to make the town centre more attractive, less cluttered, and more coherent, to the benefit of locals and visitors and to the wider economy. They also seek to address accessibility issues and provide greater connectivity.
The Connected Coast Board oversees the Town Deal programme and projects for Mablethorpe, and chair Chris Baron welcomed the approval from government. He said: “The confirmation that these important and innovative projects can go ahead is hugely significant for Mablethorpe and the surrounding area.
“Both the campus and the Mobi-Hub will be transformational for Mablethorpe, and will bring far-reaching benefits for our communities, and beyond.
“The campus will position our area as an exemplar in the field of medical technology, bringing jobs and attracting businesses.
“I am hugely grateful to all our partners who have worked to develop these projects, and I look forward to seeing the difference that they will make for Mablethorpe.”
Victoria Atkins, MP for Louth and Horncastle, said: “This confirmation of significant funding to improve transport connectivity and enhance health and social care provision will bring transformational change to Mablethorpe and the surrounding area. Notably, they will attract more healthcare professionals and businesses to our beautiful corner of Lincolnshire benefiting our community and local economy.”
Cllr Craig Leyland, leader of East Lindsey District Council, said: “This is a huge investment into Mablethorpe which will put the town on the map for its national significance in developing new medical technology and innovation.
“Together with the Mobi-Hub, these Towns Deals projects will bring positive change to Mablethorpe, increasing footfall for our businesses and creating jobs for our residents now and for years to come. These projects are milestones to celebrate, and I look forward to seeing the new opportunities they bring to the Lincolnshire coast and wider East Lindsey.”
Led by a coalition of local, regional, and national partners, the Campus for Future Living will put Mablethorpe at the heart of the provision of health and care related jobs and businesses.
As well as providing a base for the development and testing of medi-tech applications, it will also enable the continued professional development of clinicians, and will provide support and training for people working in care.
Julian Free CBE, deputy vice chancellor, University of Lincoln, said: “The University of Lincoln is delighted the Government funding for the Campus for Future Living has been secured, which recognises the hard work of all partners in this project drawn together by the University’s programme manager.
“It is a significant step in the plan to advance medical and social care in the region and address longstanding health inequalities. The Campus will provide the resources for research and innovation alongside facilities for medical and social care delivery creating the synergy to accelerate improvement in health outcomes, which will also be exported beyond the region.”
Professor John Hunt, academic lead for the Medical Technologies Innovation Facility (MTIF), said: “The campus will be a pioneer leading approaches that will be nationally and internationally relevant to the development and delivery of future healthcare to people in their communities.
“Cocreating and delivering healthcare needs with the community, healthcare providers and industries. We are delighted to be a partner in this exciting opportunity and deliver new approaches to healthcare.”
The approval for the Campus for Future Living and the mobi-hub comes after the other Town Deal projects for Mablethorpe were recently confirmed by the government, including the redevelopment of the Colonnade at Sutton on Sea.
A new purpose-built leisure centre and digital learning complex is also set to be developed on the site of the current Station Sports Centre.
In addition, Mablethorpe town centre will be transformed through a programme of shopfront and building repairs and improvements, and public realm enhancements. Finally, with the National Trust, a sustainable visitor hub with a range of accessible facilities will be developed to enhance explorations of the Sandilands Nature Reserve and the local area.
In 2021, Mablethorpe agreed a town deal worth £23.9m and Skegness £24.5m – and with match funding, the total investment in both areas will be in the region of £80m.
LEP seeks finance experts for audit committee
The Greater Lincolnshire LEP is seeking finance experts to join its Finance & Audit Committee to assist the LEP Board in ensuring that the company maintains satisfactory systems of financial and operational control, and that any published financial reports comply with statutory requirements.
The successful candidates will have a track record in a professional financial, risk or audit role. We are also interested in providing this opportunity to individuals earlier in their career who would like to gain experience working as part of a governance board. Therefore, if you have any colleagues within your organisation or networks who would be interested in joining the committee, please do not hesitate to get in touch. Current members can be found here.
Ian Knowles, Chief Executive of West Lindsey District Council, said: “I joined the LEP’s Finance & Audit Committee in 2017 because I thought it would be a useful way to understand the way the LEP works and be a part of the changes being brought about by the investments being made.”
“I have found that understanding to be useful in supporting my own organisation in its relationship with the LEP. I continue to be a member of the Finance & Audit Committee as I am interested in how the decisions of the LEP are progressing and I am able to use my professional experience to advise and support the internal processes promoting good governance.”
Further information: amy.o’sullivan@lincolnshire.gov.uk .
Natalie joins Handelsbanken team in Doncaster
Handelsbanken Doncaster has appointed Natalie Simpson as a Corporate Banking Manager in response to increasing demand for its local relationship banking services.
She will be involved in developing existing customer relationships as well as welcoming new locally based customers to the Bank.
Natalie said: “What attracted me to Handelsbanken was its long-term sustainable values and its pure focus on serving customers from a local Branch that contains experienced local bankers who have the power to make everyday banking decisions.”
Handelsbanken’s Doncaster branch, established in 2007 and located in Richmond Business Park, Sidings Court, has developed a reputation for its high levels of bespoke customer service, financial strength and high standards within the local business and professional services community.
Branch Manager Andrew Kerley added: “Natalie’s appointment means that we can continue to meet the growing needs of both existing and new customers in Doncaster whilst maintaining the high levels of service for which we are renowned.”
Plans approved for National Railway Museum’s new building
Plans have been approved for the National Railway Museum’s new building called Central Hall, which will transform the attraction and herald the start of delivering the York Central development.
City of York Council’s planning committee approved the National Railway Museum’s reserved matters application at a meeting on Thursday 4 August.
The new development will help the museum realise its potential as the cultural heart of York Central and unite the museum for the first time.
Central Hall will be a new welcome space and gallery located between the museum’s Great Hall and Station Hall. It will connect the existing museum buildings and is a cornerstone of Vision 2025 – the museum’s journey to transform its offer and become the world’s railway museum.
It is a condition of the Stopping Up Order for Leeman Road that it will not be stopped up until the alternative highway routes are in place – pedestrian, cycle and vehicle. Construction is already underway on these routes.
This exciting vision also includes Wonderlab: The Bramall Gallery, an interactive gallery aimed at inspiring children to think like engineers through experience, interactivity and play.
Central Hall itself will feature a Railway Futures Gallery showcasing the latest innovations in rail technology, a café overlooking the new museum square, a shop, flexible event space and new visitor facilities.
Sustainability is at the heart of the Central Hall design, with environmentally friendly design principles and materials which are in-keeping with York’s rich railway history and the surrounding area.
Judith McNicol, director of the National Railway Museum, said: “We are very pleased the planning committee has approved the Central Hall plans which will have transformative benefits for York and the wider region.
“This approval will allow the museum to realise its potential as the ‘world’s railway museum’ by improving our offer, welcoming more visitors, and helping us to inspire the next generation of engineers and problem-solvers.
“The museum aims to be the cultural heart of York Central and this decision brings us a step closer to realising that ambition. We remain on track for opening Central Hall in Autumn 2025, in time for the Museum’s 50-year anniversary.
“As we move towards construction, we will continue to engage with residents and visitors to ensure that the world-class museum we are creating can act as a true community resource for our evolving neighbourhood.”
The Central Hall plans form an early stage of the delivery of York Central, the 45-hectare regeneration site which is a partnership with Network Rail, Homes England, City of York Council and the museum.
Work is expected to start in early 2023 with completion in time for the celebrations in 2025.
Feilden Fowles designed the new building and Montagu Evans acted as heritage consultant. GRAHAM has also been appointed to deliver pre-construction services for Central Hall.
Neil McFarlane, strategic projects director at GRAHAM, said: “We are delighted to have been appointed as the preferred bidder for the National Railway Museum’s Central Hall Project. We understand the significance of this project for the Science Museum Group (SMG) and recognise their aspirations for Central Hall to become the gateway to the transformed museum.
“Our highly experienced team has a strong track record of working to deliver shared project goals. We will be responsible for ensuring key project milestones are achieved under the Pre-Contract Services Agreement.”
Aparthotel plans submitted in Harrogate town centre
Plans have been submitted to transform the upper floors of a prominent building in Harrogate Town Centre into a new aparthotel.
Owners of the building on James Street, Countrylarge, recently announced that fashion and lifestyle retailer Oliver Bonas would take the ground floor of the building and these plans for the 17-room aparthotel will complete the rejuvenation of the property.
It will be run by sustainable operator Beyond, which specialises in running carbon neutral aparthotels, that offer healthier spaces for both guests and staff to enjoy. It has a commitment to being carbon neutral, zero waste and chemical free.
Antony Rosindale from Countrylarge, owners of the building, said: “This planning application will complete the transformation of the building and bring economic benefits to the town centre. It is a great way to fully utilise the whole building and we are very excited to have Beyond operating it for us.
“Our aim is to get started as soon as we can, and we already have a contractor lined up to complete the conversion.”
James Fry, founder of Beyond, added: “Harrogate is a fantastic place and we are thrilled at bringing our sustainable, carbon neutral operating model to the town. This building is ideally placed so people can enjoy everything that Harrogate has to offer.”
The professional team involved in the project include architect Corstophine + Wright, planning consultant Quod, conservation consultants Woodhall and lawyers Schofield Sweeney.
The conversion of the upper floors into the aparthotel will start as soon as possible, if planning permission is granted.
Lincolnshire recruiters snapped up by UK-wide group
Kingdom Services Group has acquired Mercury Personnel Solutions – the Lincolnshire-based specialist recruiters to the fresh produce, horticulture, warehouse, and distribution sectors.
The company will be branded and known as Kingdom Mercury.
Robert Carter, Managing Director, and Gary Turner, operations director, will continue to lead the company along with the existing SMT.
It will be a soft transition and business as usual for the Mercury customers and colleagues – but with the benefits that Kingdom can provide, which include wider “one stop” service capabilities, working synergies and specialist knowledge, and added value that come from being part of a 7000+ colleague and £200m turnover organisation operating across a UK-wide office network.
Robert Carter, Mercury MD, said: “I’m incredibly proud of the achievements that the company has made over the years and extremely excited that the company has been acquired by Kingdom Services Group. I would like to thank the many clients that we have, the flexible workforce and the talented operations and accounts team that have made Mercury Personnel Solutions such a success over the years and look forward to continuing the success story with Kingdom Services Group.
“The new merger will enable us to continue with our growth to the next level whilst being supported by the Kingdom Services Group whilst delivering enhanced services to clients and candidates alike. Further investment shall continue to expand our geographical offering and most importantly by joining an independently owned group I’m safe in the knowledge that business will be as usual only even better!”
Terry Barton, CEO of Kingdom Services Group, said: “Mercury has 20+ years of trading and a strong and solid brand. They have an exceptional growth path because of a great team of people and like Kingdom also have a great energy about them. We also really liked that they are a 52-week recruitment business and aligned with Kingdom have a fantastic workforce (900+) and they attract and retain good people. The Mercury acquisition is aligned to our 2022 recruitment business growth plans. I personally welcome the Mercury team into the Kingdom Group.”
Kingdom Services Group has a UK-wide network of 18 offices including Glasgow, Birmingham, London and Belfast with their National Support and Command Centre based at Newton-le-Willows. Kingdom also operates in India.
Lincolnshire’s doing better than other regions, says business recovery specialist
Amid growing fears of recession, and the escalating cost of living crisis, the latest data from independent business rescue and recovery specialist Begbies Traynor suggests some encouraging signs for Lincolnshire businesses, with the region performing more strongly than other parts of the UK in the second quarter of 2022.
The latest Red Flag Alert data from Begbies Traynor reveals that in Lincolnshire significant or early-stage distress (which refers to businesses that have had CCJs of less than £5,000 filed against them) fell by 13% year on year and by 1% since Q1 of this year. The national average was a decrease of 11% since Q2 2021.
Across Lincolnshire 5,926 businesses experienced instances of early stage distress in the three months from April to June 2022. During the same period, over half a million firms across the UK as a whole ran into financial difficulties.
Gareth Rusling, who heads Begbies Traynor’s Lincolnshire offices in Lincoln, Scunthorpe and Grimsby, said: “There are some encouraging signs for Lincolnshire that we are ahead of the national trend and seeing faster falls in the levels of business distress than the UK average. Nevertheless, the ongoing economic uncertainty we are all facing over the impact of Brexit, continued Covid lockdowns in China and supply chain problems, as well as soaring energy costs, certainly does not bode well for businesses.
“As ever, we are advising firms to get the right strategies in place now in order to increase their resilience to economic turbulence, and of course seek professional help sooner rather than later if they begin to experience financial difficulties.”
Sectors in Lincolnshire that had seen the biggest falls in distress since Q1 2022 include printing and packaging (-14%), utilities (-12%), hotels and accommodation (-6%) and financial services (-5%). Industries faring less well, and which had seen an increase in business distress since the previous quarter, include food and drug retail (+10%), automotive (+8%) and telecoms and IT (+7%). The sector with the largest number of distressed businesses was construction, with 1,011 Lincolnshire building firms affected.
Gate Burton energy park consultation draws more than 120 responses
Low Carbon’s Gate Burton Energy Park project team is reviewing the 120-plus views and comments it received during the second consultation exercise on its updated proposals to build a new solar energy park on land near Gate Burton, Lincolnshire.
Gate Burton Energy Park has the potential to generate around 500 megawatts (MW) of renewable electricity – enough clean energy to power over 160,000 homes and avoid more than 100,000 tonnes of CO2 emissions every year.
Having held an initial consultation earlier this year on emerging proposals for the project, Low Carbon continued to shape and refine its plans, taking into consideration all feedback received. These updated proposals were then presented during this second stage of statutory consultation to give people living and working in the area the opportunity to continue to inform and influence the project development process.
Over the course of the six-week consultation which closed lsat week, Low Carbon held five in-person events at local community facilities, held two virtual information events, and met with residents in properties neighbouring the site to understand first-hand their concerns and answer any questions.
Mike Rutgers, Development Director at Low Carbon, said: “We are really grateful to all the people who took the time to take part in this consultation and would like to say a big ‘thank you’ to everyone who came along to events to speak with the team and provide us with their views on our proposals.
“Over the course of this consultation we’ve had some really constructive discussions and welcome the insight those conversations and subsequent feedback submitted to the consultation have provided. Feedback to the consultation covers a range of issues regarding the scheme, and we’ve also received some fantastic suggestions for projects and initiatives to consider supporting to benefit those communities nearest the site. We do also acknowledge that solar development stirs up strong feeling and we will bear that in mind as we continue to finalise our proposals.
“We’ll continue to update local communities and stakeholders on the project development process over the coming months. Now the consultation has closed the team is now focused on reviewing all the feedback submitted, alongside the findings from ongoing technical studies and environmental surveys, to help shape and refine the details of the scheme we set out in the application for development consent we anticipate submit to the Planning Inspectorate by early 2023 at the latest.”
While this is likely to be the last time Low Carbon consults on its proposals for Gate Burton Energy Park before submitting an application for development consent to the Planning Inspectorate, people will still have opportunity to contribute to the ongoing development process.
When the application is submitted, the Planning Inspectorate has 28 days to accept Low Carbon’s application for Gate Burton Energy Park and decide if it will proceed to examination stage. Subject to the application being accepted, those wishing to be involved will need to register their interest with the Planning Inspectorate who will then keep them updated on opportunities to contribute.
