Covid has cost SMEs an average of almost £21,000, survey reveals
A new report reveals the cost of Covid-19 to small businesses now sits at £109.6 billion, two years on from the UK’s first national lockdown – with one in six believing they will never recover financially from the pandemic.
The study by small business insurance specialist Simply Business reveals that 87% of small business owners have lost money over the last two years, averaging £20,981 each in total, with many still suffering financially. With one in six small business owners believing they will never financially recover from the pandemic, this represents almost one million UK small businesses in total.
While others are more confident of eventually recovering financially, the outlook remains bleak, with 43% of owners saying it will take at least another year. What’s more, one in five (21%) don’t expect to ever return to pre-pandemic trading levels.
Despite one in six (16%) believing that their business is now better prepared for the future following the events of the last two years, small business owners are now facing a unique set of challenges as we continue to emerge from the pandemic.
While Boris Johnson’s lifting of Covid restrictions earlier this year was predicted to give business a boost, 31% believe things have in fact got harder since the restrictions ended – with 63% believing that the government hasn’t offered enough financial support, consultation or communication in the period since.
Furthermore, as Covid cases rise again in the UK, two in five (38%) small business owners are concerned about another lockdown and tighter restrictions, which would impact trade exponentially for a third consecutive year. Two fifths (40%) say they are ‘not at all confident’ about their preparedness for a further lockdown or tightening of restrictions, and what’s more, a worrying 42% predict the temporary or permanent closure of their business should the UK enter another lockdown. There is however, a glimmer of hope amongst nearly a quarter (23%) of SMEs who have strong faith in their ability to weather another lockdown.
Alan Thomas, UK CEO at Simply Business, said: “Two years on from the UK’s first national lockdown, the continued impact of Covid-19 on small businesses is clearer than ever. With owners losing almost £21,000 each on average, one in six believe they will never recover financially from the pandemic.
“For small businesses, there’s no doubt that it’s been a period of incredible difficulty. But it’s also been a period of resilience, innovation, and creativity, where the unique spirit of the UK’s self-employed community has once again been clear to see.
“Accounting for over 99% of all UK businesses and contributing trillions of pounds in turnover every year, small businesses sit at the heart of our communities and are vital to our economy. As the types of challenges facing small businesses evolve, it’s essential that we all play a role in supporting their revival over the coming months and years.
“From local bakeries and greengrocers to contractors and tradespeople, if the UK is to recover from the effects of the pandemic, we need small businesses to bounce back.”
Chancellor’s Spring Statement today must offer relief for small firms over soaring energy bills, says FSB
The UK’s largest business group has laid bare the impact of spiralling utility and fuel bills on small businesses ahead of the Chancellor’s Spring Statement this week.
The dramatic movement in cost has coincided with petrol and diesel prices hitting all-time highs in the first few months of this year, according to RAC’s Fuel Watch.
FSB National Chair Martin McTague said: “Now is the moment for the Chancellor to deliver on his pledge to create a low-tax economy and new culture of enterprise.
“Unless the Government intervenes, soaring fuel and utility bills will spell the end for many of the quarter of a million firms that say they are on the brink of collapse.
“When small businesses go under, that sends shockwaves through local communities in the form of lost jobs, reduced investment and damaged consumer confidence.
“Whether it’s the care home bracing for an even higher tax bill because of the so-called health and social care levy, the electrician facing higher and higher charges to fill up to complete urgent jobs, or the restaurant which, after two years of trading restrictions, is trying to rebound as energy and food prices rocket, small firms right across the piece are in urgent need of support.
“As things stand, firms have no choice but to raise prices to cover overheads – by tackling the cost-of-doing-business crisis, the Chancellor can help end the cost-of-living crisis. He can’t control the wholesale cost of gas and oil, but he can control tax policy.
“Cutting fuel duty, assisting micro-businesses with energy bills, increasing the Employment Allowance to £5,000 and reforming business rates to take more small firms out of the system in levelling up target areas – all are measures that would help small businesses to keep their heads above water, and support the millions they employ.”
Four deals completed at iconic Leeds office building
Four significant office deals have been completed at Tailors Corner, the iconic central Leeds building which was originally the home of Hepworth Tailors.
The deals coincide with the completion of a £5million refurbishment of the 25,000 sq ft building, which has created flexible Grade A office space in the city.
The new occupiers of Tailors Corner are wealth managers James Hambro and Partners; Fenchurch Law; financial advisers Interpath Ltd; and retail and e-commerce specialists Circus PPC. Together they have taken almost 10,000 sq ft of office space.
Tailors Corner, formerly known as Wellington Park House, was bought for an undisclosed sum by property developers Boultbee Brooks in 2018. It is situated on the corner of Wellington Street and Thirsk Row.
Victoria Harris of global property consultancy Knight Frank in Leeds, who are marketing Tailors Corner, said: “Tailors Corner has led the way in terms of providing prime office space which has found the perfect balance between creative and corporate, creating an environment that appealed to the market and corporate occupiers at the beginning of the flight to quality movement.
“This movement aims to bring staff back to a new office environment they will enjoy working in, which will help attraction and retention. The roof terrace is a perfect example of added building amenities that play a key role in occupier considerations and its design and style has set a new standard of expectation within Leeds.
“These four deals are a resounding endorsement of Boultbee Brooks’ substantial investment in this very special building,” she added.
The comprehensive refurbishment included: A new, bespoke 8-person lift; cleaned and overhauled elevations; a new communal roof terrace with feature planting, decking and views of the Leeds skyline; architecturally sympathetic feature ground floor entrances; a communal roof terrace on the 7th floor, with a 6th floor terrace for exclusive use of that floor’s occupants; new double glazed windows throughout; dedicated entrances on Wellington Street and Thirsk Row; showers and changing rooms; and 30 cycle racks.
Elizabeth Ridler of Knight Frank in Leeds added: “This iconic building is steeped in history — formerly a fabric and garment warehouse with a state-of-the-art retail space at street level, it’s always been a site for trailblazers and forward-thinkers.
“A green agenda is paramount here. We’ve done away with basement parking for the privileged few, in favour of installing bike storage and shower facilities for everyone. And there’s an incredible communal roof terrace, with feature planting, for all the tenants.
“Set in the hubbub of the city just moments from Leeds station and the new Channel 4 HQ, and with the Cycle Superhighway literally on the doorstep, Tailors Corner is designed as an inspiring modern space where businesses thrive within a community of like-minded people.”
The renovation of Tailors Corner was led by the same architectural team, GPad, Hollis and Hoare Lea LLP, as many of Boultbee Brooks’ past developments, including Concordia Works in Leeds.
Wellington Park House was originally built in 1881 for Hepworth Tailors but was badly damaged by the Great Fire of Leeds in July 1906. It was subsequently completely rebuilt and continued to be occupied by Hepworths, the forerunners of Next, until the 1920s.
MediaCom North recruits new senior people partner
MediaCom has appointed a new senior people partner to oversee teams within its MediaCom Manchester, Leeds and Birmingham offices, which form the MediaCom North group.
Holly Jackson joins MediaCom’s HR leadership team having previously worked at online retailer, The Very Group where she progressed from HR advisor to talent partner and finally HR business partner for retail.
Her new role at MediaCom North will focus on embedding MediaCom’s UK-wide strategy within the group and leading the HR Operations function in the North, that has helped to onboard more than 100 new employees in the past 12 months.
A key focus will be on cultivating MediaCom’s inclusive culture and supporting its People First, Better Results ethos. She aims to collaborate with Employee Resource Groups to foster the culture through programmes and initiatives that connect underrepresented groups and their allies. She will also have a big focus on mental health training, career progression and personal growth.
Speaking about her appointment, Holly says: “A diverse and inclusive culture is something most businesses are striving for right now but what really attracted me to this position is how MediaCom North is already achieving this. There is such a strong feeling that everyone belongs and commitment at all levels to put wellbeing and D&I front and centre.
“Working in the fast-paced and ever-changing world of retail certainly kept me busy over the last seven years and I am excited to bring this skill set alongside a fresh perspective to the agency business. This for me is an invaluable skill at MediaCom, we are industry leading in a lot of what we do and are constantly thinking of innovative and creative solutions as well as adapting to the changing consumer and client landscape, so it’s important that I can move at pace too.
“I am a creative person in my personal life, so to join an industry where I can see this creativity everyday (and on our screens, the radio and on my social media) was important to me. It is important to me that colleagues know I appreciate all the skill, talent and passion that goes into what they do, I feel it makes me a better People Partner.
“I am passionate about what MediaCom North does and the colleagues that make it what it is, I look forward to meeting more colleagues across they group as it is really important to me that I am accessible to all colleagues, as this will help me understand what’s working and what’s not and will allow me to understand where my focus should be.”
Holly adds: “Attraction and retention of talent will be my most significant challenge in 2022. This is a focus for any industry, it’s a tough market post-Covid and colleagues want more from their employers. It’s not just about the salary anymore, they want to understand what flexibility looks like, what is the learning and development offering, what is my route to progression and what does the company I work for care about and is that reflected in their culture and their CSR.”
Nicola Marsh, Managing Director of MediaCom North, says: “It’s an exciting time for us to have brought Holly into the senior team and to be adding a new layer of expertise to the business. Career progression and encouraging new talent into the industry sits at the heart of our culture. As we all continue to adapt to hybrid working, and plan our forthcoming move to the new WPP Campus later this year, having a robust HR structure is paramount.”
Manufacturing price expectations hit new high
UK manufacturing output grew at a brisk pace in the three months to March, but the balance of manufacturers expecting to increase prices rose to a survey record high, according to the latest monthly CBI Industrial Trends Survey.
The survey, based on 229 responses, found:
- The balance of manufacturers expecting to raise prices in the next three months rose to a survey record high in March (+80% from +77% in February, a question first asked in Jan 1975).
- Output volumes continued to grow at a robust pace in the three months to March (balance of +27% from +26% in the three months to February), with a similar rate expected in the three months ahead (+30%).
- Output increased in 10 out of 17 sectors, with growth driven by the motor vehicles and chemicals sub-sectors.
- Total order books matched the record level seen in November 2021 (+26% in March, from +20% in February, question first asked in April 1977). Export order books were above normal to the greatest extent since March 2019 (+7% from -7% in February).
- Stocks of finished goods were seen as inadequate in March but improved for the third consecutive month (-8% from -14%).
Construction gets underway on £12m Lincolnshire housing scheme
Work has begun on a £12m development that will create 39 new homes in Marton, Lincolnshire.
The two to four-bedroom single and two-storey homes in Stow Park Road are being delivered by E5 Living UK, which is promising a new generation of high specification eco-friendly homes including air source heat pumps for buyers looking for more sustainable heating options.
Marton Meadows is the second venture in the county for E5, which is also building nearly 100 new homes at King’s Park in Grimsby and has further sites in Market Rasen and Caistor primed for residential development.
E5 has teamed up with its King’s Park architect, the Cleethorpes-based Hodson Architects, for the project. It will be built by Kenmore Design, an experienced residential construction contractor that works across the UK, and the selling agent will be Lincoln’s Mount & Minster. The first properties are expected to come to market in the autumn.
E5 director, Kevin Stevens, said: “We are delighted to bring these much needed new homes to Marton, particularly as there’s a nationwide shortage of single storey and eco-friendly homes. People want to live cleaner and take responsibility for themselves concerning the environment we all live in.
“Our experience in Lincolnshire to date has shown that buyers are keen on the open plan contemporary style properties we deliver as they offer more flexible living and suit the way we use our homes today.”
E5 has already started building links in the community, building a new car park at the neighbouring Marton Academy and is looking to further support local charities and organisations during the build.
Andy Miles, director of Kenmore Design, said: “Working with E5 Living UK and in this area of Lincolnshire is an exciting development for us. We will be building on our supply chain network here, which will have a valuable impact on the local economy.
“E5 has a clear vision for a new generation of homes at Marton Meadows and we’re looking forward to delivering them.”
James Ward, partner at Mount & Minster, added: “It is a fantastic opportunity for environmentally conscious buyers who demand the highest standards of build quality and luxury finishes.
“E5 has really listened to what the market is asking for and the new homes in Marton will deliver this with style. I am excited to bring to market a development of extremely well designed and built high spec properties; it is a perfect fit with the Mount & Minster brand.”
You must stabilise business confidence, CBI tells Chancellor
The CBI is calling on the Chancellor to tomorrow’s Spring Statement to stabilise business confidence and get firms investing by doubling down on green energy and creating a permanent investment deduction.
Making commercial buildings more energy efficient would help reduce demand from sources overseas, reduce emissions and spur investment, says the organisation, adding that setting out a ‘Contracts for Difference’ model on hydrogen could keep us ahead of international rivals in a new green market.
Amidst geopolitical turmoil, a cost-of-living crisis and the lingering impact of the pandemic, CBI Director-General Tony Danker is urging the Chancellor to deliver on his Mais Lecture vision of a ‘high growth, low tax economy built on a new culture of enterprise’ – otherwise, it will disappear into the rear-view mirror if action isn’t taken to stabilise business confidence immediately.
Mr Danker said: “With economic turbulence meaning a rocky spell in recent months, the time for action is now to not only mitigate as best we can, but also set the UK on a higher trajectory of economic growth. The Chancellor may have wanted to delay taking decisive moves on the economy but that no longer makes sense.
“Despite labour shortages, rising cost pressures and supply chain disruption, most firms still had growth and much-needed investment firmly in their sights.
“But the tragic outbreak of war in Ukraine threatens to sap that post-pandemic optimism. This is a chance for the Chancellor to signal that the UK can continue to grow independent of Putin’s actions.
“With expected tax rises also thrown into the mix, all-important investment plans could be shelved unless we act to boost confidence. That’s why we need a substantive and permanent replacement for the successful super-deduction.
“The Chancellor must put growth and economic resilience front of mind when delivering his Spring Statement. We must leverage North Sea production as we manage our energy transition, but we also need to now go full throttle in pursuit of green growth. It was always good for humanity but it’s now essential for national security. It’s also the greatest economic opportunity for businesses to thrive and to level up the United Kingdom.”
Private Equity investor acquires Bradford bathroom products business
TPA Capital has invested in Bradford-based Barwick Bathroom Distribution, a UK B2B distributor of premium bathroom products.
Founded almost 40 years ago, Private Equity investor TPA Capital has acquired the business from the original founders, John and Michael Barwick, who have put a talented team in place to lead the continued success of the business.
The transaction comes on the back of significant growth in recent years, underpinned by a buoyant market for home improvements. TPA’s investment will support the business as it continues to grow through expansion into new geographies as well as increased penetration in existing markets, leveraging Barwick’s strong brand, partnerships and product portfolio.
TPA will support the team in building on John and Michael’s legacy, utilising experience from investing in adjacent sectors and supporting transitions from private ownership.
RSM’s corporate finance partner Steve Hubbard and associate director, James Atkinson, advised Barwick Bathroom Distribution on the sale. Paul Mann, Louise Parker, Josh Headley and Patrick Ford from Squire Patton Boggs provided TPA with legal and tax structuring advice. Debt advisory services were provided by RSM’s debt advisory partner Gregory Morton.
Steve Hubbard, corporate finance partner at RSM UK, said: “We are delighted to have advised a strong business as it transitions to the next chapter in its development. I am confident that with its quality management team, market position and the strategic advice from its new investor the business will continue to develop and grow.”
Paul Mann, partner and European head of private equity at Squire Patton Boggs, said: “We are pleased to have played a part in a transaction supporting a strong Yorkshire business as it looks to the future. With the investment from TPA Capital, Barwick will be in a good position to continue developing its existing business, whilst taking the opportunity to expand into new markets.”
Gary Campbell, Managing Director of Barwick, said “We are excited to be partnering with TPA on the next stage of our growth journey. Having known the Barwick brothers for over 25 years, as well as having had the honour of leading their business over the last six, I’m delighted that we have the opportunity to build on their legacy with TPA’s support.
“TPA’s investment allows us to remain an independent distributor with a reputable brand that will continue going from strength to strength.”
KPMG’s Financial & Tax due diligence team led by Richard Dwight and Gareth Wainwright; and PMSI’s Commercial due diligence team led by Gareth Elliott also advised TPA. Ward Hadaway’s Adrian Balham, Jonathan Pollard and Olivia Brown provided legal advice to Barwick Bathroom Distribution.
Work starts to bring new family homes and a city gateway community to Wakefield’s Kirkgate area
Plans to revitalise Wakefield’s Kirkgate area are getting underway, starting with the demolition of the ABC cinema to make way for much needed new housing in the city centre.
It’s the first step towards implementing the Wakefield Masterplan and comes swiftly on the heels of public endorsement and Cabinet approval of the plan.
The blueprint will see a modernised city centre that residents and businesses will be proud of and which will attract more visitors. The city will be modernised to meet the needs of future generations, reverse the decline of the high street and introduce more sustainable and active travel.
Cllr Denise Jeffery, leader of Wakefield Council, said: “We are moving at pace to implement this blueprint to ensure that we stay abreast of developments and demands by our residents, visitors and businesses so that Wakefield city can remain the bustling and vibrant hub of our local economy that it has always been.
“These exciting plans, for the creation of a Kirkgate Innovative Neighbourhood Gateway to the city, will see the creation of approximately 90 new homes, car parking facilities and improved public spaces.”
Cllr Darren Byford, Cabinet Member for Economic Growth, Regeneration and Property, said: “This is not about bricks and mortar. People are at the heart of this transformation that will make residents feel prouder and safer in the place they call home, create a vibrant high street and have great connections that appeal to residents and visitors and build a fairer future for all.
“Though it is led by the Council, which has secured millions of pounds in government funding, these plans are co-produced by residents and businesses who have shared their aspirations for a modernised city centre that stays in step with the trends across the UK to ensure city centres remain vibrant and attractive to all.”
The creation of the new ‘15-minute-village’ is part of the plan to create vibrant communities to help drive the local economy and improve the standard of living.
Demolition of the ABC Cinema is expected to start in April and be completed in the summer. The site will be home to approximately 90 new homes, car parking facilities and improved public spaces.
When demolition of the ABC cinema is completed in the summer 2022, the land will be temporarily landscaped and become a public open space pending the completion of acquisitions of other properties on the block.
Some of the older 1950s properties, which are reaching the end of their lifespan, will also be demolished later in 2022. The Harewood Arms, and some surrounding buildings, will remain.
Once acquisitions are completed and the site has been prepared, in late 2022 to early 2023, it will be put on the market for purchase by a developer for delivery of housing.
This is one of four projects being financed through the Government’s Towns Fund which has allocated £24.9 million for Wakefield city.
The Council’s investment in the city centre will see the creation of 4,000 square metres of new commercial space and a new 120-bed hotel at the old Westgate station and around 100 new homes to radically extend the city living offer.
The other projects are the Kirkgate Phase 2, Cathedral Precinct Public Realm Improvements.
Overall, the Council has secured more than £80million, primarily from Government funding, and will help in repurposing and positioning the city and towns to be thriving places that work for local communities to build a fairer future for all.
Construction phase of new Darley Street Market begins
Representatives from construction company Kier, met with Councillor Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport and representative from the council’s regeneration and markets teams, to mark the start of the construction phase of the new Darley Street Market.
The main demolition phase of the project which started in May last year has been completed and now work has started on the construction of the new multi-million pound market.
The development will also include an outdoor square for concerts and events, will occupy a prominent and large site on Darley Street and is part of the ongoing cultural and physical regeneration of Bradford city centre, complementing what’s on offer across the district and enhancing Bradford’s destination status.
Councillor Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport, said: “It was great to be on the site of the new Darley Street Market to see the construction phase begin. Modern markets need to be more than just places to shop, people also want culture, leisure and entertainment and this new market in the city centre will deliver that.”
Dan Doherty, regional director for Kier Construction, said: “We are delighted to see the new build phase of the project commence now all the demolition works are complete. We look forward to seeing the new building come to life for the community of the Bradford district and beyond.”
