‘Trust deficit’ costs SMEs thousands every year, report shows
Struggling to know who to trust when doing business online has created a ‘trust deficit;’cost SMEs thousands every year, says B2B search platform B2B Stars.
The research highlights how nearly 30% of businesses are struggling to build trust with new contacts, while 29% report finding it hard to distinguish between fake and genuine profiles on places like social media platforms. As a result, SMBs are losing an average of £93,000 a year due to poor decisions driven by unreliable information, false profiles, and misleading claims.
Compounding the financial pressures that many small companies already face, it’s said this lack of trust online leads to inefficiencies and ineffectiveness in finding the right companies to partner with. The ultimate long-term consequence is a reduced competitiveness and growth of the UK’s SMB sector.
Raffaele Apostoliti, CEO of B2B Stars, Said: “The digital landscape has created fantastic opportunities for businesses to connect, but without trust, these connections can become liabilities. Small businesses are particularly vulnerable because they don’t always have the tools to verify whether the companies they’re dealing with are real and which of the companies are the right ones to partner with. And when things go wrong, it’s not just a missed opportunity – it’s a significant financial hit.
“The antidote to this ‘trust deficit’ is community. By fostering online spaces where businesses can connect with transparency and confidence, we can rebuild the trust that’s been lost.”
With nearly a third of SMEs fearing they may be forced to close by the end of the year due to mounting financial pressures according to government data, the lack of reliable insights is compounding existing challenges like rising costs and shrinking demand.
“Small businesses are the backbone of our economy, and they rely on trusted connections to survive and grow,” Apostoliti adds. “But when you can’t tell who to trust, it slows everything down – businesses become isolated, hesitant to take risks, and they miss out on opportunities. We need to create stronger insights online, which can boost trust across businesses.”
Strong levels of M&A activity expected in UK manufacturing
Strong levels of M&A activity are expected across UK manufacturing for the remainder of 2024, as dealmakers see a rise in business confidence.
According to accountancy and business advisory firm BDO LLP, M&A activity looks set to gain momentum in the final quarter of the year, as long as the political and tax backdrop remains conducive to dealmaking. However, reports of a potential rise in capital gains tax in next month’s Autumn Budget could impact sentiment towards M&A transactions.
BDO’s latest Manufacturing Deals Review shows that in the first half of 2024, 307 deals were completed in the sector, across the likes of engineering services, food & drink, building products and packaging and materials. Of these, 18% were buy-outs, with cross-border deals representing a third of transactions (34%).
Roger Buckley, Deal Advisory partner, Industrials and Manufacturing, at BDO, said: “While overall deal volumes remained relatively steady compared to 2023 figures, we expect to see strong levels of M&A activity over the coming months, with the market keeping a watchful eye on the Chancellor’s first Budget announcement at the end of October.
“Manufacturing remains one of the most resilient sectors, with a wide range of market drivers motivating M&A activity. This includes ESG, with the circular economy becoming a growing feature in manufacturing deals, reaching across all sub-sectors. Unsurprisingly, for the third year in a row, the sector has attracted the most circular economy-related investment, accounting for over a third of total deals by volume.”
In 2023, manufacturing saw a 25% increase in circular economy deal volumes, combined with the total deal value soaring to over £400 million of invested capital. The average disclosed deal size increased from £6.7 million to £12.2 million.
Buckley said: “The correlation between manufacturers making their businesses more sustainable and higher circular economy deal volumes is clear to see. More and more UK manufacturers are embracing circularity – a trend that is accelerating due to strong consumer attitudes towards sustainability and investors showing a significant interest in businesses addressing this issue.”
According to a BDO/Make UK survey of more than 200 SMEs in the sector, 40% of respondents believe that operating a circular business model will be more profitable than a linear model, suggesting an increase in manufacturers’ understanding of the economic benefits of circularity. The survey also showed that more than half of businesses (56%) plan to make circular changes in the next three years, with nearly a third (32%) stating that circular or sustainability credentials differentiate them from their competitors.
Rory McPherson, Deal Advisory partner at BDO, added: “Given the pace at which society’s attitude towards sustainability continues to change, it won’t be long before positive environmental credentials are seen as a minimum standard as opposed to a cherry on the top.
“For those who resist change without good reason, the lack of circular and sustainable practices will inevitably become a negative differentiator and dissuade customers from engaging. At the point the customer stops buying, it might be too late.”
Keepmoat signs lease on Alexandra Dock site in Grimsby
A lease that will result in new housing in the Alexandra Dock area of Grimsby has been signed with Doncaster-based homebuilder Keepmoat.
The 6.25-acre town centre site bordered by Fisherman’s Wharf and the River Freshney will eventually see a community of around 130 homes with supporting commercial accommodation.
The brownfield site has been the subject of consultation with developers in the housing market since November last year. This is a process where developers register an interest in the site, and then, through rounds of discussions, submit a final bid to take over the build lease of the site which then allows them to put in a planning application for their proposals.
Investment worth about £7.8m to support the development at this site has already been secured through the Government’s Towns Fund, and the build will be supported by brownfield funding secured as part of the Greater Lincolnshire devolution deal.
Cllr Philip Jackson, Leader of the council, said: “We want to create a place that connects the town and its community with its waterside, creating a fantastic urban living environment.
“North East Lincolnshire must develop as a place where people want to live and work. If that does not happen, we risk stagnating as a borough. We’re committed to making sure that does not happen.”
“There’s a long way to go yet, and developments of this scale don’t happen overnight. But we are working to improve the town centre as a whole and this is part of that vision.
“We want people who work in our borough to also live here as this will maximise the economic benefits to the area.
“Step-by-step, along with other initiatives in the town centre, we’re changing how our town centre can be used safely, and enjoyed by everyone.”
Ben Hindley, Regional Land and Partnership Director at Keepmoat, Yorkshire East, added: “We’re excited to be working in partnership with the Council to regenerate a large parcel of brownfield land and deliver new homes in Grimsby.
“At Keepmoat we pride ourselves on supporting local authorities to achieve their housing targets and we are honoured to be the housebuilder of choice for this project, selected to create much needed quality housing stock for generations to come.
“We are approaching the project in the Alexandra Dock area of Grimsby with healthy life principles in mind, to ensure the scheme is not only visually appealing, but has plenty of available green spaces for walking, cycling and spending time outside.”
Interest rates held at 5%
The Bank of England has held interest rates at 5%, in line with expectations.
The Monetary Policy Committee (MPC), which sets monetary policy to meet the 2% inflation target, voted by a majority of 8–1 to maintain Bank Rate at 5%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 4.75%.
The news follows last month’s reduction in interest rates, which marked the first decrease in four years.
Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “The Monetary Policy Committee was widely expected to hold fire this month, after the first rate cut in four years in August. There remain very varied views among the MPC around the degree of inflation persistence, and over what horizon this will dissipate.
“Monetary policy will be walking a fine line for a little while yet: between balancing upside risks to inflation, but not being too tight, so as to choke off activity. Developments in fiscal policy in October’s Budget will also be a key consideration for growth prospects.
“We still anticipate another rate cut in November, and a few more next year, in line with the MPC moving at a slow but steady pace. On their own, lower interest rates will be a welcome respite to households and businesses.”
Made Smarter calls for food and drink manufacturers to open up factories for National Manufacturing Day
Made Smarter is calling for food and drink manufacturers to open their factories to schools, colleges and the local community for National Manufacturing Day on September 26.
The government-funded, industry-backed programme, which helps manufacturers connect with technology and skills, is involved in events across the North West, North East, and Yorkshire and Humber.
Run by trade body Make UK, and now in its third year, National Manufacturing Day (NMD24) has become a national celebration of UK manufacturing and a chance to raise the sector’s profile.
Businesses are encouraged to sign up for a UK-wide ‘open house’, allowing members of the public to experience first-hand what manufacturers do, how they make some of our most loved household brands, and how they use the most cutting-edge technology.
With manufacturing vacancies high, the labour pool shrinking and makers needing help finding recruits with the right skills, NMD24 is a golden opportunity to demonstrate potential careers and jobs on offer, from engineering and robotics to data analysis and innovation.
Commenting on NMD24, Donna Edwards, director for Made Smarter North West, said: “I am delighted that Made Smarter and manufacturers involved in our adoption programme are demonstrating support for Make UK’s campaign.
“NMD24 aligns perfectly with the programme’s ambitions to help SME manufacturers achieve their digital transformation with a people-led approach and using technology as a tool.
“It is a fantastic opportunity to celebrate UK manufacturing and emphasise the role of Science, Technology, Engineering, and Mathematics (STEM) to encourage more students to pursue these subjects, something Made Smarter is passionate about.
“By opening their factories, which are normally closed to the public, it is the perfect opportunity for manufacturers to showcase the huge progress that has been made from the traditional oily rag image towards the smart modern factory. I would encourage more manufacturers to join the campaign.”
Elsewhere in the country, Made Smarter Yorkshire and Humber are hosting workshops demonstrating the benefits of better data capture and management, as well as how manufacturers can unlock innovation through new technology.
Made Smarter is also holding a special LinkedIn Live to celebrate the programme’s impact nationwide. The bite-sized broadcast will take place on Thursday, September 26 at 12pm.
From a national perspective, Brian Holliday, co-chair of the Made Smarter Commission, which leads the Adoption and Innovation programme, will share his insights for a special ITN programme to highlight the positive impact of the manufacturing industry. The show, ‘Manufacturing: Industry, Innovation and Impact’, will go out on NMD24 and will feature contributions from Made in Britain and The Manufacturing Technologies Association.
Stephen Phipson, CEO of Make UK, the manufacturers organisation, added: “National Manufacturing Day is a really exciting day where the whole manufacturing sector will come together to celebrate the amazing things that Britain designs and makes.
“Britain’s manufacturing companies are at the forefront of global renewable technology development and some of the most innovative engineering developments seen anywhere around the world.
“This is a sector with amazing opportunities and we hope this third National Manufacturing Day will give people who have never had the chance to see inside their local businesses just what is going on and the opportunities available to them.”
Saffery makes partner promotion
David Bussey has been promoted to partner at chartered accountants and business advisers Saffery. David works within Saffery’s land and rural property group in Yorkshire and has been with the firm 24 years.
With a wealth of experience in providing accounting and tax advisory services to landowners, families and owner managed businesses, in his new role David manages a team of over 20, overseeing clients based across Yorkshire and the North of England.
David said: “Starting out at Saffery as a trainee in 2000, has turned out to be one of the best decisions I ever made, though I didn’t know that at the time! It was a smaller firm in those days but with an excellent reputation and once qualified, I had a mixture of landed estates and trust clients, along with some family-owned businesses to look after.
“Since then, the firm has grown, but never lost sight of the importance of forging long-term relationships and always planning for the future. I still work with many clients from the early days, which is a testament to that.
“Much of my work now centres on advising rural landowners, helping clients navigate often challenging and complex situations and being a trusted advisor in what are increasingly uncertain times for the sector.
“Typically, there is a focus on succession planning, and ensuring that clients’ financial affairs are organised in a way that is both tax efficient and commercially appropriate, but always with the needs of the family and their long-term strategy in mind.
“Similar themes recur in my work with family-owned companies, albeit their businesses are often very different. Seeing clients succeed in achieving their objectives and protect their assets for future generations is what makes the job so rewarding.”
Fellow Saffery partner and head of the firm’s Yorkshire office, Jonathan Davis, said: “David plays a pivotal role in our land and rural property group and his promotion is a reflection of our commitment to offering a partner-led approach for each and every client.”
David is a Chartered Accountant and a member of the Society of Trust and Estates Practitioners (STEP). He sits on Saffery’s internal Estates Discussion Group and Agribusiness Group, as well as being a member of the firm’s Valuations Forum.
Large firms to be held to account over late payments
The government has unveiled new measures to eradicate late payments from large firms to small ones and the self-employed, which are estimated to cost small firms £22,000 a year on average and lead to 50,000 business closures each year.
All large businesses will be required to include payment reporting in their annual reports – putting the onus on them to provide clarity in their annual reports about how they treat small firms. This will mean company boards and international investors will be able to see how firms are operating.
Enforcement will also be stepped up on the existing late payment performance reporting regulations which require large companies to report their payment performance twice a year on GOV.UK.
Under current laws, responsible directors at non-compliant companies who don’t report their payment practices could face criminal prosecutions including potentially unlimited fines and criminal records.
The consultation which will be launched in the coming months, will also consider a range of further policy measures that could help address poor payment practices.
Every quarter, 52% of small firms in the UK suffer from late payments, meaning roughly 2.6 million small firms face this issue, with the Federation of Small Businesses describing it as one of the biggest problems facing SMEs.
Business Secretary Jonathan Reynolds said: “Late payments are simply unacceptable and this government is determined to level the playing field for small business. When the cashflow runs dry, small firms go under, which is why we need to hold larger business to account with their payment practices and foster an environment that supports growth and jobs.
“Slashing trade barriers, reforming business rates, getting more SMEs exporting – this government is committed to small firms. We know there’s a lot more to be done, but today we are calling time on late payers once and for all.”
Tina McKenzie, Policy Chair at the FSB, said: “This is what real change looks like. Listening to small firms and prioritising action to tear down each and every barrier to growth.
“The Business Secretary has clearly recognised the importance of eradicating bad payment culture, which so devastates the UK supplier base and holds back growth. This series of actions today – including the crucial steps being taken to deliver on Jonathan Reynolds’ commitment on audit committees – shows the Government is rightly focused on delivery and working in partnership with the business community.“There will be so many decisions the Government needs to get right, early – an actively pro-small business budget, a good industrial strategy and tackling late payment. Announcing this programme of work today is a huge confidence boost for the small business community and a clear signal the new Government intends to stand up for small firms.”
IT service provider names new Chief People Officer
Victoria Jackson has been named as Chief People Officer with IT managed service provider BCN, which employs about 400 at offices in Leeds, Manchester, Reading, and Belfast.
Victoria has been in the HR industry for 20 years and is a Chartered Fellow of the CIPD. With a background in a range of different industries, from boutique independents to FTSE100 businesses, as well as holding a trustee and board member role at the Octagon Theatre in Bolton.
She said: “I’m extremely excited to have been appointed as CPO at BCN. The business has built up a strong people-first ethos over the years, and I am looking forward to supporting this. Ensuring that both existing and new staff members feel supported at all times will help maintain the exceptional quality of work and technical expertise at BCN. I can’t wait to get settled in and nourish the company’s people culture and promote employee growth and success”.
Rob Davies, CEO of BCN added: “At BCN, we pride ourselves in creating a workplace where talented employers have room to grow and keep up with industry trends and changes. Therefore, we are delighted to welcome Victoria as our new CPO to oversee our HR and talent functions. By hiring and maintaining the best technical experts, through providing a culture, support and business goals which align with employees needs ensures that we are ahead of the curve of advancing technologies”.
Wind power specialist moves to new head office in Hessle
Wind power specialist Boston Energy has moved to a new head office as the company sets its sights on accelerated growth.
Boston Energy’s new home, located at Hesslewood Office Park in Hessle, East Yorkshire, is a modern 3,300 sq ft open plan office, complete with an atrium, breakout spaces and wellbeing room.
The office, and spaces inside, will accommodate the company’s growing team and business operations, as Boston Energy works as a partner to the world’s leading wind energy OEMs (Original Equipment Manufacturers) and developers.
The move signals the start of a new chapter for Boston Energy, having split off from parent company Bostonair Group following significant investment from private equity firm LDC last year.
Boston Energy CEO Julian Cattermole said: “Our office move coincides with a period of significant growth. It provides us with much-needed space for both our current team and also to accommodate continued expansion, as we position ourselves as a partner of choice.
“Boston Energy has evolved and expanded significantly throughout its 12-year history. As the wind industry continues to move at pace to meet the UK’s ambitious net zero targets, we remain a key player at the heart of it.
“We’ve supported some of the world’s largest wind farm projects, including Dogger Bank off the North East coast, and are trusted partners of leading organisations including Vestas, GE and Siemens Gamesa.
“Our new office is a symbol of that success and the progress we’ve made so far and sets us up perfectly for the future.”
Plans submitted for next phase of Our Cultural Heart in Huddersfield
Kirklees Council has submitted updated plans for the second phase of its Our Cultural Heart development in Huddersfield town centre, concentrating on a flagship new museum and art gallery in the former library building on Princess Alexandra Walk.
Construction on Phase One of Our Cultural Heart is underway, with the former Queensgate Market building being transformed into a food hall and adjoining new community library.
Lead construction contractor BAM has already completed significant site preparation, with work including the ‘soft stripping’ of all non-structural and internal fixtures and fittings, as well as the removal of the former market stalls and asbestos.
This ‘Section 73’ planning application and Listed Building Consent for Phase Two of the masterplan includes the major refurbishment of the Grade II Listed building that, until recently, housed the town’s library.
The designs by architect FCBStudios will see the historic four-storey building become a flagship museum and art gallery, helping to attract more visitors to the town and creating exciting opportunities for local businesses and the region’s culture sector.
A sympathetically designed extension to the north will enhance accessibility and create uninterrupted connections to the surrounding spaces. Public access will be via a new ramp unlocking universal access to the historic entrance to the south and level access to the new extension.
The ground floor will house the reception, museum and gallery shop, and a 50-seat café with outdoor terrace, while the lower floor will provide storage, building facilities, event and education spaces.
The museum’s exhibitions will be housed across two floors, with the top floor reborn as the art gallery. Many of the flexible spaces within the museum and art gallery will be available for hire, allowing for opportunities to showcase a huge mix of talent from across the region.
Councillor Graham Turner, Cabinet Member for Finance and Regeneration, said: “This is an exciting moment for the Our Cultural Heart programme, as construction begins on the new food hall and library this month, and plans are now in place for the second phase of the development.
“Our decision to phase the programme was always about ensuring its successful delivery, not reducing our overall ambition. We believe the new museum and art gallery has the potential to become one of the leading cultural destinations in Yorkshire, showcasing the rich stories and talent of Huddersfield and the wider Kirklees borough.
“Not only will it help bring more visitors to our town centre, but it also ensures the long-term viability of one of our most treasured heritage buildings.”
