UK economy stood stagnant in June
The UK economy stood stagnant in June, following a return to growth in May, according to new figures from the Office for National Statistics (ONS).
In line with expectations, GDP (gross domestic product), a key measure of economy growth, showed no growth month-on-month in June, following 0.4% growth in May, with quarterly growth of 0.6%.
The monthly result reflects a fall in services output, offset by growth in both production and construction.
Ben Jones, CBI Lead Economist, said: “After a strong performance in May, a slowdown in GDP growth was always on the cards for June. But a second successive quarter of above-trend growth suggests the UK economy has finally shaken off its slumber of recent years.
“We think the quarterly data probably overstates the underlying momentum in the economy, with recent CBI surveys of activity remaining fairly subdued. But firms nonetheless appear confident that the recovery will continue.
“After a challenging, few years, and ahead of the Autumn budget, the focus is shifting to the steps needed to raise the UK’s growth rate over the long-term. This could include the reforms set out in our recent business tax roadmap, which can incentivise private investment and together with a Net Zero Investment plan boost green growth, one of the fastest growing sectors in the country.”
New Harrogate residential development gets the green light
Plans for a new residential development to the south west of Harrogate are set to move forward after they won the support of North Yorkshire Council’s strategic planning committee.
Developer Banks Property has been progressing plans for the new Castle Hill West housing scheme on a 12.7 hectare site on Whinney Lane in Pannal Ash, which would include 224 new homes as well as a new primary school.
The proposals for the site, which was allocated for residential development in the Harrogate Local Plan, were recommended for approval from North Yorkshire Council’s expert planning officers.
And now, the members of the Council’s strategic planning committee have been unanimously minded to follow that recommendation.
Castle Hill West will include a 40 per cent allocation of affordable housing and is located directly opposite the Castle Hill Farm residential development, for which Banks Property received planning permission in 2018 and which was subsequently built out by a regional housebuilder.
The development will also make substantial contributions to the expansion and improvement of local secondary education, healthcare and sports facilities, as well as transport infrastructure.
Gillian Reed, senior development manager at the Banks Group, says: “Having had a recommendation for approval from North Yorkshire Council’s expert planning officers for a site that is allocated for residential development in the Harrogate Local Plan, we are very pleased that the members of the Council’s strategic planning committee have unanimously supported that recommendation.
“We worked with local community groups for a number of years, we’ve listened and we have provided reassurance about how development will work.
“Castle Hill West offers a fantastic opportunity to deliver a wide range of new community facilities alongside 224 much needed new homes, 40 per cent of which will be affordable homes, as well as the supporting social, environmental and transport infrastructure that is an essential part of creating a thriving new community.
“Land and resources will be made available within the development for the construction of a new primary school on the site, while substantial contributions to the expansion and improvement of local secondary education, healthcare and sports facilities, as well as transport infrastructure, will also be included.
“The new government has stressed the importance of increasing the UK’s supply of high-quality homes, both to ensure people have the housing options they need in the places they want to live and to support the wider UK economy’s future growth, and the Castle Hill West site will now be part of meeting both these objectives.
“We’re very grateful to all those who have backed our plans and will now look to move them forward as quickly as we can.”
Professional services team appointed to support delivery of Community Diagnostic Centre in Hull
High-quality and easily accessible health facilities in Hull city centre have moved a step closer after a contractor was appointed to support the delivery of a Community Diagnostic Centre (CDC).
Ridge and Partners LLP has been awarded a Multi-Disciplinary Services Team (MDST) contract by Hull City Council to support the provision of the CDC on the corner of Albion Street and Bond Street.
The council is in a funding agreement with NHS England and Humber and North Yorkshire Integrated Care Board to build a £14m NHS CDC as part of the former Albion Square development.
The construction project will be delivered through the council’s contractual arrangements with VINCI Construction Ltd.
The CDC will welcome thousands of patients annually, relieving the strain on acute hospitals whilst also creating around 100 local jobs.
It will feature a range of services including MRI, X-ray, CT scanning and ultrasounds, whilst it is also expected to benefit the wider city centre economy due to increased footfall from patient numbers.
Cllr Linda Chambers, portfolio holder for public health at the council, said: “It is great news that the council has appointed a contractor to support the delivery of this project.
“The success of this scheme is important to the city and its residents and the specialised knowledge and expertise within the MDST will enhance our council team and transfer skills to help with future similar projects.
“The CDC will provide high-quality, easily accessible health facilities in the city centre and is a fantastic opportunity to improve the health of people in and around Hull.
“Early diagnosis is essential to early treatment and positive outcomes for patients and their families and the CDC will help to do that.”
Leeds Beckett to help Bradford freight firm boost international growth
International marketing experts at Leeds Beckett University have joined forces with Baildon-based Freight Agency Limited, to support the business’s ambitious plans for overseas market growth.
The project is a two-year Knowledge Transfer Partnership (KTP), part-funded by the Government through Innovate UK. A team of Leeds Business School academics will lead the project to boost Freight Agency’s strategic marketing and management capabilities. They will create a bespoke internationalisation strategy to drive growth in existing and new international markets.
Dr Catherine Ashworth, Senior Lecturer in Strategic Marketing Management at Leeds Business School, explained: “For more than 30 years, Freight Agency’s primary market has been West Africa. The business has already started to diversify the range of goods they ship and penetrate some new geographical markets. Our KTP will support their ambitious plans to grow their international market presence and diversify further.
“The Leeds Business School team will work with Freight Agency to embed innovative, strategic marketing and decision-making capabilities. We will underpin the growth strategy by embedding a new market-oriented culture and establishing fresh and streamlined processes throughout the business. As part of the cultural change agenda, we will also strengthen internal and external marketing communications capabilities and boost partnership management competencies.
“Key to success will be to boost coordination between the different functions within the business to support the international growth – and set up the necessary infrastructure and frameworks to support the development and changes across the target international freight network.”
Andrew Dickson, Commercial Manager at Freight Agency Limited, said: “We are excited to begin the collaboration with Leeds Beckett University, which will foster a more market-driven culture right across the business, enabling us to achieve our strategic growth ambitions and improve our service capabilities in our target international markets and sectors.
“The KTP will allow us to embed the skills and capabilities needed to develop, test, and transform our international market access and entry modes, and to improve our service level capabilities – which will be a new and innovative, intelligence-led approach for us.
“With a new, more agile and proactive business model, we will be able to respond to different, and evolving, market needs. As part of this more strategic approach to growth, we will also be able to increase our work with existing customers – and enter new markets and territories to sustain the business over the longer term.”
The project will be managed by a KTP Associate – a skilled graduate who will be recruited as a full-time member of Freight Agency, with the full support of the Leeds Beckett academic team. Alongside Dr Ashworth will be a team of experts including Stratis Koutsoukos, Course Director and Principal Lecturer at Leeds Business School.
Leeds Beckett students will have opportunities to benefit from the collaboration with Freight Agency through student projects, learning through teaching and real-life case studies.
Rotherham Markets project makes progress
Work is well underway on the redevelopment of Rotherham Markets as contractors begin fabrication works in the outdoor market and underground carpark.
Rotherham Council’s Cabinet Member for Jobs and the Local Economy, Cllr Robert Taylor, joined Henry Boot Construction’s Managing Director, Tony Shaw, and Head of Operations, Ian Gresser, on the site to have a look at how the Rotherham Council project is progressing.
Currently, the former outdoor market space flooring has been stripped while downstairs, works have begun to strengthen the foundations of the outdoor market space.
Preparation work for demolition has also begun on the former Drummond Street shops – also known as the Guardian Centre buildings. These are set to be demolished in autumn 2024 to make way for a brand-new library building.
Following the demolition of the Drummond Street shops, the outdoor market canopy will be removed in stages. Covering over 3,500sqm of the market, removing the structure will be a very complex operation. A crane will be moved on site during the removal.
The Indoor Market remains open throughout the redevelopment, with a range of stalls and products available from local traders. Outdoor markets, such as the Tuesday Market, have been relocated to Effingham Street while the project is under way.
Henry Boot Construction, the contractor for the Rotherham Market redevelopment, was onsite when ground was broken in October 2023. Since then, they have been working with teams at Rotherham Council to progress the project.
Henry Boot Construction’s Managing Director, Tony Shaw, said: “We are pleased to see the Rotherham Markets project progressing. We’re looking forward to continuing to work closely with the Council and breathing new life into this area of the town centre.
“Creating high-quality, vibrant urban spaces is part of our DNA. Having led on several of the region’s major regeneration over recent years, we have witnessed first-hand the transformative impact investments like this one can have – helping to boost community pride and identity, increase footfall and grow the local economy.
“We pride ourselves on leaving a positive legacy in the places where we work. To do this we have committed to deliver significant social value outputs by utilising a local supply chain wherever possible, local site-specific employment, and delivering multiple training and educational initiatives.”
Rotherham Council’s Cabinet Member for Jobs and Local Economy, Cllr Robert Taylor, said: “The Markets redevelopment is part of the Town Centre Masterplan, and to see people on site and spades in the ground shows that the plan is becoming a reality.
“The redevelopment of the markets is a complex project which will not only breathe new life into our community, but also provide economic opportunities for our local businesses. Working with Henry Boot, the markets redevelopment will provide an accessible, enjoyable space for all which celebrates our diverse community and heritage.
“Rotherham Market continues to remain open for the public with the fantastic range of outdoor markets now taking place in the town centre, so I encourage residents to continue to support our local traders until they are in their new facilities.”
Once works are complete, visitors will benefit from a refurbished indoor and outdoor covered market, extensive public realm, a new modern and accessible central library and improved links to the town centre and college.
Rotherham Council received funding from the government’s Future High Street Fund to pay for part of the improvements at the market with additional funding secured from the Council and the South Yorkshire Mayoral Combined Authority.
Inflation creeps up
Inflation has increased from the Bank of England’s 2% target, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), annualised inflation rose 2.2% in July, higher than the 2% reported in June, but lower than the 2.3% forecast.
The largest upward contribution to the monthly change came from housing and household services where prices of gas and electricity fell by less than they did last year; the largest downward contribution came from restaurants and hotels, where prices of hotels fell this year having risen last year.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, rose by 3.3% in the 12 months to July 2024, down from 3.5% in June, with inflation in the services sector falling from 5.7% to 5.2%.
Martin Sartorius, Principal Economist, CBI, said: “Inflation undershooting the Bank of England’s expectations will be seen a positive sign that price pressures are continuing to normalise for households and businesses.
“Today’s data will give the Bank’s Monetary Policy Committee some measure of confidence that domestic price pressures are less likely to derail a sustainable return to the 2% target. A second consecutive cut in interest rates next month is not a certainty, however. This is because the MPC will still be mindful of upside risks to the inflation outlook, especially as pay growth remains stubbornly high.”
Rail company encourages applications for charity grants of up to £10,000
Rail operator LNER is encouraging charities, organisations and communities across its 956-mile route to apply for the latest round of funding from the company’s Customer and Community Investment Fund.
The Fund aims to support charities and causes providing funding for small and medium sized projects that deliver a positive impact to issues for people, places, and the planet.
Applicants need to be within 15 miles of the LNER route and the maximum amount that can be applied for is £10,000.
Applications for the latest funding round can be submitted up until midnight on Monday 2 September 2024. We’d love to see as many applications as possible from right along the LNER route.
Further details about how to apply are on the company’s website. More than 130 projects have received funding from our CCIF over the past five years.
Hull City Council takes strong line on firms’ waste management
Hull City Council continues to urge businesses to act responsibly when managing the disposal of waste, to avoid being fined or prosecuted like Red Shop Mini Market on Inglemire Lane, was ordered to pay £1,200 for irresponsible waste management.
The business was convicted in its absence of an offence, contrary to section 47(6) Environmental Protection Act 1990.
Councillor Charles Quinn, portfolio holder for environment, said: “We have zero tolerance for unlawful waste management in Hull. There is no excuse for businesses not to have lawful arrangements in place, it is irresponsible and harmful to our environment.
“Everyone, including businesses, have a responsibility to look after our local environment. By taking such a tough stance on enforcement action, we can deter any potential offenders.”
Following this successful prosecution, the council is also urging residents to report businesses who have unlawful waste arrangements in place, to help keep Hull clean and tidy.
Cllr Quinn added: “Tackling unlawful waste management requires a collective effort. By working together, we can make a significant difference.
“I would like to thank local residents for their cooperation and commitment to keeping our city clean and tidy.”
Border delay over seed inspection causes worry for farmers and growers
The British Tomato Growers’ Association is calling for an assured, fast-track process for tomato seed after reporting that growers who propagate young tomato plants from seed are experiencing delays of up to six weeks at the border.
This is because of the need to re-test seeds on arrival in Britain. They are being held at Border Control Posts for up to 15 working days. Postal and other delays also add to this time.
The British Society of Plant Breeders has reported that consignments of future varieties of oilseed rape from the EU have been held and delayed at BCPs. It said the deadline for the seeds to be ready for use in trials was 10 August. “The trials are essential for growers to be able to access the latest and best varieties, because unless a new variety passes distinctness, uniformity and stability and value for cultivation use, it cannot be marketed,” the BSPB explained.
NFU Horticulture and Potatoes Board chair Martin Emmett said: “We have been warning of issues for grower businesses following changes to Border Control Posts for several years.
“The results of these concerns are now having real-life impacts on businesses’ ability to operate and plan ahead for next season. It is vital that the new government understands the extent of the issues and we work together towards achieving solutions as quickly as possible.
“This will ensure businesses can trade smoothly and continue producing fresh fruit, vegetables and plants for the nation.”
A Defra spokesperson said: “Our border posts have the sufficient capacity needed to efficiently handle the volume of checks required, while our inspectors have undertaken extensive training to ensure goods are treated safely and with care.
“We will continue to work with and support businesses throughout this process to maintain the smooth flow of imported goods.”
The seeds are being checked even though ‘seed of European origin’ is tested and certified as disease free before it is dispatched to Britain.
From 30 April, physical and identity checks began to apply to medium and high-risk animal products, plants and plant products entering the UK from the EU.
The new controls mark the second phase of the UK’s Border Target Operating Model which sets out a new risk-based approach to import checks on goods entering the UK from overseas.
The NFU has repeatedly warned of the potential for delays following the introduction of the checks. In particular, for horticulture businesses, the shift of of controls away from their businesses to border control points adds an additional risk to a highly bio-secure, ‘just-in-time’ supply chain and could result in long delays, meaning plants are damaged or destroyed.
Government backing means new factory and new jobs for Barnsley manufacturer
A small business from Barnsley which makes toy slime has secured government-backed financing for a new factory, new staff and new product lines. Specialist lender Newable Commerce issued the funding with the support of UK Export Finance, the government guarantor.
Slime Party UK supplies a mess-free variety of sensory putty to some of the largest toy retailers in the world.
Ruby Sheldon, founder of Slime Party UK, said: “I have seen huge growth in our business over the past year and sky-high demand for our slime from around the world. However, as a micro-enterprise, we don’t always find access to credit straightforward. This support from UKEF and Newable Commerce solves one of the biggest obstacles which we have faced as a growing business.
Manuel Fantin , UKEF Export Finance Manager for South Yorkshire, said: “Many exporters know from experience that it can be hard to find the right financing. The smaller the business, the bigger the challenge – and this is true even for businesses which have a great idea and make great contributions to their community. Slime Party’s success shows that UKEF is taking steps to unlock the right support for businesses at all stages of growth.”
Since securing the finance, the business has opened a new 15,000 square foot factory in Barnsley and is now looking to take on 50% more staff. The business will also use the financing to meet continued high demand from its export markets in Europe and the Middle East – notably Lebanon, Malta and Ireland.
New financing will also help Slime Party UK as it looks to widen its product range with new lines including a ‘sensory squish-ball’ and collectables.
In 2023, Slime Party UK struggled to grow its export business as a £150,000 turnover disqualified it from traditional trade finance packages. It approached UKEF, which introduced the business to Newable Commerce, a non-bank lender specialised in supporting SMEs. Backed by a guarantee from UKEF’s General Export Facility (GEF) financing scheme, Newable Commerce was then able to issue a £55,000 facility to Slime Party UK.
UKEF also referred the company to Dynamic Funding Limited, a broker which was able to help the business access additional private financing.
Thanks in part to this partnership between UKEF and specialist SME lender, Newable Commerce, Slime Party’s turnover has now grown significantly as the business eyes up new markets around the world and new job opportunities in South Yorkshire.
Under its new Business Plan for 2024-29, UKEF aims to support 1,000 SMEs a year by the end of the decade and help women-owned businesses access export financing more easily.
