Yorkshire manufacturers saw highest increase in output of any English region in last decade
Manufacturers in Yorkshire & the Humber have seen the highest increase in output of any English region or devolved nation in the last decade, as well as the best recovery in output since the pandemic, according to a new report out today.
The Make UK/BDO Annual Regional Manufacturing Outlook report shows that since 2013 output in the region has increased by 40%, while output in 2023 was 17% above the pre-pandemic levels recorded in 2019, also the best in the UK.
The importance of the manufacturing sector to the region’s economy overall is highlighted by the fact it accounts for almost 15% of the region’s total output, well above the national average. It also accounts for 287,000 highly skilled jobs, 10% of the region’s employment overall.
Three major sectors account for just under half of Yorkshire & Humber’s manufacturing production with the largest being the Chemicals sector with almost a fifth (17.5%) of industrial output. This is closely followed by the Food and Drink sector (17.4%) and then Metal Products (essentially steel) at 14.1%.
In 2023 Yorkshire & The Humber accounted for 5% of the UK’s total goods exports with the EU being the dominant destination (56%) making it one of the most dependent of any English region or devolved nation. This is followed by the United States (16%) and Asia & Oceania (12%).
Commenting, Dawn Huntrod, Region Director for Make UK in the North said: “Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK. The new Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level.
“It should now back this with a radical, cross government, long-term industrial strategy which has the need to tackle the UK’s skills crisis at its heart. This should be allied with the local growth strategies and priorities of each region, including infrastructure and innovation, together with other measures to ensure the UK is now fully open for business.”
Steve Talbot, Head of Manufacturing at BDO in Yorkshire, added: “Over the last decade the manufacturing sector has become vital to Yorkshire & the Humber and the health of the regional economy. Over the last few years, manufacturers across the region have faced multiple external shocks and changing policy priorities.
“They have shown great resilience in overcoming these challenges. There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy. This could unlock vital investment needed across the region to continue to bolster manufacturing output and skilled employment opportunities crucial to the regional economy.”
Four Yorkshire enterprises in running for diversification award
Wold Top Brewery and its sister company Spirit of Yorkshire Distillery have reached the final of the Diversification of the Year award alongside Richard Nicholson from Cannon Hall Farm, South Yorkshire and Annabel Makin-Jones, Sturton Grange, West Yorkshire.
Brewery and distillery source their barley from the original family farm, Hunmanby Grange, which is also home to the brewery.
Co-founder of both Wold Top and Spirit of Yorkshire Distillery, Tom Mellor, said: “The Farmers Weekly awards is a prestigious awards programme in the agriculture industry, and we’re proud to have been judged finalists in the competitive Diversification sector on account of the partnership between the farm, the brewery and the distillery.
“It’s good to know that, irrespective of who wins, the trophy will be coming back to Yorkshire.”
Wold Top is run by Mellor’s daughter Kate and husband Alex Balchin, and his other daughter, Jenni Ashwood, is the marketing director at Spirit of Yorkshire Distillery.
The awards winners will be announced at a gala dinner in October at The Grosvenor House Hotel in London. The Mellor family faces competition from Richard Nicholson, Cannon Hall Farm, South Yorkshire and Annabel Makin-Jones, Sturton Grange, West Yorkshire.
The Farmers Weekly awards are organised by the eponymous publication, which is celebrating the 90th anniversary of its first issue.
Established in 2003, Wold Top brews cask, keg and bottled ales from home and Wolds grown malting barley, hops and pure, chalk-filtered Yorkshire Wolds water.
Home to Filey Bay single malt whisky, Spirit of Yorkshire is a field-to-bottle distillery that was launched in 2016. Its first single malt whisky was bottled in 2019. It is a collaboration between Tom Mellor and business partner David Thompson. It is one of only a handful of distilleries worldwide that uses 100% home-grown barley to produce its whisky.
FSB welcomes launch of Growth Guarantee Scheme
Said FSB National Chair Martin McTague: “The new scheme will help small firms get the funding they require to be able to achieve their dreams. The Growth Guarantee Scheme will run until March 2026, and aims to support 11,000 small businesses over that time period, with 41 lenders already signed up, and 20 already open for applications.
“Small firms’ borrowing environment remains held back by stubbornly high interest rates and some reluctance among lenders to extend finance to firms seen as riskier and less viable due to their size and the diversity of proposals compared to their standard/corporate counterparts.
“The over-application of personal guarantees has also dampened further small firms’ enthusiasm for borrowing to fund expansion which requires corrective action by the FCA under direction of the new Treasury, which the Chancellor said will be the most pro-growth Treasury the country has ever seen.
“We will be working closely with all parts of Government as they look to deliver on the Labour party’s manifesto promise to protect the flow of funding to small firms amid the threat posed by the potential removal of the SME Supporting Factor, which allows lenders to hold a lower level of capital to counterbalance loans to SMEs, in the implementation of the Basel 3.1 standards.
“The Growth Guarantee Scheme will be an important part of the funding landscape for small firms, whose growth will be an indispensable ingredient in overall economic recovery in the UK.”
Leeds firm reducing the world’s carbon footprint secures £500,000 funding deal to power growth
A business dedicated to locating subsurface energy and mineral resources to reduce the globe’s carbon footprint, is powering its strategic growth plans after securing a £500,000 funding deal.
AIM-listed Getech, based in Leeds, which specialises in data-mapping natural resources such as metals, minerals and geothermal energy, agreed the working capital facility with Reward Finance Group.
Getech was formed in 1986 and uses its geoscience data and unique geospatial software to accelerate energy transition away from fossil fuels by developing and leading geo-energy and natural hydrogen projects.
With low carbon technologies requiring significantly more metals than fossil fuels and metal production needing to increase four-fold in the next 20 years, Getech is at the forefront of meeting this global demand. It is partly utilising the funding from Reward to further invest in its data capabilities and adopting a radical new approach to locating metals in previously unexplored territories.
In recent years, Getech has provided its data and expertise to customers operating across an even wider range of energy sectors. With the ongoing global energy crisis, large corporates are needing to take control of their energy needs and are exploring ways to power their operations with geothermal, hydrogen, wind and solar energy sources in close proximity to their business location.
The company is directly enabling businesses globally to meet their Environmental, Social and Governance (ESG) targets, with the working capital from Reward helping it to continue its momentum and innovation programme.
Andrew Darbyshire, chief financial officer for Getech, said: “We’re at a pivotal stage of our business growth and needed an agile funding solution that ensures we don’t standstill. It’s critical that we continue to diversify, explore new market opportunities within green energy and remain focused on our core goals of finding the natural resources vital for the energy transition.
“The team at Reward have been hugely responsive, operating at speed and investing the time in really understanding our business to deliver a working capital solution that is bespoke to our short to medium term needs.”
Harriet Gibbs, business development director for Reward Finance Group in Yorkshire and the North East, said: “Helping provide working capital to such an innovative business that is working tirelessly to reduce the globe’s dependence on fossil fuels makes us immensely proud. The company had experienced a difficult process with the mainstream banks and needed to both turn to alternative finance and identify a lender with the right experience and expertise.
“We get to work across a diverse mix of SMEs to help fund business growth. However, this partnership stands out given how much Getech’s core business goals and objectives align with our own ESG principles and initiatives. We’re committed to being a responsible lender that cares greatly about the environment and are looking forward to seeing the ongoing progress Getech makes on the world stage.”
The deal between Getech and Reward Finance Group was brokered by Bob Maxwell of BTG Advisory part of Begbies Traynor plc.
Clean energy specialist signs four-year deal with industrial company
Sheffield-based clean energy company ITM as signed a 500MW capacity reservation with an undisclosed global industrial customer.
The firm says the reservation secures future production capacity for the manufacturing of its state-of-the-art electrolyser stacks to produce industrial-use hydrogen, and will last until the end of 2028 with call-offs against future projects in Europe and the US during that period.
The two companies have agreed not to disclose further contract details at this stage.
Dennis Schulz, CEO ITM, said: “Today’s announcement is a great example of how close collaboration will unlock competitive and successful green hydrogen projects. Following the already announced capacity reservation for 100MW from Shell, this agreement with yet another large-scale industrial customer is a validation of our technology and credibility to deliver.”
Focus on pro-growth policies for small firms, FSB urges new Government
“To achieve the Prime Minister’s ambition to drive wealth creation in every community, the new Government should look to quickly build on this result with further pro-growth policies targeted at small firms and self-employed people.
“The King’s Speech next week will provide an excellent opportunity for the new Labour Government to show it is truly committed to the success of the small business community.
“Shortly after the General Election was called, we pulled together over 150 growth-focused recommendations to form a manifesto for small businesses and the self-employed.
“In it, we highlighted issues such as the need for planning reform and a Small Housebuilders Strategy to ensure that smaller construction firms are at the heart of delivery plans for new homes and upgraded infrastructure, as well as drawing back foreign visitors who have been tempted elsewhere by reintroducing an expanded tax-free shopping scheme, which could add billions to the economy.
“In order to invest in growth, small businesses need access to affordable finance of various kinds, without lenders discouraging risk-taking by demanding personal guarantees as a blanket policy. We were pleased to secure the evolution of the Recovery Loan Scheme into the Growth Guarantee Scheme, which is now live and making more small business bank loans viable.
“As a recipe for the growth we all need, we hope the new Government makes sure every decision it takes considers the needs of small firms, as well as the indispensable contribution they make to the economy.”
HMRC launches online tool for firms to gauge what VAT registration would mean to them
HM Revenue and Customs has launched a digital tool to help businesses estimate what registering for VAT may mean for them.
The VAT Registration Estimator has been developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits.
A business must register for VAT if:
- its total VAT taxable turnover for the previous 12 months is more than £90,000 -known as the ‘VAT threshold’ – until 31 March 2024 this was £85,000.
- they expect their turnover to go over the £90,000 VAT threshold in the next 30 days.
- they are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT taxable turnover.
South Yorkshire businesses list town centre safety and cleanliness as priorities
Safety, cleanliness and the quality of retail have all been cited by South Yorkshire businesses as top priorities for their local urban cores. This is according to the recently-published findings of the Town and City Centre Survey.
The regional Chambers of Commerce covering Doncaster, Sheffield and Barnsley & Rotherham asked businesses to rate the various aspects of their urban core, to highlight its greatest strengths, and to conversely identify those areas where they think investment is needed most.
Results indicate that businesses are deeply invested in their respective civic centres and regard them as being critical to the economy. Yet there are also mixed feelings about what the future holds here.
Of those businesses polled, 73% say that they visit their nearest town or city centre on at least a monthly basis. Furthermore, the general consensus amongst respondents is that these urban cores are indeed beneficial to the wider region, playing a big role in: generating tourism; attracting investors; retaining young talent; and developing civic pride.
However, despite valuing town and city centres so highly, a third of firms expressed that they are not optimistic about where their nearest hub is heading over the next five years. Indeed, there is a real split in confidence over whether there will be any discernible improvements in that time span.
Carrie Sudbury, Chief Exec of Barnsley & Rotherham Chamber, said: “It is heartening to see that businesses do actually believe that their local civic centres are important and that many of them back up that sentiment by visiting frequently.
“We cannot ignore the fact that respondents also flagged a number of deep-seated issues too. Most notably, less than 15% of firms answered positively when asked to rate the cleanliness, retail offer and safety of their nearest civic centre and the vast majority of them told us that these areas must be prioritised going forward.
“Similarly, other characteristics — like the availability of business collaboration spaces and the quality of both our residential & leisure offers —rated quite low as well. Recognising that these challenges and concerns may not be unique to South Yorkshire, it is still clear that a lot of work remains to be done.”
Government gives development consent to Gate Burton Energy Park
Eighteen months after submission of plans for The Gate Burton Energy Park the scheme has been granted development consent by the Secretary of State for Energy Security and Net Zero.
Gate Burton Energy Park is to be built on land near Gate Burton in Lincolnshire. The electricity it generates will be exported via a connection into the existing national electricity transmission system at National Grid’s Cottam substation in Nottinghamshire.
The project is anticipated as having a generation capacity of around 500 megawatts (MW). This is equivalent to providing enough clean energy to power over 160,000 homes and avoid more than 100,000 tonnes of CO2 emissions every year.
The facility plans to build on about 684 hectares of agricultural land south of Gainsborough, near the communities of Gate Burton, Martin, Knaith Park and Willingham-by-Stow.
Spencer Group wins £23m contract for pioneering energy plant
Hull-based engineering specialist Spencer Group has won a £23m contract for a key role in the development of a pioneering new energy plant which aims to reshape the future of renewable energy.
The Group will design the site layout and deliver the enabling works and civils for a first-of-its-kind energy storage facility which is being developed at Trafford Energy Park in Carrington, Manchester.
The £300m development by Highview Power will store surplus electricity generated from wind and solar, and will be the first commercial-scale plant in the UK to deploy a pioneering new technology known as liquid air energy storage.
Developed by Highview Power in the UK over the past 17 years, the technology allows renewable energy to be stored for up to several weeks, longer than battery technologies.
The plant will be one of the world’s largest facilities of its kind and, once complete, will have storage capacity to provide enough clean and green energy to serve the needs of 480,000 homes.
Spencer Group Executive Chairman Charlie Spencer said: “Highview Power is a leading player in helping the UK achieve its net zero targets and is addressing the key issue of energy storage.
“We have a strong track record of delivering large-scale energy projects and we’re excited to expand our portfolio of works within this field with a project that will play a key role in the UK’s energy transition.”
John Goldie, Highview Power’s Programme Director, added: “We are looking forward to continuing to build and further our relationship with Spencer Group, which we have developed over the past 24 months during the pre-execute phase of the Carrington project.
“We selected Spencer Group based on their expertise and experience in delivering similar type projects and providing innovative and value-added solutions in engineering and construction.”
Spencer Group’s Civils Division will begin work on site in late 2024, with the plant expected to be operational in 2026.
