Burberry to cut 1,700 jobs as part of £100m cost-saving plan

Burberry has announced plans to cut around 1,700 jobs globally, approximately 20% of its workforce, as part of a broader strategy to reduce costs and reposition the brand for long-term growth.

The job cuts are expected to be concentrated in office-based roles and include closing a night shift at the company’s trench coat factory in Castleford, West Yorkshire. The reduction will occur over the next two years and contribute significantly to an increased annual savings target of £100 million by FY27, up from a previous target of £40 million.

The restructuring comes as CEO Joshua Schulman, who joined the company in 2023, continues efforts to reverse Burberry’s underperformance in the global luxury market. His turnaround strategy is focused on reinforcing the brand’s British heritage and prioritising core products like trench coats and scarves. These changes follow previous missteps, including overpricing and inconsistent product lines, compounded by broader market weakness.

Burberry reported a stronger-than-expected recent performance, citing increased wholesale orders following its February fashion show. The positive momentum in sales and the cost-cutting announcement triggered an 18% rise in the company’s share price.

This is the company’s fourth leadership change in a decade. Past strategies under different CEOs attempted to elevate Burberry into the top tier of luxury fashion but delivered limited financial results. The current approach aims to stabilise operations, cut excess, and refocus on profitability.

Government to relocate 12,000 civil service jobs out of London by 2032

The UK government plans to reduce its London civil service workforce by 12,000 jobs and close 11 central London offices as part of a strategy to cut costs and decentralise operations. The move aims to save approximately £94 million annually by 2032.

New government campuses will open in Manchester and Aberdeen, with additional roles created in cities including Birmingham, Leeds, Cardiff, Glasgow, Newcastle, Sheffield, Bristol, Edinburgh, Belfast, York, Darlington, and Tyneside. The Manchester campus will focus on digital innovation and AI, while the Aberdeen site will specialise in energy. A third regional campus location is yet to be confirmed.

This initiative is part of a broader government effort to shrink the civil service, which has grown to over 514,000 staff since 2016. The Cabinet Office plans to cut 2,100 jobs within its department over the next two years, contributing to a 15% reduction in overall government running costs by 2030.

The government has requested departments to submit detailed relocation plans for staff, including senior civil servants, in preparation for an upcoming spending review due in June. Half of the UK-based senior civil servants are expected to be outside London by 2030.

102 Petty France, a major Ministry of Justice hub, and 39 Victoria Street, home to the Department of Health and Social Care, are among the London offices set for closure.

Industry unions have cautiously welcomed the decentralisation plans but emphasise the need for clear communication regarding employee impact and career development opportunities outside London.

Economic projections estimate that relocating and expanding government roles outside London could generate £729 million for local economies by 2030.

Medequip expands into East Yorkshire with new depot at £10m Melton West site

Healthcare logistics provider Medequip has secured a new facility in East Yorkshire as part of its national expansion, becoming the first tenant at the £10 million Evolve development in the Melton West business park.

The site was designed to address a regional shortage of modern industrial space and supports Medequip’s entry into the East Riding of Yorkshire and Hull markets. The company was recently awarded a contract to deliver the Community Equipment Loan Service across the area, supporting local authority social care and NHS services.

Medequip operates 27 depots nationwide and supplies mobility and independent-living equipment to 48 local authority areas. The new East Yorkshire depot will enhance its logistical coverage and improve service efficiency in the region.

The Evolve development offers high-specification units focused on sustainability and strong transport connectivity. With Medequip operational, the remaining units at the site are nearing completion and will soon be available.

This move follows Medequip’s recent partnership with Vanaways to streamline fleet procurement and support its growing national footprint.

North Yorkshire targets enterprise growth with new regional business week

North Yorkshire Council will run its first Business Week from 16 to 20 June. The week aims to help local enterprises build capability in innovation, finance, and growth strategy.

The council has confirmed a programme of both in-person and online events designed for SMEs, startups, and established firms across the region. Sessions will include sector-specific panels, skill-building workshops, and advisory clinics delivered in partnership with regional support organisations.

The opening event, which will take place at Harrogate Convention Centre on 16 June, will feature networking sessions, a business support expo, and panels focused on driving innovation across industries.

A separate event on 19 June in Scarborough will address commercial opportunities in maritime and renewable energy. Discussions will cover skills, supply chain development, and crossover with tourism.

Workshops throughout the week will offer practical marketing, finance, and growth planning content. The council’s Business North Yorkshire advisors and other regional business specialists will also host drop-in sessions for tailored guidance.

The initiative is part of the council’s broader effort to support economic development through cross-sector collaboration and access to regional resources.

Work starts on new Faculty of Health building at University of Sheffield

Contractor Clegg Construction has started work to deliver a new Faculty of Health building at the University of Sheffield. The facilities will be used to expand Sheffield Institute for Translational Neuroscience (SITraN) which supports pioneering research into neurodegenerative diseases like Motor Neurone Disease, Parkinson’s, dementia and Multiple Sclerosis. Clegg Construction was appointed on a £16m contract to deliver the Faculty of Health Phase 1 project on the Glossop Road/Clarkehouse Road site. It involves demolition of some existing buildings on the current site of Barber House Annex and Central Garages, and the construction of a new three-storey health facility with associated external work and landscaping. The new development will be connected to the SITraN building via a link corridor and will expand the existing SITraN laboratory space. Facilities will also include teaching and learning spaces, offices, and workspaces for visiting staff, students and researchers. A new – more visible – frontage will be presented on Glossop Road to ensure the building is more closely associated with the University Campus and the Royal Hallamshire Hospital. The building will have two storeys from the main road, and a third storey at the rear to allow for the slope of the site away from the road. Clegg Construction contracts manager Craig Gibbons said: “This is our fourth contract with the University of Sheffield and we are very pleased that work has now got under way on site. “SITraN is well known for supporting pioneering research into serious neurodegenerative conditions. This project will help to increase space for research and also improve collaboration between academics at the university and clinicians at the Royal Hallamshire Hospital. “We are proud to be involved in a project which has such potential for the improvement of patient treatment and care.” Other members of the construction team include architect Bond Bryan, providing architect and landscape services, and structural engineer Ridge. The project is expected to be handed over in September 2026.

LUR expands operations in response to rail sector demand

Lucchini Unipart Rail (LUR) is investing £6.5 million to expand its operational capacity across two key UK sites in response to increased demand from the rail sector.

The joint venture between Lucchini RS Group and Unipart will relocate its Doncaster bogie servicing operation to a new 102,000 sq ft facility in Warmsworth. This move will double the size of the current Hexthorpe Road site and boost output of overhauled and refurbished bogies for passenger, freight, locomotive, and light rail use.

In Manchester, LUR’s wheelset repair operations will shift from Chadderton to a 63,000 sq ft facility in Trafford Park, bringing it closer to its existing 118,000 sq ft head office and manufacturing plant. The gearbox servicing operation, also based in Trafford Park, will remain at its current 20,000 sq ft site.

The investment includes new machinery and technology to increase throughput to 800 wheelsets in Manchester and 80 bogies per month in Doncaster.

Both new sites are refurbishing and are expected to be fully operational by autumn 2025. The expansion aligns with LUR’s long-term strategy to enhance flexibility, improve operational efficiency, and better serve the evolving needs of the UK rail industry.

The business currently employs 380 staff across its Doncaster and Manchester locations, and this investment is set to strengthen its regional presence in South Yorkshire and the North West.

Green hydrogen power plant gets UK planning approval

SSE Thermal and Equinor have secured planning permission for their Aldbrough Hydrogen Pathfinder project in East Yorkshire. The site will become one of the UK’s first integrated green hydrogen-to-power facilities.

The project will install a 35MW electrolyser to produce hydrogen using renewable electricity. The hydrogen will be stored in a repurposed salt cavern at the existing Aldbrough Gas Storage site and used to generate electricity through a 100% hydrogen-fired open-cycle gas turbine. The facility will deliver flexible, zero-carbon power to the UK grid by 2029.

The project is under review in the UK government’s Hydrogen Allocation Round 2 (HAR2), competing for 15-year revenue support contracts under the Hydrogen Production Business Model. Final funding decisions are expected by Q3 2025.

The Aldbrough facility combines production, storage, and generation in a single location and is positioned as a potential model for future hydrogen infrastructure in the UK. It aligns with broader efforts to scale clean energy capacity and attract regional investment.

Biofuel station plans at Wakefield site withdrawn after local opposition

Plans for a 24-hour biomethane HGV fuelling station at a former abattoir in Wakefield have been withdrawn following significant community opposition.

CNG Fuels Ltd had proposed to develop the facility at Flanshaw Business Park, installing 14 pumps connected to the mains gas network. The site, intended to support logistics and distribution operations in the area, including operators such as Amazon, would have operated around the clock without on-site staff, using key-fob access for permitted vehicles.

The station aimed to serve HGVs with biomethane, a compressed natural gas derived from organic waste. It was part of the company’s broader expansion to support decarbonisation in freight transport. CNG Fuels currently operates 13 UK stations, including one near Castleford.

Despite the proposal aligning with government goals to lower emissions in the transport sector, the plan attracted 539 formal objections. Concerns raised included potential night-time noise, traffic volume increases, and environmental impact due to the site’s proximity to residential housing. No letters of support were filed.

According to Wakefield Council’s planning portal, the application was formally withdrawn on 12 May.

Pension funds commit billions to private UK assets in industry-backed push

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Seventeen major UK pension schemes and providers have pledged to allocate at least 10% of their defined contribution (DC) default funds to private markets by 2030, half of which will be earmarked for investments in UK-based assets. This initiative, the Mansion House Accord, is a collaboration between the Pensions and Lifetime Savings Association (PLSA), the Association of British Insurers (ABI), and the City of London Corporation.

The move is expected to mobilise over £50 billion in capital across the next five years, with £25 billion directly targeted at UK investments. This represents a significant potential capital boost for British businesses, particularly those seeking venture capital or growth equity.

The agreement follows an earlier 2024 pledge, the Mansion House Compact, which revealed UK pension funds held just £800 million in unlisted equity, equating to around 0.36% of their total DC default fund holdings. The new targets aim to substantially improve that figure and bring the UK more in line with international peers regarding private market exposure.

The British Private Equity and Venture Capital Association (BVCA) is using this momentum to lobby for greater inclusion of venture capital in pension fund portfolios, positioning the asset class as capable of delivering strong long-term returns. The group emphasises that much of the benefit from UK innovation is currently being captured by overseas investors and calls for domestic funds to take a more active role in supporting UK growth sectors, including life sciences, AI, and net-zero technologies.

The government has also signalled continued support for reforming pension regulations to help unlock greater capital flows into British scale-ups.

National Grid expands Lincolnshire transmission plans to boost energy capacity

National Grid has outlined new proposals to upgrade electricity transmission infrastructure in Lincolnshire and neighbouring regions. The aim is to support growing energy demands and facilitate the transition to renewable power sources.

The latest proposal involves a 37-mile overhead power line connecting a planned substation at Weston Marsh near Spalding to a grid connection point in eastern Leicestershire. The project is in early development, and some routes would use existing transmission corridors.

This follows an earlier controversial proposal for a separate 87-mile pylon route between Grimsby and Walpole, which has met resistance from local authorities, including Lincolnshire County Council.

In parallel, National Grid is advancing its Eastern Greenlink project series (EGL3, EGL4, and EGL5), designed to bring offshore wind-generated electricity from Scotland to England. These primarily undersea cables would land at Anderby Creek near Skegness, with underground connections extending inland.

EGL5 is planned to terminate at a new converter station near Alford, with two potential sites under consideration: Bilsby or Huttoft. Previous plans for converter and switching stations in Bilsby and a separate underground line have been scrapped.

Each Greenlink cable is expected to transmit enough power to supply approximately two million homes, reflecting a strategic shift from imported fossil fuels to domestic renewable energy.

Public consultations for EGL3–5 are underway, with meetings scheduled this month, and separate consultations for the Weston Marsh pylon line set for June.