Bank of England holds interest rates at 5.25%
The Bank of England has held interest rates at 5.25%.
The Bank of England’s Monetary Policy Committee (MPC), which sets monetary policy to meet the 2% inflation target, voted by a majority of 6–3 to maintain Bank Rate at 5.25%.
Three members preferred to increase Bank Rate by 0.25 percentage points, to 5.5%.
It marks the third interest rates pause following a run of 14 increases as the Bank tries to get inflation under control. Looking ahead, the MPC noted in a statement that “monetary policy is likely to need to be restrictive for an extended period of time.”
David Bharier, Head of Research at the British Chambers of Commerce, said: “While a cut in the interest rate could have provided some relief for firms ahead of Christmas, today’s decision to hold at 5.25% was expected and allays fears of further rises.
“UK businesses have been faced with the twin shock of an inflation crisis and increased borrowing costs. Around half of the businesses we survey report a direct negative impact from the current interest rate, while only around one in ten see a benefit.
“The BCC’s latest Economic Forecast expects only a 0.25% point cut in the interest rate for the whole of 2024, although businesses need to be prepared for any unexpected changes given the uncertain policy landscape.
“SMEs have been operating in an uncertain climate for too long, with policies constantly chopping and changing over the past few years. They need to see clear direction from decision makers, creating a roadmap for business that boosts confidence and investment.”
Sensing solutions company to create 25 jobs following £1.5m funding round
A Sheffield company whose smart sensing solutions help industry to improve performance has raised a further £1.5m from NPIF – Mercia Equity Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund, and Mercia’s EIS funds.
Tribosonics’ solutions are used to monitor industrial machinery and components and manage process efficiency and product quality. Its integrated systems – which incorporate hardware, software and advanced ‘edge’ analytics – provide data and insights to help companies improve performance, extend plant life, reduce maintenance and energy use and meet sustainability goals.
The investment will support Tribosonics’ ongoing product development and bring its solutions to a wider audience. The company also plans to expand its 42-strong team with the creation of around 25 new jobs in the next 18 months across its technical teams. It will also continue to invest in its apprenticeship scheme, Tribosonics Future Leaders Programme.Tribosonics’ solutions are used in industries such as industrial energy, composites, polymers and battery manufacturing. The company has attracted high-profile customers, in the UK and globally.
Tribosonics has tripled its revenue in the past two years and is on course to double it again in the current financial year. The company, which received previous investment rounds from Mercia and NPIF, has raised over £4m to date.
Glenn Fletcher, Tribosonics CEO, said: “Industry is facing a host of challenges such as the need to be energy efficient, sustainable and ESG compliant, reduce costs and enhance quality.
“Our integrated sensing solutions provide the data required to help companies to meet these challenges and achieve digital transformation. The funding will help us to drive further growth and bring our solutions to a wider global audience.”
Will Schaffer, Investment Director at Mercia, added: “Industry is waking up to the potential of data to improve efficiency. Process mining – the use of data to understand performance and improve processes – has become one of the fastest-growing areas in IT.
“Tribosonics’ technology is one of the most advanced of its type and the company has a strong management team to drive it forward. This latest investment will help it take advantage of this new and growing market.”
Yorkshire Housing secures £74m funding deal
Yorkshire Housing is set to build almost 400 new affordable homes thanks to a £74 million loan deal secured under the Affordable Homes Guarantee Scheme (AHGS).
The AHGS is a £3 billion government-backed lending scheme which aims to help registered housing providers build more affordable homes by providing longer-term, lower-cost, fixed rate loans.
Yorkshire Housing already has plans to deliver 8,000 new homes and this latest deal will enable it build around 380 homes.
ARA Venn, a leading investment manager, manages the AHGS on behalf of the government and was responsible for the deal.
Rob Parkes, director of finance at Yorkshire Housing, said: “With thousands of families on housing waiting lists and the cost-of-living still high, it’s more important than ever to provide affordable homes across Yorkshire.
“This new long-term funding will help us to build around 380 quality new homes, making it possible for more people to have a place they’re proud to call home.”
Work due to start to transform Halifax theatre
Work to transform the Victoria Theatre in Halifax is soon due to start. The work, which is funded by the UK Government’s Future High Streets Fund, is set to begin, with Calderdale Council appointing the construction company Morris and Spottiswood to carry out the improvements.
Plans include a new box office on Commercial Street with an amended layout to reflect current booking patterns. The current box office, along with part of the foyer area, will become a new café/bar which will provide new food and drink opportunities and could hold small performances, events and meetings.
Access improvements are also included in the plans, with a new lift taking visitors to the theatre’s bars on the circle level for the first time in the venue’s history, a platform lift for access from the theatre foyer to the auditorium, and two new accessible toilets being installed. These changes will vastly improve the visitor experience for those with access requirements.
Initial works will be focused around the new box office, which will be in the former Ivor Burns shoe shop on Commercial Street and the former newsagents next to the theatre entrance, which will become part of the new café/bar.
Throughout the works, the theatre will be open as normal, with performances unaffected, though there will be protective hoardings and scaffolding in and around the building during the works.
Calderdale Council’s Cabinet Member for Towns, Tourism and Voluntary Sector, Cllr Sarah Courtney, said: “The Grade II listed Victoria Theatre is a landmark in Halifax and a key part of our visitor economy. We’re passionate about the future of the venue and we’re excited for improvement works to begin.
“This is part of an £11.7million package of Future High Streets funding being used to deliver ambitious regeneration work in Halifax town centre. Supporting thriving towns and places is a priority for the Council, and this work will boost economic growth whilst also protecting our distinctive heritage.”
Calderdale Council’s Cabinet Member for Public Services and Communities, Cllr Jenny Lynn, said: “As we head towards the Calderdale Year of Culture in 2024, it’s wonderful news that one of the region’s top cultural venues is being revitalised with new and upgraded facilities to support an improved visitor experience.
“The work will transform the box office and foyer area, increase the food and drink options and improve accessibility of the venue. This will encourage greater daytime use, opening the theatre to different customers who may not have visited before.
“Construction is being carried out around the packed programme of events at the theatre and will be complete in time for celebrations as part of the Year of Culture.”
Matthew Wall, Public Sector Director at Morris & Spottiswood, said: “We are delighted to be part of this transformative project, which will not only breathe new life into Commercial Street but also provide the Victoria Theatre, Halifax with some fantastic new spaces and improve accessibility.
“We are looking forward to working in collaboration with the Council to ensure this important cultural facility can continue to be enjoyed by local people and visitors for years to come.”
Logistics company MD scoops national industry award
Tony Prescott, MD of Hull-based GTS UK, has been named Logistics Leader of the Year at the 2023 Logistics UK Awards.
Tony, who launched the business in 2015, was awarded the prize for his work in founding the company, leading his team and developing client relationships.
Based in Springfield Way, Anlaby, but working across the globe, GTS UK employs 18 people who specialise in customs, intermodal, supply chain management, overseas and trucking.
He said: “I am so proud to have won this award which is recognised by peers in my industry. The win should also be viewed as recognition for my incredible team; they are a key part of my success and the continued growth of GTS UK.
“Winning this award is the cherry on the top of a really successful year, our best one yet, and I’m looking forward to further achievements in 2024!”
The Logistics UK Awards celebrate achievements in the road, rail, sea and air sectors as well as operators, manufacturers, logistics and support industries.
David Wells, chief executive of Logistics UK, said: “Our Logistics Awards showcase the skills, expertise and ‘can do’ spirit of our industry and this year’s entries really have gone above and beyond to achieve their objectives.
“All our winners can be justifiably satisfied that they are at the very top of their game – the crème de la crème if you will.”
2024 Business Predictions: Graham Self, principal enterprise architect at Axiologik
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Graham Self, principal enterprise architect at Axiologik.
As 2024 unfolds, consumers will intensify their demand for personalised financial support amidst rising interest rates and inflation. Banks, vying for market share, will heighten competition with greater incentivisation and rewards to break traditional loyalty patterns. The Bank-as-a-Service model will gain traction, integrating financial products seamlessly into diverse applications beyond traditional banking settings. Larger banks with a global presence will offer connected global propositions, facilitating cross-border banking experiences. Catering to customers’ evolving lifestyle needs, financial institutions will forge partnerships to provide ethical, affordable, and personalised finance solutions, extending their reach far beyond conventional boundaries.
In 2024, neobanks will extend their success by diversifying product portfolios, and integrating lending, wealth management, and trading services while maintaining a focus on self-service. The agility of neobanks will make wealth management and trading more accessible to a broader audience. Simultaneously, legacy banks will compete by hyper-personalising products and services through AI-driven insights. Positioning themselves as ‘trusted advisors’, legacy banks will rebrand branches as specialist hubs, offering value-added services. While both neobanks and legacy banks move towards self-service, legacy institutions will leverage their unique advantage in supporting customers through economic challenges, emphasising personalised care.
The rush towards adopting AI is understandable, but it seems that the spotlight has been solely on the technology itself, causing organisations to overlook the actual outcomes AI is designed to achieve — the very reasons we embrace and find excitement in it. Looking ahead to the coming year, beyond the initial AI hype, we anticipate a notable pivot towards experience-led strategies, positioning AI as a facilitator rather than the focal point. Instead of viewing AI in isolation, businesses will emphasise the seamless integration of AI into processes, optimising workflows, and boosting overall efficiency. This paradigm shift reflects a more comprehensive perspective, recognising that the genuine value of AI lies not in its novelty but in its capacity to streamline operations, empower employees, and ultimately deliver an unparalleled and more efficient customer service experience.
Freedom Festival has boosted Hull’s economy by £4m, says new report
Freedom Festival Arts Trust events have boosted Hull’s economy by £4m, according to a new report that’s calculated the visitor spend.
Created as part of the bicentennial commemorations of the first anti-slavery Act of Parliament of 1807, Freedom Festival Arts Trust continues to celebrate William Wilberforce and his work within the abolitionist movement.
The city’s cultural highlights of the year; The Awakening in March and Freedom Festival in September attracted more than 172,000 people into Hull city centre and Bridlington for a one-day touring event.
The report’s findings show 90% of attendees expressed a good or very good experience, and 84% specifically planned their trip to partake in the festivities. The economic impact is equally impressive, with an average spend of £32.16 per head.
Local engagement in a world-class artistic programme has been a cornerstone of Freedom Festival Arts Trust’s mission, with 483 participants involved in 4 programmes, contributing a staggering 3,200 hours of rehearsal and performance time. From this, 85% reported heightened confidence and increased likelihood of participating in future cultural projects.
Cllr Mike Ross, Leader of Hull City Council said: “The Freedom Festival has grown beyond all imagination from when we set it up over 15 years ago. The festival is now cherished by the people of Hull as the premier cultural event in the city. It provides the opportunity to entertain and inform. That it has done this at the same time as generating an estimated £4million for the city, this year, shows what a tremendous part of the fabric of Hull the festival has become. It has transcended its geographical confines, setting its sights on becoming one of the world’s foremost outdoor arts festivals.
“This year, the festivals were another triumph, drawing over 172,000 people into the heart of Hull, igniting ambitions to propel the Freedom Festival events to unprecedented heights, as a beacon of innovation and creative prowess.”
The commitment to accessibility shines through, with 99% of venue and performance spaces now wheelchair accessible. Furthermore, 14 performances are British Sign Language interpreted, and 12 have audio descriptions, making the festival an inclusive experience for all.
Siemens Mobility names Director of Asset Management
Siemens Mobility, which operates a plant in Goole, has appointed Syeda Ghufran as the new Director of Asset Management and Assurance for Customer Services.
Syeda brings a wealth of expertise to her new role along with her strong background in the rail industry and a track record of success. Prior to joining Siemens, Syeda was the Fleet Engineering Director at Hitachi Rail and became the youngest, and first female, Engineering Director at Scotrail in 2018.
She is highly skilled in maintenance optimisation and digitalisation. She will leverage her knowledge and experience to optimise maintenance processes and harness digital advancements to drive efficiency and effectiveness in asset management.
Sambit Banerjee, Joint CEO of Siemens Mobility and MD of Rolling Stock and Customer Services said:“We are honoured to have Syeda join our team, her experience and expertise will undoubtedly drive success and further strengthen the company’s commitment to customer satisfaction, safety, and innovation.
Syeda’s appointment reflects our unwavering commitment to service excellence and delivering the highest standard of customer service. We achieve this through the talent and expertise of our people.”
Syeda said: “I’m excited to join Siemens Mobility at a time when the company has ambitious plans to transform rail travel and transport in the UK through strong investment, new product offerings in rolling stock, infrastructure and digital.
“I am looking forward to working on our fleet reliability improvement plans, digital asset management and the development of new traction products such as our Verve platform which will help deliver de-carbonisation plans for our customers.”
Siemens Mobility trains make up almost a quarter of UK passenger trains and e320 Velaro Eurostar trains.
Plans confirmed for Dewsbury Arcade to become first community-run shopping centre in UK
Last month, the Arcade Group – a community business formed specifically to lease and manage the Dewsbury Arcade, once it is reopened in 2025 – undertook fundraising to make the arcade the UK’s first community-run shopping centre.
Thanks to backing from local people and businesses, their ambitions will be realised.
The Dewsbury Arcade is a Grade II Listed building, which has been a focal feature in Dewsbury town centre since the Victorian era but has stood empty for more than seven years. The arcade is a key focus of the Dewsbury Blueprint, which lays out Kirklees Council’s ambitious plans for the future of the town.
For the Arcade Group’s plans to be financially viable, they needed to singlehandedly raise upwards of £75,000 in investment to fund initial start-up costs.
They achieved their goal, through a combination of more than £50,000 investment from local residents and organisations, and match funding from Co-operative UK’s Booster Fund. Based on this success, Kirklees Council also awarded a further one-off investment of £25,000 (previously agreed by Cabinet in January 2022).
Thanks to the Arcade Group’s fundraising success, Kirklees Council have confirmed they will be taking on the lease and management of the arcade once it reopens.
Any member of the public or local business who invests in the arcade receives shares in the business side of the arcade. Through this community share group, local people will then be able to elect board members and have part ownership in the business. This means that, once work is complete and the arcade has reopened, anyone who’s invested will be able to have a say in how it’s run.
The aim is for the arcade to be returned to its former glory, attracting more footfall in the town centre and supporting the local economy. Kirklees Council’s ambition, together with the Arcade Group, is to fill the reopened building with a range of independent local traders, along with a great food and drink offering.
Once restored, the arcade will have 16 small shop units, four larger spaces, and six upstairs studios suitable for artists, offices or event spaces.
Work to restore and refurbish the arcade has already been fully funded.
The aimed reopening for the building is 2025.
Government launches grant scheme to support UK’s smaller abattoirs
The government has launched a £4 million Smaller Abattoir Fund to boost the sustainability and efficiency of red meat and poultry smaller abattoirs across England.
The Smaller Abattoir Fund will award capital grants from £2,000 up to a maximum of £60,000 to help support smaller abattoirs across England improve productivity, enhance animal health and welfare, add value to primary products, and encourage innovation and investment in new technologies.
It will support the purchase of a diverse range of capital investments, including items such as cold storage units which can expand refrigeration capacity for processing, allowing abattoirs to increase production rates and help remove the waiting times experienced by many farmers for getting stock processed.
The Fund also drives forward the government’s commitment to advancing animal health and welfare standards, including funding to improve facilities for stressed or fatigued animals to recover from loading and transport operations.
The Rural Payments Agency (RPA) will email all eligible smaller abattoirs directly within the coming days, outlining the application process.
The smaller abattoir sector has an important role in maintaining British food security and ensures a competitive route to market is available to farmers, especially those who supply local butchers and farm shops, for a wide range of meat products. They make it easier for farmers to get their products to market, protect animal welfare by maintaining reduced journey times to slaughter, provide a route to market for farmers who rear rare and native breeds, and offer wider social and economic benefits to rural communities.
Farming Minister Mark Spencer said: “England’s abattoirs are critical to livestock farmers who provide their high-quality products to local butchers and farm shops up and down the country.
“This £4 million fund will not only help smaller abattoir and mobile business owners to innovate, invest and improve standards, but it will give farmers, particularly those who produce native and rare breeds, more stability in getting their products to market.”
