Yorkshire business confidence dips
Business confidence in Yorkshire fell 17 points during December to 33%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in Yorkshire reported lower confidence in their own business prospects month-on-month, down 13 points at 36%. When taken alongside their optimism in the economy, down 22 points to 23%, this gives a headline confidence reading of 33%.
Yorkshire businesses identified their top target areas for growth in the next six months as evolving their offers (35%), hiring new employees, and investing in teams (31%) and diversifying into adjacent markets (29%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 34% of businesses in Yorkshire expect to increase staff levels over the next year, up 8 points on last month.
Overall UK business confidence fell two points in December to 35%, the first decrease since August, driven largely by firms’ outlook on the overall UK economy which dipped by eleven points from 38% to 27%. Businesses’ optimism in their own trading prospects also decreased, but less markedly so – by five points to 43%.
Companies’ hiring intentions also dropped slightly with 29% of firms intending to increase staff levels over the next 12 months, down six points month-on-month.
Firms in West and East Midlands were the only regions to report an increase in confidence, up one point to 33% and up five points to 34% respectively. The North East was most confident, remaining at 48% for the second consecutive month, followed by the East of England (45%), London (38%) and the South West (36%).
Firms in the services industry reported a significant decrease in confidence, down 16 points to 30%, due to moderation in both trading prospects and economic optimism. Manufacturing confidence also eased back (38%, down seven points). However, retail and construction both bucked the trend with rises to 44% (up two points) and 37% (up two points) respectively.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “Whilst slightly disappointing to see the fall in business confidence among Yorkshire businesses, it’s not entirely surprising that confidence levels have dipped within the last month.
“It’s been a challenging year for businesses in the region, but it’s positive to see that business confidence has gone up from a reading of 22% last year to 33% this year, demonstrating that confidence has been higher year-on-year.
“Despite the short term dip in confidence, businesses looking to expand into growing markets can hope to achieve their growth ambitions for the coming year through acquisitions and evolving offerings. We’ll be by the side of businesses who are targeting growth and expansion of their firms in 2024.”
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “This December data was collected following several key announcements, including energy prices rises and the UK economic outlook being revised down in the Autumn Statement. All of this will undoubtedly have had an impact on business confidence as we head into 2024.
“Businesses are also balancing cost pressures with a challenging labour market that will see increases to minimum wage in April 2024, as perhaps indicated in the wage growth figures, at a time when they are managing staff retention and recruitment decisions.
“However, over the course of the year confidence has steadily increased from an average confidence of 25% in the first three-months of 2023 and ending the year with a three month average of 39% – an indication of the positive trajectory business has seen this year. This provides a healthier position to begin 2024 with, compared to 2023.”
2024 Business Predictions: Jason Whitworth, M&A Partner at BDO LLP in Yorkshire
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 Jason Whitworth, M&A Partner at BDO LLP in Yorkshire.
The continued challenges in the economic environment have unsurprisingly translated into a quieter M&A market in 2023, with deal volume, both regionally and nationally, down – according to the latest BDO quarterly Private Company Price Index (PCPI) report.
Across the board, fewer M&A deals were done in Q3 than in the previous quarter. Overall, transaction levels were down from 673 to 567; trade deals fell from 559 to 476; while private equity deals saw a slightly steeper decline of 18%, with only 91 deals being done in the quarter.
The subdued nature of the market has resulted in deals being more difficult to deliver and taking longer to execute. Valuation in particular remains a pivotal concern in making deals happen. Uncertain, and potentially lower earnings, coupled with the higher cost of debt, means that there is more complexity in structuring deals that will meet both buyer and vendor expectations.
While the latest M&A statistics tell a certain story, there are still deals to be done with excellent and dynamic businesses in the region continuing to attract the attention of investors. The appetite to do deals remains, with strategic demand and available capital continuing to be strong. A more stable economic environment allows for more robust forecasting and, coupled with a degree of pent-up demand, we anticipate a step up in deal activity. We have started to see renewed activity from international buyers, who until recently were focussed on other ‘more attractive’ international growth markets and increased evidence of distress is bringing additional assets to market.
In the next few months, the level of activity across the region and from a sector perspective will undoubtedly continue to be affected by wider economic pressures, and political change. However, it is clear is that both corporate and private equity have a desire to invest and will be looking to deliver in 2024.
University’s business incubation centre celebrates support for 1,000 firms over two decades
The Sparkhouse business incubation centre created by the University of Lincoln has celebrated two decades of providing expert support to more than 1,000 county businesses.
Sparkhouse offers specialist business incubation services, including tenant packages which provide managed office space and meeting rooms in a city centre location, access to catering, and virtual office options.
Charlotte Baxter, Enterprise Manager at the University of Lincoln, said: “It was wonderful to celebrate the 20th anniversary in a room full of past and present tenants, supporters and staff. The feedback from the night was overwhelmingly positive and heart-warming. Having such an array of attendees highlighted the far-reaching nature of the support that Sparkhouse provides, and we look forward to continuing this work.
“The Enterprise and Innovation Team at the University of Lincoln would like to extend a big thank you to not only all of our attendees on the night, but also to those that sadly couldn’t join us, we would not be where we are without their support.”
Luke Wiggs, Creative Director at Commuter Films, said: “Sparkhouse has been instrumental for Commuter Films and its entrepreneurial journey, providing crucial business support for our first office and grant assistance. It nurtured an environment for creativity and growth.
“Our story has come full circle with Sparkhouse. George, our first employee and a University of Lincoln graduate, symbolises the link between education and real-world impact. Sparkhouse not only fuelled our growth but also created opportunities for talented graduates.”
Heating company ‘spreads the love’ by reinvesting apprenticeship funds in another company
Hull-based UK heating company Ideal Heating has reinvested part of its Apprenticeship Levy funding to pay for business services provider Bell4Business employee Connor Docherty to undertake a digital marketing apprenticeship.
The apprenticeship will support the next stage of 21-year-old Connor’s professional development and enable Bell4Buisness to expand by offering additional services, thereby also benefiting its clients.
Ideal Heating, which is owned by parent company Groupe Atlantic, has pledged to transfer up to £25,000 of its annual levy funding to support local talent.
Part of this has been invested to enable Office Administrator Connor to take on a Level 3 Digital Marketing Apprenticeship, gain new skills and achieve a higher level qualification.
The 15-month programme is being delivered by Hull Business Training Centre (HBTC). The Hull and East Yorkshire Local Enterprise Partnership (HEY LEP) played a crucial role in linking up Ideal Heating, Bell4Business and HBTC through its Business Growth Hub.
Maria Cunningham, HR Advisor – Development at Ideal Heating, which currently has 27 apprentices across the business, including four who were recruited in September, said: “As a major employer in Hull, we wanted to give something back and support a small independent business that doesn’t have access to the same level of funding we do.
“It’s really important to us to invest in the local area, to address collective skills needs while helping develop the future talent pool.
“Digitalisation is a key priority for us, so it makes sense for us to invest in the development of skills in this area locally, and we’re delighted to be able to support Connor and Bell4Business.”
The Apprenticeship Levy was introduced by the Government in 2017 for all companies paying a wage bill of more than £3m a year. Employers that meet the criteria must pay 0.5% of their pay bill each month as a levy tax.
The levy can be reinvested into the company’s workforce in the form of apprenticeship training. If it isn’t spent within 24 months, any unused funding will expire and must be returned to the Government.
However, it is not widely known that companies also have the option of transferring a percentage of unspent funds to SMEs, ensuring it is spent supporting local businesses.
The Edge Hub works with Sky to create digital boost for Hull residents
Sky has partnered with The Edge Hub to launch a new Sky Up Digital Hub in Hull. The Hub provides access to digital devices, free Sky WiFi connection and regular digital skills workshops, to support people in the local community.
Overall, 22% of neighbourhoods in Hull and East Yorkshire fall into the 10% most nationally deprived regions across the education, skills, and training sector. Change is needed in the area to build digital skills through access to technology. The Edge Hub’s partnership with Sky is the first to be launched in Hull and East Yorkshire. Antonio Tombanane, Founder of The Edge Hub said: “We aspire that our partnership with Sky will play a pivotal role in narrowing the digital divide, empowering individuals with the confidence and proficiency to harness technology. The Edge Hub is dedicated to uplifting communities and fostering a sense of unity, and our partnership with Sky will undoubtedly bolster this shared mission. “By offering these resources with Sky, we are not just providing a service; we are investing in the growth and development of our community. We envision a community where everyone, regardless of their background, has the confidence and ability to harness the power of technology. This not only enriches individuals’ lives but also fosters a stronger, more resilient community as a whole.” Eleanor Leetham, Project Coordinator at The Edge Hub, said: “We can’t wait to welcome people to the space, we believe it’s a really exciting opportunity for the community to gain access to free technology, Wi-Fi and digital skills. Our partnership with Sky represents a big step towards a more inclusive, connected, and empowered community. We are excited about the positive change it will bring, and we invite everyone to join us.”Drax gives £50,000 to Movember men’s health charity
Renewable energy company Drax has donated £50,000 to men’s health charity Movember after hundreds of its employees expressing their support for the charity by either growing moustaches or taking photos of themselves with a fake moustache prop.
The donation will help Movember continue to campaign to raise awareness of men’s mental health, rates of male suicide and of the threat of prostate and testicular cancer. Drax Power Station in North Yorkshire had the highest number of employees across Drax Group participating in Movember activities, with over 400 colleagues, including apprentices, engineers, the senior leadership team and more, expressing their support by sharing photos and stories. Bruce Heppenstall, Plant Director, Drax Power Station said: “Movember is driving much needed change and opening up vital conversations around men’s health. I was proud to see so many colleagues across Drax Power Station and the wider business getting involved in supporting the organisation and hope that we can get even more colleagues involved next year. “Drax is committed to giving back to the communities where we operate through a number of initiatives including the company’s charitable entity Drax Foundation. This donation will help Movember to continue doing its critical work.” Movember has been actively campaigning for 20 years and has funded more than 1,300 men’s health projects around the world. It continues to conduct men’s health research and transform the way health services reach and support men.Two earn achievement medals for contributions to steel industry
British Steel’s Dr Andrew Smith, Customer and Technology Manager at our Special Profiles business, and Dr Andy Trowsdale, Head of Research and Development, have been given prestigious awards from The Institute of Materials, Minerals and Mining.
Andy, based at the company’s Rotherham site, collected the Tom Colclough Medal and Prize in recognition of ‘learned contribution to understanding microstructure, mechanical properties, fabricability or in-service performance, production or engineering in the iron and steel industry’.
He said: “It is a privilege to receive this award acknowledging the developments and innovations carried out by the team at British Steel over many years.”
Andrew, who is based at Skinningrove, won the inaugural Henry Royce Institute Award for Innovation by a Technical Professional. This award recognises the vital contribution technical professionals make in advancing technology and the understanding of the materials world.
He said: “I am honoured to receive this award which recognises the amount of technical innovation done at Special Profiles by a lot of people and you cannot achieve this as an individual. There are many gifted people at Special Profiles and this award is really for the team in the work that it does, creating solutions to challenging problems.”
The IOM3 awards celebrate individuals and organisations who have made exceptional advancements to the profession and these awards also help raise awareness of both engineering and scientific excellence and industry best practice.
Both colleagues received their awards from IOM3 President Dr Kate Thornton, who said: “As always it is wonderful to bring so many of our members together from a diverse range and celebrate their wondrous achievements.”
New law means new cars and vans have to be zero emission by 2025
New laws starting today mean that from 2035 firms buying new cars and vans must chose a zero emission option.
This zero emission vehicle mandate sets out the percentage of new zero emission cars and vans manufacturers will be required to produce each year up to 2030. 80% of new cars and 70% of new vans sold in Great Britain will now be zero emission by 2030, increasing to 100% by 2035.
This is said to follow follow the decision to delay the ban on new diesel and petrol cars from 2030 to 2035, putting the UK in line with other major global economies such as France, Germany, Sweden and Canada.
Technology and Decarbonisation Minister Anthony Browne claims that alongside the UK having spent more than £2 billion in the transition to electric vehicles, its zero emission vehicle mandate would further boost the economy and support manufacturers to safeguard skilled British jobs in the automotive industry.
The government’s schemes to lower the upfront and running costs of owning an EV includes the plug-in van grant of up to £2,500 for small vans and £5,000 for large ones until at least 2025, and £350 off the cost of homeplace chargepoints for people living in flats.
The Government’s own figures show that sales of electric vehicles have risen by 41%, and the number if charge points is up by 44%, suggesting that the charging infrastructure is only just keeping pace with the number of vehicles it has to support. There are now over 50,000 public chargepoints, said to be putting the country well on track to reach 300,000 chargepoints by 2030.
The UK’s approach to decarbonising transport has already attracted record investment in gigafactories and EV manufacturing, including:
- Nissan’s recent investment of over £3 billion to develop 2 new electric vehicles at their Sunderland plant
- Tata’s investment of over £4 billion in a new 40 GWh gigafactory
- BMW’s investment of £600 million to build next generation MINI EVs in Oxford
- Ford’s investment of £380 million in Halewood to make electric drive units
- Stellantis’ £100 million investment in Ellesmere Port for EV van production
County-wide business developments add 1,000 jobs to the region
Six sites in Lincolnshire developed by the county council, are now said to have contributed more than 1,000 jobs to the county’s economy.
Investment in land, infrastructure such as roads and utilities, and offices have provided businesses with space to grow and develop.
The sites in Skegness, Kirton, Gainsborough, Market Deeping, Lincoln and Holbeach have added around 377,140 square feet of commercial space which have contributed an estimated 1,121 jobs to Lincolnshire’s economy.
Cllr Colin Davie, executive councillor for economy and place, said: “The council has a really important role in providing the right environment for business success and growth. We’ve been forward-thinking in developing sites ready to attract new enterprises and allow our local companies to grow. The purchase of the land, its development and then onward sales takes time, but these figures show just how valuable it is in the long term.”
As well as land for businesses to construct their own facilities, the council has also built office space to rent directly. These latest figures include:
- Foxby Lane, Gainsborough – just over 6 acres sold and developed, including Mercury House Business Centre
- Northfields, Market Deeping – including Eventus Business Centre
- Lincoln – just under an acre sold and developed, including Wyvern House. A further 1.5 acres is available.
- Kirton, Boston – over 21 acres sold and developed at the well-established Kirton Distribution Park, and a further 20 acres under offer.
- South Lincolnshire Food Enterprise Zone (FEZ), Holbeach – over 5.5 acres sold/developed to food sector-related businesses, including The Hub, a sector specific innovation centre, and the University of Lincoln’s National Centre for Food Manufacturing Campus. Just over 4 acres is still available for food sector related businesses to develop, and 28 acres safeguarded for the future of the scheme.
- Skegness Business Park – just under 3 acres sold with a further 9.5 acres available for businesses.
- An estimated 223 jobs at Foxby Lane in Gainsborough where development land has been sold to a number of regional and national companies across a variety of different sectors.
- Approximately 319 jobs at Kirton, Boston, including 119 created by Duckworth Land Rover.
- Over 120 jobs at the South Lincolnshire FEZ to date, including 26 for local electrical engineering business, AJS Control & Automation.
Dales farmers urged to apply for share of National Park grant scheme
