Dairy farmers to get new rules over contracts, says Government

New contract regulations for the UK’s dairy farmers will come into force in the autumn, the Government has formally announced, promising to empower dairy farmers’ negotiating position, helping to ensure fairer prices, transparency and accountability across the supply chain. NFU Dairy Board chair Michael Oakes said: “These new regulations mark a significant step forward in the government’s efforts to increase fairness and transparency in the dairy supply chain.” New regulations promise to empower dairy farmers’ negotiating position, helping to ensure fairer prices, transparency and accountability across the supply chain
The government has announced that the regulations will come into force later this year and will enable farmers to challenge prices, prevent changes being made to contracts without farmers’ agreement, and make it easier for farmers to raise concerns. The development of the regulations has been supported by detailed discussion with key industry players including the NFU and Dairy UK, with Mr Oakes describing the announcement as a “significant step forward” in increasing fairness and transparency across the dairy supply chain. He said: “For a long time, unfair milk contracts have held British dairy businesses back, and these changes will give dairy farmers much needed business security and confidence, as well as helping to share risk along the dairy supply chain.” Farming Minister Mark Spencer said: “Farmers must be paid a fair price for their produce and these regulations will provide price certainty and stability for farmers by establishing written milk purchase agreements with clear and unambiguous terms. “This represents a key milestone in our commitment to promote fairness and transparency across food supply chains to support farmers and build a stronger future for the industry, and will be followed by reviews into the egg and horticulture sector supply chains this Autumn.”

NHS names new Chief Exec for trusts north and south of the Humber

Today Jonathan Lofthouse has taken up the role of Group Chief Executive at Hull University Teaching Hospitals NHS Trust and Northern Lincolnshire and Goole NHS Foundation Trust.

Formerly site Chief Executive as part of King’s College Hospitals, Mr Lofthouse will oversee the management of both organisations. As well as five hospitals – Hull Royal Infirmary, Castle Hill Hospital, Diana Princess of Wales Hospital in Grimsby, Scunthorpe General and Goole – he will be responsible for some community services on the south bank of the Humber. He has previously held the position of Director of Improvement at Liverpool University Hospitals NHS Foundation Trust. HUTH and NLaG will continue to be two separate organisations although they will, in future, share an executive team. While the two organisations already collaborate closely in the delivery of many key hospitals services, the appointment of Jonathan Lofthouse is the most significant step in enabling them to work more effectively on shared regional challenges. Mr Lofthouse said:“We all know how busy NHS services are and how much pressure services are under. We also know that following the pandemic many of the demands we are now experiencing across our hospitals and community services are really challenging and difficult to respond to. That’s true across all our north and south bank hospitals. We have emergency pressures, challenges in discharging patients and too many patients who have been waiting far longer than we would desire for our care, whether that be surgery, diagnostic or therapeutic. “Now is the time for us to act creatively and courageously and innovate, focusing all of our efforts on making things better for patients and for staff. Through a group operating model we get to do that on a far bigger scale, and the power of that collective focus, the effect of coming together, I believe will allow us to create stronger, higher quality, better functioning services for our patients, and create more opportunities for our 17,000 staff.”

Rising debt and inflation fuel surge of Yorkshire businesses in financial distress

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Yorkshire businesses are facing a growing burden of escalating economic pressures including rising interest rates and higher labour and materials costs, according to the latest Red Flag Alert data from independent business rescue and recovery specialist Begbies Traynor.

The report found that 29,261 businesses in Yorkshire were suffering early or ‘significant’ distress in Q2 2023, an 8% increase on the same period in 2022 and up 4.9% on the first quarter of this year. ‘Significant’ distress refers to businesses showing deterioration in key financial ratios and indicators including those measuring working capital, contingent liabilities, retained profits and net worth.

Across the UK, ‘significant’ distress was up by 8.5% in the second quarter of this year compared to the same period last year, with a total of 438,702 businesses affected. The three sectors most severely affected by financial distress nationally were support services, construction and real estate and property services.

The latest data is sourced from a completely new Red Flag dataset that has involved deep dive analysis of eight years’ company data by data scientists over the past two years to track key factors behind company distress and failure rates.

Of the 22 sectors monitored by Red Flag Alert, in Yorkshire nine reported increases of over 10% in the number of companies in significant financial distress compared with a year ago. Sectors suffering the biggest increases in significant distress in the region, compared to last year, included sport and health clubs (16.7%), property businesses (14.2%) and retailers (14.6%) which accounted for 21% of this distress (6,074 businesses). Other sectors which saw escalating early distress were health and education (13.4%) and media (11.3%).

Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said: “Higher interest rates have hit both consumers and businesses hard and there are mounting concerns that the situation may become worse in the second half of this year in Yorkshire and across the UK, when winter sets in and energy costs go up.

“Consumers are feeling the pinch and cutting back not just on discretionary spending but also on essentials to counteract higher mortgage and loan repayments. Meanwhile businesses are also seeing the cost of their debt rising and, still reeling from the effects of the pandemic and set back by higher energy bills and the effects of the war in Ukraine, it’s no wonder that the number of distressed companies has jumped since last year.

“Given the wider economic uncertainty we fear that time is simply running out for many businesses and we expect a surge in company collapses with the likely failure of many ‘zombie businesses’ in the coming months.”

He added: “Our advice to businesses is to monitor their financial position carefully and seek advice from qualified restructuring professionals as soon as any problems become apparent to avoid them escalating.”

Plans approved for £12.5m Hull facility to drive low carbon technologies

Ideal Heating has received the green light to establish a new £12.5m research and development facility to support low carbon technologies including heat pumps. Hull City Council has granted full planning permission for the UK Technology Centre at Ideal Heating’s headquarters site in the city. The R&D facility will create a testbed for product development and advancements in the heating solutions to help decarbonise UK homes and business premises. The state-of-the-art facility, at Ideal Heating’s site at National Avenue in Hull, will see the company expand its R&D team. It represents a significant investment from Ideal Heating and will play key role in the company’s transition to low carbon heating solutions including heat pumps. Construction of the UK Technology Centre is expected to begin this October and is due be completed in late 2024. The R&D centre is set to be operational in early 2025. Ideal Heating engineering director Helen Villamuera said: “Our UK Technology Centre is part of a major £60m investment we’re making in our Hull site, to support heat pump manufacturing, distribution and innovation in heating technologies. “From the outset, Hull City Council has been fully supportive of our plans, which will create highly skilled jobs in the city and expand our existing R&D capabilities. “We’re delighted to have secured full planning permission for the UK Technology Centre. We will now begin a competitive tender process to appoint a contractor to deliver this project.” The two-storey building, with an additional partial storey to accommodate plant rooms for the centre, will help to develop and refine the low carbon heating technologies, including heat pumps, needed to decarbonise the UK’s 25 million homes. The Government has set ambitious targets for heat pump deployment, including for 600,000 heat pumps to be installed in domestic properties annually by 2028. The UK Technology Centre will provide a purpose-designed new home for Ideal Heating’s expert R&D team, which has an increasing range of engineering roles related to design, development, electronics, simulation and product testing disciplines. Laboratory facilities within the 38,000 sq ft building will enable Ideal Heating’s R&D team to simulate a range of scenarios and conditions to test new innovations and advancements. The R&D facility is one of a series of major investments from Ideal Heating at its Hull site. Construction work has been completed on a heat pump production facility and expanded distribution centre, totalling £20m of investment. Ideal Heating also announced recently it had started producing its new monobloc heat pump, Logic Air, in Hull as the company supports the rollout of renewable heating products. Ideal Heating has also opened a £2.2m National Training and Technology Centre in Hessle, on the outskirts of Hull, with capacity for up to 5,000 installers every year to learn the skills needed to supply and maintain heat pumps.

New commercial scheme set for central Lincoln

Lincoln contractor, Stirlin, has revealed details for a new commercial scheme in central Lincoln. The scheme, Witham Enterprise Park, is planned to offer nine new industrial units with sizes starting from circa 956 sq ft, designed by Johnathan Roberts Architects and constructed by Stirlin. The 1.22-acre site, located off Newark Road, adjacent to the Esso fuel station and the River Witham, serves as a prime gateway into Lincoln City Centre. Split across three phases, Witham Enterprise Park will provide over 16,000 sq ft of employment space. Tony Lawton, Managing Director of Stirlin, says: “We’re delighted to collaborate with our joint venture partner to bring forward Witham Enterprise Park. The existing site will greatly benefit from a complete regeneration and there is a notable lack of sufficient contemporary industrial space within the city centre. “We are looking forward to delivering another fantastic project that will boost the county’s economic growth and support the local business base. With its excellent access to Lincoln City Centre and the A46, Witham Enterprise Park will act as the perfect hub for a variety of both local and national enterprises.” Jasper Caudwell, Chartered Surveyor at Pygott & Crone, says: “We are delighted to be named as sole agents on another one of Stirlin’s leading developments in Lincoln, Witham Enterprise Park. The scheme sits in an extremely attractive and strong strategic position located just off Newark Road and will fill a much-needed gap in the market for accessible, modern warehouse space. “The success of the scheme has already been proven by the early interest off-plan, with two units already under offer. We recommend interested parties to get in touch at the earliest to see how your business could benefit from being located at Witham Enterprise Park.” Site preparation works are underway, with construction due to commence imminently.

Kay joins Chamber in membership and marketing role

The Hull & Humber Chamber of Commerce’s appointed Kay Hudson as Membership and Marketing Executive in the wake of Janice Harrison’s retirement in July. Kay has more than 25 years’ experience in both private and public sector organisations and thrives on creating successful results for clients and is now looking forward to putting those skills to good use in a membership organisation. Kay has previously worked in numerous sectors, including inward investment and economic development, healthcare, education, legal, luxury retail, property, sports, military, tourism and leisure, agriculture and food and energy and renewables, and has met some interesting characters along the way, including Brian Clough, Stuart Pearce and boxers Anthony Joshua and David Hayes. Alongside David Hooper, External Affairs and Membership Director and Anne Tate, Northern Lincolnshire Manager, Kay will be helping to create an exciting Chamber Events Diary for 2024 to support the region’s businesses, keeping them informed of new opportunities and helping them to flourish in the Humber region. Kay said: “I was thrilled to be invited to join the Chamber team and I’m already enjoying my new role. There’s a lot to learn and I’m looking forward to putting my skills and knowledge to good use for the Chamber’s members.” David Hooper said: “Kay has a strong skill set and some great ideas for some different events and she is already proving to be a valuable asset to our team. She is really looking forward to getting to know our members, so feel free to give her a call and say hello!”

Work starts onsite at Leeds Beckett University city campus building

Leeds Beckett University’s Rose Bowl building is undergoing a four-floor transformation, which will revolutionise the way staff and students work, study and collaborate. Chameleon Business Interiors has been commissioned to deliver interior design, fit-out and furniture services at the city centre building. Harriet Wagstaff, head of sales, at Chameleon said: “The work is taking place across a mix of staff work departments, teaching spaces and student areas. “Research shows that working in a collaborative – rather than individual – setting sees a 50% increase in productivity. This boosts motivation and engagement. But Leeds Beckett University had identified that the Rose Bowl building was quite segregated. Departments needed to be strategically brought together to enable better collaboration and in turn, greater productivity – all while embracing hybrid working. “So, we’ll be incorporating collaboration hubs and lounges, a collection of different work environments – from comfortable seating to high benches – and contemporary, glass-fronted meeting pods. Alongside this, work-café areas will feature at the end of each wing on all four floors to create an informal space away from desks, where staff and students can hold informal meetings and hot desk. “We’ve delivered a number of projects in the education sector, but this is our first piece of work with Leeds Beckett University – so we’re incredibly proud and excited to play a role in improving the working environment for staff and students for years to come.” Work is due to complete in September.

Shawbrook increases facility for York-based One Stop Finance

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York-based One Stop Business Finance has agreed an extended deal with Shawbrook to sustain its work in lending to SMEs. The increased facility provided by Shawbrook will allow One Stop Business Finance to keep delivering flexible funding to its clients and grow their loan book, helping in delivering services to an increased number of small businesses, UK-wide. Established in 2014 in York, One Stop Business Finance offers bespoke funding options to SMEs. From working capital solutions to invoice finance and development lending, the specialist lender offers clients a personal service which includes access to a dedicated ‘trusted advisor’ who works one-on-one with business owners. Shawbrook and One Stop Business Finance’s relationship first began in 2019, when Shawbrook provided a £3m facility funding their bridging and development finance book. This has since increased in line with business needs and growth, most recently having grown from £10m to £15m in June this year. Shawbrook is now the firm’s largest funding partner, with Shawbrook’s deep understanding both of One Stop Business Finance’s business and the wider market being a key driver behind the relationship. Andrew Mackenzie, Group MD at One Stop Business Finance, said: “This additional funding line continues to sit well alongside our private money and ensures that we have sufficient cash availability to deliver our plan to become a nationwide lender. “As conditions remain precarious across the country, it is important that we continue to strive in delivering our friendly flexible funding solutions to fund business growth for those who may struggle to access cash through the traditional routes.” Luke Randell, Associate Director of Structured Finance at Shawbrook, said: “One Stop Business Finance offer much needed support to the UK’s SMEs, and we’re pleased to be assisting them with their next stage of growth. The senior team’s professionalism and strategic management skills have been particularly impressive throughout our relationship with them, and we’re excited to see where they take the business next.”

Digital double act simplifies procurement on projects worth billions

A digital double act is working to simplify procurement around built environment projects worth billions of pounds and deliver an equally impressive return in social value.

The partnership between Hull-based businesses The 55 Group and 43 Clicks North is also geared to driving the development of digital skills in their home city and helping other employers use technology to flex their marketing muscles. The 55 Group operates frameworks through its Pagabo brand to match public and private sector clients with suppliers for built environment projects ranging from demolition through to major works and civils and infrastructure. Contract values start from around £50,000 and rise to £50m or more and, with its nationwide reach, Pagabo has pulled in completed projects worth a total of more than £4bn. Pagabo’s sister brand, Loop, uses software to forecast, monitor and evaluate the entire life cycle of any project and has enabled a social value return from projects in excess of £26bn. Other brands in the group, which employs 88 people, include risk management and compliance software company Sypro and digital-first training platform Tequ. Sam Burton, head of commercial marketing at The 55 Group, said: “Our mission is to use technology and innovative thinking to support a better, faster, and greener approach within our core markets. “Our platforms support an ecosystem that allows the world to evaluate, procure, manage and learn in a more sustainable way. From compliant procurement of suitable suppliers through to high-quality social value reporting, it’s an end-to-end process helping clients safely, securely and efficiently complete their important projects.” “We tried digital marketing before and we felt 43 Clicks North would give us greater added value, and we have really seen that in the last few months. They have out-performed where we thought we would be and it’s justified our decision to change. “It’s not that we started from nothing but they have kicked on even further in terms of enquiries through our digital channels. We could have carried on as we were and we would have been fine, but we made a business decision to improve and this has been a step change. “We challenged 43 Clicks North to see what they could do and they have risen to the challenge, including working with our team to help us develop our knowledge.” The value of Pagabo projects currently in procurement is nearly £500m and includes a £90m academy services framework launched in July and a £1bn refit and refurbishment framework which went live in May.

Government acts on creation of his’n’hers toilets in new builds or refurbs

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Every company designing a new non-domestic public or private building will have to provide separate single-sex toilets for women and men and/or a self-contained, private toilet as a minimum. That’s a new announcement that Government is bringing forward a consultation on new regulations, in a change which comes amid dignity and privacy concerns from women and elderly people who feel they are being unfairly disadvantaged as publicly accessible toilets are increasingly being converted into gender-neutral facilities. Concerns over the rise of neutral gender facilities has meant that public have been forced to share cubicle and hand-washing facilities, leading to increasing waiting in shared queues, decreased choice and a limitation on privacy and dignity for all. New regulations and guidance will mean women, who may need to use facilities more often because of pregnancy or sanitary needs, will now be guaranteed appropriate facilities either through a separate single-sex space or through a self-contained, private toilet. The action taken today builds upon the Government’s commitment and wider approach to the protection of single sex spaces. In addition to single sex toilets becoming the default and minimum for new non-residential buildings and places undertaking major refurbishment, the guidelines will encourage the consideration of self-contained toilets, which are a fully enclosed toilet room with a wash hand basin for individual use. This new approach will help to maximise privacy and dignity for of all, which will be explicit in the guidance. A new short technical consultation to shape the changes will open tomorrow. Kemi Badenoch, Minister for Women and Equalities, said: “It is important that everybody has privacy and dignity when using public facilities. Yet the move towards ‘gender neutral’ toilets has removed this fundamental right for women and girls. “These proposals will ensure every new building in England is required to provide separate male and female or unisex facilities, and publish guidance to explain the difference, protecting the dignity, privacy and safety of all.”