“My department’s £39.8 billion R&D budget – the largest ever R&D budget committed so far – will be deployed and specifically targeted to strengthen Britain’s comparative advantages, supporting the best ideas to become the best commercial innovations, and securing the UK’s position as a science superpower.
“This includes full funding for EU programmes, for which £6.8 billion has been allocated to support the UK’s association with Horizon Europe, Euratom Research & Training, and Fusion for Energy. If the UK is unable to associate to Horizon Europe, the funding allocated to Horizon association will go to UK government R&D programmes, including those to support new international partnerships.” A significant proportion of the budget has been allocated to UK Research & Innovation (UKRI), which will receive over £25bn across the next three years, reaching over £8.8bn in 2024-2025, its highest ever level and over £1 billion more than in 2021-2022. This will include an increase in funding for core Innovate UK programmes by 66% to £1.1bn in 2024-2025, helping connect companies to the capital, skills and connections they need to innovate and grow. The UK Space Agency’s budget will also grow to over £600m by 2024-2025, recognising the fact that our world-leading space sector adds nearly £16bn to UK GDP while underpinning complementary parts of the economy including finance, logistics and agriculture. This is equivalent to a real terms increase of 14%.Government reveals largest-ever R &D budget – worth almost £40bn
The largest-ever research and development budget – worth £39.8 billion and to cover the next three years – has been allocated across the Department for Business, Energy and Industrial Strategy’s partner organisations, the government has confirmed.
The Spending Review committed record levels of investment in the UK’s world-leading research base, with annual R&D spending set to increase by £5bn to £20bn by 2024-2025 – a 33% increase in spending over the current parliament by 2024-2025.
These investments will contribute to the new cross-government approach on research and development, helping to deliver strategic advantage in science and technology, work alongside industry to leverage private investment, and deliver prosperity, security and resilience this century.
In turn, the investment will support priorities that are key to the UK’s prosperity, from tackling climate change to levelling up opportunities across the country, enabling investment in new technologies from clean tech to AI, where the UK has a strong competitive advantage globally and industrial strength at home.
Business Secretary Kwasi Kwarteng said: “For too long, R&D spending in the UK has trailed behind our neighbours – and in this country, science and business have existed in separate spheres. I am adamant that this must change. Now is the moment to unleash British science, technology and innovation to rise to the challenges of the 21st century.
FSB urges Chancellor to deliver on low tax pledge at Spring Statement as 280,000 firms stand on the brink
The FSB is urging the Chancellor to make next week’s Spring Statement “a rallying point” for businesses as surging operating costs, supply chain disruption and labour shortages make it increasingly difficult for firms to invest and expand.
In a letter to Rishi Sunak, the FSB recommends interventions aimed at addressing “foundational issues” in the UK economy against a backdrop of declining business confidence.
The move follows a pledge from the Chancellor last month to create “a new culture of enterprise”. In his Mais lecture, Sunak stated that he “firmly believe[s] in lower taxes”, adding that “the marginal pound our country produces is far better spent by individuals and businesses than government.”
He is set to confirm an £18bn collective annual increase in national insurance contributions (NICs) and dividend taxation at his Spring Statement next week. There is also speculation that the Treasury may scrap the R&D tax credit incentive for small research-intensive businesses in favour of supporting larger companies.
In his correspondence with the Chancellor, the new FSB Chair, Martin McTague flags that, with the public finances tight, the Treasury should move away from an “eye-wateringly expensive” super deduction tax break which “will primarily be used by corporations and multinationals, not small businesses operating in all our communities,” and instead prioritise reduction of Government-imposed overheads to free up funds for investment at the local level.
FSB research shows that just 4% of the small businesses that make up 99% of the private sector see the super deduction as one of the top three incentives to invest.
In its costed Spring Statement submission, FSB recommends:
- Increasing the Employment Allowance to £5,000.
- Taking an additional 200,000 community small businesses in levelling up target areas out of the business rates system by increasing the rateable value ceiling for small business rates relief to £25,000, and extending a one-year relief on business rates increases linked to property investments in plant and machinery.
- Extending support with energy costs being allocated via the council tax system to micro businesses via the business rates system, and launching a Help To Green initiative to spur on-site renewable generation.
- Delivering on pledges to end the UK’s poor payment culture by making Audit Committees directly responsible for ensuring best practice within supply chains.
- Expanding and making permanent a statutory sick pay rebate for small firms whilst continuing with incentives in England to take on apprentices and T Level placements.
- Widening eligibility for the Help To Grow Digital and Management initiatives to the 750,000 small firms currently excluded from them.
- Simplifying the R&D tax credit system to make it more accessible for small businesses without having to use paid intermediaries.
Russian invasion increases risk of recession in UK, says BCC
Russia’s invasion of Ukraine has increased the risk of a recession in the UK by exacerbating the already acute inflationary squeeze on consumers and businesses and derailing the supply of critical commodities to many sectors of the economy.
Suren Thiru, Head of Economics at the British Chambers of Commerce said: “While there was a strong rebound in output in January as the impact of Omicron started to ease, the figures have been pushed into the rear-view mirror by renewed domestic and global shocks, including Russia’s invasion of Ukraine.
“Consumer-facing services firms enjoyed a particularly strong start to the year, following the partial release of pent-up customer demand as concerns over Omicron started to fade. The UK’s economy could stall in the near term as rising inflation, soaring energy bills and higher taxes increasingly drag on activity, despite a probable boost to output in February from the end of Plan B Covid restrictions.
“Russia’s invasion of Ukraine has increased the risk of a recession in the UK by exacerbating the already acute inflationary squeeze on consumers and businesses and derailing the supply of critical commodities to many sectors of the economy.
“Raising interest rates and taxes at this time would weaken the UK’s growth prospects further, by undermining confidence and diminishing households’ and firms’ finances.
“We urge the Chancellor to use the upcoming Spring Statement to tackle the cost-of-doing-business crisis by delaying the National Insurance rise and committing to no further policy measures that will increase costs for business for the remainder of this Parliament.”
Natural paint firm sees growing export demand from US
Leeds-based Brouns & Co, a business that manufactures traditional paints based on linseed oil made from West Yorkshire-grown flax, expects to top £100,000 in US exports in 2022 after a year of growth in the market.
Founder and CEO Michiel Brouns, who has been working with International trade advisers from the Department of International Trade (DIT) in Yorkshire, has seen huge interest in the Yorkshire flax-based products.
“Linseed paint has been used for hundreds of years to protect and coat wood both inside and outside, and the US architectural heritage means there are enormous numbers of timber-build buildings, hence we have been working to raise awareness of the products Stateside,” said Michiel.
One of only a handful of linseed paint manufacturers in Europe, Brouns & Co will see US orders, fulfilled from the firm’s Leeds warehouse, top over £100,000 for the first time in 2022.
“There is a focus on regions such New England, as well as most of the east coast including South Carolina where the maintenance and preservation of historic wooden buildings is a major conservation issue,” said Michiel.
“The DIT has helped us fund projects to identify the best potential markets for us and we are even hosting events with the British Consulate in Boston, when we return to the US in April, to meet face to face with conservation bodies and heritage professionals.”
Brouns & Co’s client list in the UK includes a number of historic stately homes such as Chatsworth House and Grosvenor Estates, and linseed-based paint is gaining in popularity globally due to its environmentally friendly and hypoallergenic properties, as well as its durability.
Michiel said: “The US is our biggest potential market, particularly among owners and custodians of the historic wooden properties typical of the East Coast and other historic areas of America that were settled in the 18th and 19th centuries.
“People are now specifying products that are environmentally sustainable and long lasting, as well as performing very well, and linseed paint is ideal. We had a series of really good meetings when we travelled out to New Orleans, North and South Carolina and we’re returning to New England in April, with the expectation that we will open a US base in 2022.”
Conservation expert Michiel, originally from the Netherlands, relocated to Yorkshire in 2006, launching his Garforth-based business with Histoglass, a specialised thin double-glazing product ideal for historic properties, before recognising the demand for high quality natural paints.
£175k record quarter as exports drive growth and new jobs at Yorkshire agencies
Harrogate-based media and profile agencies Appeal and GBM have posted a record quarter of £175,000 in sales, up by 54% on the previous three months.
The media and lead generation specialists, which are sister organisations, have offices in Harrogate and Boston, USA, have appointed two new senior consultants to help the growing team deliver a raft of new projects for a range of firms, from regional software and technology businesses to professional services organisations.
The record growth follows six-figure investment in R&D and software during lockdown to boost capacity and assist with the delivery of combined B2B media relations and inbound lead generation campaigns globally for firms, regions and government bodies.
Experienced PR consultant Caroline Joynson has re-joined the team where she started her career in PR in 2001, and internationalisation consultant Frances Sinclair has been appointed to help the businesses develop new overseas campaigns for export clients.
“In 2020, we launched new services, leveraging our media coverage to generate inbound sales leads online for growing SMEs, and that has helped us expand the US work as more and more firms strive to get a foothold in the North American market,” said founder Paul Snape.
“We are continuing to see a rise in demand for guidance in the US market, especially from dynamic technology firms, but we have also seen growth in regional and national PR accounts and from some former clients who are returning to us, wanting to generate new relationships online, which is exactly the area in which we’re focusing.
“There’s no doubt that people have been planning new projects and businesses during the lockdowns and these are now coming to fruition, and that’s giving us the opportunity to grow in 2022.”
Based on Montpellier Street in Harrogate, Appeal and GBM now employ eight consultants across the UK and US, and plan to make further hires in 2022.
“We’re aiming to build on the momentum we have, and we’re looking for digitally-savvy media and content specialists, and digital marketers to join the Harrogate team and help maintain the growth we’ve seen in the last few months,” concluded Snape.
Last chance to book for Lincolnshire’s 2022 Visitor Economy Conference
Local tourism and hospitality businesses are invited to join Visit Lincolnshire and Business Lincolnshire’s Visitor Economy Conference to discover new opportunities for the sector.
The full-day event, which takes place at the Lincolnshire Showground on Tuesday 22 March 2022, showcases Lincolnshire and Rutland’s visitor economy offer and, after a two-year gap, reports on what has been put in place to build the sector back stronger.
Attendees will gain exclusive insight and be the first to hear about Lincolnshire’s Green Tourism Toolkit, which will be launching on the day. Keynote speakers from across the region include representatives from Lincolnshire County Council, Visit Lincoln, and CDI Alliance, along with perspectives from an array of independent businesses.
The event features an address from keynote speaker, Ed Gillespie. A passionate and entertaining environmentalist, Ed will be focussing on sustainability and innovation during his session, aiming to educate businesses on how to be more resilient and responsible, whilst encouraging them to prepare for a successful future.
Cllr Colin Davie, Executive Councillor for Economy and Place, will be delivering the opening message for the event. Cllr Davie says: “We are thrilled to finally meet in-person again at the Lincolnshire Showground, which is such a lovely venue! It is so important to shout about the massive achievements in the sector after COVID.
“We have many exciting workshops and interactive sessions. This really is an event we want everyone to take something away from, and we are lucky to be able to fully fund the conference for all attendees!”
Places are limited and advanced booking is required. Early booking is recommended to avoid disappointment. Tickets are available via the Business Lincolnshire website: www.businesslincolnshire.com
Council buys Grimsby site as it looks to lead regeneration of town centre area
A total of 1.6-acres of Grimsby town centre development land is being bought by North East Lincolnshire Council as it looks at the future regeneration and reinvention of the high street area.
Contracts have now been exchanged on the area, which comprises of 3-15 Osborne Street and the land behind those buildings on Garden Street, which is currently used as a car park.
Supporting the purchase, the Leader of the Council, Cllr Philip Jackson, was clear of intentions to look at the wider plans for the whole of the town centre. In doing so, he added, the council was determined to grasp hold of opportunities and lead change with central Grimsby a priority. The buildings, he added, had been redundant for some considerable time.
Over the last five years, the reshaping of the town centre has been led by the local authority. Along with partners and stakeholders including the Greater Grimsby Town Board, it has won multi-million-pound funding bids from Central Government.
This money, all ring-fenced for specific projects, has seen the transformation of St James Square and Garth Lane with its new footbridge, river dredging and extensive paving and landscaping. Further to that, work is set to start soon on the redundant St James House with the E-Factor purchasing the building to create a business hub. There is also support for a long-held residents’ view that the town centre needs better facilities for people using public transport.
This is in addition to the Future High Streets Fund, and projects earmarked for Towns Fund money including the full refurb of Riverhead Square, a plan for new housing on the redundant Garth Lane site and the wider multi-use of empty space at Central Library. There is also the new OnSide ‘Horizon’ Youth Zone, which has just won £2.7m of National Lottery Heritage Fund monies. This involves the transformation of the historic redundant buildings along Garth Lane into a state-of-the-art centre for young people.
“In order to effect change, which we all know is needed, we must look at opportunities such as this with a view to shaping and guiding redevelopment. Town Centres across the country have changed almost beyond what any of us would have anticipated and we have a responsibility to ensure the community’s needs are served as we look to refocus the town,” said Cllr Jackson.
New Chamber President pledges to make sure Humber region prospers
New Hull and Humber Chamber President Mike Whitehead has underlined his commitment to securing regional devolution and ensuring the Humber prospers.
Mike, the 110th President of the pan-Humber organisation, said he was disappointed at the political will that saw Humber progress stifled, but is cheered by the work now emerging under the Opportunity Humber banner, with Reckitt CEO Laxman Narasimhan working alongside the Humber Leadership Board – made up of council chiefs and LEP chairs – to focus on strategic growth for a globally significant region.
Mr Whitehead said: “It is a particular honour to be President of the Chamber. I’m a local lad. I spent 28 years at Hull Royal Infirmary, as a manager of surgery and critical care, and my grandfathers were dockers and trawlermen in Hull – that’s working class aristocracy.”
He has since turned his attention to property development and also served as an East Riding councillor between 2011 and 2015, representing Kirk Ella.
“We are in a very good place, with very good relationships with local authorities and MPs, and in a position to influence and represent businesses in the Humber.
“We are one of the few true pan-Humber organisations at a time when the Humber has split apart – hopefully it is only temporary, hopefully it will come back.
“The South Bank is important to the region, and one of the reasons I have chosen Horizon as my charity this year. I look forward to a year of activity, my door is always open as I used to say in the NHS, and the same applies here. We have a very good team, and excellent chief executive and excellent officers.”
Leeds firm acquires North American rail technology software provider in £11m deal
Leeds-based Tracsis, a provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, has acquired RailComm, a North American rail technology software and services provider.
Headquartered in Fairport, New York and established in 1999, RailComm provides mission critical automation and control solutions that reduce costs, increase safety, and improve operational efficiency for rail passenger/freight operators and rail served ports/industrials.
Its two core products are rail yard automation and computer aided dispatching and it has a wide and diversified client base across the North American market. The business has good levels of annual recurring software revenues in addition to large project delivery/systems integration work. The business employs around 30 full-time staff, all of whom will remain with the business post transaction.
For the financial year ended 31 December 2021, RailComm delivered revenue of $6m (£4.6m) including c$2.5m (£1.9m) of recurring software revenue and generated an unaudited loss before tax of $0.3m (£0.2m).
The acquisition consideration comprises an initial cash payment of $11.5m (£8.8m). Additional contingent consideration of up to $2.7m (£2.1m) is payable subject to RailComm achieving certain financial targets in the first full year post acquisition.
Chris Barnes, Chief Executive Officer of Tracsis, said: “This is an important strategic acquisition for Tracsis plc, providing a platform onto which we can start to internationally expand the Tracsis Group and its rail product portfolio via direct access to the significant and growing North American rail technology market. We are delighted to welcome all of the RailComm team into the Tracsis Group and look forward to a successful future working together.”
Joe Forgione, president of RailComm LLC, said: “The RailComm team is very excited about joining the Tracsis Group. Both businesses have a long history of driving innovation via R&D built around long-term client relationships and we look forward to expanding our ability to offer a much broader range of rail technology solutions across our extensive client base in North America.”
Employers and employees asked to help develop West Yorkshire’s ‘Fair Work Charter’
A major public consultation that will inform and develop a Fair Work Charter for West Yorkshire has launched.
Mayor of West Yorkshire, Tracy Brabin, is asking employers, employees, and other organisations across West Yorkshire to #TellTracy about their views on work, and what fair work could mean for them.
The Charter aims to promote, encourage and support employers to meet aspects of fair work that will recognise and deliver good pay, fair and flexible working conditions, and promote greater wellbeing, diversity, and social mobility within the region’s workplaces.
Too many people are working in poor quality jobs
- 29% of West Yorkshire employees, or 271,000 people, are in jobs that don’t meet the ONS definition of Good Work.
- For example, there is a gender pay gap of 12% in average earnings in the region, and two thirds of companies in West Yorkshire have no female representation at director level.
- West Yorkshire’s employment rate is 74%, compared with 77% nationally.
- And for some groups the picture is much worse – the overall employment rate gap for ethnic minorities in West Yorkshire is 18 percentage points and that for people with disabilities is 23 points.
