UK economy grows, beating expectations
Easing the risk of a recession, the UK’s economy saw fractional growth in the final quarter of 2024.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have risen by 0.1% in the October to December period, following no growth in the previous quarter. It beats expectations of a contraction of -0.1%.
Across key sectors, growth in services (0.2%) and construction (0.5%) output led the way, while production fell by 0.8%.
Monthly data, meanwhile, shows GDP expanded 0.4% in December, above expectations of 0.1%, largely because of growth in the service sector.
Responding to the figures, Martin McTague, National Chair of the Federation of Small Businesses (FSB), said: “News that there was a modest up-tick in growth in the weeks running up to Christmas is far preferable to the alternative but flat growth registered across the final quarter will not come as a surprise to many small firms.
“The fall in production in the last quarter shows that evidence of a feel-good factor from the end of last year is sadly lacking, with members telling us they are finding trading conditions difficult, to say the least.
“With tax changes coming up in April, and the looming Employment Rights Bill which is set to put a big dampener on small businesses’ willingness to take on staff, any economic uplift that has been carried over from last year will be a help, but more must be done to offset turbulence.
“The recent cut in the base rate is a good sign, but will not by itself be enough to give small businesses the confidence they need to choose to invest in their operations, which is what is needed for long-term, substantial and sustainable growth in GDP.
“The Government has loudly stated its commitment to growth, which we agree with, but we need to see words turned into actions in the shortest possible timeframe, so that this positive momentum can snowball into a virtuous circle of investment, productivity gains, and greater prosperity in every part of the UK.”
Hull recruitment agency acquired by growing group
Nicholas Associates Group has acquired Hull-based recruitment agency Smart Temporary Solutions Limited.
David Kitney, Owner of Smart Temporary Solutions Limited, said: “After nearly five successful years building and leading Smart Temporary Solutions, the time has come for me to step away from the business and pass over the reins. I am incredibly proud of what we have achieved – establishing a strong reputation for delivering a great service and operational excellence in blue-collar recruitment.
“Joining forces with Nicholas Associates Group ensures that Smart’s clients, candidates, and employees will continue to thrive under the leadership of a well-respected, national organisation. I leave the business in great hands, which was important to me and look forward to seeing its continued success as part of NA Group.”
Paul Smith, CEO of Nicholas Associates Group, said: “Smart Temporary Solutions has developed an outstanding reputation in the blue-collar recruitment market, and their innovative approach aligns perfectly with our vision for the future. This acquisition enables us to expand our reach, enhance our service offering, and continue providing best-in-class talent solutions. We are excited to welcome the Smart team into the NA Group family and look forward to working together to drive further success.”
Sheffield firm secures planning permission for more than 100 homes in Maidstone
Henry Boot land promotion and planning business, Hallam Land has secured outline planning permission on appeal for 112 homes on a freehold site in Yalding, Maidstone, Kent.
Hallam acquired the 23 acre site in 2018, recognising its potential in a high demand housing area. The site was later included in the Emerging Local Plan, and in November 2023, Hallam submitted an outline planning application in line with this allocation.
Despite Maidstone Borough Council adopting its Local Plan (2021 – 2038) in March 2024, it did not make a decision on the application. Hallam appealed in May 2024 on the basis of non-determination and successfully secured approval in December 2024.
The planning consent for the site includes 112 homes (40% of which are affordable), new landscaping, habitat creation, and publicly accessible green infrastructure, with over 20% Biodiversity Net Gain calculated for surrounding habitats.
Plans to build a ‘stronger economy and stronger communities’ outlined in NE Lincs
The new Freshney Place Leisure, Foodhall and Market scheme and supporting other development is central to the council’s commitment to growing a stronger economy.
Members of North East Lincolnshire Council’s cabinet have unanimously supported the authority’s proposed Budget, Finance and Business Plan for the financial year starting on April 1, 2025.
This plan will now progress to next week’s Full Council meeting for discussion and vote.
A key detail recommended and approved at last night’s cabinet meeting was a core Council Tax increase of 1.98% and the application of a 2% Adult Social Care precept.
The overall proposed plan reflects the aims and objects set out in the new Council Plan, which will come into effect from April 1. This puts a ‘Stronger Economy’ and ‘Stronger Communities’ at the heart of the authority’s vision.
Priorities to achieving this vision are outlined and include:
- The continued transformation of Children’s Services. The plan details how current work is having a ‘positive impact on outcomes for our children and young people, as well as supporting financial sustainability’.
- Again, with a focus on transformation, attention will be put on Adult Social Care where innovative solutions will be explored. This will help to meet an increase in demand and complexity of care.
- Continuing with a ‘commercial approach’ to grow a strong and sustainable economy. It details how major investments, such as the redevelopment of Freshney Place, are progressing and will support the borough at a time of economic challenge.
- A pledge to ensure the capital programme is reviewed regularly to ensure schemes remain viable. This approach, adds the report, will help ensure plans remain ‘affordable, sustainable and prudent’.
Student housing portfolio relisted at £30M after price reduction
Beachrock has significantly lowered the asking price for a purpose-built student accommodation (PBSA) portfolio, now seeking £30 million after initially marketing the properties at £90 million. The portfolio comprises over 1,000 student beds across Coventry, Nottingham, and Sheffield.
The assets are spread across Coventry, Nottingham, and Sheffield. Initially part of the offering, a Cambridge property is no longer included. The remaining properties, which vary in size and price per bed, are available for purchase individually or as a group, with offers due by March 20.
The portfolio is now priced at £26,300 per bedroom, aligning with previous market interest. Beachrock stated that the new price reflects previous interest in the portfolio, aligning with market valuations.
MJ Gleeson reports sales growth despite profit decline
Housebuilder MJ Gleeson has reported an increase in home sales and revenue despite a sharp drop in profits, reflecting ongoing challenges in the UK housing market.
For the six months ending December 31, the Sheffield-based firm generated over £150 million in revenue, a 10% increase from the same period the previous year. However, pre-tax profit fell by half to £3.6 million. The company’s land division did not complete any transactions during the period but expects to finalise several deals in the coming months. It also noted that recent government planning reforms are beginning to have a positive impact.
The broader housebuilding sector has struggled with weaker demand due to high interest rates and economic uncertainty. Gleeson completed 801 home sales in the second half of 2024, up from 769 a year earlier. The company also recorded higher net reservations per site and a 4.8% rise in average selling prices, reaching £193,900.
Despite the increase in sales, profit margins took a hit due to incentives offered to buyers. Looking ahead, the company remains optimistic about a market recovery, citing strong demand in the affordable housing segment.
Businesses hear how film, nature, and a coastal walk can boost Lincolnshire tourism
Businesses at Lincolnshire’s fully-booked visitor economy conference have heard how film tourism, nature tourism and the new coastal path could boost the county’s economy.
Hosted by Lincolnshire County Council’s economic development team, the event also demonstrated the success of the Visit Lincolnshire website in showcasing everything the county has to offer.
Speakers included Heather Greenwood from Location Lincs and BBC Springwatch’s Lucy Hodson, known affectionately as ‘Lucy Lapwing’.
County Councillor Colin Davie said: “This was a great event to bring businesses together so they can network and share ideas and challenges. It’s a flagship event for tourism and is a good example of how we support businesses and help them navigate the challenges in the sector – of which there are many right now.
“Tourism is an incredibly important part of our economy and as a council we have invested in the sector, including the Visit Lincolnshire website, and provided grants to those struggling during after the Covid pandemic.
“There was a great line up of speakers at this event and I hope everyone who attended came away inspired by the future opportunities that our visitor economy businesses can benefit from.”
Heathrow’s largest-ever development will use British steel, says airport CEO
Heathrow Airport CEO Thomas Woldbye has announced the largest private investment programme in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with Government by summer – and pledged to support UK industry by signing the UK Steel Charter.
The charter aims to maximise supply chain opportunities for UK steel producers.
Gareth Stace, UK Steel Director-General, said: “Signing the UK Steel Charter is a vital commitment to strengthening Britain’s industrial backbone, ensuring our steel industry continues to support high-quality jobs, drive investment, and play a central role in the UK’s economic future. By prioritising UK-made steel in major projects, businesses can build a more resilient and sustainable supply chain, keeping value and expertise within the UK.
“Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses full stop. With the airport embarking on its largest-ever private investment programme, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure. Backing UK steel means backing UK jobs, innovation, and long-term industrial growth, ensuring the benefits of Heathrow’s expansion are felt nationwide.”
Zengwei An, British Steel CEO, said: “We’re proud to be backing a third runway and the proposed expansion of Heathrow. Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector.
“As Britain’s only manufacturer of heavy constructional steel sections, and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers, and the UK Government, to support investments which grow the British economy. Our colleagues in Scunthorpe and Teesside have a distinguished history of supplying world-class products into projects like Heathrow’s expansion, and we are incredibly excited by the potential of today’s announcement and the signing of the UK Steel Charter.”Mr Woldbye said: “This privately-funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the Chancellor’s call to get Britain building.
Mr Woldbye said: “A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer. Ahead of then, as part of a phased expansion programme and supported by the Government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability. This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth”.
Hull firm agrees long-term supply deal with modular building specialist
Hull-based FR Scott has entered a partnership with Premier Modular, one of the UK’s leading offsite modular building specialists.
A new long-term contract positions FR Scott as the supplier of fixings and fasteners to Premier Modular’s manufacturing site in Bransburton in East Yorkshire for a number of years.
In readiness for the start of this new contract our team has already fitted new FR Scott branded black and red racking in key locations across five factories. This ensures Premier Modular can maintain its high standards of efficiency and quality.
FR Scott Head of Sales and Marketing Tony Rands said: “We are thrilled to partner with Premier Modular, the fact they have chosen us to manage their fixings supply, following a robust selection process, highlights our ability to deliver innovative, tailored supply solutions to the modular industry that work.”
Two more occupiers take space at iPort in Doncaster
Verdion has secured two new occupiers taking almost 415,000 sq ft of logistics space at iPort, the 800-acre multimodal logistics hub just outside Doncaster.
Moran Logistics has taken the 166,872 sq ft iP7 unit offering 158,992 sq ft of warehousing with 15m clear headroom, 17 HGV bays, 7,880 sq ft of offices and welfare and 315+kVa power. CBRE advised Verdion and Bishop Property Consultants advised Moran Logistics.
iP10, a total of 259,286 sq ft, has been leased to an unnamed occupier. Its new unit offers 247,957 sq ft of distribution space with 15m clear height and 40 HGV bays, 11,329 sq ft of offices and welfare and 500+kVa power. GV&Co advised Verdion.
Two further development-ready sites are allocated for build-to-suit opportunities, with a maximum size at iP4 of 42.73 acres with scope to accommodate a cross-dock distribution facility up to 846,250 sq ft deliverable in 12 months from contract.
Jamie Young, Development Surveyor at Verdion, said: “There has been a noticeable shift in occupier demand in the last quarter, with renewed appetite for expansion and a focus on high quality space. These deals underline the continued attractiveness of iPort – and its power capacity, multimodal capability and strong demographics – to a wide range of businesses.”
