- Output in the three months to September fell at a broadly similar rate as in the three months to August (balance of -4% from -7%). Output is expected to fall at a faster pace in the next three months (-17%).
- Output fell in 8 out of 17 sub-sectors, with the overall decline being largely driven by food, drink and tobacco. This was largely offset by strong growth for motor vehicles and transport equipment firms.
- Order books in September were seen as broadly normal, after being below normal last month (-2% from -7%; average is -18%), while export order books remained below normal (-8% from -12%; average is -19%).
- Stocks were seen as more than adequate and to the greatest extent since February 2021 (+6% from +2% last month).
Manufacturers expect sharp fall in output in next three months
UK manufacturers reported a slight fall in output in the three months to September, with a much sharper decline expected in the next three months, according to the latest CBI/Accenture monthly Industrial Trends Survey. This is the weakest expectation for output growth since the three months to January 2021.
The survey found that total order books were seen as broadly normal in September, while stocks were more than adequate for the first time since April 2021. Manufacturers continue to expect a rapid increase in average selling prices in the coming quarter (+59% from +57% last month).
The survey, based on the responses of 238 manufacturing firms, found:
Beal buyers snap up £1.7m of luxury properties as housebuilder returns to roots
Househunters have reserved luxury properties worth a total of £1.7m at the launch of Beal Homes’ Holderness Chase development.
The development in Preston, East Yorkshire, will feature 64 luxury two, three and four-bedroom homes, with prices in the first release ranging from £200,000 to £350,000.
Dozens of potential buyers attended the launch at one of the Holderness area’s favourite venues, The Stag’s Head Inn at Lelley, where the first 10 homes were released.
Six homes were reserved by buyers over the weekend, with a further five applications made by existing Beal owners and new customers looking to benefit from Beal’s Smooth Move service. Smooth Move is Beal’s tailored and personal service for existing homeowners under which the housebuilder takes care of much of the process of buying and selling, so customers can be assured of a stress-free move to their new home.
The development marks a return to the Holderness area east of Hull where it all began for family-owned Beal. The East Yorkshire-based business was founded almost 55 years ago and delivered its very first project, building two shops and a house, in nearby Hedon.
Holderness Chase, off Sproatley Road, is Beal’s first development in the Holderness area for almost 20 years, so has attracted a great deal of interest from local buyers.
Repeat Beal buyers Karl and Nicola Sainty, who currently live in nearby Hedon, reserved a four-bedroom Haxby. It will be the couple’s third Beal home together, having bought their first property from the housebuilder 17 years ago.
Karl, 42, who works as a self-employed Health & Safety Manager, said: “We like the area and the fact it’s so close to Hedon, which has all the shops and restaurants we like.
“We’ve got family in Preston and it’s a peaceful and picturesque place. We love the layout of the Haxby we’ve reserved, as it has two en-suites and is upgraded to include an orangery on the back of the house.
“We have two grown-up children living with us and the downstairs layout gives us a lovely space for hosting people and entertaining.
“We’ve always felt with Beal that they do so much more for their buyers than other housebuilders. They look after their customers, they don’t push you into a sale, and they’re a very professional company to deal with.”
Holderness Chase offers househunters the appeal of village life in a semi-rural location, while also enjoying rapid access to Hull and beyond via the A63. It features Beal’s most popular house types and appeals to a wide range of househunters, from first-time buyers to families and downsizers.
With Preston being just 15 minutes’ drive from the centre of Hull, Holderness Chase is also an attractive proposition for professionals looking for peace and tranquility, while staying within easy reach of the city.
Anna Langrick, 37, and Grant Luckman, 30, who currently live in a Beal home in Kingswood, Hull, also attended the launch event. The couple are looking to upsize and move to a more rural location and were impressed by the three-bedroom Levisham.
Anna said: “I’ve been looking to move somewhere a little quieter for a while. We’ve got family and friends around this area, so Holderness Chase caught my eye.
“We live in a Beal home at the moment and my nephew has just moved into a Beal. We’re looking to upgrade and have a little bit more space and we loved how the Levisham would offer us a proper dining room space to host people in.”
Yorkshire Chamber calls for “immediate clarity” on Government’s Energy Bill Relief Scheme
Responding to the Government’s Energy Bill Relief Scheme for business, Martin Hathaway, managing director of the Mid Yorkshire Chamber of Commerce, said: “I am delighted to see firm action from the Prime Minister and Chancellor to tackle the energy crisis. This is a much-needed step in the right direction.
“Many firms were facing very tough times ahead with these spiralling costs, on top of existing challenges stemming from the pandemic, Brexit fall out, supply chain and recruitment issues, and the war in Ukraine.
“This support is vital to see Yorkshire firms throughout the winter, but clarity is needed immediately. Levels of support will vary from business to business, so it is key that any business who is eligible for support has a clear plan of exactly what they are entitled to and that they are able to access it quickly and efficiently.
“While this package is significant, I worry that six months of support is not enough to combat the previous years of economic unrest. Many firms will not have sufficient reserves in place to plan for longer term recovery and growth.
“Understandably there are many unknowns facing our region’s firms and the Government alike, but short-term planning is only good for short term survival. Our organisations need longer term commitments to allow them to plan ahead, invest in our towns, cities and people, and truly provide a boost to the Yorkshire economy for generations to come.”
Insolvency-related activities rise in Yorkshire and the Humber compared with much of the UK
The number of businesses in Yorkshire and the Humber experiencing insolvency-related activity in August 2022 saw another increase since the previous month to 267 businesses, with levels having risen by 12.2% over the last five months.
The research from insolvency and restructuring trade body R3, which is based on an analysis of data provided by CreditSafe, shows that Yorkshire and the Humber was one of six regions which saw a rise in insolvency-related activities in August, increasing by 11.3% since July. Only Scotland (up by 42.3% month on month), the South West (up by 21%), and the West Midlands (up by 18.3%) saw greater rises.
In contrast, when compared with the previous month, Wales saw the greatest fall in this type of activity, which includes liquidator and administrator appointments and creditors’ meetings, dropping by 31.7%, following by the North East (down by 19.7%), the South East (down 16.1%) and the East Midlands (down 12.8%).
In January, Yorkshire and the Humber recorded its lowest numbers affected by insolvency-related problems with just 150 businesses, while the highest were seen in March when 601 businesses in the region experienced insolvency-related problems.
Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, comments: “Given growing concerns both here and globally about the impact of the turmoil in the energy markets and the high cost of living, the fact that the number of businesses seeing insolvency-related issues in Yorkshire and the Humber has already spiralled in recent months, is obviously concerning. The region showed some strong signs of recovery post-Covid in the second half of last year, but is struggling to remain resilient to the current onslaught of negative pressures.”
According to R3’s analysis of the CreditSafe data, significant issues in the region continued to rise around late payment of invoices, one of the key indicators of business distress. In August, 51,835 companies in Yorkshire and the Humber owed money having been unable to meet their payments on time, this was slightly higher than in July (51,709 companies affected). In August, the region’s firms had a total of over 798,500 invoices on their books that had gone past their payment deadline without being settled, with an average invoice value of around £10,670.
Eleanor Temple continues: “Unfortunately, late payment of invoices places additional financial stress on customers’ businesses, so passing problems down the supply chain and escalating the situation. It is worrying to see this persistent issue continuing to grow in the region, indicating that some businesses already have underlying difficulties.
“Given the current economic uncertainty, it is vital that firms in the region batten down the hatches and prepare for some challenging months ahead. Those that are already starting to see signs of financial distress should waste no time in seeking professional advice; the earlier that insolvency practitioners are involved, the more tools they have at their disposal to help companies improve their situation.”
GNG sports division expansion leads to larger dedicated Wakefield manufacturing facilities
Having seen sales increase by 50% year on year, GNG’s sports division has expanded its operations into the company’s entire 28,000sq ft manufacturing facility in Wakefield, doubling its floorspace.
Previously occupying 14,000sq ft of floor space in a nearby building in Navigation Yard, the sports operation has now moved into GNG’s main premises following the mattress division’s relocation to its new factory in Normanton. The company has made a £200,000 investment into the Wakefield site to meet the requirements of the fast-growing sports division, and has recently also invested in new CNC machinery as well as continuing its focus on R&D. GNG Sport currently employs 40 people including a 20-strong team of sewing machinists.
Established in 1995, GNG Sport manufactures white label branded sports equipment and has become the leading manufacturer of rugby training equipment suppling a large range of foam-based products from tackle bags and contact shields to post protectors and pitch kits. It is also becoming well-known within the fast-growing fitness industry, manufacturing plyo soft boxes, punch bags and exercise mats as well as many other products. Its blue-chip customers include Gilbert, Life Fitness, Decathlon and Manchester United.
“Over the last 20 years, we’ve established ourselves as a leader within the rugby sector and we’re fast establishing a similar reputation within the flourishing fitness industry,” explains Neal Spencer, GNG sports managing director. “Since the Covid outbreak, we’ve seen a surge in orders, initially with more people needing gym equipment as they worked out at home and then following gym refurbishments and upgrades post-lockdown as well as benefitting from the many new sectors we’ve moved into.
“This uplift has been accelerated by the disruption of the global supply chain with more customers here wanting to source good quality, British-made products. As a result, we were rapidly reaching capacity in our previous manufacturing space, so to be able to double our footprint at the Wakefield site is fantastic, giving us the opportunity to continue to grow – we expect to create another 10 jobs here during 2022.”
GNG Sport has developed a number of new markets and now supplies a wide-ranging customer base including safety, soft play, gymnastics and football as well as offering a multitude of applications for sectors such as early learning, schools, public health, museums, warehousing and construction.
“We are proud to have built such a successful business and to be continuing to invest in Wakefield. We remain committed to providing on-going staff development, giving our team the specialist training they need to work with a range of technical materials. There’s no doubt that it is our ability to produce everything in-house, from traditional screen printing to state-of-the-art digital printing, laser fabric cutting machines, along with converting our own foam, that gives GNG the edge over our competition.”
Government outlines plans to help cut energy bills for UK businesses
New support for businesses facing rising energy bills has been unveiled by Business Secretary Jacob Rees-Mogg today (Wednesday 21 September), to support growth, prevent insolvencies and protect jobs.
Through a new Government Energy Bill Relief Scheme, the Government says it will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.
To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
The level of price reduction for each business will vary depending on their contract type and circumstances:
- Non-domestic customers on existing fixed price contracts will be eligible for support as long as the contract was agreed on or after 1 April 2022. Provided that the wholesale element of the price the customer is paying is above the Government Supported Price, their per unit energy costs will automatically be reduced by the relevant p/kWh for the duration of the Scheme. Customers entering new fixed price contracts after 1 October will receive support on the same basis.
- Those on default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. The amount of this Maximum Discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments. Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases. This is why the Government says it is working with suppliers to ensure all their customers in England, Scotland and Wales are given the opportunity to switch to a fixed contract/tariff for the duration of the scheme if they wish, underpinned by the Government’s Energy Bill Relief Scheme support.
- For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the Maximum Discount.
Demolition begins to make way for new dementia day care facilities
Work has started to demolish existing dementia facilities as part of enhancing dementia day care services in Kirklees.
Tilbury Douglas, a UK building, infrastructure, engineering and fit-out business, have started to demolish the existing Knowl Park House building on Crowlees Road in Mirfield this month.
The creation of a new public entrance to Knowl Park is also underway as the existing Knowl Park House entrance requires widening for accessibility purposes.
The new dementia day care facility will include zones for wellbeing, home therapy and activities as well as outdoor space that will house a potting shed and a greenhouse. The space will be flexible to accommodate the physical disability, sensory and mobility needs of service users.
Councillor Musarrat Khan, cabinet member for health and social care, said: “We are investing in the future wellbeing of vulnerable and elderly residents living with dementia and I am pleased to see the start of the outdated facilities being demolished.
“We will use the latest assistive technology to create a new dementia day care facility that is a vital space enabling service users to live well and more independently for longer whilst providing much needed daily respite for their carers.”
The new facility has been designed to reflect dementia design principles as a result of Kirklees Council’s collaboration with the University of Stirling’s Dementia Services Development Centre.
Over half a million-pound improvement works start on Normanton Market
Work has begun on Normanton Market to make improvements that will give it a new lease of life.
It will remain open to shoppers while the £650,000 refurbishment is undertaken.
Most of the work will be to the inside of the market and is part of Wakefield Council’s commitment to spend £4.8m to improve markets across Wakefield district.
Market traders will benefit from new welfare facilities, windows, doors, a full electrical rewire, new energy efficient lighting, and new replacement shutters to the shop fronts.
Outside the market, there will be a new space for residents and shoppers to sit with new street furniture, along with repairs and resurfacing to the paved areas.
Freestanding open stalls at the back of the Market will be removed. These have frequently attracted anti-social behaviour and caused concern to residents.
Councillor Darren Byford, cabinet member for regeneration, economic growth and property, said: “Whilst Covid-19 has delayed works, I am thrilled we are now able to deliver on this investment at Normanton.
“The market plays an essential role in the health and vibrancy of the town, contributing to the local economy, bringing people to the town centre and providing an important meeting place for residents and communities.”
Normanton Market has changed in recent years with traditional stalls, selling fruit or vegetables, being replaced by traders offering a service. At present a bicycle repair shop and beautician are among the businesses in the market.
Traders have welcomed the investment. Stacey Mulligan who runs ‘Sugar & Spice and all things iced’ said: “This will be a new market for the people of Normanton and us.”
Cllr Byford added: “The market is going to look fantastic once the work has been completed, and we would encourage anyone who has an idea for a business to get in touch, to discuss the possibility of opening at Normanton Market.”
Cllr Lynn Masterman, deputy cabinet member for regeneration, economic growth and property, said: “It’s great to see the work finally get underway. I am really excited about our plans for Normanton Market because it will benefit local communities and the traders.
“I’m pleased to say that it will be business as usual, and we are working closely with traders to minimise disruption to them and to shoppers.”
Work will be completed before Christmas.
Bradford unveils ambitious plans to build new stadium and skills centre for Rugby League
Bradford Council has unveiled plans to build a regional skills centre for Rugby League and the largest covered stadium in England as part of a new complex for elite sports which would put the city back at the heart of the thirteen-a-side code.
The plans would lead to the delivery of a world-class training complex for elite sports in Odsal accompanied by a Skills, Training and Education Centre for Rugby League and a new 25,000-capacity home for the Bradford Bulls, which could host international matches and significant domestic matches such as the semi-finals of The Betfred Challenge Cup.
The news comes five months after Super League (Europe) signed a 12-year strategic partnership with IMG – a global leader in sports events, media and fashion – to reimagine Rugby League and its competitions in the UK.
The scheme has been announced with just weeks to go until the start of the Rugby League World Cup, an event which will bring the world’s greatest players to England for the Men’s, Women’s and Wheelchair Rugby League World Cup finals.
The new skills and training facility – built in conjunction with the Rugby Football League as part of its national OuRLeague Life programme – would be shared by elite players, match officials, and young people and adults from across Yorkshire and the North East. It would complement a similar project planned in Manchester.
As the largest permanently roofed stadium in England the new venue in Odsal would also become home to other nationally significant sporting such as boxing and enable the city to become a home for major music, entertainment and cultural performances, capitalising on the legacy which will be left by Bradford’s successful bid to become UK City of Culture in 2025.
The complex would include a multi-storey car-park, complete with rooftop sports pitches. The car-park would be linked to a park and ride that can dramatically cut congestion and emissions by providing shuttle services for the new sports stadium in Odsal and motorists driving in to Bradford from the M62.
The complex would also lead to the creation of a new 105-bedroom hotel and five new sports pitches for rugby and football, while also improving the two existing community sports pitches. Energy for the scheme would be provided by a 55,000 sqm solar farm built on-site to provide renewable energy.
Independent economic analysis estimates that the new sports complex would attract more than 1.25m visitors a year, more than half of which would be outside Bradford, and lead to £625m visitor spend and more than £1bn of socio economic benefits for Bradford district.
The stadium and elite sports complex would also create 480 full time jobs over a decade.
The new stadium, and wider complex, would become home to Bradford Bulls and be built on the current Odsal stadium site, which was erected in the 1930s to rival Wembley as a national home of Rugby League.
Both The RFL and Bradford Council believe the sport has huge latent potential in the city of Bradford, as well as across Yorkshire and the North East, nationally and internationally.
Odsal stadium still holds the record for attendance for a rugby match in the UK, with more than 102,000 officially attending the 1954 Rugby League Challenge Cup final replay and an estimated audience of more than 120,000.
The Bradford Bulls were the country’s leading club in the early 2000s, winning Super League three times in five seasons between 2001 and 2005 and becoming World Club Champions three times between 2002 and 2006.
The club went into liquidation in 2017, before being resurrected, and currently remain outside the top flight having played a season away from Odsal in 2019.
The new stadium would retain Odsal’s iconic bowl structure but be built to modern standards, including a roof, to create the largest permanently-covered venue in England.
The complex is part of Bradford Council’s long-term strategy of harnessing the power of culture – including sport – to be an economic driver of clean, inclusive economic growth.
Bradford Live, a 4,800-capacity NEC-run venue, is already due to open in the city centre next year, the National Science and Media Museum is getting new gallery space, and a number of major investments are expected as part of Bradford’s City of Culture celebrations in 2025.
Odsal is in Bradford South, which currently ranks bottom out of all English constituencies for school-age social mobility. Some 34% of under 19s live in relative low-income families.
The council believes a new centre of excellence for Rugby League provides a once in a generation opportunity to break the cycle of poverty by investing in the future of this community and creating an outstanding venue that the whole district can be proud of and benefit from.
The complex is subject to a bid to the second round of the government’s Levelling Up Fund, which has two potential awards of £50million for culture-led schemes. Additional funding would come from private- and public-sector partners.
Independent analysis of the largest 34 towns and cities in England by Etopia Homes has identified Bradford as the UK’s number one levelling-up opportunity, in terms of both need and economic potential.
Culture and sport are seen as major economic opportunities in Bradford – which has one of the youngest and most dynamic populations in the UK, but like many northern cities suffers from a skills deficit.
Councillor Susan Hinchcliffe, leader of Bradford Council, said: “Independent analysis has shown that Bradford is the country’s number one levelling up opportunity and these ambitious plans build on our long-term strategy to harness the power of sport and culture to level up our great city district and drive economic growth.
“Rugby League was created to help level up the north of England by enabling working class players to be compensated for taking time off work to play rugby.
“Rugby League is woven into the fabric of Bradford and the north of England. By building a regional skills centre and the largest permanently covered stadium in the country, we can harness the power of Rugby League to level up again by creating well-paid careers and jobs for thousands of young men and women in Bradford and across Yorkshire and the North East.
“Bradford can create a home for Rugby League which reflects the status of both the sport and the city, and which will generate almost £1bn in economic benefits for the people of Bradford over a decade. We are committed to working with the RFL to deliver a sport and training facility which provides skills and generates job opportunities for young people in Bradford and beyond.”
Tony Sutton, chief operating officer at the Rugby Football League, said: “The birth of Rugby League perfectly embodies this Government’s mission to level up the country.
“The entire reason our game began was to level up opportunities for people in the north by compensating them for playing the sport they love.
“Rugby League is more than just a game – it creates opportunity, much needed employment and brings real social, economic and health benefits to communities. Rugby League can again help to level up by creating jobs and opportunities for people across the north. What we need Government help with is creating grass roots opportunities for people to play the game and build their careers.
“Bradford has a rich history in Rugby League as home to former Super League and World Club champions and an iconic stadium which delivered our sport’s largest ever attendance – a crowd of more than 100,000 people watching this great sport. This world-class complex would put Britain’s sixth-largest city back at the heart of British sport.
“The skills, educational and training centre would be a focal point for education – allowing youngsters to work side-by-side with national team squads and match officials, helping to drive up aspiration and achievement in Bradford and across Yorkshire and the North East.”
Bradford Bulls chairman, Nigel Wood OBE, said: “We are extremely impressed by and applaud the scale of the ambition for Odsal Stadium and its immediate surroundings, conceived by our civic leaders and the RFL.
“It is to be particularly welcomed and commended that there is a very strong educational and training dimension to the scheme, an aspect with fits perfectly into our club’s aspiration to be a good corporate citizen, providing training, skills, welfare, opportunity and employment for our community beyond simply being a great rugby league social enterprise.”
Judith Cummins, Labour MP for Bradford South and chair of the All Party Rugby League Group in parliament, said: “I have always been vocal in my belief that sport is one of Bradford’s greatest cultural assets and I have seen first-hand how sport changes lives and unites people.
“The people of Bradford are passionate about sport and Rugby League so this represents a major opportunity for the city. The ambitious plans that I have been shown will bring increased prosperity, skills, and job opportunities through regeneration of this vital part of south Bradford.
“The extra £1bn that this new complex would create would have a transformational effect on the whole city, which has been identified by an independent study as the UK’s leading ‘levelling up’ opportunity.
“By weaving together top-level sport and entertainment with a world-class skills and training base, this proposal offers the perfect example of how sport and culture can be used as a lever to create new economic growth and opportunity in the communities that need, and deserve, it most.”
Film company Salt Street aims to show foreign businesses what South Yorkshire has to offer
A series of video showreels from South Yorkshire’s Mayoral Combined Authority is being created to showcase what South Yorkshire has to offer to investors and businesses in the USA, India and other countries across the globe.
The three-minute films being produced by Sheffield-based production company Salt Street to hight what the Mayoral Authority Interim Chair Martin Swales says the area should be proud of. He said: “By producing these films, we have the opportunity to reach out to new businesses and investors internationally to showcase just what we have on offer. South Yorkshire is going places and the time is right for us to really start shouting about it.”
The showreels bring to life so many aspects of South Yorkshire life, including everything from the region’s industrial heritage in steel and manufacturing to the fabulous surrounding countryside, plus the art, culture and leisure activities available here. It looks at how South Yorkshire has innovated and used its knowledge to move into high value manufacturing sectors, as well as showing how the region is a great place to learn, work, achieve, relax and have fun.
The words to the showreel were written and narrated by Sheffield poet and novelist Helen Mort who has brought to life the opportunities, traditions and strengths of South Yorkshire, combined with the excitement of living and working in the region.
She said: “I was delighted to be asked to produce and narrate a poem as I’m from Sheffield myself, I felt I could give it local flavour and personality and provide a true representation of this region and what makes it so great.”
