Manufacturers in Brexit voting regions increasingly dependent on EU export markets

The UK regions and Nations which voted for Brexit have increased their dependence on the EU for manufacturing exports, while the European market remains the overwhelming favoured destination for the sector. The findings come from the Annual Regional Manufacturing Outlook published by Make UK and business advisory firm BDO. The report examines the contribution of manufacturing to the economies of every English Region as well as the devolved nations. It analyses both the most recent official data, as well as Make UK’s own quarterly data across a wide range of indicators including output, orders, employment, investment intentions. The analysis of official data from 2021 shows that the EU remains overwhelmingly the dominant market for UK goods with an overall average level of 49% of exports going to the bloc. Wales (60%), the North East (58%), East Midlands (51%) and East of England (48%) all saw their share of manufacturing exports to the EU increase while Yorkshire & Humber (57%) stayed the same. The South West, Scotland and Northern Ireland also saw their shares increase. Given the fact the EU remains by some distance the most important export destination for UK goods Make UK believes it is essential the Government takes steps to ease the trading relationship with the bloc and renews additional support to boost exports, especially for SMEs. This must include:
  1. Taking immediate steps to come to a mutual understanding with the EU on the Northern Ireland Protocol which avoids significant shocks to trade with the EU and provides a clear and stable business environment
  2. Easing the friction around the CA/CE marking regime by allowing CE marketed goods to be continually recognised on the GB market for as long as the rules in the UK have not diverged and remain the same
  3. Re-establish the SME Brexit Support Fund and other targeted schemes that will enable firms to respond to new market regulations in GB and other changes to trade with EU that will come into effect in 2023. In a recent Make UK survey almost a quarter (22%) of manufacturers cited support for exports as one of the top three ways Government could help them grow their business.
Verity Davidge, policy director of Make UK, said: “Despite the talk of ‘Global Britain’ history shows that geography is always the main determinant of trade. The EU was always going to remain the main destination for manufacturers who appear to becoming more, not less, dependent on it as a market. As a result, it is vital the Government now takes steps to reset the trading relationship with the bloc and, wherever possible, eases and simplifies trading to boost exports for SMEs in particular.” Richard Austin, head of manufacturing at BDO, said: “Manufacturing businesses have done a good job in adapting to new post-Brexit rules for trading with the EU, but ongoing Government support may well be required, particularly for firms at the smaller end of the spectrum. “Clearly, there are difficult ongoing political issues relating to the Northern Ireland Protocol. However, it’s vitally important that good trading relationships with our European neighbours are maintained to ensure that trade remains as frictionless as possible. “We also hope to see further progress on free trade deals which could offer new and exciting opportunities for the UK’s manufacturing exporters.” The analysis also shows the extent to which the economies of every region and Nation were impacted by the pandemic with the GVA of every area dropping in 2020 (the latest year for which data available) with those areas with a very heavy exposure to sub-sectors such as aerospace and automotive hit especially hard. The West Midlands saw the largest hit to its economy (a drop of -12.7% GVA) given its dependence on the automotive sector, with car plants forced to suspend production and the resulting impact on the supply chain. The report also shows that over the last year, according to data from Make UK’s quarterly surveys, every single region and nation saw positive balances across all indicators, showing how well the sector has performed over the last year. This reflects a combination of the bounce back from the pandemic and strong world trade, but also highlights how this period may come to be seen as good as it gets for manufacturers for some time to come given how fast economic conditions are weakening in major markets. While every region saw positive growth, the report also highlights the challenges from disrupted supply chains with eight out of ten regions and Nations reporting orders exceeding output over the twelve month period, highlighting the issues companies are facing delivering on orders. Individually the North East was the best performer for output growth, which may reflect the sub-sector composition of the region, almost a third of which is represented by pharmaceuticals and chemicals which have continued to perform strongly. The South East led the way for investment intentions, Yorkshire & Humber the best for output growth whilst the South West saw the best levels of job growth.

Leadership hopefuls must show pro-enterprise credentials, say small firms, as confidence nosedives

Surging operating costs, a high tax burden and struggles to fill vacancies are threatening the futures of hundreds of thousands of small firms and sole traders across the UK, according to the latest Small Business Index (SBI) findings from Federation of Small Business (FSB). The UK headline small business confidence measure has tumbled to -24.7, down more than 40 points on the same quarter last year (+18.6). The figure is the lowest recorded outside of periods when significant trading restrictions aimed at halting the spread of Covid were in place. It stands on a par with that posted in Q3 2020 (-32.6) and is lower than the level seen in the final quarter of last year when the omicron variant was rapidly spreading (-8.5). Among the more than 1,300 firms surveyed for the study, the vast majority (77%) do not expect their performance to improve over the coming quarter. More than a third (38%) expect it to worsen. Fewer than one in ten (8%) expect to grow rapidly. A record high 89% of small firms say operating costs are up this year compared to last, with record high numbers citing fuel (64%), utilities (64%) and inputs (48%) as primary drivers of that increase. Four in ten (43%) flag labour as a main contributor to higher outgoings, with substantial proportions also highlighting taxation (23%) and regulation (15%). A third (34%) of firms cite lack of appropriately skilled staff as a barrier to growth, with two thirds (64%) planning to increase wages over the next year as the labour market remains tight. A quarter (27%) plan to increase pay by 6% or more. At the same time, investment intentions have hit the lowest point recorded outside of the first lockdown in Q1 2020 – fewer than a quarter (23%) say they’ll up capital investment over the next quarter compared to last. Exports are also in the doldrums: the share of firms which do business overseas reporting a decrease in export value (36%) significantly outstrips the number reporting an increase (28%). Those proportions last stood in reverse in Q1 2019. Amid myriad challenges, one in seven (15%) respondents say they plan to consolidate, close or sell their firms over the coming year. FSB national chair Martin McTague said: “The cost of doing business crisis has worsened to the point where confidence is now lower than during last year’s massively disrupted festive trading season. “Firms are trying to absorb additional cost pressures but can only do so much before they’re forced to raise prices. “The small business community reduced in size to the tune of hundreds of thousands over lockdowns. Unless policymakers act fast, history is set to repeat itself. “Firms desperately need help with the charges that hit them regardless of profitability: business rates, national insurance, utilities, fuel and those linked to supply chain disruption. “We’re looking to prime ministerial candidates for unequivocally pro-business, pro-growth commitments. There is still time to act, but time is of the essence.”

Business leader invited to show enterprise in Leeds

Unity Enterprise (UE) is seeking a socially conscious individual with proven business acumen and a desire to stimulate entrepreneurial activity in diverse neighbourhoods in Leeds to become its Chair. A not-for-profit subsidiary of BME housing association Unity Homes and Enterprise, UE was established more than two decades ago to create positive social and economic opportunities for local people, businesses and communities. It currently provides 142 affordable business units for over 80 diverse businesses across its three centres. UE recently launched a new bespoke scheme, Steps to Business, to give aspiring entrepreneurs of all ages the platform and professional support to build their own sustainable business. The new Chair will help spearhead UE’s post-pandemic drive to boost enterprise, nurture business talent and create new jobs with a particular emphasis on people of BME origin. The successful candidate will also sit on the Unity Homes and Enterprise Board. Cedric Boston, Unity Homes and Enterprise Chief Executive, said: “We are indebted to Emma Green who has served with great distinction as UE Chair. She retires from the post with our sincere thanks. “It was hoped that the end of Covid lockdowns and the return of more normal times would lead to a major upturn in entrepreneurial activity.  The cost of living crisis has made this more challenging, but we will not be deterred from our mission to help people start up, nurture and grow successful businesses. “The new Chair of UE will be invited to work with the Board, our fantastic staff and key partners including Leeds City Council to help devise new initiatives such as how to reach more untapped entrepreneurial talent. “We also want to continue upgrading our three enterprise hubs, including Leeds Media Centre where the Steps to Business programme is based, which offer high quality, affordable offices and workspaces for organisations of all sizes. “It is a deeply rewarding role and a wonderful opportunity for a successful businessperson to share their wisdom and change people’s lives for the better.”

Immingham welcome first import of specialised construction raw material

Associated British Ports has welcomed its first shipment of conditioned pulverised fly ash at the Port of Immingham. The raw material is used in other products to produce components for road or ground bases, in concrete and cement, or tile and brick manufacturing. Simon Bird, Regional Director for the Humber ports said: “Immingham plays a key role in bringing in components for the construction industry and we’re delighted to welcome this first shipment of conditioned pulverised fly ash. The strength of the Humber Ports is in the diversity of the markets and commercial sectors that we support, so it is great to be adding another new product to that range.” Ivan Skidmore, Sales & Technical Director of Power Minerals said: “This is the largest single shipment that we have arranged of ash, and working with ABP was very straightforward and clear, in terms of the process and delivery. They have been very supportive throughout the process and implementation. “This significant shipment of ash illustrates the strength of PML as part of our international group – EP Power Minerals – and shows our ability to source ash, invest in delivery and ensure a robust, continuity of ash supply when needed. “We always go above and beyond to meet our customer’s needs and this shipment, with the support of ABP, is a great example of that ethos.”

Timetable boost on way for Yorkshire’s FLYER A1 Route

A boosted timetable for Yorkshire’s summer getaway – that’s the promise from bus operator Transdev as it unveils plans to run more buses, more often on its direct FLYER A1 route between Leeds city centre and Leeds Bradford Airport. Rising customer numbers using the FLYER A1 route are driving plans to increase its timetable, which currently runs every 30-40 minutes on weekday daytimes and hourly on Sundays. From Sunday, 24 July, there’ll be a FLYER A1 bus every 20 minutes on weekday daytimes and every 30 minutes in the evenings and on Sundays. There’ll also be an extra late-night bus from Leeds city centre at 00.36 to the Airport. Timetable changes are also on the way from the same date to FLYER route A2, which links Leeds Bradford Airport with Harrogate and Bradford, and FLYER A3 connecting the Airport with Otley, Shipley, and Bradford. Transdev CEO Alex Hornby said: “We’re seeing more and more people choosing to use our FLYER buses, particularly on our FLYER A1 route to and from Leeds – and with the peak summer holiday season just around the corner, we’re boosting our timetables to make sure getting to and from the airport is as swift and simple as possible. “We’re also changing timetables on our FLYER A2 and A3 services to improve our timekeeping and ensure we can continue to deliver dependable journeys – whether it’s for the start of a much-anticipated summer holiday, or everyday trips for work or leisure. Changes to the road layout by Leeds City Council will also see the closest stop for Leeds rail station moving to Boar Lane, just a short walk from the station entrance, also from Sunday 24 July. Transdev’s FLYER bus network was launched in July 2020 in partnership with West Yorkshire Combined Authority and Leeds Bradford Airport. Its three dedicated FLYER branded routes run from early morning until late at night seven days a week, using Yorkshire-built low emission buses to support the region’s sustainable transport strategy by providing a highly attractive alternative to driving. Each FLYER bus offers customers a first-class travel experience at economy fares, including free Wi-Fi, wireless and USB device charging points, plenty of luggage space, audio-visual next stop announcements, comfortable seating with leather headrests and double-glazed windows to enjoy the Yorkshire views along the route. Full details of all FLYER routes, times and ticket deals are available online at: transdevbus.co.uk/flyer, and on the free to download ‘Transdev Go’ mobile app.

Leeds-based Bailie Group wins national innovation accolade

Leeds-based Bailie Group, a family-owned group of agencies and consultancies with a purpose to invest in people and ideas that make a positive difference, has been recognised for its enduring commitment to innovation at the Family Business United Awards. Scooping the coveted ‘Innovation Family Business of the Year’ title, the Group was commended for its unrivalled focus on nurturing originality — having ringfenced an annual sum of £500,000 to support pioneering ideas proposed and developed by its own team. A further half-a-million pounds will be dedicated to a ‘Dragon’s Den style’ programme, which will see the business invest in external companies responsible for the emergence of socially responsible technologies or enterprises. Speaking of the firm’s commitment to innovation, Fergus Bailie, CEO of Bailie Group, said: “As a Group, innovation is incredibly important to us. It’s an element that underpins our entire business ethos to invest in people and ideas that make a positive difference in society. “It’s not just something we talk about, but an area in which we invest heavily. So, to have been recognised for our efforts, by an organisation that is passionate about the importance that family businesses play globally, is a great honour.” In line with the Group’s approach, the event itself was a true family occasion, with colleagues and their loved ones joining from far and wide. Bailie continued: “The event was held online, so it was particularly special to see people across the group settling down to enjoy the occasion with their own families — who all shared in our pride at the result. “Not only was it a celebration of a job well done for the team, but also an opportunity for family members of all ages to be inspired and proud of the part that each of our colleagues plays in the Group’s collective success.”

Yorkshire Water to give £400k to wildlife trust after pollution incidents

Yorkshire Water has agreed to donate £400,000 to Yorkshire Wildlife Trust after polluting two watercourses in separate incidents. The Environment Agency found the company had breached its environmental permit with an unauthorised sewage discharge from Bellhouse Way Sewage Pumping Station, which polluted Holgate Beck in York, and two unauthorised sewage discharges from a rising main at Hemsworth Water Park, Hoyle Mill Lane Sewage Pumping Station, causing pollution at Hoyle Mill Stream at Wakefield. It submitted two Enforcement Undertakings to the Environment Agency, which have now been accepted – £150,000 for the Holgate Beck incident and £250,000 for Hoyle Mill Stream. An Enforcement Undertaking is a voluntary offer made by companies and individuals to make amends for their offending, and usually includes a donation to a wildlife charity to carry out environmental improvements in the local area. Bellhouse Way Sewage Pumping Station has an environmental permit to discharge sewage into Holgate Beck in emergencies, which does not include storm conditions and heavy rain. At the start of April 2018 it discharged sewage intermittently due to an electrical failure in the main pump and blockage of the standby pump. The alarm on the pumping station was activated, but as this coincided with a period of heavy rain it was not differentiated from other assets which are allowed to discharge during storm conditions. As part of the Enforcement Undertaking requirements Yorkshire Water has improved its monitoring systems so that assets which are permitted to discharge in an emergency only are allocated a code to ensure they are always investigated. This code has been allocated to 670 assets across the county. At Hoyle Mill Road Sewage Pumping Station a rising main burst in July 2020, discharging raw sewage into Hoyle Mill Stream, visibly polluting the beck for 2.75km and having a detrimental impact on water quality. On 3 August a repair that had been made to the rising main failed and more raw sewage was discharged into the beck. Further investigation revealed the pipe was severely corroded and the repair was not sufficient to sustain the pressure. As part of the Enforcement Undertaking, Yorkshire Water replaced the whole rising main at the end of last year. Martin Christmas, Environment Agency Area Environment Manager, said: “We are holding water companies to account like never before and while we will always take forward prosecutions in the most serious cases, Enforcement Undertakings are an effective enforcement tool to allow companies to put things right and contribute to environmental improvements. “They allow polluters to correct and restore the harm caused to the environment and prevent repeat incidents by improving their procedures, helping ensure future compliance with environmental requirements.

“As well as donations totalling £400,000 to Yorkshire Wildlife Trust that will bring great benefits to the environment, Yorkshire Water has made significant improvements to its monitoring system and completed repairs to its assets as part of the civil sanction.”

Yorkshire Wildlife Trust will use the donations on environmental improvements such as its Askham Bog, River Foss and Living Went projects.

Traffic Commissioners revamp Goods Vehicle Operator Licensing Guide

The Goods Vehicle Operator Licensing Guide has been revised and updated to reflect changes in legislation and brought into line with accessibility criteria. The Traffic Commissioners for Great Britain have published an updated version of the guide which gives an overview of how the licensing system works for operators of goods vehicles. It is intended to give a summary of operator licensing and to direct users to where further advice may be available. This updated guidance provides clarification of modern rules and regulations and adheres to current accessibility criteria. The new guide remains fully printable for those who choose to do so. It includes details on what is necessary in order to hold an operator’s licence, how to apply for a licence, managing a licence, the role and responsibilities of transport managers and more. The guide can be found at: https://www.gov.uk/guidance/goods-vehicle-operator-licensing-guide Traffic commissioners are the regulators of the road transport industry in Great Britain. They are appointed by the Secretary of State for Transport but act independently from Government and the enforcement agencies, for example, the Driver and Vehicle Standards Agency.

Energy industry professionals offered places on Energy Council

The Greater Lincolnshire LEP is looking for energy industry professionals to join its Energy Council. The Council is a board of the LEP, and supports work to ensure that the Greater Lincolnshire energy system is able to smoothly transition to a renewable future. It Energy Council is commissioning a Local Area Energy Plan (LAEP) to support the food sector and to support the growth of a low-carbon cluster. To help in that work it’s looking for passionate, dynamic and motivated experts in any aspect of energy production, delivery and usage, who will act as ambassadors for the industry, take the lead on strategy for the sector and give focus to the delivery of the Local Area Energy Plan. The LEP is particularly keen to strengthen the voice of the private sector, small and medium-sized businesses, and welcome applications from female candidates and candidates from diverse backgrounds. looking for applicants with some or all of the following:
  • Infrastructure and utility insights
  • Experience of energy applications across multiple sectors
  • Understanding of community energy, off-grid and hybrid solutions
  • Understanding of whole systems and circular economy
  • Ability to work with a wide range of stakeholders
  • A leader with a demonstrable track record at turning vision into reality
Duncan Botting, Chair of the Energy Council, said: “My time as LEP Energy Council Chair has been challenging, educational and enjoyable. Greater Lincolnshire has some of the greatest energy assets in the country and at the other extreme some of the poorest infrastructure to support it. Sectors such as defence, agriculture, horticulture, food production,  logistics, hi-tech, tourism, healthcare, industry, offshore wind, the largest port by tonnage into the UK, the largest industrial de-carbonisation cluster (Humber) in the UK – these all combine to make this one of the most exciting and challenging regions in the country. This is combined with a great team and the council members all very supportive.” Further details: contact Caroline Illingworth at caroline.illingworth@lincolnshire.gov.uk

Lincolnshire business marks major milestone with help for hospitality

One of Lincolnshire’s best loved family businesses is celebrating its 120thanniversary. Stokes Tea & Coffee marked this major achievement yesterday (14 July 2022), by hosting a special event to celebrate, and provide support to fellow businesses. The company has a long, proven history of supplying wholesale coffee, tea, machines, servicing, and training as well as operating some of the busiest cafés in the city of Lincoln. Nick Peel is the fourth generation of the family to lead Stokes Tea & Coffee, he said: “I’m sure my Great Grandfather would have been amazed to see how far the company has come since he started it 120 years ago. It makes me feel very proud as well as grateful. Our customers, suppliers, colleagues, and teams have all helped us along the way to achieve this milestone. “It’s a challenging time right now for independent businesses, especially those in hospitality. So, we were keen to team up with our colleagues and use our anniversary event to not only celebrate our history, but to help support the future of hospitality businesses.” The event was held at the company’s HQ, in the famous Lawn Building – a former 19th Century asylum on Union Road in Lincoln. Guests at the event were treated to a packed agenda. Panel discussions tackling the hottest topics in hospitality including advice on funding, innovation, business growth and sustainability were lively and thought provoking. There was also an exhibitor area, roastery tours, demos, and tasters. Mary Powell, Visit Lincolnshire, said: “We were delighted to be Event Partner with Stokes Tea & Coffee for this momentous occasion. It’s so encouraging to see businesses coming together to share ideas and collaborate to overcome common challenges. Visit Lincolnshire has been working hard over the last 2 years to support businesses in a range of ways from marketing skills to product development and investment.” Wright Vigar were event sponsors and were on hand to provide advice about professional accountancy services for businesses. Panel speaker, Andrew Ward, MBE, director at Roy Ward Farms, spoke passionately about the growing challenges for farmers across the UK and Lincolnshire. They are experiencing price hikes much higher than consumers are aware of. In one example, he mentioned that the cost of red diesel has increased by 200% in recent months. He also explained how farmers are playing a crucial part in protecting the environment by using natural crop control methods, reducing the use of herbicides, and preserving many acres of land for wild areas. Representatives from British Garden Centres spoke about how the family firm, which was born in Lincolnshire, has grown to just over 60 sites across the UK as far as Carmarthen, Wimborne, and East Durham. Stokes continues to be passionate about supporting the hospitality sector and looks forward to working together with businesses to secure future success – for the next 120 years.