Nano units at Armley snapped up before completion
The Nano Park Company, which specialises in creating combined workshop and office space across Yorkshire, has announced its development in Armley is nearing completion.
The Nano Park Company bought a one-acre site off Pickering Street, Armley for £300,000 from the Yorkshire textile company James Hare in March 2020.
Bradford-based specialist construction company Percy Pickard Contractors is scheduled to finish building work towards the end of next month – and already one occupier has signed up for 3,730 sq ft of office, workshop and industrial space.
Altogether the Nano Park will comprise seven two-storey 1,730 sq ft Nano units and two 2,000 sq ft industrial units. The Nano units will create 50 new and sustainable jobs.
The Nano Park model provides an ideal base for small and fledgling companies and satellite operations for larger firms. The units feature warehousing space on the ground floor, with offices above.
Edward Marshall, a director of the Bradford-based Nano Park Company, explained: “The astounding success of our ground-breaking Nano Parks in Bradford and Wakefield, which are completely full, has encouraged us to repeat the model elsewhere in Yorkshire.
“We are absolutely delighted that one occupier has already committed to taking one Nano unit and one industrial unit at Armley before the development is completed and before we have started any marketing. That is testament to the reputation of our Nano Parks and to the quality space and facilities they offer.
“Now the Armley park is nearing completion, and we are just beginning to market it, we are expecting extensive interest in the remaining units.”
One in three business owners suffer COVID-linked mental health decline
The impacts of the COVID pandemic, and the lockdowns and worsening late payment culture which accompanied it, on the mental health of small business owners are today laid bare by new FSB findings.
Its survey of 1,000 business owners finds that a third (34%) of all small business owners state that their mental health declined over the course of the pandemic. Latest Government figures show that there are 5.5 million small businesses across the UK, indicating that 1,800,000 have suffered a mental wellbeing hit due to COVID.
Across all respondents, one in four (24%) report that they currently have a mental health condition such as anxiety, depression or post-traumatic stress. Among disabled entrepreneurs, the figure rises to four in ten (43%). One in seven (16%) small business owners report having a mild mental health condition, with 6% and 2% respectively stating that they have a moderate or severe condition as defined by NICE.
The new research flags the extent to which small business owners are struggling to make use of the workplace health support offered by government. Only one in ten (13%) disabled business owners or business owners with a health condition have used the Access to Work Scheme, aimed at providing targeted workplace help for both business owners and employees. More than a third (35%) have not heard of the scheme at all. A quarter (25%) are not aware that sole traders are eligible to access it.
With loneliness the theme of this year’s Mental Health Awareness Week, the new study also highlights the ongoing impact of the UK’s poor payment culture on mental wellbeing. Six in ten (62%) small business owners state that they were subject to late or non-payment after COVID hit, with a quarter (26%) stating that dealing with poor payment impacted their mental wellbeing during the pandemic.
Wider studies underscore the isolating effect of poor payment. Estimates of the sum collectively owed to small firms in unpaid invoices vary – one recent study puts the figure at £140bn. Findings from FSB’s Small Business Index indicate that 400,000 small businesses are under threat because of poor payment practice.
The cost to the average small employer of having staff away from work due to physical or mental health conditions surpassed £3,500 last year, translating to a £5bn cost to the small business community as a whole.
In light of the findings, FSB is encouraging the Government to:
- Improve Access To Work take-up by ensuring health professionals point patients towards the scheme when writing fit notes.
- Launch a new, ambitious alternative to the New Enterprise Allowance to help those with mental health conditions who are out of work to create start-ups.
- Make Audit Committees directly responsibility for supply chain practice, elevating the importance of prompt payment within corporate environmental, social and governance (ESG) programmes, and place ending the UK’s late payment culture at the heart of BEIS’s forthcoming enterprise strategy.
- Develop “Pathways to Entrepreneurship” strategies aimed at dismantling the unique barriers faced by different entrepreneurs, including those with mental health conditions.
- Take forward FSB and TUC’s joint proposal for a small business statutory sick pay rebate, to help firms recover the cost of the millions of days lost to sickness absence each year.
Further downgrades to UK growth with squeeze on business investment and consumer spending raising risk of recession, says EY ITEM Club forecast
Inflation, geopolitical uncertainty, skills challenges and increasing supply chain issues are continuing to squeeze the outlook for business investment, according to the new EY ITEM Club Spring Forecast.
UK business investment is now forecast to grow 10% this year, having been expected to grow 12.7% in February’s Winter Forecast and 11.3% in March’s Interim Forecast. This represents an estimated £5.5bn shortfall from February’s forecast. With a sluggish recovery last year presenting a disappointing starting point for 2022, investment is now not expected to reach pre-pandemic levels until the end of this year.
The EY ITEM Club has also downgraded the outlook for UK growth overall, with UK GDP now expected to grow 4.1% in 2022 – down from the 4.2% predicted in March – before growing 1.9% in 2023 and 2.2% in 2024. Growth will be dependent on under-pressure households continuing to spend by saving less and borrowing more – and the EY ITEM Club says that the possibility they may not raises the risk of recession.
Hywel Ball, EY UK chair, says: “Uncertainty about the pandemic has been replaced by geopolitical uncertainty, which has also had consequences for the cost of capital goods and supply chain frictions. The temporary super-deduction tax incentive should support an investment pick-up this year, but its impact is being countered by strong headwinds.
“Some businesses also appear to be grappling with labour shortages and aren’t always able to access the talent needed to identify or deliver investment opportunities. At the same time, many large businesses are actually well-placed to invest, having paid down bank debt during the pandemic and built cash holdings which could can be used to fund new projects.”
The EY ITEM Club estimates that, as of February 2022, UK corporates had accumulated approximately £150bn in extra cash holdings – 5.5.% of GDP – compared to what they would have had access to had pre-pandemic deposit trends continued.
Hywel Ball adds: “Investment prospects could rely, in part, on the labour market outlook – and whether the pandemic-linked rise in non-participation can be reversed. Focusing on skills and talent will be key for businesses, society and the wider economy. Until business investment is unlocked, the UK economy will be even more dependent on consumers, who are facing their own challenges.”
The UK unemployment rate fell to 3.8% in the three months to February 2022, but the number of ‘inactive’ working-aged people is 490,000 higher than two years ago, mainly because of rising numbers of people on long-term sick leave or taking early retirement. Employment is down by over half a million people compared to pre-pandemic levels.
Consumer squeeze continues – and the risk of recession rises
While the EY ITEM Club’s central forecast does not see the UK economy entering a recession, it warns that there is a “serious risk” of this happening later in 2022 if consumer spending does not meet expectations, or if October’s energy price cap review results in a higher-than-expected rise in bills.
Consumer spending is now forecast to rise 4.9% in 2022, down from the 5.1% and 5.6% expected in March and February. Growth of 1.5% is predicted in 2023, down from the March and February forecasts of 1.7% and 2.9%.
Inflation, meanwhile, is still expected to have peaked at 8.5% in April, while average inflation for 2022 is now forecast to be 6.7% (up from 6.5%), the highest level since 1991. With average earnings forecast to rise by just over 4% this year, British workers are set to see the biggest fall in real wages since 1977.
However, consumer spending – and the economy – is expected to benefit from households continuing to release the almost-£180bn worth of ‘excess’ savings (8% of GDP) built up during the pandemic. The EY ITEM Club notes that the household savings ratio fell more rapidly in Q4 2021 than expected, falling to 6.8% from 7.5% in Q3 and a lockdown-induced 18.3% in Q1, but is still above the immediate pre-pandemic average of 4.9% (2017-19).
Martin Beck, chief economic advisor to the EY ITEM Club, says: “The UK economy is not without supports. Momentum at the start of the year should help offset new headwinds to deliver calendar-year growth for 2022. The balance sheets of many households and businesses are unexpectedly strong, having built up a combined £300bn of ‘excess’ savings over the course of the last two years.
“But accumulated savings are not a panacea for the economy. There is a significant risk that consumers, faced with a sustained squeeze on their finances, may cut spending in response. And while the rising cost of living will affect almost all households, some are more vulnerable than others. The distribution of savings built up in the pandemic is heavily skewed towards richer households, while lower income groups will be disproportionately affected by higher energy bills and benefits increases being outpaced by inflation this year.
“The forecast for households improves significantly in 2023 and 2024, but we’re not there yet. Economic growth this year will depend heavily on squeezed households being willing to spend, which, in turn, will rely on falls in real incomes being offset by households saving less or taking on more debt. There is scope for households to do this but there are no guarantees consumers will come to the rescue.”
The EY ITEM Club expects pressure on households to ease from next year. Energy prices are predicted to fall across 2023 and 2024, pushing down on inflation, which is forecast to average under 2% in 2024. The benefits uprating in April 2023 is likely to be over 7%, well ahead of prices rises. And while high inflation will mean the four-year freeze on tax allowances and thresholds will affect more taxpayers than intended, this will be mitigated by a 1p cut in the basic rate of income tax from April 2024.
Government plans to allow local authorities to take control of empty high street properties
The Government plans to give local authorities powers to force landlords to rent out commercial properties in a move it claims will revitalise high streets, rejuvenate town centres, and restore community pride.
Under the Levelling up and Regeneration Bill, expected to be part of this week’s Queen’s Speech, councils will be given greater powers to take control of buildings for the benefit of their communities, transforming boarded up shops or derelict buildings into thriving businesses, shared community spaces or housing.
Prime Minister Boris Johnson said: “High streets up and down the country have long been blighted by derelict shopfronts, because they’ve been neglected, stripping opportunity from local areas.
“We are putting that right by placing power back in the hands of local leaders and the community so our towns can be rejuvenated, levelling up opportunity and restoring neighbourhood pride.”
The number of empty shopfronts has soared to 1 in 7 according to the British Retail Consortium, rising to 1 in 5 in the north east, with boarded up and derelict shops blighting highstreets and sapping the life from once bustling town centres. New Compulsory Rental Auctions will ensure that landlords auction shops that have been vacant for over a year to prospective tenants, putting buildings to good use.
The move will create opportunities for new businesses and community groups, paving the way for new jobs to boost employment, strengthening local economies and restoring local pride.
Levelling Up Secretary Michael Gove said: “By empowering local communities to rent out shops which have been sat empty for a year or longer, we will end the scourge of boarded up shops that have blighted some of our great towns across the country for far too long.
“These measures will breathe new life into high streets, transforming once-bustling communities into vibrant places to live and work once again and restoring local pride as we level up across the country.”
Councils will also be given greater powers to drive regeneration through Compulsory Purchase Orders, making it quicker and easier for councils to use powers to deliver much needed local housing and infrastructure.
Compulsory Purchase Orders allow acquiring authorities, including local public bodies, to acquire buildings for public benefit without needing consent from the owner. This may include acquiring land to build social housing or other regeneration projects.
The UK Government is also providing £1.7bn of temporary business rates relief in 2022-23 for up to 400,000 retail, hospitality and leisure properties to support the high street.
The High Streets Task Force will continue to support communities to regenerate their high streets to reflect evolving local needs. It is already supporting 84 local authorities with access to expert support in areas such as placemaking, planning and design.
Shift in Government rules should help cashflows down on the farm
The Government is to make Direct Payments to farmers in England in two instalments each year for the remainder of the agricultural transition period, in a move designed to ease agricultural cashflow.
The deadline for submitting this year’s Basic Payment Scheme 2022 applications is Monday 16 May. Farmers with eligible applications will receive the first payment of 50% from the end of July and the second from December.
With agricultural commodities closely linked to global gas prices, farmers are facing rising costs for inputs including manufactured fertiliser, feed, fuel and energy. Due to heightened worldwide demand as the global economy reawakened following Covid, by February the price of gas had quadrupled on the previous year, and with the instability caused by Putin’s illegal war in Ukraine that price has risen further.
Output prices, particularly wheat, are also high and from analysis published by the Agriculture and Horticulture Development Board (AHDB) it is clear that farmers should continue to buy their inputs as usual. The steps government is taking to bring forward payments will allow them to do so.
Environment Secretary George Eustice said: “While increasing farm gate prices may mean that farm profitability remains stable, we recognise the short term pressures on cash flow.
“We have decided to bring forward half of this year’s BPS payment as an advance injection of cash to farm businesses from the end of this July. It will give farmers some additional cashflow earlier in order to provide some confidence. We will also make this a permanent change to the way we pay BPS in future with twice yearly instalments going forward. In the days of the EU this would never have been possible due to the way audits worked and the need to enforce the three crop rule during the summer.
Rural Payments Agency Chief Executive Paul Caldwell said: “Bringing forward half of this year’s BPS payment from the end of July will be a welcome boost to cash flow for many farm businesses during uncertain times. This is not just an opportunity to support farmers here and now through a cash injection. It’s a permanent change to bring Direct Payments in line with what will be a more regular payment system under the new environment land management schemes.”
Tourist attraction extended thanks to steel from Scunthorpe
One of North Wales’ premier tourist attractions is about to get bigger thanks to Scunthorpe-made rail, which is being used repairs that will extend the Llangollen Railway by 2.5 miles through stunning countryside.
Terry Pickthall, Llangollen Railway Press and Communications Officer, said: “The Llangollen Railway is the only standard gauge heritage railway in North Wales and runs through the beautiful Dee Valley, an Area of Outstanding Natural Beauty. The railway starts at Llangollen Station in the heart of Dee and then continues for 7.5 miles upstream following the River Dee to Carrog. The views from the carriages are just breath-taking and constantly changing from season to season – you’ll see the first spring lambs and the ever-changing colours of the beautiful vista.”
The new track will enable the journey to be extended to 10 miles when the brand-new Corwen Station is opened later this year. “It’s been a 10-year project,” said Terry. “Most of the work has been completed by volunteers, it’s a true labour of love.”
The former British Rail Ruabon to Barmouth line closed to passenger traffic in 1964 with goods traffic ending 4 years later. In 1975, the heritage railway was started by a group of enthusiasts who saw the potential for a scenic line through the Dee Valley. Terry said: “When the line finally closed in 1968, the track, signalling and much of the infrastructure was removed or demolished quickly after. Llangollen, Berwyn and Carrog Station buildings survived, albeit in a state of disrepair. It’s thanks to the hard work and vision of these enthusiasts that we have this fantastic heritage line today.”
Getting the track in order has demanded a high level of commitment and determination. Berwyn Station was reached in 1985, Deeside in 1990, Glyndyfrdwy in 1992, Carrog in 1996 and Corwen East in 2014, with the new Corwen Central Station expected to open in 2022.
John Austin, British Steel Commercial Manager, said: “We supply our rail products around the world for many different applications. Helping a heritage line like Llangollen continue to serve its local communities and visitors to this stunning area is really heartwarming. I’m very proud that Scunthorpe steel is playing its part in Wales’ ongoing railway history.”
New rules for hauliers will keep music on the move
Hauliers serving music concerts, sports and cultural events will be able to move their vehicles freely between Great Britain and the EU thanks to newly-announced haulage sector rules.
Designed in consultation with the live music, performing arts and sports sectors, a new dual registration measure is expected to come into force from late summer. It will apply to specialist hauliers that transport equipment for cultural events, such as concert tours or sports events.
Dual registration will mean drivers with an established base in Great Britain and in another country outside of the UK will be able to transfer their vehicle between both operator licences without the need to change vehicles, have their journeys limited or pay VED in Great Britain.
Transport Secretary Grant Shapps said: “British talent has long been at the heart of global performing arts and our specialist haulage sector is critical to the success of their tours.
“It is unacceptable that because of EU bureaucracy, the operations of our specialist haulage sector on which our artists rely have been put at risk, impacting the livelihoods of touring artists and sportspeople.
“Dual registration helps put this right and means that touring events can take place seamlessly across Great Britain, the EU and beyond, keeping our incredible cultural sector thriving for years to come.”
Since the UK’s departure from the EU, British specialist hauliers have been limited to visiting just three EU stops per tour. However, under the new legislation, companies with operating bases in both Great Britain and another international location can switch vehicles between the respective operator licences and make use of the internal movements permitted within each territory. This opportunity applies not just to the EU, but also to other countries, opening our doors to cultural exchange from all over the world. Tarrant Anderson, Company Director of Vans for Bands, said: “We are really pleased that the Department for Transport has engaged in detail with our sector on this critical issue and has come up with a solution to keep the live music touring industry moving. Without this initiative a large number of tours this year would simply have been unable to take place.”Interest rate rise squeezes small firms between a rock and a hard place, says FSB
The interest rate rise introduced by the Bank of England’s Monetary Policy Committee squeezes small firms between a rock and a hard place, according to the Federation of Small businesses.
With 16% of microbusinesses still not currently fully trading, Chair Martin McTague said small firms faced spiralling operating costs on one side and rising personal and professional debt costs on the other.
He said: “The hope is that today’s move goes some way to putting the brakes on input price inflation in a way that hasn’t been achieved by previous rate rises, mitigating the pain of higher debt repayments.
“When we spoke to members over the first lockdown, the majority were carrying debt, and four in ten were concerned that their debt was now ‘unmanageable’.
“Those with bounce-backs are rightly protected with a fixed rate on those facilities, but a lot of the wider personal and professional loans that small businesses and sole traders hold will move in line with the increase today.
“Consider the electrician who is trying to manage surging fuel prices and the costs of supply chain disruption at work, whilst also being hit by spiralling utility bills and, now, higher mortgage repayments at home.
“Microbusinesses are especially hard-hit by the cost of doing business crisis. Energy costs are particularly difficult to manage, as they are not eligible for the relief offered to consumers, and don’t benefit from the leverage that big businesses can bring to bear. As these new figures show, their fight to bounce back from Covid is that much greater than for a lot of big corporates.
“Those with coronavirus business interruption loans will be feeling particularly apprehensive after today’s increase, which is why we’re urging government to extend Pay As You Grow options to CBILS customers to ease at least one of the mounting pressures they face.
“This is a moment for the banks to step up: helping their small business and sole trader customers to manage the effects of rising rates responsibly. Widespread collapse is not good for anyone long-term.”
Boston Town businesses to receive fully-funded support
Businesses based in Boston Town can now benefit from fully-funded support and training to help them to prosper and grow. The Centre for Food and Fresh Produce Logistics has been set up by the University of Lincoln’s National Centre for Food Manufacturing (NCFM) in association with Boston College.
Funded through the Boston Town Deal this forms one of the eight projects within an overall funding package of £21.9 million to Boston provided through the Town Deal Initiative by the Department for Levelling Up, Housing and Communities.
The funding is aimed at businesses in: Agri-Food Technologies, Port & Logistics, Manufacturing, Engineering & Packaging, Equipment & Technical Services plus Food Service including Retailers and Restaurants.
The delivery partners provide an outstanding resource base and work in collaboration with Boston businesses to identify growth needs and provide suitable solutions. The ambition is to enable businesses to grow through adoption of innovation, digital technologies, scientific research, training and development of workforce, products and process development plus business advice. There is also a Capital Grant element to help towards equipment purchases.
Benefits are tailored to suit the needs of the business and employees with a focus on:
Business Support to Enhance Productivity, Profitability and Job Creation
Access to technical services and consultancy provided by a dedicated team of experts at the National Centre for Food Manufacturing (NCFM), Boston College, Lincoln Institute of Agri-Food Technology and University of Lincoln College of Science. Project examples include – Digitalisation, Automation, Product Trials and New Product Development, Processes, Packaging, Robotics, Finance, Marketing, Crop Storage, Scientific Research and General Business Consultancy.
Knowledge Transfer and Networking
Programme members benefit from business networking and knowledge sharing activities such as – Events, Equipment Demonstrations, Masterclasses and Signposting to other sources of relevant support.
Workforce Development through enhancement of Skills and Knowledge
Boston College provides the lead for the development and delivery of training programmes to match the growth needs of programme businesses. Topics aim to upskill the workforce and enhance the effectiveness of business leadership and management. Sector activities will also campaign for career awareness, create a talent pipeline and encourage new entrants. Some courses will be delivered via distance learning and course costs will be covered by the programme, thus avoiding the main barriers to workforce development.
Capital Grants
Potential for Capital Grant funding contribution towards the purchase of equipment identified as required to meet project needs established during programme engagement. Up to 50% of purchase cost to a maximum of £5000 could be available, subject to application and panel approval.
Councillor Paul Skinner, leader of Boston Borough Council, said: “This new opportunity which focuses on skills development for the food chain and technology sector is something we have been looking forward to for many months now. The Centre for Food and Fresh Produce Logistics forms part of the wider South Lincolnshire food knowledge cluster centred on the South Lincolnshire Food Enterprise Zone in Holbeach. Getting this project underway by enhancing and developing our younger generations education is key to future successes.”
Chair of the Boston Town Deal Board, Neil Kempster, said: “I am delighted to see the official launch of the Centre for Food & Fresh Produce Logistics which is a key component within the portfolio of projects being supported through the funding from the Boston Town Deal.
“It targets some of the key sectors of the local economy providing support and access to funding and resources that will enable local businesses to prosper, as well as helping to educate our younger generations of the significant opportunities available to them in this specialist and diverse environment. I would encourage as many local businesses as possible to take advantage of this initiative which I believe will make a real difference to the local economy.”
Dean of The University of Lincoln Holbeach Campus and head of NCFM professor Val Braybrooks MBE said: “The new Centre for Food and Fresh Produce Logistics will enable Boston Town to play a pivotal role in achieving the Local Enterprise Partnerships UK Food Valley ambitions to grow and promote our world class food sector as a major talent and investment hub.
“It will help to drive business partnered enterprise, innovation, and research, with an aligned skills offer to enhance productivity and provide access to high quality career opportunities for Boston’s agri-food sector and community.”
Principal & CEO of Boston College, Claire Foster, said: “We are delighted to be associated with this Boston-focussed project to support our food and logistics sector. Never before has it been more important for colleges, universities and businesses to combine our efforts for innovative collaborations, mutual support and benefit, increasing productivity for the shared prosperity of all. We look forward to being integral to the success of our local industries, providing skills and employment opportunities for now and the future.”
Work begins to provide 200 new affordable homes for Sheffield
Enabling works on the site of the Newstead general housing and older people’s independent living projects in Birley are now underway. The enabling works are being delivered by Esh Construction’s civil engineering division to pave the way for over 200 new affordable homes in Sheffield.
The steep site will undergo major earthworks to contour the site and create a series of new plateaus for the developments. New access routes, footpaths and green corridor spaces will be constructed, and main drainage installed along with a large surface water attenuation tank.
The Newstead site in South East Sheffield is being developed by Sheffield City Council in collaboration with Peak Architects. Planning approval has been granted for 77 new family homes and a large-scale older people’s independent living project of 141 new homes, contributing much needed new affordable housing to the Council’s approved Stock Increase Programme.
Kerry Bollington, head of housing growth delivery, Sheffield City Council, said: “The enabling works are the first stage of our exciting plans to positively transform the vacant Newstead site to provide a platform from which the Council will deliver new affordable homes for rent, with both the general needs and the older persons independent living projects coming to life.
“This project sits within the Council’s Stock Increase Programme and will address the shortfall of affordable homes in the area. The site will be closed whilst this work takes place, and we want to thank Esh and all our stakeholders, including the local community, for their cooperation and help during the duration of the works.”
Esh Construction was appointed to deliver the scheme via the YORhub YORcivil2 framework. Esh’s construction director, Steven Garrigan, said: “This is a key scheme in the wider transformation programme underway in the Birley area and we’re pleased to be working with both Sheffield City Council and Peak Architects to pave the way for the new housing developments.
“As with all Esh Construction schemes, this development will allow us to maximise the social and economic value within the local community.”
Peak Architects has developed the design of the new homes and older people’s independent living development which will occupy the vacant site. Patrick Arends, director at Peak Architects, added: “The Newstead development is well positioned to further build a sense of community within and across the wider neighbourhood. The proposed scheme will provide high quality homes and comfortable living for generations to come. The start on site is a major milestone for this development.”
