Housing and planning issues ‘challenge’ Cambridge’s position as global innovation centre
The high cost of housing and constraints on the expansion of office and laboratory space present a ‘serious challenge’ to Cambridge’s position as a global centre for innovation and development, says a new report. The report, Good growth for Cambridge from Savills, argues that the city is well-placed to take advantage of its reputation as a world leader in technology and life sciences but only with greater co-ordination between locally led-planning decisions and the delivery of national strategic infrastructure. If the government is serious about its plans to build 150,000 new homes in the city and surrounds over the next 20 years then new sites will have be identified for development, supported by new infrastructure. Electricity, water and the provision of education, health and social care all present challenges. Yet this level of development would represent a scale of opportunity not seen since the creation of the Milton Keynes Development Corporation in the 1960s says the report. New life science and tech space will also be needed. Last year saw record demand for lab space in 2023 with 341,000 sq ft transacted – 61 per cent up on the previous high in 2019. Tom Fraser, head of office at Savills Cambridge, said: “Cambridge sits at a potential turning point, with the government recently announcing ambitions for residential and commercial development that would see the city grow faster than anywhere else in the country, but if we want any large scale expansion of Cambridge to be successful, there will need to be greater co-ordination between locally led planning decisions and the delivery of national strategic infrastructure, bringing together both the public and private sector.”
Business confidence edges higher as firms prepare to ‘seize green shoots of growth’
Business confidence in the East of England rose slightly in February and more firms are planning to recruit new staff over the year ahead, according to a business barometer from Lloyds Bank Commercial Banking. Firms in the East reported higher confidence in their own business prospects – up one point at 47 – and their optimism on the economy, also rose one point to 31 per cent. Meanwhile, a net balance of 34 per cent of businesses in the region expect to increase staff levels over the next year, up three points on the previous month. New products or services are seen as the top target area for growth at firms in the region, followed by new markets and investing in teams. Nationally, companies’ hiring intentions increased to the highest level since May 2022, with 36 per cent of firms intending to increase staff levels and with confidence strongest in the services sector. Paul Evans, regional director for the East of England at Lloyds Bank Commercial Banking, said: “It’s encouraging that the region’s firms have avoided catching a case of the Winter blues and are preparing to seize the green shoots of growth that Spring may have to offer.” He added: “Their continued optimism reflects the confidence that others are showing in the region – with government data showing Suffolk’s Freeport East is already proving to be one of the country’s most successful, attracting £350m in investment and creating 1,650 new jobs.”
Shadow chancellor welcomes offshore energy investment at Port of Lowestoft
Shadow chancellor Rachel Reeves visited the Port of Lowestoft last week where ABP is undertaking major infrastructure upgrades to enable the port’s transition into a base to serve new offshore energy industries. Henrik Pedersen, ABP chief executive officer, said: “ABP has a proven track record of investment in its ports – around £750 million in the last five years. We have before us a very significant and highly ambitious pipeline of major projects. Infrastructure for the green energy transition is a big part of this pipeline, making ABP a key enabler of the UK’s net zero transformation…..The Lowestoft Eastern Energy Facility (LEEF) – which involves the construction of state-of-the-art port infrastructure suitable for O&M (operations & maintenance) activities to support the offshore energy sector and will continue to see Lowestoft grow as a vital offshore energy hub for the region.” A further 500 technical O&M and construction jobs will be created by the construction of LEEF, which is due to complete in the second half of 2024.
Rachel Reeves said: “It’s fantastic to see the investment going into the area that is providing clean energy and good jobs for the future. ABP is a leading business that sits right at the heart of the green energy transition, and I look forward to working further with them and the wider ports sector to ensure we play our part in supporting their work that will deliver benefits for the whole of the UK.”
Photo (l-r): Paul Ager, divisional port manager, ABP; Henrik Pedersen, chief executive officer, ABP; Rachel Reeves, Labour’s shadow chancellor; Jess Asato, Labour candidate for Lowestoft; Tom Duit, operations manager, ABP; Javier Escandon-Ramirez, LEEF project delivery manager, ABP.
In brief
Calls for Budget action on skills top firms’ priorities
Ahead of tomorrow’s Budget, businesses want government to focus on investing in skills and training to support growth as the competition for talent intensifies, according to Grant Thornton’s business outlook tracker survey of 600 mid-sized businesses in early February. Areas that mid-market firms would most like prioritised by government are:greater access to/investment in skills and training, improvements to infrastructure and incentives for employers to invest in R&D. Charlotte Anderson, Grant Thorton’s practice lead for Milton Keynes, Cambridge and Chelmsford, said: “The Chancellor kicked off 2024 signalling his desire to cut taxes further, observing at Davos the benefits that low-tax economics bring to growth and the creation of dynamic economies. Whether he can deliver on this ambition will hinge on the final OBR economic and fiscal forecast. As this is anticipated to be the last major fiscal event ahead of the General Election, any announcements are expected to be focused on closing the gap in the polls, with business tax cuts coming in second, behind those to reduce the tax burden for individuals. But our research shows that businesses are clear on what support they want to see from government, so we hope to see their needs addressed in some form in next week’s announcement.”
University to invest £10 million following merger with agri-college
Anglia Ruskin University is to invest £10 million in the Writtle agri-college campus estate near Chelmsford following the completion of a formal merger under which Writtle University College became ARU Writtle. The plans is to develop and extend the education and research opportunities at Writtle (photo, right) which was founded in 1893 and has specialisms in agriculture, horticulture, equine and canine studies, and animal management. A specialist further education college, Writtle College, has also been set up for 16-18 year-olds. Over 300 Writtle staff have joined ARU as part of the merger. Professor Roderick Watkins, vice chancellor of ARU, said: “This is an exciting time and a significant milestone in our history. Our collective academic expertise in fields including animal, environmental, health and sports sciences will help us to support and expand both education and research at the Writtle campus.”
Commercial property agency tops leaderboard for deals in Essex and Suffolk
Fenn Wright has topped the annual agency EG Radius leaderboard for the most commercial property transactions in Essex and Suffolk in 2023. The Estates Gazette runs the annual competition based on the total floor area and number of buildings sold and let over a twelve-month period.Local, national and international commercial agents compete for the annual awards. Meanwhile, Michael Moody was named Top Dealmaker in the East of England in 2023. He started his career in commercial agency in 2006 with Newman Commercial which was acquired by Fenn Wright in 2017 and was promoted to salaried partner in 2020. With the firm’s commercial agency teams based in Chelmsford, Colchester and Ipswich, Michael Moody and Ed Nolan topped the leaderboard for the most lettings and occupational sales in Colchester for the last 12 months. The individual Top Dealmakers in Ipswich were Hamish Stone and Alistair Mitchell, and in Chelmsford, John Logan and James Wright. Alistair Mitchell, partner at Fenn Wright and head of commercial agency, said: “This is a fantastic accolade which demonstrates our strength and dominance in the market. We are committed to providing the highest level of service to our clients and this exceptional performance is testament to the hard work and tenacity demonstrated by our agency team.”
Photo: A recent Fenn Wright deal: Giles Place in Ipswich, a 33,920 sq ft office building sold on behalf of Direct Line Insurance Group.
Major investment in green energy underway at resort
A major solar energy installation is under way as Wyboston Lakes Resort, west of Cambridge, as the venue moves towards green energy self-sufficiency. After investing £650,000 in phase one of its green energy roadmap, work has started on phase two involving a further £2.3 million investment. It includes installing solar panels and storage batteries at The Woodlands Event Centre, The Waterfront Hotel and the resort’s Knowledge Centre. When completed later this year, the resort will have 1.4 Megawatt hours of solar panels and 1.1 Megawatt hours of storage batteries. Systems are also being installed to transfer electricity between buildings. Currently 356KWh of solar panels and a 200KWh storage battery installed at The Willows Training Centre are helping to make it more self-sufficient in electricity even on some winter days. A new upgraded building management system which uses artificial intelligence is reducing energy waste further and optimising energy usage. Pat O’Hea, director of projects at Wyboston Lakes Resort, said: “These installations will not only enable us to operate on green energy generated on site but also significantly reduce our purchasing, which is a major saving for a resort like this. We are also currently working on plans for phase three which would, once agreed and implemented, make us fully self-sufficient in green energy.”
See Profile Wyboston Lakes Resort
Suffolk estate agent merger to create one-stop-shop
Aldeburgh-based estate agency Suffolk Coastal has acquired Air Manage Suffolk, extending into holiday home management for local holiday lets and serviced apartments. The firm, which also has an office in Southwold, says that the deal means it is the only estate agent locally to specialise in sales, long-term and short-term rental agreements, and holiday tenancies. Managing director Tim Day said: “This is a significant expansion of our team, and it solidifies our expertise as property experts within the region. The growing trend for short-term holiday lets or short breaks shows no sign of slowing down, so by combining bespoke rental agreements with traditional lettings, we can deliver an exclusive service that meets the needs of property owners as well as guests.”
Photo: Tim Day(centre), Sarah Potter(left) and Ollie Kmiecik (right).
New Peterborough office for expanding accountancy group
Accountancy and business advisory group Azets has moved into a new larger space at WestPoint at Peterborough Business Park, where it has taken almost 118, 000 sq. ft of newly-refurbished offices. The move brings together specialists in accounting and business advisory services, tax, audit, and technology under one roof and the firm says it will accelerate Azets’ growth in the region as part of a strategy to double turnover within the next five years. Azets has 90 offices in the UK and a strong presence across northern Europe. Mark Jackson, partner at Azets based at Peterborough, said: “This is an exciting time for Azets in Peterborough, as we continue to expand our regional team in line with the group’s growth ambition and move into an office that represents our investment in people, technology, and operational excellence.
Essex-based safety footwear firm gears up for global expansion
An Essex-based safety footwear manufacturer, Tuffking, is forecasting a 40 per cent increase in turnover this year as it launches 25 new designs and gears up for global expansion following a worldwide increase in demand for its products. Currently operating in 15 countries, the firm has over 100 different products and is using an £850,000 funding package from Lloyds Bank, including trade finance, to service emerging markets. As part of the investment, Tuffking will be creating six new jobs, increasing its current workforce by a half and it aims to hit £50m in turnover by 2030. Ryan Dhindsa, managing director at Tuffking, said: “Our business has a long history within the UK and we’ve built a reputation for providing a high-quality product that our customers trust.…We have technical knowledge and experience in spades, and for me, it’s all about using that to our advantage. With the number of new sectors needing specialist designs to meet their needs, the opportunities – and potential to grow – are endless.”
