Job cuts start but business sentiment stays positive
Business activity fell further in the East of England in December and firms have started to cut jobs in the region but confidence on the outlook for the year ahead remains positive, according to a key survey of purchasing managers. The NatWest East of England PMI business activity index dipped to 48.0 in December, down from 49.3 in November and the seventh month in row it has fallen. A downturn in new orders across both goods producers and services firms reflected market uncertainty and inflation dampened demand. Meanwhile, the survey pointed to the first reduction in private workforce numbers in 23 months led by job cuts at goods’ producers. But business sentiment at private firms stayed positive in the region with growth prospects linked to plans for greater investment in the year ahead and new projects in the pipeline. Some firms noted that shorter delivery times and a drop in demand allowed them to work through outstanding business. Although private firms continued to face a sharp rise in costs driven by higher utility bills, inflation and rising wages, the overall rate of inflation eased to a 21-month low. Rashel Chowdhury, NatWest Midlands and East regional board, said: “Concerns regarding demand, recession risks and the cost of living crisis weighed on sentiment and indicate further challenging business conditions across the region in 2023.”
Developer applies for planning for business park on former Suffolk RAF airfield
Developer Jaynic has submitted a hybrid planning application for its proposed 91-acre Stanton Business Park on a former RAF airfield at Shepherds Grove near Stanton in Suffolk. The application to West Suffolk Council, involves a new roundabout on the A143 giving access to the park, a new regional hub to be occupied by vehicle storage company Copart UK and an outline application for four additional development plots for commercial and roadside uses. Jaynic director Andrew Anderson said: “As part of the scheme, we will provide an alternative and direct connection to the A143 for the businesses at Shepherds Grove West industrial estate. This will help provide relief to Stanton from the commercial and HGV traffic that currently routes through the village. We also look forward to delivering additional employment opportunities via the four sites that will become available for occupiers, which are capable of accommodating buildings of between 17,500 – 70,000 sq ft,” adds Anderson. If approved, work on the scheme could start this summer.
Surge in life sciences investment around Cambridge
Total investment volumes for life science-related real estate across the so-called Knowledge Arc of Oxford and Cambridge hit a record £1.65 billion in 2022, up by around £50 million on the previous year according to property agent Savills. Deal activity was maintained in both Cambridge and Oxford. A diverse range of buyers have been investing in the sector and much of the new development in the pipeline is expected to be built speculatively and should help to tackle the shortage of life sciences space around both Cambridge and Oxford. Tom Mellows, head of UK science at Savills, said: “Occupiers in the life science sector are desperately in need of good quality accommodation within the Oxford Cambridge Arc. The severe supply shortage is being addressed by significant investment into future development sites, and we expect to see a number of our clients speculatively develop high quality laboratory schemes within the next 12-24 months.” Key deals in Cambridge last year saw Savills advise Legal & General on the sale of 194-198 Cambridge Science Park to Cadillac Fairview and Stanhope for £85 million and the sale of joint venture Pace Development’s 301,000 sq ft Botanic Place to Railpen.
Business welcome for Freeport East go-ahead
Business groups have welcomed last week’s final government approval for Freeport East which will enable the initiative to move forward to delivery. The freeport– centred on development sites at the ports of Felixstowe and Harwich and Gateway 14, near Stowmarket –offers firms tax advantages on imports and property along with lower national insurance on new staff. CBI East of England director, the Richard Tunnicliffe, said: “Businesses will welcome the news that Freeport East has been approved. This decision demonstrates the Government’s continued commitment to drive economic growth in our regions.” The development of Freeport East is predicted to create up to 13,500 new jobs and will be boosted by £25 million in government funding for improved infrastructure. Work has started at the Gateway 14 development and there are plans to create a green energy hub in Harwich to serving the offshore wind sector. The universities of Essex and Suffolk and other partners are also working with Freeport East and businesses to accelerate innovation.
Steve Beel, chief executive of Freeport East, said: “This is a major milestone for Freeport East and the result of a great deal of hard work from all our partner organisations. Freeport East is a locally led initiative but has global connections and ambition.”
Levelling Up minister Dehenna Davison added: “This Freeport is going to give local economies a massive boost, unlock a new state of the art business space and create tens of thousands of highly skilled jobs. We are maximising the opportunities of leaving the European Union to drive growth and throw our doors open to trade with the world.”
Law firm advises on sale of digital agency
Law firm Howes Percival has advised shareholders in Norwich and Exeter-based digital agency Neontribe on its acquisition by a sector specialist, The Dextrous Web (dxw). Neontribe specialises in user research, software and design for clients in the charity sector and shareholders Harry Harrold, Neil Dabson and Toby Batch, turned to Howes Percival following a referral from a previous client. dxw operates both in the public and the third sectors and has developed a partnership with Neontribe in recent years. The firm is largely employee-owned. Howes Percival’s corporate team in East Anglia also recently advised Touchdown PR on its sale to US-based Ruder Finn and on the sale of digital design and software agency Lola Tech to DataArt Technologies. Howes Percival corporate partner Oliver Pritchard said: “We are building a name for ourselves in the digital, software and tech space and it is always fantastic to be referred within a sector by happy clients. It is a significant industry here across East Anglia and we have completed a range of deals recently, including transactions with overseas buyers.” He added: “We continue to be busy with corporate transactions across a range of sectors in East Anglia. Despite the economic challenges, strong, resilient businesses and those in particular sectors remain attractive to investors.”
Separately, Howes Percival has appointed James Stephen as a partner and head of its corporate law team in Cambridge. He has over 25 years of experience advising clients on corporate matters, having started his career working for large City firms (Mayer Brown, Baker & McKenzie) before relocating to Cambridge in 2007. He helped to set up the Cambridge office of Charles Russell, before moving to Penningtons Manches and most recently to BDB Pitmans.
Photo: Oliver Pritchard (left) with James Stephen.
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Second daily flight from Stansted to Dubai to restart
Emirates is resuming its second daily service from London Stansted to Dubai from May 1 in response to strong demand. The extra flight will operate using the airline’s wide-body Boeing 777-300ER aircraft. The airline’s twice-daily service launched in March 2019 was suspended duringt Covid but a daily flight was reinstated last August. Gareth Powell, the airport’s managing director, said: “The decision to have 14 weekly flights from Stansted is a demonstration of the airline’s confidence in the demand for long-haul travel from the airport. Since the airline returned to the airport in the summer following the Covid pandemic, the route has been extremely popular, providing onward connections to locations all around the world.” Popular destinations for UK travellers from Stansted are Brisbane, Melbourne, Male, Seychelles, Bali, Singapore, Colombo, Bangalore and Bangkok. The airport recently opened a new double airbridge, boosting its capability to handle wide-body aircraft such as the Boeing 777 and the Airbus A380.
Farmland values hit record high
The price of farmland in England rose 12 per cent in the past year to reach record levels according to agent Strutt & Parker. The average price of arable farmland in England rose by 12 per cent in 2022 to reach £10,600/acre – £600 higher than the previous 2014/15 peak. Meanwhile, the average price of pasture land rose by 13% to £8,500/acre. The agent says the trend of private investors seeing land as a relatively safe place to hold capital is likely to continue, although prices may start to level off and the market become more settled.
Telecoms growth keeps economy moving
The telecoms sector grew by 3.9 per cent in November making it the largest driver of economic activity behind the small, 0.1 per cent increase in gdp over the month and potentially helping the UK avoid a fourth quarter recession. James Salmon, director of sales and new territories at County Broadband, which is rolling out full-fibre broadband infrastructure in rural East of England, said: “This is positive news for the UK economy at such an important time – and we’re not surprised that telecommunications has been cited as one of the strongest factors given the record levels of private investment being secured in deploying full-fibre broadband to replace old copper-based ‘Superfast’ networks.” He added: “The benefits of full-fibre connectivity with its gigabit speeds and bulletproof reliability are already being enjoyed by thousands of businesses and residents in rural and hard-to-reach communities as part of our rollout across the East of England.”
Logistics company becomes patron of Suffolk Chamber
Suffolk-based Metro Supply Chain has joined 18 other major businesses as the latest patron of Suffolk Chamber of Commerce. The logistics services company, which acquired Bury St Edmunds-based Century Logistics last March, is a global operation with 98 sites across America and Europe. Its newly-integrated business includes 13 facilities across England and Wales, with eight strategically located between the UK’s Golden Triangle and the Port of Felixstowe. Stuart Ager (photo, right) VP and managing director at Metro Supply Chain, said: “The success of Felixstowe, investment in the Sizewell C, Freeport East and the skilled local workforce means Suffolk has a bright future and we are pleased to part of it. Our business originated and grew in Suffolk and the county will remain a key area for us as we adapt and grow our business nationally.” Other patrons of Suffolk Chamber include Anglian Water, Associated British Ports, Birketts, BT, Cory Brothers, EUROAPI, Greater Anglia, The Jockey Club, Kier, RSM, Sackers, Sizewell C, Suffolk New College, Tarmac Group, University of Suffolk, Vertas Group, West Suffolk College and WTW.
Three new recruits and an internal promotion at law firm
Greene & Greene Solicitors, based in Bury St Edmunds, has started the year with three new recruits and an internal promotion to strengthen its property and commercial teams. Kirsty Pymer who has been with the firm since 2002 has been promoted to conveyancing executive in the firm’s commercial property team. She is currently working towards becoming a chartered legal executive. James Southward, chartered legal executive, has joined the property team. He qualified in 2022 but has worked in the property sector since 2014 and joins from another regional firm with wide experience in both residential and commercial property transactions. Laura Beckstead, paralegal, joins the residential property team. She has experience in all aspects of residential matters having also worked in the sector since graduating from university. Finally, Elizabeth Clazie, solicitor, has joined the corporate and commercial team. Qualifying in 2021 at a regional practice, she has gained exposure to a multitude of commercial and corporate transactions ranging from smaller, family-owned business matters to larger corporate transactions with multiple stakeholders. Managing partner Simon Ratcliffe said: “Each of them brings with them a wealth of knowledge and experience from the local marketplace and beyond and will really help strengthen our already prominent position as a leading firm in the county.”
Photo (l-r): Kirsty Pymer, James Southward, Laura Beckstead and Elizabeth Clazie.
Property appointment in Chelmsford
Property agent Savills appointed its residential development sales director Alex Leigh (right) as its new head of office in Chelmsford. He takes over from Stephen White, who has steps down after ten years and will now focus on residential sales. Alex Leigh, who joined Savills Chelmsford at the start of 2020, will also continue to lead the residential development sales team across Essex. He said : “ Over the years the office has grown substantially, and, coupled with the transformation we have seen across Essex and the city of Chelmsford, it makes this a hugely exciting time to begin our next chapter.”
