East forecast to be one of UK’s fastest-growing regions as outlook ‘much brighter’ from 2024
The East of England is set to be one of the best-performing UK regions for growth and job creation in coming years helped by its strong presence in knowledge-based sectors such as ICT and support and professional services. According to EY’s latest regional economic forecast, the region’s gross added value will grow by an average of 2.1 per cent each year between 2024-26, faster than any region except for London, the South East and the South West and in line with the UK average. Peterborough, which is set to grow at 2.2 per cent pa, and Cambridge, at 2.0 per cent pa, are set to be the fastest-growing centres as the tech, biosciences and pharmaceutical sectors add to their investment appeal. Bedford (1.7 per cent) and Luton (1.7 per cent) are seen as the slowest-growing centres. Employment in the East is set to grow by 1.4 per cent from 2024 to 2026, slightly above the UK average. The upturn marks a turnaround on the region’s performance over 2023 – when gross value added is expected to contract 0.7 per cent, slightly more than the UK average. Stuart Wilkinson, managing partner at EY in the East of England, said: “While the East of England won’t be immune to the UK’s economic challenges in 2023, the forecast beyond that looks much brighter for the region. The East of England’s sector mix is key, and the region is home to plenty of businesses in high growth, high value knowledge-based sectors, including tech, professional services and life sciences.”
He added: “A diverse economy with high-skilled jobs are among the factors that continue to make the East of England a desirable place to live and work, attracting new investment to the region from businesses from across the UK and from overseas.”
Region’s firms see ‘levelling up’ as a priority for Spring Budget
Businesses in the region see tax cuts and government subsidies for regional firms as priorities for the Chancellor’s Spring Budget ahead of other policies such as infrastructure investment and job creation, according to BDO’s bi-monthly Rethinking the Economy survey. It says a quarter of mid-sized businesses in East Anglia want to see the government offer tax cuts and subsidies to regional businesses, as part of the so-called ‘levelling-up’ agenda. Improving digital connectivity and investing in skills were seen as other priorities. Last week, the Levelling Up and Regeneration Bill reached committee stage in the House of Lords. Peter Harrup, partner and head of East Anglia at BDO, said: “It’s clear from our latest Rethinking the Economy survey that levelling up remains an important part of the narrative for East Anglia businesses and one that the Government must maintain momentum on if it’s to meaningfully engage with regional businesses, communities and local leaders and even the playing field in terms of delivering on its promise of a de-centralised democracy.”
More firms plan to create new jobs as confidence grows
Business confidence in the East of England rose nine points during February to 24 per cent as firms’ faith in both the economy and their own prospects grew and more companies plan to create new jobs, according to a business barometer from Lloyds Bank Commercial Banking. Companies’ confidence in their own business prospects in the region rose 10 points to 28 per cent whilst their optimism in the economy, was up nine points to 19 per cent. Diversifying into new markets, investing in teams and evolving offerings were the main target areas for growth in the next six months. A net balance of 41 per cent of firms plan to create new jobs in the next twelve months, the highest level for a year and a 23-point increase on the previous month. Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “Uncertainty in the economy has followed businesses into 2023, but it’s encouraging to see that our region’s firms are shaking off potential worries and are focusing on growth. The net balance of businesses planning to bolster their workforces is at its highest level in 12 months, showing their desire to boost capacity as they target new areas for growth.” Nationally, retail confidence bounced back for the first time in three months but confidence fell in construction and services.
Briefly…
Law firm advises on $80 fundraising for EV charging company
Law firm Birketts’ corporate team has advised EO Charging, a leading provider of electric vehicle charging solutions for fleets based in Stowmarket in Suffolk, on an $80 million equity investment from two investors, Vortex Energy and Zouk Capital. Founded in 2014 by Charlie Jardine, EO provides smart charging solutions for electric car, van, truck and bus fleets. The two investors are partnering to support EO’s path towards global leadership in EV fleet charging as zero-emission transport is more widely adopted. John Jardine, managing director, EO Charging said: “Our thanks goes to the Birketts team, whose expert support and client care were vital to the success of this transaction. Their specialist advice was invaluable whilst navigating this investment round, and we’re excited to have the funding and service offering to develop our leadership on a global scale as the market continues to accelerate.” Legal director, Rachel Astill, led on the transaction and was supported by Grace Shek (associate). James Austin, senior partner, supervised the Birketts’ team.
Corporate law solicitor joins busy team in Cambridge
Howes Percival has appointed an experienced corporate law solicitor, Josie Rogers, to its growing corporate, commercial, and banking team in Cambridge. In January, the firm appointed James Stephen as head of its corporate law team at its Cambridge office. Josie Rogers works with business owners, SMEs and larger corporations, advising on a range of corporate transactions including share and asset sales and purchases, MBOs and shareholder agreements. She joins from Attwaters Jameson Hill Solicitors, as an associate. Howes Percival’s team had its busiest year to-date in 2022, completing over 150 deals. They included advising farm machinery dealer Ben Burgess on the acquisition of fellow John Deere dealership the Doubleday Group. James Stephen said: “…Following a record-breaking number of deals last year, we are expecting to be busy again this year despite the current uncertain economic climate. The Cambridge office is going from strength to strength across all our specialisms and we continue to grow our market share in the city.”
Photo (l-r): James Stephen, Josie Rogers and Tom Maksymiw.
New partnership launches five-year waste scheme for Norwich city centre
Visitors, shoppers and traders in Norwich are set to benefit from a new scheme aiming to reduce waste going to landfill, through a new partnership between the Norwich Business Improvement District (BID) and the regional waste management division of Anglian Group. Based in Attleborough, Anglian Group is one of the region’s fastest-growing waste management and recycling companies and it beat off competition from national suppliers to become the new waste and recycling partner for the Norwich BID over the next five years. Martin Blackwell, joint head of operations for Norwich BID, said: “Anglian clearly demonstrated a methodology and operational plan to help us achieve our goals and we’re thrilled to be partnering with them for this exciting part of our sustainability chapter.” For more information about the scheme and to request a free waste audit from Anglian, visit https://www.norwichbid.co.uk/bid-resources/waste-and-recycling-scheme/
Photo: Stefan Gurney, managing director of Norwich BID (left) with Ryan Marshall of Anglian Waste Recycling.
Telecoms group added almost £3billion to region’s economy
BT Group added almost £3 billion to the wider East of England economy last year and supported nearly 55,000 jobs across the region, according to a report from a consultancy firm, Hatch. BT employs nearly 8,000 people across the East and made a direct contribution to the region’s economy estimated at £1 billion last year. Its spending with suppliers in the East was worth £1.5 billion and through its employees and its supply chain the boost to the region’s economy was worth £2.9 billion. The report highlights BT’s current major investment in rolling out full-fibre broadband and 5G and a five-year programme which will reduce its 300 UK locations to around 30. Adastral Park base in Martlesham is one of BT’s key long-term locations; the site is home to its R&D labs and it has various local partnerships including with the Innovation Martlesham Tech Cluster and the University of Suffolk.
Record profits at partnership housing specialist
Partnership housing specialist Lovell has reported record operating profits of £37.4 million for 2022, up 13 per cent on the previous year and making a significant contribution to parent company Morgan Sindall’s results. Revenues rose 22 per cent to nearly £700 million. Lovell regional managing director Simon Medler said: “2022 has seen us deliver record financial results with strong growth achieved in revenue and profits across the board. Throughout both mixed tenure and contracting activities, we’ve increased the volume of units completed to almost 4,000 (YE 2021: 3,000) whilst also increasing our ongoing portfolio of long-term joint ventures and contracting schemes.” Contracts have been signed for a joint venture between Lovell and Suffolk County Council to build nearly 3,000 homes across Lowestoft, Mildenhall, Bramford, West Row and Newmarket in Suffolk.
Contracts exchanged on large-scale industrial building
Trebor Developments has exchanged contracts with DHL UK on a long term lease for a 126,689 sq ft industrial building at its Lightning Park Huntingdon scheme. The pre-let follows Trebor securing detailed planning consent for two units on the scheme in December and is the third deal that Trebor and DHL have agreed together in 24 months. DHL’s unit will be delivered alongside a smaller speculative unit of 32,200 sq ft with main contractor GMI Construction set to start on site this spring. Patrick Stanton, head of Bidwells logistics & industrial team, said: “Large scale sites are at a premium and there was serious competition for this building. We already have good interest for the speculative 32,200 sq ft unit”.
Ipswich home furnishings showroom in £250k refurbishment
Glasswells Home Furnishings Showroom in Ipswich has undergone a £250,000 investment to create a brighter and more contemporary atmosphere in the store. The refurbishment started last autumn, with the flooring and carpet department and work within the atrium began in October and was completed early in January with an installation of four new tv monitors showcasing the available products and offers. Managing director Paul Glasswell said: “Our Ipswich showroom has been a well-loved shopping destination for 15 years now and it was time to rejuvenate and bring a more modern ambience to the store….We are continuously looking to reinvest into Glasswells, and discussions are already underway as to which other projects will next take priority.”
Franchise industry heavyweight joins consultants
Ashtons Franchise Consulting has recruited industry heavyweight Karl Sandall as a consultant. Until recently he was group chief executive of the TaxAssist Direct Group , the only franchisor in the UK to be majority owned by its franchisees following a groundbreaking franchisee assisted management buyout deal which he led in 2014 and again in 2021. He has had successful career growing TaxAssist and shaping it to become one of the UK’s pre-eminent franchise brands, setting the groundwork for global recognition. Karl Sandall said: “I am delighted to be joining the well-respected team at Ashtons Franchise Consulting and look forward to sharing with franchisors my considerable experience and no nonsense/straight talking approach to help them manage their networks to success.
Separately, Ashtons Charitable Trust, which was set up by law firm Ashtons Legal in 2014, has recently donated £18,000 to eight charities and causes across the Eastern region and two in West Yorkshire. The money was raised in 2021/22 through Ashtons Legal-branded corporate and charity fundraising events, by staff supporting internal activities such as bake sales and social events and through the Ashtons Legal Wills Campaign where the firm donates £10 for every new will created for clients. The four chosen charities of the year for 2022 were East Anglia Children’s Hospices, The Feed in Norwich, The Royal Papworth Trust in Cambridge and Support After Rape & Sexual Violence (SARSVL) in Leeds.
Law firm sponsors cafe to help dementia sufferers
Gotelee Solicitors has joined forces with the Woodbridge and Deben Rotary Clubs to support Dementia sufferers in and around the Woodbridge area. The firm is sponsoring the monthly free Memory Café at Woodbridge Town FC, on the last Wednesday of each month. Memory Cafés are a comfortable, social gathering that allow people experiencing memory loss and a loved one to connect, socialize, and build new support networks. Richard Guy, who heads the team at Gotelee Solicitors Woodbridge office and specialises in private client work, said: “As a local law firm with an office in Woodbridge, we often find ourselves providing legal help and support to dementia and Alzheimer sufferers, their families and carers, so we understand the challenges that are faced and how important support networks are.”
Managing partner Andrew West said: “Healthy Suffolk estimate that in 2020, there were around 13,000 people with dementia living in Suffolk. That is expected to rise to 21,000 by 2040. As a local law firm in Suffolk, the Memory Café provides both a time and place to provide support and companionship for those suffering with dementia and their carers….It’s such a vital project in the local area and we are delighted to be able to support it.” The next Memory Café will be held on Wednesday 29th March 2023 and looks to welcome new and regular faces to join the café. Please call Martin Kenyon on 01394 386 933 for details.
Photo (l-r): (Woodbridge Rotary), Richard Guy (Gotelee Solicitors LLP) and Martin Kenyon (Deben Rotary).
