New business growth picks up as region’s firms start creating jobs
New business grew sharply and private sector output in the region rose for the first time in nine months in February driving renewed job creation, according to a key survey of purchasing managers. The NatWest East of England PMI business activity index rose to 52.0 in February, up from 48.4 in January and pointing to renewed, albeit moderate, growth at private firms. The survey also showed the first rise in backlogs for ten months and an easing of cost pressures. Growth in demand was broad-based across manufacturing and services firms and new work grew in the East at the fastest rate of any region except London. Overall sentiment among private firms in the region stayed positive, despite easing since the start of the year and after two months of decline, private employment rose in February. Although price inflation of firms’ inputs touched a two-year low, the prices they charged for goods and services continued to rise sharply, suggesting firms were looking to recover margins. Rashel Chowdhury, NatWest Midlands and East Regional Board, said: “February data provided further signs of a recovery in the East of England’s private sector economy, despite ongoing uncertainty around a possible recession and how much further interest rates need to rise to tame inflation.”
Plans approved for huge data centre campus in Cambridgeshire
Plans for one of the largest data centres in Europe, the CAMRO data centre campus west of Ely in Cambs, have been granted full planning approval the county council. It will involve 700,000 sq ft of data centre space, alongside additional plant, services and infrastructure, with the ability to deliver 180MVA to the scheme. CAMRO will be developed in phases, the first of which already has 25MW to enable quick delivery of services to the first tenants. Next to the site is a further 57 acres of land which is available for future expansion of the data centre campus or for private wire renewable power solutions. Scott Newcombe, head of EMEA data centre advisory at Savills, said: “Upon development, CAMRO will be one of the leading data centre campuses in Europe. The site has significant power capacity, as well as potential for future expansion. We see continuing challenges with power and land in London, meaning locations such as this will be prime targets in the decentralisation of the UK data centre market. There will be very few available with this level of power and scale of land.” Savills has been appointed to secure a partner to take the development forward.
Firms see green incentives and support for levelling up and digital change as Budget priorities
Incentives to support low carbon business strategies are seen as a top priority (44%) by East of England mid-market businesses, according to Grant Thornton UK’s latest business outlook tracker survey. Measures to level up the economy, with more devolved powers across the regions and to support digital transformation, were also seen as priorities (38%). Almost all of the businesses surveyed planned to invest more or the same into technology over the next six months. James Brown, managing partner at Grant Thornton UK in the East of England, said: “In many cases, digital transformation led to improved efficiency, new routes to market and greater collaboration and innovation, as evidenced by the growing tech cluster around Cambridge. The mid-market now has the potential to build on, and accelerate, its digital journey and we need to ensure the momentum around this agenda does not slow.”
Separately, a major bank in the region is calling on the Chancellor to increase capital allowances in this week’s Budget. Dene Jones, regional director for the East of England at Lloyds Bank, said: “…firms will be looking to the Chancellor to support long-term, sustainable growth and encourage higher levels of productivity….The Chancellor could show that he can help meet these ambitions by increasing capital allowances and providing the greater certainty and support businesses need to invest in a more high-tech, low-carbon economy.”
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New EV charging station opens outside Ipswich
Environment secretary and Suffolk Coastal MP Therese Coffey last week opened Fastned’s electric vehicle (EV) charging station at Martlesham Park & Ride off the A12 to cater for Ipswich commuters. It has six charging bays, each supplied by renewable energy and capable of adding up to 300 miles of range to fully-electric cars in 20 minutes. A further two charging bays are planned to open later this summer at the station, which is Fastned’s14th in the UK. Therese Coffey (photo) said: “Helping people move away from petrol and diesel vehicles is a key part of our plan for a cleaner, greener Suffolk and will need business and government to work closely together. … Forward thinking projects such as this will secure the future of sustainable transport and provide cleaner air across the UK.”
Shadow business minister backs Ipswich city bid
Labour’s shadow minister for business and industry, Bill Esterson MP, visited Ipswich this week to talk to meet local businesses and give his backing to the town’s 2023 city bid. In a summit hosted by Suffolk Chamber of Commerce at Willis Building, Mr Esterson (photo, standing) and prospective Labour parliamentary candidate Jack Abbott met with business people to discuss the challenges facing businesses in the town, and Labour’s plan to tackle these in government. Bill Esterson said: “It was great to meet with local businesses today. Labour is a pro-worker, pro-business party and will work in partnership with businesses to create economic growth in Ipswich.” He added: “I am very aware of the significant amount of support for a city bid from the local business community, and I know Jack sees this is something that could provide a real boost to Ipswich.”
Firm which guides campervanners to overnight pit stops sold to US group
Brit Stops, a family-owned company which produces a guide to overnight locations for motorhomes, has been sold to a US firm, Harvest Hosts. Cambridge-based PEM Corporate Finance acted as lead adviser to Brit Stops. Inspired after a trip to France in 2009, owners Steve and Mandy Clark set up Brit Stops in 2011. The firm’s annual print-based catalogue (and an app) allows motorhome and campervan tourists to discover a network of over 1,100 pit stops around the British Isles, stop overnight and travel on having sampled some local produce. The company has proved popular and attracted Harvest Hosts, which plans to expand in the British Isles. Brit Stops’ dominance in the UK and Irish markets will be complementary to the US firm’s existing offering. Philip Olagunju, Samuel Reynolds and Jan Ansari of PEM Corporate Finance supported the client through the negotiation process. Jan Fachot from the PEM business tax team provided tax advice. Sam Reynolds, assistant manager at PEM Corporate Finance,said: “…Throughout the process the ethos shared between Harvest Hosts and Brit Stops only became more apparent, with both sides showing refreshing pragmatism, making this a great deal to advise on.”
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Photo (l-r) : Alastair Gunn, Steve Clark, Mandy Clark, Samuel Reynolds, Philip Olagunju and Jan Ansari
Cambs town set to reap benefits of full fibre network
Over 8,500 homes and most businesses in March now have access to full fibre network – around 80 per cent of the Cambs town – as City Fibre has completed the primary-build. Construction began on the £5m project in January last year and almost 27km of dense full fibre infrastructure has been laid across the town. CityFibre is looking at opportunities to reach further areas including new build properties, those on private or unadopted roads and business parks. Steve Barclay, MP for NE Cambs and health secretary, said: “Now residents and businesses have access to CityFibre’s full fibre network, we can reap the many benefits and harness the power of fast, reliable digital connectivity to drive growth and inclusion.”
Cambridge company invests in new flexible workspace
Cambridge company Domino Printing has completed a £2 million refurbishment at its global hq in Bar Hill to create a new workplace that can support collaborative work and increase flexibility, as well as showing its commitment to sustainability. The project has resulted in 32 new meeting spaces to facilitate hybrid working models, following employee feedback post-pandemic. There are meeting rooms of different sizes and styles, designed for a wide range of seminars, presentations and one-to-one sessions, as well as open-plan areas with individual work stations. All are equipped with furniture, re-used and recycled where possible, personal employee lockers and IT to support flexible working. A new Smartway2 reservations system has been rolled out for booking hot desks, meeting rooms and 30 EV charging points have been installed along with secure cycle storage and new shower and changing room facilities. Communal areas are available when employees do go into the office, with coffee-house style cafes and a restaurant. Sharon Budworth, director of engagement at Domino, said: “This initiative to support hybrid working is resulting in a better work/life balance and has been important in improving engagement and employee experience, as well as having a positive impact on recruitment, career development, retention and global mobility.”
Housebuilder shortlisted for national award
Family-run Bennett Homes, which is based at Nowton near Bury St Edmunds, has been selected as a finalist in the Roger Humber UK Large House Builder of the Year category in the Construction Awards of Excellence,organised by the National Federation of Builders. It gives the company the opportunity to win the award for the sixth time in its 75 year history. Edward Parker (right), managing director of Bennett Homes said: “We are delighted to be a finalist in the House Builder of the Year category in the Construction Awards of Excellence. Our entry covered many different aspects of our operation including sustainability, commitment to energy-efficiency, use of technology and innovative ways to respond to the changing market.” He added: “Of course we hope to be announcing further success in April when the winners are announced, but to have been selected for the shortlist is a great accolade in itself. It is very much a team effort and I’d like to thank our skilled and loyal team who have continued to go the extra mile.”
