Business confidence rises as harvest season yields results
Business confidence in the East climbed seven points during October to 40 per cent as firms’ faith in their own prospects strengthened and the outlook for the economy improved, according to a business barometer survey from Lloyds Bank Commercial Banking. Meanwhile, the balance of firms expecting to increase staff levels over the coming year jumped 15 points on last month to 24 per cent. The upturn reflected an improvement of three points in confidence at the national level to 39 per cent. Following a weakening in September, the retail and service industries both saw an increase in business confidence in October although manufacturing confidence was unchanged. Construction fell for a second month in a row. Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “October is possibly the most important month in the East of England’s economic calendar, as the harvest season moves into full swing and the region’s rich agricultural sector works to yield results. With confidence above the national average, it shows that firms are seizing on it.”
London Stansted granted planning permission for terminal building expansion
London Stansted Airport has secured planning permission to expand its terminal building to provide extra capacity at busy times and accommodate growth. The scheme will add a three-bay extension to the back of the terminal building, extending it by 16,500 sq m. It will create a larger departure lounge with additional seating, more shops, bars and restaurants, check-in desks, increased baggage capacity and a larger security hall with more lanes. Gareth Powell, London Stansted managing director, said: “Our plans will transform the airport experience for everyone connected with London Stansted, so today’s decision by the Planning Inspectorate to approve our scheme is excellent news…” He added: “Stansted is a national and regional asset, and our investment plans are not only an exciting prospect for our passengers and colleagues, they will also boost our competitiveness within the London aviation market, which in turn will support economic growth, jobs and vital international connectivity for London and the East of England.
Farmland values come under pressure
Farmland values in the East of England are coming under pressure as levels of supply return, according to new research. Figures from Savills shows that prime arable land is now trading at an average of £10,404 an acre in the East – down 3.5 per cent since the end of June but still up three per cent compared to September 2022. The value of all land types – arable and pasture – sits at an average of £9,605 an acre, down three per cent in the last three months but still five per cent up on a year earlier. Oliver Carr, associate director in the rural agency team for Savills, said “There is a lot of variation depending on location, land grade and farm type. …However prices are generally still up on last year.” He added: “…interest rates are affecting financing costs meaning neighbouring landowners may find it difficult to fund purchases. Levels of supply have also started to increase, with more opportunities to purchase larger-scale commercial farms this year, while at the other end of the scale, higher interest rates have triggered some smaller-scale sales to raise capital.” A total of 16,500 acres of farmland have been publicly marketed in the East of England so far this year, down 7.8 per cent down on 2022 but up on the previous three years.
Tech businesses maintain appetite for funds despite challenges
Two-thirds of media and technology businesses say it has been difficult to access necessary funding in the UK over the past six months although firms in the sector have no plans to stop raising capital and borrowing despite high interest rates. According to a survey for RSM UK, only a third of businesses were able to easily access funds. Of those businesses with debt, just over half plan to seek a funding round in the next 12 months and nearly half say they expect to require further debt funding in the next 6-12 months. Laragh Jeanroy, office managing partner in Cambridge and Bury St Edmunds at RSM UK, said: “Whilst some businesses in East Anglia are struggling to access capital and others need to raise finance in the next 6-12 months, this is not down to lack of investor appetite or shortage of cash. The funding options available have never been greater whether it’s debt funding, venture capital or private equity.”
‘Make or break’ for many businesses as corporate insolvencies hit twenty-year high
A perfect storm of economic issues has led to the highest third quarter corporate insolvency figures in more than 20 years with a combination of rising costs, director fatigue and increased creditor pressure meaning more firms are now turning to a corporate insolvency process to resolve their financial issues, says the Eastern branch of R3. Insolvency Service show that there were 6,208 corporate insolvencies in the third quarter up ten per cent on the period a year ago. R3 Eastern Chair Hayley Watson, associate director atMcTear Williams & Wood, said: “Compulsory liquidation numbers have reached a four year high – partly because of legislation preventing them and then making the winding-up petition threshold higher in the aftermath of the pandemic, but also because these firms are now under their own pressures and are calling in debts in the hope of balancing their own books….Trading conditions are particularly tough right now, with the upcoming Christmas period a crucial time for a large number of firms. This year could be make or break for many local businesses, especially those in retail and hospitality.”
Work starts on innovative education campus in Cambs
Construction has started on a major educational expansion project eight miles north west of Cambridge involving the enlargement of Northstowe Secondary College. The development includes an expansion of the existing secondary school with an additional 600 places, a new sixth form accommodating 400 students, specialized provision for SEND students, a pre-school and a primary school for 630 pupils. Government funding from Homes England, the housing and regeneration agency, along with significant contributions from local authorities, has funded the project. Matthew Brown, head of large sites at Homes England, said: “This is a major milestone for Northstowe, marking a significant step forward in the town’s journey and making way for the next generation of learners in the local area.” Cambridgeshire County Council is overseeing the major development, with Kier design and construction. Other developments in Northstowe, including a temporary community building, a sports pavilion and plans for an Eastern Sports Hub complex. Homes England has a 20-year vision for Northstowe, aiming to transform the former RAF airfield and surrounding land into a community of 25,000 people, with10,000 new homes, community facilities, and a central town hub.
Photo (l-r): Cllr Michael Atkins (Cambs.CCl), Lesley Birch (Meridian Trust), Philip Harker (Homes England), Carole Moss (Northstowe Secondary College), Matthew Brown ( Homes England), Dennis Cotton (Kier Construction), Sarah Mason (Kier Construction ), Lee Collins (Kier Group).
Awards for ‘best employers’ in the region
One hundred and seventy people recently attended the Best Employers Eastern Region awards conference for the employee engagement programme based on employee surveys. The winners were: best small organisation: Lighthouse Training and Development; best not-for-profit: MS-UK; best medium organisation: PolicyBee; best professional services: Indigo Swan; best manufacturing: Amarinth; best large organisation: Holkham; best hospitality and retail: Notcutts; The Alex Pearce memorial award for most improved: Soler & Palau. Jeanette Wheeler, partner and head of employment and immigration at sponsors, Birketts, said: “This year’s programme was one of the best yet and we thoroughly enjoyed coming together with everyone to celebrate the achievements of the best of the best. Best Employers is about helping to make the Eastern region a place where businesses and organisations thrive because their people are committed to ensuring their success. This happens when staff thrive because their employers are creating better places for them to work – something that is vital in today’s competitive job market.” The event collaboration between Pure and eras, who create the survey, supported by sponsors Birketts.
Law firm launches new immigration service
Law firm Barker Gotelee is launching a new immigration law service led by solicitor Emel Dag Kilickaya (right) and aimed at businesses and individuals. Navigating the complex landscape of international employment can be challenging and the firm’s immigration law specialist will focus on simplifying the process for clients. The firm will work to help a small or large UK business which already has overseas employees and struggles to keep up to date with fast-evolving UK immigration law and regulations, or wishes to attract international talents and build a reputation by becoming a Home Office approved A-rated sponsor. The firm will be providing specialist immigration services, including spouse visas, visitor visas, student visas, skilled worker visas, settlement and British Citizenship Applications for individuals, as well as sponsorship licence applications for UK businesses. It can also provide management services of the sponsorship management system and run right to work checks for employers. Barker Gotelee will also offer legal assistance to individuals and businesses from abroad who are looking to establish a commercial enterprise, invest, or work in the country.
Agricultural association appoints first commercial director
The Royal Norfolk Agricultural Association has appointed its first commercial director, Richard Greenacre (right), with wide experience and a proven track record. He will be responsible for spearheading the association’s commercial initiatives, building strategic partnerships, and driving sustainable growth in line with its vision and values. Under his lead, the RNAA will be fostering stronger relationships within the business community and looking at new ways to support local agriculture and rural development. Mark Nicholas, managing director of the association, said: “His wealth of experience and strategic insight will be instrumental in propelling the RNAA’s commercial operations to new heights. Under his guidance, the association will continue to flourish and contribute significantly to the agricultural and economic landscape of Norfolk.”
Richard Greenacre added: “I am excited to work alongside the dedicated team at RNAA in achieving our shared goals and making a positive impact in the region.”
