Prime farmland prices slip as more acreage put up for sale
Farmland prices slipped in the East of England last year as the acreage put up for sale rose markedly. Prime arable land was trading at an average of £9,914 an acre in the East of England at the end of 2024, down 2.7 per cent compared to 2023, according to Savills quarterly farmland survey. It also shows that 20,703 acres of farmland had come to market by the end of December last year, up eight per cent on the previous year. Oliver Carr, at Savills in Cambridge said: “A good proportion of the land sold in the east is productive farmland where both buyer and seller are driven by commercial objectives. Given the recent uncertainty in the agricultural economy some would-be sellers are waiting for greater clarity before opting to sell. ….Values in the east have also historically been amongst the strongest in the country and – whilst overall there may be a slight softening – this is a reflection of variation across the region alongside price rises in other parts of the UK. For the best properties and where there is limited supply, stronger than average prices continue to be achieved.” Nationally, the farmland market saw its highest activity levels last year since 2018, with over 187,500 acres listed for sale,up 19 per cent on 2023. The average price for ‘all types’ of farmland meanwhile sat at £9,290 an acre in the East of England – a fall of 1.12 per cent on 2023 but above the national average of £8,299 an acre. The amount of farmland coming to the market this year is expected to remain relatively stable with prices also holding firm.
Prospect of interest rate cuts lifts optimism despite fall in orders
Businesses in the East of England remain optimistic on growth over the next 12 months on hopes of lower interest rates although activity fell in January, according to a key survey. The NatWest East of England growth tracker business activity index was unchanged at 48.9, below the no-change mark of 50 and signalling lower output for the third month running. Orders fell and firms reported less new work due to clients cutting costs and weaker business confidence. Whilst the strength of general sentiment across all sectors picked up slightly from December’s two-year low, it remained relatively weak. Lisa Phillips, regional managing director, Midlands and East, commercial mid markets, said: “Companies in the East of England continued to navigate a difficult period at the start of 2025. Activity fell for the third month running, albeit only modestly, as new business declined for the third time in four months….The Bank of England’s interest rate cut last week means that policy is now less restrictive, with further loosening expected in the year ahead.”
Employers spend a ‘month of working time’ dealing with employment tribunal claims
Employers devoted more than a month of their working time to dealing with employment tribunal claims over a recent two year period, with most claims being settled before they even reach a hearing, according to research from law firm Birketts. Its survey of 500 HR professionals at firms in England and Wales – most with over 1000 employees – showed that over the two years to July 2024, respondents had devoted an average of 4.8 weeks to handling employment tribunal claims. Unfair dismissal claims topped the claims table with 24 per cent, followed by disability discrimination at 22 per cent. Catherine Johnson, partner in Birketts’ employment team, said: “Employment claims have become a costly burden for businesses, financially but also in terms of the resources required to handle them….With a backlog of employment claims in the courts and tribunals, and the introduction of new and strengthened workplace rights (including a ‘day one’ right to claim unfair dismissal) being a central element of the government’s policy agenda, staying ahead of the rapidly changing employment law landscape has never been so important for businesses and their HR leaders.” Over the 24 months, the majority of respondents (62 per cent) reported settling tribunal claims before the final hearing.
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New developments planned to drive growth and jobs at freeport sites
New developments and initiatives are planned to drive continuing growth across the Freeport East area in 2025. Work is set to start soon on groundworks and utilities to support the 32 hectare Freeport East Felixstowe tax site development. Together with investment incentives for occupiers, it will provide up to 1.4m sq ft of manufacturing and advanced logistics space close to the port. It will complement the 68 hectare, 2.4m sq ft Gateway 14 freeport site at Stowmarket which has seen new investments from the UK, Germany and Turkey and has a strong pipeline of interest. Steve Beel, CEO at Freeport East, said: “Off the back of a strong 2024, Freeport East is looking forward to progressing new investments to deliver growth and new jobs in 2025….This coming year we’ll see further developments progressing in and around Felixstowe which will offer the opportunity to those involved in international manufacturing, logistics and clean energy to take advantage of this uniquely strategic location.”
Region’s firms ‘struggle’ to secure extra funding for growth
Many companies in the East of England anticipate needing extra funding for growth this year but most expect a struggle to secure it according to research from Grant Thornton UK. The firm’s survey of 800 UK businesses found that 70 per cent expect that they’ll need to apply for additional funds, with most needing £10-25 million. Investment in new premises or equipment and in R&D or new service offerings’ were the top reasons. Over one quarter said it would be needed to manage market challenges. But over two thirds (68pc) said that their business is currently finding it hard to access new sources of funding and the majority are using alternative lending sources. Larger businesses are more confident that their existing lender would support additional funding needs than medium-sized businesses. Charlotte Anderson, practice lead for Grant Thornton UK in Cambridge, Milton Keynes, and Chelmsford, said: “Securing funding remains a crucial catalyst for business growth across our region but few expect the process to be straightforward. Higher interest rates are an ongoing challenge in the wider market, along with rising input and labour costs – exacerbated by the increases to employer NI contributions and National Minimum Wage announced in the Budget – and, for some sectors, exposure to waning consumer confidence. These issues are likely increasing businesses’ need for further funding while also impacting their ability to access it.”
Start ups on the rise despite economic uncertainty
Business start ups in East Anglia in January rose to 7,490, up by a third on the previous month and one of the highest totals of the past six months. Figures from the Eastern branch of R3 also show a fall in insolvency-related activity across East Anglia. R3 Eastern chair Hayley Watson said: “It’s good to see some positive growth statistics emerging, particularly as we are currently facing so much economic uncertainty.” But she added: “It is important to see the full picture, however, and R3’s analysis shows that a sizeable percentage of our region’s businesses continue to struggle – 64,092 East Anglian companies had late payments on their books in January, which is not only high, but is also a rise from the previous month.”
Planning go-ahead given for Newmarket industrial development
Developer Chancerygate has been granted planning permission for a major logistics, R &D scheme, Nucleas, on the site of a former electronics manufacturer in Newmarket. The 51,000 sq ft of Grade A urban development on Exning Road will involve ten units of varying sizes available on both a leasehold or freehold basis and is set to create 100 jobs. Chancerygate senior development director, George Dickens said: “There is strong demand for high specification accommodation, and this planning permission means our Nucleus development will provide sustainable, high-quality buildings in close proximity to key infrastructure.
Contractor appointed for skills & innovation centre in Suffolk
Gateway 14 – advised by its development partner Jaynic – has appointed Wilten Construction to build a new skills & innovation centre at the development next to the A14 at Stowmarket. Construction is set to start on the £18m three-storey centre, that will be owned by Mid-Suffolk District Council with an operator yet to be appointed. Gateway 14 is part of Freeport East and involves a 35,000 sq ft state-of-the-art, building providing office space for start-ups, collaboration and innovation spaces, training and meeting rooms and a café. Jaynic development director Ben Oughton said: “The Skills and Innovation Centre will enhance the offer of Gateway 14 to other occupiers making the park, adjacent to Junction 50 of the A14, one of the key schemes in the East of England.”
Cambridge company launches apprenticeship opportunities
Cambridge company Domino providing new opportunities for apprenticeships as it marks this year’s National Apprenticeship Week (February 10-17). The company is offering three roles – two in R&D software at its Bar Hill, Cambs hq and and an engineering position at its Liverpool inks plant. Since the company’s scheme was launched in 2016, 37 apprentices have been able to earn whilst they learn at Domino, with several being nominated for national awards from industry bodies including Make UK. Domino has also joined a new apprenticeship initiative from Automate UK to address skills shortages in manufacturing. Mark Gearing, print system director at Domino said: “The ground-breaking Apprenticeship Cluster program aims to deliver top-tier opportunities for young people through a collaborative approach, with reciprocal training, team building events and value-added projects to benefit both employees and companies.” Photo: Current apprentices at Domino.
Separately, Harwich Haven Authority’s marine apprenticeship programme has been awarded £18,000, from the the Maritime Educational Foundation, a shipping industry charity. It involves an initial £9,000 to support the training of three new marine apprentices, followed by an additional £9,000 on completion.
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