Leap in cost inflation in the region ‘could choke off demand’

Growth picked up across the East of England in April but private firms in the region faced a record spike in price input inflation as war in the Middle East drove up costs. The NatWest East of England growth tracker business activity index rose to 52.1 in April, from 50.2 in March, signalling a ‘moderate increase’ in output in line with the trend over the past year. New business growth resumed following a dip in March although the upturn was modest and softer than in January and February. But costs rose at the fastest rate since the survey began in 1997 with a monthly increase in the seasonally adjusted input prices index of 8.6 points. Alongside rising labour costs, fuel, energy, freight and raw materials also rose due to the international conflict. Lisa Phillips, regional managing director, Midlands and East, commercial mid markets at NatWest, said: “The East of England was a bright spot in the UK economy in April, being one of only three regions to post higher new business. This led to the fastest output growth since January.” She added: “A substantial rise in inflation could choke off demand, and there remains great uncertainty over the impact of the conflict in the Middle East on supply chains, especially fuel. The 12-month outlook in the East of England edged higher in April, but remained well below its long-run trend.”
New skills and innovation centre set to open in Suffolk

A new skills and innovation centre at Gateway 14 in Stowmarket is set to open this summer following the completion of construction work. Mid Suffolk District Council’s Stowmarket Innovation Gateway will offer office spaces for high growth start-ups, collaboration and innovation areas, meeting rooms a café and training spaces. Cllr Richard Winch, cabinet member for housing and property at the council, said: “From the very get go, this has been an incredibly exciting project with the prospect of attracting and supporting innovative businesses and entrepreneurs, not only for the benefit of Stowmarket, but the wider region.” The centre was designed with growing sectors such as the green economy and digital/AI technology. Developer, Jaynic worked with Gatewayn14 and Wilten Construction as development manager to deliver the three-story building, which is next to jct. 50 of the A14.
Ben Oughton, development director of Jaynic, said: “Completion of the Stowmarket Innovation Gateway at Gateway 14 marks an important stage in the delivery of a high-quality development for Gateway 14 by Jaynic. From the outset, the scheme has been designed and constructed with a strong emphasis on sustainability, incorporating a range of environmentally responsible features that support long-term performance and efficiency.” Freeport East provided £16.66m for the project, with the remaining costs being provided by Mid Suffolk DC.
New ‘concierge service’ launches with target to attract £500 million of investment in the East

Freeport East, the low tax zone, has launched an “investment concierge service” aimed at international investors and growing UK businesses with a goal to attract £500m into the region. The new service provides end-to-end support for companies entering or expanding in the UK, offering guidance on location sourcing, freeport tax reliefs, investment opportunities, company registration, banking, planning and regulatory guidance, university along with skills connections and supply chain and network development. Freeport East will also help to channel investment enquiries to specialist experts in the local area. Steve Beel, CEO at Freeport East, said: “We’ve already helped to bring £450m of new private sector investment into the East of England, and along the way we’ve built up real knowledge of what makes businesses thrive here and the support they need. The Investment Concierge Service is how we put our networks, our relationships, our experience as well as our financial support to work to help more international and UK businesses grow their footprint in the region…” Based around the ports of Felixstowe, Harwich and Ipswich, Freeport East and the wider region offers significant opportunities across clean energy, digital technologies, defence, life sciences, advanced manufacturing and logistics.
Photo (l-r): Rick Gambetta, founder & partner GreenCrowd, Steve Beel, chief executive – Freeport East, Alex Courage, head of international partnerships – Freeport East
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Software developer joins region’s ‘rich list’
Paul Hamilton, who set up the software developer Halo, which is used by the Ministry of Justice, Microsoft and the University of Cambridge among others, is a new East Anglia entry on this year’s edition of The Sunday Times Rich List. A deal with private equity valued the Suffolk-based firm, where Hamilton owns 73 per cent of the shares, at $2 billion. Meanwhile, Kirsten Rausing, who alongside her sibling owns a third of Tetra Laval – making her estimated net worth £12.6 billion- tops the list in East Anglia. The others in the top ten on the list in the region are: 2. Mark and Lindy O’Hare (data analytics, £1.836bn), 3. Peter Harris and family (leisure entrepreneur, £1.787 bn) 4. Jon Hunt (developer, £1.447 bn ) 5. Paul Hamilton (£1.081bn, software developer) 6. Barry and Eddie Hearn (sports promoters, £1.035bn ) 7. Luke and Brian Comer (developers, £946m ) 8. The Duke of Bedford (heir, £882m ) 9. Patricia Thompson and family (horsetrainer, £902m) 10. Andy Hill and family (housebuilder, £845m). Ed Sheeran was named the wealthiest under 40 in East Anglia (£410 million).
£65 million finance boost for housing associations
Lloyds Banking Group has agreed a new £65m finance package with Amplius to accelerate home upgrades and investment in the Midlands, East and South East of England. It combines a £30 million National Wealth Fund-backed green retrofit loan with a £35 million increase to an existing revolving credit facility. The green retrofit loan follows deals with Wheatley, Sanctuary, Orbit, VIVID, SNG and Peabody.
Separately, an East Anglia family-owned hospitality business SB Group Holdings is expanding using a finance package from Lloyds to open three new German Donner Kebab restaurants in Cambridge, Redditch and Lincoln, with the potential for further expansion later in the year. The expansion will create up to 80 new jobs across all regions.
New daily coach service launches between Norwich and Heathrow

Coach group Flixbus is launching a new service between Norwich and London Heathrow Airport with six daily departures and tickets starting at £9.99. Coaches will run from Norwich Bus Station, UEA , Thetford Bus Interchange, Cambridge Parkside, Cambridge Trumpington Park and Ride, and Luton DART Parkway before arriving at Heathrow Airport. Shamil Maindiratta, managing director of FlixBus UK, said: “We’re proud to launch this new route and offer passengers across East Anglia direct, affordable, and sustainable travel options to international airports. Rather than complicated interconnections, passengers can enjoy a comfortable journey that extends their holiday from the moment they step on board.”Tickets between Cambridge and Heathrow start at £5.99.
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